Kotak Mahindra Bank has announced that Zurich Insurance Company Ltd will buy a 51% stake in Kotak General Insurance for ₹4,051 crore. The bank and Kotak Mahindra General Insurance Company have signed agreements with Zurich for this investment. Zurich will invest around ₹4,051 crore to acquire the majority stake in Kotak General Insurance. This investment involves both fresh capital and share purchase.
Zurich Insurance Company will also have the option to acquire an additional 19% stake in the next three years.
“Kotak Mahindra Group’s pan-India ‘phygital’ distribution presence and Zurich’s distinct global capabilities in digital assets, B2B and B2C formats has potential to create a transformational ‘digical’ impact for the Kotak General Insurance franchise delivering innovation efficiently and rapidly in the Indian general insurance space,” said Dipak Gupta, MD & CEO, Kotak Mahindra Bank.
However, this transaction is subject to standard conditions, including approvals from the Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India, and the Competition Commission of India.
“The alliance marks a significant step forward in further implementing our strategy to deepen insurance penetration in India with an appropriate combination of technology, scale and a tangible commitment to the customer. Zurich, a premier global insurer, with its deep global relationships, robust capabilities in complex risk and successful track-record of long-term alliances will help Kotak General Insurance grow rapidly and deliver exceptional value to our customers,” said Gaurang Shah, Chairman, Kotak Mahindra General Insurance Company.