Zurich firm to acquire 51% in Kotak Insurance for Rs 4,051 cr
Mumbai, November 2
Switzerland’s Zurich Insurance is set to acquire a 51% stake in Kotak General Insurance for Rs 4,051 crore, its parent Kotak Mahindra Bank said on Thursday.
The Swiss insurer’s investment in the eight-year-old domestic company will be through a combination of fresh growth capital and share purchase, as per a regulatory filing by the listed lender.
To buy additional 19% stake later
- The Swiss insurer’s investment will be through a combination of fresh growth capital and share purchase, as per a regulatory filing by Kotak Mahindra Bank
- It will follow up with an additional 19% stake purchase, which will happen within three years of the initial acquisition
- Post-deal, Kotak General Insurance will cease to be a subsidiary of Kotak Mahindra Bank
It will follow up with an additional 19% stake purchase, which will happen within three years of the initial acquisition, the filing said.
Kotak General Insurance’s market share in the non-life market by premiums stood at 0.52 per cent as of September. Its gross written premium for FY23 stood at Rs 1,148.30 crore, and the share sale values the general insurance company at Rs 7,943 crore on a post-money valuation.
“India is one of the world’s most important markets with immense potential, and we are pleased to be making a significant commitment with an excellent partner,” Tulsi Naidu, Zurich’s chief executive for Asia Pacific, said.
“The combined expertise and resources of the respective firms will enable us to provide innovative solutions to meet the evolving needs of our customers,” Kotak General Insurance’s MD and CEO Dipak Gupta said.
