Zurich Acquires Majority Stake in Kotak General Insurance Worth $670 Million Zurich Insurance Company Ltd. announced the acquisition of a majority stake in Kotak Mahindra General Insurance Company Limited from Kotak Mahindra Bank Limited worth $670 million.

Zurich Insurance Company Ltd. has successfully acquired a 70 per cent stake in Kotak General Insurance for a total consideration of INR 5,560 crore (approximately USD 670 million). This transaction represents the largest foreign investment in India's general insurance market and is the first by a foreign insurer since the foreign direct investment (FDI) limit was raised to 74 per cent in 2021.

Zurich's entry demonstrates its commitment to supporting India's insurance sector, aligned with the Insurance Regulatory and Development Authority of India's goal of achieving "Insurance for All" by 2047. The combined entity will operate under a new brand that reflects both Zurich and Kotak as shareholders, declared as per their media release.

Tulsi Naidu, CEO, Asia Pacific, Zurich Insurance Group stated, "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." Naidu continued by claiming that India's insurance market offers immense potential and Zurich, together with Kotak, are committed to supporting India's growth and development. He boasted Zurich's global scale, strong expertise in managing complex risks, digital capabilities, and technology leadership in the insurance sector.

The transaction was announced in November 2023 and was subject to customary conditions precedent including regulatory approvals from the Reserve Bank of India, Insurance Regulatory and Development Authority of India, and the Competition Commission of India.

"We are excited about the partnership with Zurich as we aim to leverage our combined local knowledge and global expertise to enhance insurance coverage in India. The new entity will unlock the next phase of growth for Kotak General Insurance and create a leading non-life insurance franchise that will focus on technology and scale, while prioritizing customer needs," said Shanti Ekambaram, Deputy Managing Director, Kotak Mahindra Bank.

Suresh Agarwal, Managing Director & CEO, Kotak Mahindra General Insurance said, "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. We are committed to set new benchmarks for the general insurance industry."

India's general insurance market is poised for significant growth, driven by increased consumer awareness, digital infrastructure development, and a growing middle class. Zurich, with its strong underwriting discipline and capability, is well-positioned to meet the distinct needs of customers in segments such as SMEs and corporates, ensuring effective risk management and business continuity.