Zurich Insurance Company Ltd has completed its acquisition of a 70% stake in Kotak Mahindra General Insurance Company Limited for ₹5,560 crore (USD 670 million). This investment includes both new capital and share purchases.
This deal marks the largest foreign investment in India’s general insurance sector and the first major one since the FDI limit was increased from 49% to 74% in 2021.
“The acquisition of Kotak General Insurance paves the way for Zurich to become a key player in India, a significant growth market,” said Tulsi Naidu, CEO, Asia Pacific, Zurich Insurance Group. “India’s insurance market has immense potential, and together with Kotak, we are committed to supporting its growth. We have the expertise and technology to bridge the insurance protection gap and build resilience among Indian customers and businesses.”
Kotak Mahindra Bank’s share price rose by 0.88% to ₹1,734.70 on June 19. The bank’s market capitalization stands at ₹3,44,849.91 crore. However, its stock price is about 13% lower than its 52-week high of ₹1,987.75, reached on July 23, 2024.
The acquisition process began with initial disclosures on November 2, 2023, followed by updates on February 23, 2024, and June 5, 2024. It has now concluded, with all conditions, including regulatory approvals, met.
Zurich announced that a new brand will be introduced soon. “Zurich is committed to supporting the growth of India’s insurance market, aligning with IRDAI’s goal of ‘Insurance for All’ by 2047. The new entity will focus on trust, innovation, integrity, and customer service,” the company said.
Shanti Ekambaram, Deputy Managing Director of Kotak Mahindra Bank, added, “We aim to use our combined local knowledge and global expertise to improve insurance coverage in India. This new entity will drive Kotak General Insurance’s next phase of growth, focusing on technology and customer needs.”
Suresh Agarwal, Managing Director & CEO of Kotak Mahindra General Insurance, said, “This acquisition will help us enhance insurance penetration in India through technology and scale, bringing global best practices to our business and providing valuable experiences to our customers. We are committed to setting new benchmarks for the general insurance industry.”
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