Zurich Insurance coverage Group has agreed to amass a 51% stake in Kotak Mahindra Common Insurance coverage Firm from India’s Kotak Mahindra Financial institution, in a money and share deal value $488m (SFr441.34m).
The Swiss insurer added that it’s going to additionally purchase a further stake of as much as 19% in Kotak Mahindra Common Insurance coverage inside three years from its preliminary acquisition.
The deal kinds a part of Zurich’s efforts to enter the Indian insurance coverage market and create a “main non-life insurance coverage franchise”.
It additionally represents the most important funding by a overseas insurer in an India-based non-life insurance coverage firm.
Kotak Mahindra Financial institution managing director and CEO Dipak Gupta mentioned: “The mixed experience and sources of respective corporations will allow us to offer modern options to satisfy the evolving wants of our prospects.
“Kotak Mahindra Group’s pan-India distribution presence and Zurich’s distinct international capabilities in digital belongings, B2B and B2C codecs have the potential to create a transformational impression for the Kotak Common Insurance coverage franchise delivering innovation effectively and quickly within the Indian Common Insurance coverage area.”
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The transaction is topic to regulatory approvals and customary closing changes.
Zurich Asia Pacific CEO Tulsi Naidu mentioned: “India is likely one of the world’s most vital markets with immense potential and we’re happy to be making a big dedication with a wonderful associate.
“With Kotak Mahindra Group’s high-quality franchise and experience in Indian monetary providers and Zurich’s deep distribution expertise and class-leading capabilities in retail and business insurance coverage, we’re assured this partnership can carry sturdy innovation, know-how and glorious buyer experiences to the Indian basic insurance coverage market.”
A totally owned subsidiary of Kotak Mahindra Financial institution, Kotak Common Insurance coverage was established in 2015.