Fitch upgrades Beazley IFS rating to 'AA'

The following is a press release from Fitch Ratings: Fitch Ratings-London-07 October 2026: Fitch Ratings has upgraded Beazley Insurance Designated Activity Company (DAC)'s Insurer Financial Strength (IFS) Rating to 'AA' from 'A+'. Fitch has also upgraded Beazley Insurance DAC's and Beazley plc's (together, Beazley) Long-Term Issuer Default Ratings (IDRs) to 'AA-' from 'A'. The rating have been removed from Rating Watch Positive. The Outlooks are Stable. The rating actions follow the completion of Zurich Insurance Group's (ZIG) acquisition of 100% of Beazley's shares. Zurich Insurance Company Ltd (IFS: AA/Stable, IDR: AA-/Stable) is ZIG's main operating entity. The upgrades reflect Fitch's assessment of Beazley's strategic importance to ZIG as 'Very Important'. This results in a two-notch uplift from Beazley's standalone credit quality of 'a+' for its IFS Rating, given ZIG's stronger credit quality. The Stable Outlook reflects the Stable Outlook on ZIG's ratings and Fitch's expectation that Beazley will remain strategically 'Very Important' to the group. Beazley's standalone credit assessment continues to reflect its strong company profile, very strong financial performance and capitalisation, and conservative approach to reserving and investments. Key Rating Drivers Strategically 'Very Important' to ZIG: Fitch assesses Beazley as strategically 'Very Important' to ZIG following the completion of the acquisition. Beazley is expected to be central to ZIG's combined specialty business and provide the group with a leading position in the Lloyd's market, including in cyber insurance. The acquisition supports ZIG's strategic objective of expanding its specialty insurance franchise. Fitch expects Beazley to continue operating as ZIG's specialty business platform while retaining its brand and underwriting culture. This should support continuity in underwriting discipline, client relationships and the retention of key personnel. Expected Group Support: Fitch expects ZIG to provide strong support to Beazley if required, given the latter's strategic role within the group, its contribution to ZIG's specialty growth ambitions and the reputational implications for ZIG of any financial stress at Beazley. We consider that Beazley's integration into ZIG strengthens its financial flexibility and access to capital. Strong Company Profile: Fitch views Beazley's company profile as strong. Its insurance written premiums grew 7% to USD6.1 billion in 2025. Beazley's company profile score is supported by its favourable diversification by geography and business, but is constrained by its operating scale, which Fitch views as moderate compared with that of all other UK non-life insurance companies. Beazley's adjusted IFS Rating of 'a+' is one notch below its 'aa-‌' implied IFS Rating due to its company profile, which has a stronger impact than the standard weighting would suggest. Larger Specialty Platform and Synergies: Fitch expects the combined specialty platfo