 "kotak mahindra general insurance, zurich insurance")
Kotak Mahindra Bank on Thursday announced that Zurich Insurance Company Ltd will acquire a 51 per cent stake in the Kotak Mahindra General Insurance Company Ltd for Rs 4,051 crore. Further, within three years from the initial acquisition, Zurich will buy an additional 19 per cent stake in the company.
"Zurich's investment represents the single largest investment by a global strategic insurer in an Indian non-life insurer," the company said. The transaction of a 51 per cent stake is expected to be completed by June 30, 2024.
In a regulatory filing, the bank said that the proposed transaction values Kotak General Insurance at around Rs 7,943 crore. Once Zurich acquires the 51 per cent shareholding in Kotak General Insurance, it will cease to be a subsidiary of the Kotak Mahindra Bank.
"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, managing director and chief executive officer (MD & CEO) of Kotak Mahindra Bank.
"With Kotak Mahindra Group's high-quality franchise and expertise in Indian financial services, and Zurich's deep distribution experience and class-leading capabilities in retail and commercial insurance, we are confident this partnership can bring strong innovation, know-how, and excellent customer experiences to the Indian general insurance market," added Tulsi Naidu, chief executive officer (Asia-Pacific), Zurich Insurance Company Ltd.
Out of the total infusion, Rs 1,609 crore will be in the form of fresh growth capital. The rest will be for share purchase.
"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," said Gaurang Shah, chairman of Kotak Mahindra General Insurance.
Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd
