Zurich completes 70% stake buy for Rs 5,560 cr in Kotak General Insurance

The stakes were acquired through a combination of fresh growth capital and share purchase

Zurich Insurance Company on Wednesday said it has completed acquiring a majority stake in Kotak Mahindra General Insurance from Kotak Mahindra Bank after receiving all regulatory approvals.

Zurich has acquired a 70 per cent stake in Kotak General Insurance for Rs 5,560 crore (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 since the foreign direct investment (FDI) limit was raised from 49 per cent to 74 per cent in 2021,” the said in a statement.

The transaction was announced in November 2023 and was subject to customary approvals. These included approvals from the Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India (Irdai), and the Competition Commission of India (CCI).

 

The company has received all the necessary approvals.

“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,” said Tulsi Naidu, chief executive officer (CEO) – Asia Pacific, Zurich Insurance Group.

Naidu added that, “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, 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.”

“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,” said Suresh Agarwal, managing director (MD) and CEO, Kotak Mahindra General Insurance.

(Disclaimer: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd)