Kotak Mahindra Bank announced on November 2 that Zurich Insurance Group have entered into definitive agreements to acquire a 51% stake in Kotak General Insurance for Rs 4,051 crore. This is the largest investment made by a global strategic insurer in an Indian non-life insurance company. 

In this major non-life insurance segment deal, Zurich Insurance intends to acquire an additional 19% stake in the general insurance provider within three years, taking its stake up to 70%.  

The investment for the acquisition will be made through a combination of fresh growth capital of up to approximately Rs 1,609 crore and the rest through share purchase. In the proposed transaction, Kotak General Insurance is valued at approximately Rs 7,943 crore on a post-money valuation, subject to customary closing adjustments.

The transaction is subject to customary conditions, including regulatory approvals from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Competition Commission of India (CCI).

Dipak Gupta, managing director (MD) and chief executive officer (CEO) of Kotak Mahindra Bank, said the combined expertise and resources of the respective firms would enable them to provide innovative solutions to meet the evolving needs of customers. Tulsi Naidu, CEO of Asia Pacific, Zurich Insurance Company, described India as one of the world’s most important markets with immense potential.