The Competition Commission of India (CCI) has given the green light to Zurich Insurance Company Ltd to acquire a 70% stake in Kotak Mahindra General Insurance Company Limited.
This acquisition involves Zurich – a wholly owned subsidiary of Zurich Insurance Group Ltd Zurich Insurance Group – purchasing a majority share in Kotak Mahindra General Insurance from Kotak Mahindra Bank Limited.
In a release, the CCI confirmed that Zurich will obtain a 51% stake in the general insurance company through a combination of fresh capital injection and share procurement. Additionally, Zurich has the option to further increase its stake by up to 19% over time.
The CCI's detailed order regarding this transaction is expected to be released shortly.
In 2023, Zurich Insurance Group unveiled plans for the acquisition of a 51% stake in Kotak Mahindra General Insurance, signalling the group's entry into India's general insurance sector.
The uptick in the foreign direct investment (FDI) cap within India's insurance sector has sparked a notable rise in international investment. According to AM Best, this development is poised to fuel market expansion by ushering in fresh capital and integrating global best practices.
