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Friday, May 24, 2024

Kotak Mahindra Bank to sell Zurich Insurance a 51 pc share in Kotak General Insurance

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Mumbai: Kotak Mahindra Bank Limited said on Thursday it will sell a 51 percent stake in Kotak Mahindra General Insurance Company Limited to Zurich Insurance Company Limited.

Kotak Mahindra Bank, Kotak Mahindra General Insurance, and Zurich Insurance Company Limited have entered into definitive agreements for a transaction whereby Zurich will invest (approximately) rupees 4,051 crore to acquire a 51 per cent stake in Kotak General Insurance through a combination of fresh growth capital and share purchase, the bank said in a filing with BSE.

Zurich will acquire an additional stake of 19 percent within a period of three years from its initial acquisition.

Zurich’s investment represents the single largest investment by a global strategic insurer in an Indian non-life insurer.

Dipak Gupta, MD & CEO, Kotak Mahindra Bank Limited, said, “The alliance brings together two trusted and respected brands.

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 Mahindra Group’s pan-India ‘phygital’ distribution presence and Zurich’s distinct global capabilities in digital assets, B2B and B2C formats has potential to create a transformational ‘digical’ impact for the Kotak General Insurance franchise delivering innovation efficiently and rapidly in the Indian general insurance space.”

Tulsi Naidu, CEO Asia Pacific, Zurich Insurance Company Limited, said, “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.

With Kotak Mahindra Group’s high-quality franchise and expertise in Indian financial services and Zurich’s deep distribution experience and class-leading capabilities in retail and commercial insurance, we are confident this partnership can bring strong innovation, know-how, and excellent customer experiences to the Indian general insurance market.”

Gaurang Shah, Chairman, Kotak Mahindra General Insurance Company Limited, said, “Over the 8 years since inception, Kotak General Insurance has invested to create a multi-product franchise with very strong fundamental building blocks.

The alliance marks a significant step forward in further implementing our strategy to deepen insurance penetration in India with an appropriate combination of technology, scale, and a tangible commitment to the customer.

Zurich, a premier global insurer, with its deep global relationships, robust capabilities in complex risk, and successful track record of long-term alliances, will help Kotak General Insurance grow rapidly and deliver exceptional value to our customers.”

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

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