Mumbai (Maharashtra) [India], November 2 : Kotak Mahindra Bank on Thursday announced that Swiss insurance company Zurich Insurance will acquire a 51 per cent stake in its subsidiary Kotak Mahindra General Insurance.
In a stock filing, the Indian bank said both parties entered into definitive agreements for the transaction whereby Zurich will invest approximately Rs 4,051 crore to acquire the stake through a combination of fresh growth capital and share purchase.
Further, the stock filing said the Swiss insurance company Zurich will acquire an additional stake of 19 per cent within a period of three years from its initial acquisition.
The transaction though is subject to customary conditions, including regulatory approvals from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India, and the Competition Commission of India.
Zurich's investment represented the single largest investment by a global strategic insurer in an Indian non-life insurer, Kotak Mahindra Bank claimed in the filing.
"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," Dipak Gupta, MD and CEO, of Kotak Mahindra Bank.
Kotak Mahindra Group's pan-India distribution presence, both physical and digital, and Zurich's distinct global capabilities are to create a transformational impact for the Kotak General Insurance franchise in the Indian general insurance space, said Gupta.
Tulsi Naidu, CEO of Asia Pacific, Zurich Insurance Company noted India is one of the world's most important markets with immense potential and it was pleased to be making a significant commitment with Kotak.
"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," Naidu said.
Founded 150 years ago, Zurich Insurance Group is an insurer having businesses in more than 200 countries and territories.
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