UK speciality insurer Beazley would recommend a sweetened £8 billion ($10.97 billion) takeover by Zurich Insurance once Europe’s second largest insurer makes a firm offer, Reuters reported today.

The announcement came after Beazley rejected several other bids from the Swiss insurer due to what it termed as “significant under valuation”.

On Wednesday, the two companies revealed Zurich had increased its offer to £13.10 (around $17.88) a share, up from the £12.80 (approximately $17.47) rejected by Beazley’s board last month.

The deal could bring renewed attention to Beazley’s growing Bermuda footprint. Last November it deployed $500 million in capital to establish a new platform on the island.

Earlier this week the firm announced 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.

Under the latest sweetened scheme, Zurich would pay 1,310 pence per share in cash plus permitted dividends of up to 25 pence per share, valuing Beazley at up to 1,335 pence per share.

Shareholders have been urged to do nothing while the board reviews the latest offer.

Beazley would be expected to pay its shareholders a dividend of up to 25p, implying a total value of up to £13.35.

News of the deal sent Beazley’s London shares shooting up almost 9 per cent.

Zurich chief executive Mario Greco told the British Financial Times that the acquisition would help it expand into certain segments of the speciality insurance market such as construction, energy, cyber, shipping and aviation.

According to the Financial Times, Beazley chief executive Adrian Cox has said the insurance industry must be run slightly differently to a property and casualty business, which Zurich recognised.