Zurich Insurance completes acquisition of 70% Kotak Mahindra General Insurance stake in a ₹5,560-crore deal
₹5,560 crore (USD 670 million). This investment includes both new capital and share purchases.
This is the largest foreign investment in India's general insurance sector and the first major investment since the FDI limit was raised from 49% to 74% in 2021 in the insurance sector.“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, Asia Pacific, 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," Naidu said.Kotak Mahindra Bank's share price was up 1.34 per cent at ₹1742.65 on June 19 at 1:04 pm on the BSE. The company enjoys a market capitalisation of ₹3,46,430.33 crore, as per BSE data. Kotak Mahindra Bank's stock price is around 13 per cent down from its 52-week high of ₹1,987.75, which it reached on July 23, 2024, as per NSE.The acquisition process, which began with initial disclosures on November 2, 2023, and subsequent updates on February 23, 2024, and June 5, 2024, has now concluded, fulfilling all conditions, including regulatory approvals.A new brand will be rolled out soon, Zurich announced."Zurich is committed to supporting the growth of India's insurance market.
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