Zurich Insurance Company has completed of acquiring majority stake in Kotak Mahindra General Insurance Company from Kotak Mahindra Bank, following the receipt of all necessary regulatory approvals.
Zurich has acquired a 70% stake in Kotak General Insurance for a total consideration of Rs. 5,560 crores ($670 mn), through a combination of fresh growth capital and share purchase.
This transaction represents the largest foreign investment in India’s general insurance market and the first since the FDI limit increased from 49% to 74% in 2021.
Zurich’s entry demonstrates a strong commitment to developing and expanding India’s insurance sector, aligning with the IRDAI‘s goal of achieving “Insurance for All” by 2047.
The combined entity will leverage Zurich and Kotak’s shared values of trust, innovation, integrity, and customer service. It will eventually adopt a new brand reflecting both shareholders.
India’s general insurance market is set for significant growth due to increased consumer awareness, ongoing digital and financial infrastructure development, and a growing middle class.
Customers in SME segments have distinct and complex needs that require a diverse range of commercial propositions to manage and minimize business continuity risks.
As an established industry leading insurer, Zurich has a proven track record in delivering differentiated services and solutions to retail and commercial insurance customers underpinned by strong underwriting discipline and capability.
The acquisition of Kotak General Insurance sets the way forward for Zurich to be a leading player in a very significant growth market – India. This is a key strategic step for Zurich
Tulsi Naidu, CEO, Asia Pacific, Zurich Insurance Group
“India’s insurance market offers immense potential, and together with Kotak, we are committed to supporting its growth and development. We have the global scale, strong expertise in managing complex risks, digital capabilities, and technology leadership to bridge the insurance protection gap,” said Tulsi Naidu.
Shanti Ekambaram, Deputy Managing Director, Kotak Mahindra Bank said, “The new entity will unlock the next phase of growth for Kotak General Insurance and create a leading non-life insurance franchise that will focus on technology and scale, while prioritizing customer needs.”
The transaction was announced in November 2023 and was subject to customary conditions precedent including regulatory approvals from the Reserve Bank of India, Insurance Regulatory and Development Authority of India, and the Competition Commission of India. All necessary approvals have been received.
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