Zurich Insurance Company Ltd. to acquire a 51% share in Kotak General Insurance for ₹4,051 crore, according to an announcement from Kotak Mahindra Bank, on Thursday.
Zurich Insurance Company will make its investment through a mix of new growth capital and share purchases.mAccording to the bank, Zurich plans to purchase a further 19% of the company within three years of the first deal.
“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,” said Dipak Gupta, MD & CEO, Kotak Mahindra Bank.
For the strategic relationship with Zurich Insurance Group, Morgan Stanley served as the financial advisor to Kotak Mahindra Bank and Kotak General Insurance Company.
“The alliance marks a significant step forward in further implementing our strategy to deepen insurance penetration in India with an appropriate combination of technology, scale and a tangible commitment to the customer. Zurich, a premier global insurer, with its deep global relationships, robust capabilities in complex risk and successful track-record of long-term alliances will help Kotak General Insurance grow rapidly and deliver exceptional value to our customers,” said Gaurang Shah, Chairman, Kotak Mahindra General Insurance Company.
“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,” Tulsi Naidu, Zurich’s chief executive for Asia Pacific, said.
“The combined expertise and resources of the respective firms will enable us to provide innovative solutions to meet the evolving needs of our customers,” said Dipak Gupta, MD & CEO, Kotak General Insurance.
According to the filing, Kotak General Insurance will no longer be a bank subsidiary following the purchase.
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