British insurer Beazley, which set up an underwriting platform in Bermuda last year, has agreed to the terms of ​an $10.8 billion all-cash takeover bid from Zurich Insurance Group, the ‌companies announced.

Analysts say the takeover is likely to pave the way for more deals ​across the sector, as competition rises for market share in ​the fast‑growing speciality insurance market, Reuters reported.

Swiss-based Zurich is looking at the acquisition as a move to grow its specialty business, including risks such as cyber, marine, aviation, space ​and fine art.

Beazley, a specialty insurer and reinsurer, announced last November that it had deployed $500 million in capital to establish a new platform in Bermuda, aiming to drive the group’s expansion, particularly in the insurance-linked securities market.

The plan for the Beazley Bermuda platform was to generate $400 million in premium by 2030 through four main elements — captive insurance and reinsurance, alternative risk transfer, an insurance-linked securities (ILS) business focused on cyber risk, and specialty insurance and reinsurance.

The plans were to build out the platform, relocating some staff to the island and hiring others.

Mario Greco, chief executive officer of Zurich, said his company was “committed to championing underwriting excellence, retaining key talent and maintaining the Beazley brand within the broader Zurich Group”.

“Together with Beazley, we will create the world’s ​leading specialty underwriter, with around $15 billion of pro forma gross written premiums, exceptional underwriting ‌expertise ⁠and data capabilities, and leading access to global distribution,” Mr Greco added.

In a joint statement, the companies said Zurich had committed to safeguarding the employment and pension rights of Beazley employees, and indicated that the combined specialty business will continue to be organised around lines of business.

Analysts from investment bank Jeffries said in a note: “Beyond giving finality to the ⁠transaction, the announcement might also be read as a signal that ​Beazley’s loss exposures, and likely those of the broader specialty insurance ​market, remain contained.”