MUMBAI: Zurich Insurance has acquired a 70% stake in Kotak Mahindra General Insurance in a Rs 5,560-crore ($670-million) deal from Kotak Bank after it acquired regulatory approvals. The deal, which is the most important overseas funding in India’s common insurance coverage sector, was introduced in Nov 2023.
With this deal, Zurich turns into the primary overseas insurer to enter India since FDI guidelines have been amended to permit as much as 74% overseas possession in 2021 from 49%.
Kotak Mahindra Bank held 100% fairness of the Rs 875-crore paid up capital in the insurance coverage subsidiary as of March 2024. Kotak General had a complete premium earnings of Rs 748 crore from motor insurance coverage and Rs 620 crore from well being in FY24. “The acquisition of Kotak General Insurance sets the way forward for Zurich to be a leading player in a very significant growth market. This is a key strategic step for Zurich,” stated Tulsi Naidu, CEO (Asia-Pacific), Zurich Insurance Group.
“India’s insurance market offers immense potential, and together with Kotak, we are committed to supporting its growth and development. 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.”
With this deal, Zurich turns into the primary overseas insurer to enter India since FDI guidelines have been amended to permit as much as 74% overseas possession in 2021 from 49%.
Kotak Mahindra Bank held 100% fairness of the Rs 875-crore paid up capital in the insurance coverage subsidiary as of March 2024. Kotak General had a complete premium earnings of Rs 748 crore from motor insurance coverage and Rs 620 crore from well being in FY24. “The acquisition of Kotak General Insurance sets the way forward for Zurich to be a leading player in a very significant growth market. This is a key strategic step for Zurich,” stated Tulsi Naidu, CEO (Asia-Pacific), Zurich Insurance Group.
“India’s insurance market offers immense potential, and together with Kotak, we are committed to supporting its growth and development. 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.”
