Zurich acquires 70% stake in Indian insurer Kotak General Insurance

Written by Michael Griffiths

24/06/2024

Zurich has completed the acquisition of a majority stake in Kotak Mahindra General Insurance, following the receipt of regulatory approval.

The deal is for a 70% stake in the Indian insurer for a total consideration of $670m, through a combination of fresh growth capital and share purchase.

This marks the largest foreign investment in India’s general insurance market and is the first by a foreign insurer since the foreign direct investment (FDI) limit was raised from 49% to 74% in 2021.

Following the move, Zurich said it is fully committed to “fostering the development and expansion” of India’s insurance sector in keeping with the Insurance Regulatory and Development Authority of India’s (IRDAI) goal of achieving “insurance for all” by 2047.

Zurich believes India’s general insurance market is poised for “substantial growth”, driven by greater consumer awareness of the benefits of insurance, continued development of digital and financial infrastructure, as well as a large and growing middle class.

“India’s insurance market offers immense potential, and together with Kotak, we are committed to supporting its growth and development,” CEO, Asia Pacific at Zurich, Tulsi Naidu, commented.

“We have the global scale, strong expertise in managing complex risks, digital capabilities, and technology leadership to bridge the insurance protection gap. Our goal is to build resilience among Indian customers and businesses through simple and innovative solutions.”

Managing director and CEO at Kotak Mahindra General Insurance, Suresh Agarwal, added: “This milestone marks a pivotal moment for us and will catalyze our expansion in the market by offering comprehensive solutions tailored to meet the evolving needs of our diverse customer base.

“This is a major stride in advancing our mission of enhancing insurance penetration in India through technology, scale, and bringing global best practices to our business to provide value-adding experiences to our customers. We are committed to set new benchmarks for the general insurance industry.”

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