Beazley PLC (LON:BEZG) stock fell 0.5% on Thursday after the specialty insurer unanimously rejected a takeover proposal from Zurich Insurance Group, stating that the offer materially undervalues the company.

The London-based insurer confirmed it had turned down Zurich’s cash proposal of 1,280 pence per share, which valued Beazley at approximately £8.2 billion. The rejection follows detailed evaluation by Beazley’s board and its advisers.

According to the company’s statement, Zurich’s latest proposal is below its previous June 2025 offer of 1,315 pence per share, which valued Beazley at £8.4 billion or approximately 2.4 times its tangible book value as of December 31, 2024.

Beazley’s board expressed confidence in the company’s standalone prospects, highlighting its track record of delivering shareholder returns of approximately 2,200% over the past 20 years.

The company also pointed to its underwriting excellence with an average undiscounted combined ratio of 78% since 2022 and its leadership position in the growing cyber insurance market.

The insurer noted it has returned over $2.5 billion to shareholders over the last decade, including $1.3 billion in the past three years, while maintaining what it describes as “a very prudent capital and reserving policy.”

“…we think the bid has focused the spotlight on Beazley’s strong strategic positioning, track record and the distinctiveness of its operations. This could attract other suitors. Given the medium-term outlook for industry profitability, however, we remain of the view that consolidation at a reasonable premium could be in the best long-term interest of Beazley’s shareholders,” according to RBC analysts.