Zurich Insurance Company on Wednesday (19 June) announced it had completed the acquisition of a 70% stake in Kotak Mahindra General Insurance Company (“Kotak General Insurance”) from Kotak Mahindra Bank for 55.6bn rupees (US$670m). The transaction includes a mix of fresh growth capital and share purchase.
The deal, first announced in November 2023, represents the largest foreign investment in India’s general insurance market. Zurich also becomes the first foreign insurer to enter India since the foreign direct investment (FDI) rules were amended in 2021 to allow up to 74% foreign ownership.
The collaboration aims to build a leading general insurer in India by combining Zurich’s global insurance leadership and scale with Kotak’s local expertise and reach, Zurich said in a media release. The global insurer added that the companies plan to leverage their collective strengths to enhance trust, innovation, integrity, and customer service in the Indian market.
Tulsi Naidu
CEO, Asia Pacific, Zurich Insurance Group“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, CEO of Asia Pacific for Zurich Insurance Group.
“India’s insurance market offers immense potential, and together with Kotak, we are committed to supporting its growth and development,” Naidu added.
Suresh Agarwal, Managing Director & CEO of Kotak Mahindra General Insurance, added, “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.”
The business will eventually adopt a new brand that represents both Zurich and Kotak as shareholders, Zurich said.
In November, Zurich had initially announced its intention to acquire a 51% stake in Kotak General, with an additional 19% stake to be acquired over time. In February, Kotak Mahindra Bank announced the plan had changed to a 70% upfront stake acquisition. The Reserve Bank of India provided final regulatory approval for the deal on 4 June.
