Australia’s competition regulator cleared Zurich Insurance Group’s proposed £8.1 bn acquisition of Lloyd’s underwriter Beazley, saying the transaction is unlikely to reduce competition in any market.
The Australian Competition and Consumer Commission said the acquisition may proceed after reviewing the overlap between Zurich and Beazley in Australia.
The regulator found low market shares across the relevant insurance products and limited increases in market concentration after the deal.
The ACCC said Zurich and Beazley will continue to face competition from several alternative suppliers of specialty insurance products in Australia. The regulator reviewed overlapping product areas including cyber, marine, SME insurance, corporate property, personal accident, management liability, professional liability and financial lines.
According to Beinsure, the ACCC also concluded Zurich and Beazley are not close competitors in Australia. The regulator said the companies have different areas of relative strength and commercial focus, reducing the risk of weaker competition after the transaction.
The ACCC opened its inquiry into the proposed acquisition in May and had scheduled its initial assessment to conclude by July 7. Its June 17 decision allows the Australian element of the deal to move ahead.
Zurich announced the all-cash offer for Beazley on March 2. The transaction values the Lloyd’s insurer at about £8.1 bn.
Beazley shareholders approved the acquisition in April. At the general meeting, 99.92% of Beazley shares voted in favour. At the court meeting held the same day, 99.91% of scheme shares backed the transaction.
The deal still requires further approvals before completion. Zurich awaits clearance from UK regulators, including the Prudential Regulation Authority and the Financial Conduct Authority, as well as Lloyd’s of London, the Swiss Financial Market Supervisory Authority and the European Union’s competition authority.
Zurich filed for European Union merger approval on June 10 under case number M.12434. Beazley said the scheme also remains subject to court sanction at a hearing expected in the second half of 2026.
If approved, the acquisition is expected to become effective in the second half of 2026. Zurich said the combined group will become the world’s largest specialty insurer, with combined specialty gross written premiums of about $15 bn as of December 31, 2024.
