In a significant move, Zurich Insurance is set to acquire a majority stake of 51 percent in Kotak General Insurance, with a total investment of INR 4,051 crore, as revealed in an official announcement by Kotak Mahindra Bank.
Furthermore, within the next three years, Zurich Insurance is planning to increase its stake in the insurance company by an additional 19 percent. This investment marks a historic milestone, being the largest commitment by a global strategic insurer in an Indian non-life insurance entity.
At 9:38 am, Kotak Mahindra Bank’s stock witnessed a 2 percent surge, reaching INR 1,756 on the Bombay Stock Exchange (BSE).
The estimated valuation of Kotak General Insurance following this proposed transaction stands at approximately INR 7,943 crore on a post-money basis.
Dipak Gupta, the Managing Director and CEO of Kotak Mahindra Bank, expressed his thoughts on this significant investment, stating, “The Kotak Mahindra Group’s widespread ‘phygital’ distribution network across India, combined with Zurich’s impressive global capabilities in digital assets, B2B, and B2C formats, holds the potential to bring about a transformative ‘digical’ impact for Kotak General Insurance. This collaboration will drive innovation efficiently and swiftly within the Indian general insurance sector.”
