Zurich Insurance Group has announced the proposed acquisition of a 51% stake in Kotak Mahindra General Insurance as part of strategic collaboration with Kotak Mahindra Bank to enter India’s general insurance sector.
Worth US$488 million, this acquisition will be realised through a combination of fresh capital for growth and share purchase, subject to regulatory approvals and customary closing adjustments. Additionally, Zurich plans to obtain an extra stake of up to 19% over time.
Established in 2015 as a wholly owned subsidiary of Kotak Mahindra Bank, Kotak General Insurance is one of India's youngest general insurance franchises. With a wide-ranging customer base across various segments and geographies, the company's pan-India platform integrates direct-to-customer digital channels, crucial financial institution partnerships, multiline agencies, and access to Kotak Mahindra Group's clientele.
“India is one of the world’s most important markets with immense potential and we are pleased to be making a significant commitment with an excellent partner,” said Tulsi Naidu, Zurich Asia Pacific CEO. “With Kotak Mahindra Group’s high-quality franchise and expertise in Indian financial services, and Zurich’s deep distribution experience and class-leading capabilities in retail and commercial insurance, we are confident this partnership can bring strong innovation, know-how, and excellent customer experiences to the Indian general insurance market.”
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