Beazley has suffered a sharp fall in profits ahead of its planned £8.1 billion takeover by Zurich, as worsening conditions in specialist insurance markets and rising geopolitical risks weighed on the Lloyd’s-focused insurer.

The FTSE 100 company said pre-tax profits fell 52.7 per cent to $237.7 million (£176.6 million) in the first six months of 2026, compared with the same period a year earlier. The results included $33.6 million (£25 million) of costs associated with the proposed acquisition by Swiss insurance giant Zurich.

Chief executive Adrian Cox said the business had been hit by “rapidly softening conditions” across specialist insurance markets, alongside a more volatile global risk environment.

The company pointed to increased losses linked to war and conflict, particularly within its political violence and marine war insurance portfolios, as major factors behind the decline. Net insurance premiums also fell 6 per cent to $2.44 billion (£1.71 billion) during the period.

“Against a backdrop of increasing global turbulence, in particular cyber risk exposures and increasing geopolitical events impacting our political violence and marine war books, we have continued to use our expertise to underwrite appropriately,” Mr Cox said.

He added that while everyday claims had been lower than expected, the first half of the year marked a return to a more challenging period of major losses after several years of relatively favourable conditions.

The results arrive as Zurich prepares to absorb Beazley after agreeing the £8.1 billion deal in March. Under the terms of the transaction, Beazley shareholders will receive £13.35 per share, with the acquisition expected to complete by the end of the year.

The takeover will bring an end to Beazley’s tenure on the London Stock Exchange and strengthen Zurich’s presence in specialist insurance markets, particularly cyber risk, professional indemnity and political risk coverage.

However, the disappointing figures have raised questions over the timing of the deal. Jefferies analyst Philip Kett described the update as “difficult reading” for Zurich shareholders ahead of completion.

Founded as a specialist insurer, Beazley has built a reputation for covering complex risks, including cyber attacks, marine incidents, property damage, reinsurance and political instability.

The latest results underline the growing pressure facing insurers as conflicts, cyber threats and economic uncertainty reshape the global risk landscape.