Zurich Insurance Company Limited (Zurich) has announced the successful completion of majority stake acquisition in Kotak Mahindra General Insurance Company Limited (Kotak General) from Kotak Mahindra Bank Limited (KMB) following the receipt of all necessary regulatory approvals.

Zurich has acquired a 70 percent stake in Kotak General for a total consideration of ₹5,560 crore ($670 million), through a combination of fresh growth capital and share purchase. 

The transaction marks the largest foreign investment in India’s general insurance market and is the first by a foreign insurer since the foreign direct investment (FDI) limit was raised from 49 percent to 74 percent in 2021.

With this, Kotak General has ceased to be a wholly-owned subsidiary of KMB and the bank now holds the remaining 30 percent of the share capital of Kotak General, KMB said in a stock exchange filing. 

“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.

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“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 partnership 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 prioritising customer needs.”

The combined entity will bring to the Indian market Zurich and Kotak’s collective commitment to trust, innovation, integrity, and customer service. In due course, the business will adopt a new brand that represents both Zurich and Kotak as shareholders.

Suresh Agarwal, Managing Director & CEO, Kotak Mahindra General Insurance, said, “This milestone marks a pivotal moment for us and will catalyse 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.

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