Zurich completes acquisition of majority stake in Kotak General Insurance
Zurich completes acquisition of majority stake in Kotak General Insurance | Insurance Business Asia
Insurance News
Zurich completes acquisition of majority stake in Kotak General Insurance
Deal marks largest foreign investment in the country’s general insurance sector
Insurance News
By
Roxanne Libatique
Zurich Insurance Company Ltd (Zurich) has completed the acquisition of a majority stake in Kotak Mahindra General Insurance Company Limited (Kotak General Insurance) from Kotak Mahindra Bank Limited (Kotak), after obtaining all required regulatory approvals.
Zurich acquired 70% of Kotak General Insurance for Rs. 5,560 crores (US$670 million) through a combination of fresh growth capital and share purchase.
Suresh Agarwal, managing director & CEO of Kotak General Insurance, said the deal will enable the company to expand its market presence.
“This milestone marks a pivotal moment for us and will catalyse 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,” he said.
Zurich’s plans for India’s insurance market
Zurich’s entry aims to support the development of India’s insurance industry in line with the Insurance Regulatory and Development Authority of India’s (IRDAI) vision of “Insurance for All” by 2047.
The combined entity will reflect the strengths of Zurich and Kotak and will adopt a new brand name at the proper time.
“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,” said Shanti Ekambaram, deputy managing director of Kotak. “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 prioritising customer needs.”
India’s general insurance sector expected to see substantial growth
The general insurance market in India is expected to reach $57.3 billion by 2028, driven by increased consumer awareness, the advancement of digital and financial infrastructure, and a growing middle class.
Additionally, the growth of the SME and corporate sectors is anticipated to increase the demand for commercial insurance solutions, which require a range of offerings to address business continuity risks.
Zurich aims to use its experience in providing insurance services to retail and commercial clients to meet these needs effectively.
“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,” said Tulsi Naidu, CEO of Asia Pacific at 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 and businesses through simple and innovative solutions.”
The transaction, announced in November 2023, required regulatory approvals from the Reserve Bank of India, the Insurance Regulatory and Development Authority of India, and the Competition Commission of India. All necessary approvals have now been obtained.
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