Zurich Insurance Company to acquire 51% stake in Kotak General Insurance for ₹4000 crore

Kotak General Insurance: Zurich Insurance company has decided to invest around Rs 4,051 crore or $500 million to acquire a 51% stake in Kotak General Insurance. The investment will take place through a combination of fresh growth capital and share purchase.

Fund Raising

Kotak Mahindra Bank in its exchange filing has said that Zurich Insurance company will acquire an additional stake of 19% within a period of three years from its initial acquisition. The valuation of Kotak General Insurance is expected to go around Rs 7,943 crore post transaction. It further added that Kotak General Insurance will cease to be a subsidiary of the bank after the transaction.

"Once Zurich acquires the 51 per cent shareholding in Kotak General Insurance, it will cease to be a subsidiary of the Bank," the filing further said.

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As per Business Today, the transition is subject to customary conditions precedent including regulatory approvals from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Competition Commission of India (CCI).

Kotak Mahindra Bank MD and CEO Dipak Gupta has mentioned that the combined expertise of the two brands will be significant in providing innovative solutions to meet evolving needs of our customers.

“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,” Gupta said

The fully-owned subsidiary of the Kotak Mahindra Bank Limited Kotak General Insurance offers non-life insurance products like motor, health, home, fire, marine, and liability insurances.