Have conviction in India story, want to be fully present: Zurich Insurance Group's Tulsi Naidu
After completing its acquisition of a 70% stake in Kotak General Insurance last week, Zurich Insurance Group is aiming to become a leading player in the rapidly growing Indian market. The Rs 5,560 crore deal makes it the largest foreign investment in the sector. It’s also the first stake acquisition by an overseas insurer since the FDI limit was raised to 74% from 49% in 2021. Tulsi Naidu, CEO, Asia Pacific, Zurich Insurance Group, spoke to Shilpy Sinha and Arijit Barman about the growth strategy. Edited excerpts:
India opened up the insurance sector to foreign firms in 2000 and raised the FDI limit in 2021. Are you late to the market?
The biggest thing that has always been important to us as a strategic investor is being a long-term player. If you look at Zurich’s history, we've consistently grown in global markets. We entered Switzerland in 1872, the US in the 1920s during the American century, and now we’re growing in Latin America and Asia. We believe India is an important market, and with the relaxation of FDI rules a few years ago, we started considering how to establish our presence here.
For us, owning and operating our own business and contributing to the market is essential. In a significant market like India, we want to be fully present.
You valued the company at $1 billion, over five times the gross premiums earned by the company in FY24. It’s loss-making after seven-eight years in operations.
We have paid $670 million or Rs 5,560 crore for a 70% stake with a combination of secondary sale and capital
