Zurich Insurance has announced the acquisition of a 70% stake in Kotak Mahindra General Insurance Company Limited (“Kotak General Insurance”), marking a significant milestone as the first foreign insurer to enter India since the foreign direct investment (FDI) rules were amended to allow up to 74% foreign ownership in 2021.
The acquisition, amounting to Rs. 5,560 crores (US$670 million), was completed through a combination of fresh growth capital and share purchase.
The move positions Zurich in one of the world’s most important growth markets, reflecting its continued progress in the Asia Pacific region. The partnership aims to combine Zurich’s global insurance leadership and scale with Kotak’s local expertise and reach, jointly building a leading general insurer in India.
The transaction underscores Zurich’s commitment to fostering the development and expansion of India’s insurance sector, aligning with the Insurance Regulatory and Development Authority of India’s (IRDAI) goal of achieving “Insurance for All” by 2047. The combined entity will eventually adopt a new brand representing both Zurich and Kotak as shareholders.
India’s general insurance market is poised for substantial growth, driven by increased consumer awareness of insurance benefits, the development of digital and financial infrastructure, and a large and growing middle class. Additionally, the strong growth in India’s SME and corporate sectors will increase demand for commercial insurance solutions. Zurich, as an established industry leader, has a proven track record in delivering differentiated services and solutions to retail and commercial customers, supported by strong underwriting discipline and capability.
The acquisition of Kotak General Insurance not only strengthens Zurich’s presence in India but also enhances its ability to meet the diverse and complex needs of Indian customers, ensuring comprehensive insurance coverage and superior customer service.
“The acquisition of Kotak General Insurance sets the way forward for Zurich to be a leading player in a very significant growth market – India. 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 and businesses through simple and innovative solutions.”
Shanti Ekambaram, Deputy Managing Director, Kotak Mahindra Bank said, “We are excited about the partnership with Zurich as we aim to leverage our combined local knowledge and global expertise to enhance insurance coverage in India. The new entity will unlock the next phase of growth for Kotak General Insurance and create a leading non-life insurance franchise that will focus on technology and scale, while prioritizing customer needs.”
Suresh Agarwal, Managing Director & CEO, Kotak Mahindra General Insurance said, “This milestone marks a pivotal moment for us and will catalyze our expansion in the market by offering comprehensive solutions tailored to meet the evolving needs of our diverse customer base. This is a major stride in advancing our mission of enhancing insurance penetration in India through technology, scale, and bringing global best practices to our business to provide value-adding experiences to our customers. We are committed to set new benchmarks for the general insurance industry.”
The transaction was announced in November 2023 and was subject to customary conditions precedent including regulatory approvals from the Reserve Bank of India, Insurance Regulatory and Development Authority of India, and the Competition Commission of India. All necessary approvals have been received.
Source: Zurich
