Zurich Insurance Company Limited on Wednesday announced that it has acquired a majority stake in Kotak Mahindra General Insurance Company Limited from the house of Kotak Mahindra Bank Limited, following the receipt of all necessary regulatory approvals. As per the company, Zurich has acquired a 70 per cent stake in Kotak General Insurance for a total consideration of Rs 5,560 crores or $ 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.
Tulsi Naidu, CEO – Asia Pacific, Zurich Insurance Group, said, “The acquisition of Kotak General Insurance sets the way forward for Zurich to be a leading player in a very significant growth market – India. 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.”
Additionally, the combined entity will bring to the Indian market the collective commitment to trust, innovation, integrity and customer service. In due course, the business will adopt a new brand that represents both Zurich and Kotak as shareholders.
“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,” said Suresh Agarwal, Managing Director and CEO, Kotak Mahindra General Insurance.
Notedly, 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.