Zurich Insurance Company’s acquisition of a majority stake in Kotak Mahindra General Insurance Company Limited, for a total consideration of Rs. 5,560 crores (USD 670 million), makes it the first foreign insurer to enter India since the FDI rules were changed to allow up to 74% foreign ownership in 2021.
Together, Zurich and Kotak will look to develop a leading general insurance company in India by combining Zurich’s global insurance leadership and scale with Kotak’s local expertise and reach.
The 70% acquisition, which is the largest foreign investment in India’s general insurance market, has been completed via a combination of fresh growth capital and share purchase, and positions Zurich in an important growth market, reflecting its continued progress in the Asia Pacific region.
Zurich’s acquisition of the insurer from Kotak Mahindra Bank Limited completed following the receipt of all necessary regulatory approvals.
Tulsi Naidu, Chief Executive Officer (CEO), Asia Pacific, Zurich, commented: “The acquisition of Kotak General Insurance sets the way forward for Zurich to be a leading player in a very significant growth market – India. This is a key strategic step for Zurich.
“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 and businesses through simple and innovative solutions.”
Zurich expects strong demand for commercial insurance solutions in the region amid strong growth in the country’s SME and corporate sectors, where customers have distinct and complex needs that require a diverse range of commercial propositions to manage and minimize business continuity risks.
Shanti Ekambaram, Deputy Managing Director, Kotak Mahindra Bank, said: “We are excited about the partnership with Zurich as we aim to leverage our combined local knowledge and global expertise to enhance insurance coverage in India. The new entity will unlock the next phase of growth for Kotak General Insurance and create a leading non-life insurance franchise that will focus on technology and scale, while prioritizing customer needs.”
“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,” added Suresh Agarwal, Managing Director & CEO, Kotak Mahindra General Insurance.
In the future, the combined business will adopt a new brand that represents both Zurich and Kotak as shareholders.
