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Zurich insurance completes 70% Kotak insurance acquisition, will introduce new brand
This is the largest foreign investment in India's general insurance sector since the FDI limit in the insurance sector was raised from 49% to 74% in 2021.
Zurich Insurance Company has completed the acquisition of a 70% stake in Kotak General Insurance in a deal worth ₹5,560 crore.
A new brand representing both Zurich and Kotak will be introduced soon, the company announced in an official statement.
This is the largest foreign investment in India's general insurance sector, as well as the first major investment since the foreign direct investment (FDI) limit in the insurance sector was raised from 49% to 74% in 2021.
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“The acquisition of Kotak General Insurance sets the way forward for Zurich to be a leading player in a very significant growth market – India,” said Tulsi Naidu, CEO, Asia Pacific, Zurich Insurance Group. “This is a key strategic step for Zurich.”
The acquisition process began with initial disclosures in November 2023.
Shanti Ekambaram, Deputy Managing Director, Kotak Mahindra Bank said, “we aim to leverage our combined local knowledge and global expertise to enhance insurance coverage in India.”
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"This is a major stride in advancing our mission of enhancing insurance penetration in India through technology, scale, and bringing global best practices to our business to provide value-adding experiences to our customers, said Suresh Agarwal, Managing Director & CEO, Kotak Mahindra General Insurance.
Kotak Mahindra Bank's shares closed 1.67% higher at ₹1748.25 on June 19 on the BSE.
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