Mumbai, (Maharashtra) [India] 19 June (ANI): Zurich Insurance Company Limited (Zurich) has acquired a majority stake in Kotak Mahindra General Insurance Company Limited from Kotak Mahindra Bank. Zurich says the acquisition process has been completed after all necessary regulatory approvals.
Zurich has acquired a 70 per cent stake in Kotak General Insurance for a total consideration of Rs 5,560 crores (i.e., USD 670 million), through a combination of fresh growth capital and share purchase. The transaction marks the largest foreign investment in India’s general insurance market and is the first by a foreign insurer since the foreign direct investment (FDI) limit was raised from 49 per cent to 74 per cent in 2021.
Zurich and Kotak JV will build a leading general insurer in India. The acquisition will help Zurich to enter India, which is one of the world’s most important growth markets and reflects continued progress in the Asia Pacific. In due course, the JV will adopt a new brand that will represent both Zurich and Kotak as shareholders.
The transaction was announced in November 2023 and is finally completed now after all regulatory approvals from the Reserve Bank of India, the Insurance Regulatory and Development Authority of India, and the Competition Commission of India.
Tulsi Naidu, CEO-Asia Pacific, Zurich Insurance Group says the acquisition of Kotak General Insurance is a key strategic step for Zurich to become a leading player in India which is a very significant growth market for the sector.
“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. Our goal is to build resilience among Indian customers and businesses through simple and innovative solutions.” Said Naidu.
Shanti Ekambaram, Deputy Managing Director, Kotak Mahindra Bank said, “We are excited about the partnership with Zurich as we aim to leverage our combined local knowledge and global expertise to enhance insurance coverage in India. The partnership 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 prioritising customer needs.”
Suresh Agarwal, Managing Director & CEO, Kotak Mahindra General Insurance said, “This milestone marks a pivotal moment for us and will catalyse our expansion in the market by offering comprehensive solutions tailored to meet the evolving needs of our diverse customer base. This is a major stride in advancing our mission of enhancing insurance penetration in India through technology, scale, and bringing global best practices to our business to provide value-adding experiences to our customers. We are committed to setting new benchmarks for the general insurance industry.”
Zurich Insurance Group (Zurich) is a multi-line insurer serving people and businesses in more than 200 countries and territories. Its customers include individuals, small businesses, and mid-sized and large companies, as well as multinational corporations.
Kotak Mahindra Group is one of India’s financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group’s flagship company, received a banking licence from the Reserve Bank of India (RBI), becoming the first non-banking finance company in India to convert into a bank – Kotak Mahindra Bank Limited. (ANI)
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