Global investment firm KKR has agreed to acquire a 9.9% stake in India’s Shriram General Insurance (SGI), pending regulatory approvals.
SGI is a joint venture between Shriram Capital and the South African financial group Sanlam. It is recognised as one of India’s leading general insurance companies, focusing on maximising technology to reach customers in underserved segments of the economy.
A statement released Monday said that the agreement “builds on strong tailwinds” in the Indian general insurance scene and SGI’s continued expansion into new segments and digital platforms that meet the preferences of Indian consumers.
KKR’s investment is also said to position SGI for continued growth in the rapidly expanding industry.
Additionally, the deal would have SGI appoint an executive from KKR to its board of directors, a source told the Economic Times.
“We are delighted to welcome KKR as our investor, and look to benefit from their global insurance expertise, as well as significant experience taking Indian companies to the next level. We look forward to collaborating closely to strengthen Shriram General Insurance’s offerings to Indian consumers and achieve continued success,” said Anil Kumar Aggarwal, managing director and CEO of SGI.
“Shriram General Insurance has been one of the standout performers in India’s fast-growing general insurance industry, and continues to build on their record by developing new capabilities, channels, and products to meet the growing needs of Indian consumers,” said Gaurav Trehan, partner and CEO of KKR India. “We are truly excited to work with the Shriram Group and SGI’s high-quality management team to achieve their vision of serving their customers, and look forward to sharing our experience to take the company to new heights.”
KKR’s previous investments in India’s financial services sector include Housing Development Finance Corporation, a housing finance company; SBI Life Insurance, a joint venture between the State Bank of India and BNP Paribas Cardif; Max Life, a private life insurance insurer through Max Financial Services; and Five-Star Business Finance, a small business lender.
