Zurich Insurance Company Ltd. acquired Kotak General Insurance
Zurich Insurance Company Ltd. (“Zurich”) has completed the acquisition of a majority stake in Kotak Mahindra General Insurance Company Limited (“Kotak General Insurance”) from Kotak Mahindra Bank Limited (“Kotak”), following all necessary regulatory approvals.
The isurance company has acquired a 70% stake in Kotak General Insurance for Rs. 5,560 crores (USD 670 million) through a mix of fresh growth capital and share purchase. This transaction marks the largest foreign investment in India’s general insurance market and is the first since the FDI limit was raised from 49% to 74% in 2021. Zurich is dedicated to developing India’s insurance sector, aligning with the IRDAI’s goal of “Insurance for All” by 2047. The new entity will eventually adopt a brand representing both Zurich and Kotak.
India’s general insurance market is set for significant growth, driven by increased consumer awareness, digital and financial infrastructure development, and a growing middle class. The expanding SME and corporate sectors will boost demand for commercial insurance solutions, necessitating diverse offerings. Zurich’s proven track record in retail and commercial insurance, backed by strong underwriting, positions it well to meet these needs.
Tulsi Naidu, CEO of Asia Pacific at The isurance company Group, stated, “The acquisition of Kotak General Insurance positions Zurich as a leading player in India’s growth market. Together with Kotak, we aim to bridge the insurance protection gap with our expertise and innovative solutions.”
Shanti Ekambaram, Deputy Managing Director of Kotak Mahindra Bank, expressed excitement about the partnership, emphasizing the potential to enhance insurance coverage in India through local knowledge and global expertise.
Suresh Agarwal, Managing Director & CEO of Kotak Mahindra General Insurance, highlighted the milestone as pivotal for expansion and enhancing insurance penetration in India with a focus on technology and global best practices.
The transaction, announced in November 2023, received all necessary approvals from the Reserve Bank of India, IRDAI, and the Competition Commission of India.
