MUMBAI: Zurich Insurance has acquired a 70% stake in Kotak Mahindra General Insurance in a Rs 5,560-crore ($670-million) deal from Kotak Bank after it received regulatory approvals. The deal, which is the largest foreign investment in India’s general insurance sector, was announced in Nov 2023.
With this deal, Zurich becomes the first foreign insurer to enter India since FDI rules were amended to allow up to 74% foreign ownership in 2021 from 49%.
Kotak Mahindra Bank held 100% equity of the Rs 875-crore paid up capital in the insurance subsidiary as of March 2024. Kotak General had a total premium income of Rs 748 crore from motor insurance and Rs 620 crore from health in FY24. “The acquisition of Kotak General Insurance sets the way forward for Zurich to be a leading player in a very significant growth market. This is a key strategic step for Zurich,” said Tulsi Naidu, CEO (Asia-Pacific), Zurich Insurance Group.
“India’s insurance market offers immense potential, and together with Kotak, we are committed to supporting its growth and development. We have the global scale, strong expertise in managing complex risks, digital capabilities and technology leadership to bridge the insurance protection gap. Our goal is to build resilience among Indian customers.”