Swiss-based Zurich will enter the Indian market via the acquisition of a majority stake in Kotak Mahindra’s insurance arm.
Zurich has formed a strategic alliance with Kotak Mahindra Bank to enter the Indian insurance market, according to a statement.
The tie-up includes a proposal for Zurich to acquire a 51 percent stake in Kotak Mahindra General Insurance for $488 million, subject to regulatory approval. The Swiss insurer will acquire an additional 19 percent stake over time.
Kotak General Insurance was established in 2015 as a fully owned subsidiary of Kotak Mahindra Bank.
Market Opening
In 2021, India introduced regulatory changes that allowed majority foreign ownership in local insurers. Coupled with low insurance penetration, increasing awareness and strong digital infrastructure, the world’s most populous nation is expected to be a strong growth market.
«India is one of the world’s most important markets with immense potential and we are pleased to be making a significant commitment with an excellent partner,» said Zurich Asia Pacific CEO Tulsi Naidu.
«Kotak Mahindra Group’s pan-India distribution presence and Zurich’s distinct global capabilities in digital assets, B2B and B2C formats has the potential to create transformational impact,» added Kotak Mahindra Bank CEO and managing director Dipak Gupta.
