JDC TECHNICAL EVALUATION REPORT

Subject: Zurich-Beazley

Entity: Zurich Insurance Co Ltd (00021334)

Reference UID: 3892 (Published as UID3888)

Market Authority: London & International Markets

Case Ref: 00021E011A01

Date: 6th March 2026

Transaction Status: Completed — The High Court has sanctioned the movement, and the ledger is now closed for this specific period

Transaction Details Loss Portfolio Transfer (LPT)

Transaction Scope: The arrangement involves Zurich Insurance Co Ltd providing reinsurance cover for a specific book of Beazley-related liabilities

Case File Supplement: UID 3892.1 (Zurich/Beazley Integration)

1. The Financial Architecture

  • Total Consideration: Officially recommended at £8.1bn–£8.2bn (approximately $10.9 Billion).

  • Shareholder Value: 1,335 pence per share, comprising 1,310p in cash and a 25p permitted dividend.

  • Funding Mix: A tripartite engine consisting of $3.0bn existing cash, $2.9bn new debt, and a $5.0bn equity raise via accelerated bookbuild.

2. The Legacy Catalyst (The “Tail” Disposal)

  • One-Off Capital Extraction: Zurich expects to extract approximately $1 Billion in one-off capital synergies within the first 24 months of completion.

  • Reserve Rationalization: The merger creates a $15 Billion Specialty gross written premium (GWP) platform.

  • Technical Triggers: Integration often leads to the disposal of non-core “back-book” liabilities. As Zurich absorbs Beazley’s Cyber, Marine, and Political Risk lines, we anticipate a strategic offloading of redundant legacy tails to specialist RITC (Run-off) acquirers to streamline the SST (Swiss Solvency Test) ratio, which is projected to decline by 30 percentage points post-completion.

3. Strategic Timeline

  • Court-Sanctioned Scheme: The transaction is being implemented via a court-sanctioned scheme of arrangement.

  • Finality Target: Completion is anticipated in H2 2026, subject to regulatory and antitrust approvals.

Additional Comment

N/A