Zurich Insurance Group has submitted an improved cash proposal to acquire Beazley, triggering a sharp jump in the London-listed specialist insurer’s share price and putting renewed attention on the company’s growing Bermuda footprint.

Beazley said on Monday that it had received an unsolicited, non-binding and conditional proposal from Zurich to acquire the entire issued and to-be-issued share capital of the company at 1,280 pence (about $17.20) per share in cash. The board has not yet considered the revised proposal, which was submitted on Monday.

Beazley confirmed that an earlier Zurich approach on January 4, valuing the company at 1,230 pence (about $16.50) per share, was unanimously rejected by its board on the basis that it “significantly undervalued” the business. Shareholders have been urged to take no action while the board reviews the latest offer.

Zurich said the improved proposal represented a 56 per cent premium to Beazley’s closing share price on Friday and a 32 per cent premium to its previous all-time high. The insurer argued that the offer provides full and immediate value for shareholders and exceeds what Beazley could reasonably achieve through the stand-alone execution of its strategy.

Markets reacted swiftly. Beazley shares jumped more than 40 per cent in early afternoon trading on Monday to around £11.55 (about $15.51), hitting a record high. Zurich shares edged lower in Swiss trading.

The bid comes as Beazley continues to deepen its ties with Bermuda. The insurer has been active in the Bermuda market through cyber catastrophe bonds issued via Bermudian-domiciled special purpose vehicles and has outlined plans to establish a $500 million new Bermuda operation, focusing on alternative risk transfer, captives, cyber insurance and speciality reinsurance.

Under United Kingdom takeover rules, Zurich has until February 16 to announce a firm intention to make an offer or confirm that it does not intend to proceed, unless the deadline is extended by The Takeover Panel.