Zurich Insurance Company is set to invest ₹4,051 crore ($540 million) in a significant transaction with Kotak Mahindra Bank and Kotak Mahindra General Insurance Company. The Swiss firm aims to secure a 51% controlling stake in the Indian insurer via growth capital and share purchases, making this the largest investment by a global insurer in an Indian non-life insurer. An additional 19% stake is planned to be acquired within three years of the initial transaction.
The deal is pending regulatory approval from several Indian authorities, including the Reserve Bank of India, the Insurance Regulatory and Development Authority of India, and the Competition Commission of India. Once completed, Kotak General Insurance will operate independently from Kotak Mahindra Bank. The transaction values the insurer at approximately ₹7,943 crore ($1.06 billion) post-money and is expected to conclude by June 30, 2024.
Dipak Gupta, MD and CEO of Kotak Mahindra Bank, sees the partnership between Zurich, with its 150-year legacy and global capabilities, and Kotak, known for its pan-India distribution presence and high-quality franchise, as potentially transformational for the Indian general insurance market. This sentiment was echoed by Tulsi Naidu, CEO of Asia Pacific at Zurich Insurance Company, who also expressed confidence in the partnership's ability to revolutionize the Indian general insurance market with innovative customer solutions.
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