Zurich Insurance has acquired a majority stake in Kotak Mahindra General Insurance from Kotak Mahindra Bank for US$670 million through a combination of fresh growth capital and a share purchase.
The company states that this transaction represents the largest foreign investment in India's general insurance sector to date, and it is the first by a foreign insurer since the foreign direct investment cap was raised from 49 to 74 per cent in the country in 2021.
With this entry, Zurich aims to foster the development and expansion of India's insurance sector in keeping with the Insurance Regulatory and Development Authority of India's goal of achieving ‘Insurance for All’ by 2047.
In due course, the business will adopt a new brand that represents both Zurich and Kotak as shareholders.
Tulsi Naidu, CEO of Asia Pacific, Zurich Insurance Group, comments: “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.
“India’s insurance market offers immense potential, and together with Kotak, we are committed to supporting its growth and development.”
Shanti Ekambaram, deputy managing director at Kotak Mahindra Bank, says: “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 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 prioritising customer needs.”
