Kotak Mahindra Bank stated on Thursday that Zurich Insurance Company Ltd will purchase 51% of Kotak General Insurance for Rs 4,051 crore. The private sector lender Kotak Mahindra Bank and Kotak Mahindra General Insurance Company have gone into definitive agreements with Zurich Insurance Company Ltd, under which Zurich will invest about 4,051 crore to acquire a 51% interest in Kotak General Insurance.
Zurich Insurance Company's investment will be made up of both new growth capital and share purchases. Zurich will acquire an additional 19% share within three years of its first purchase, according to the bank.
"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, Managing Director and Chief Executive Officer at Kotak Mahindra Bank.
The acquisition is subject to standard previous conditions, including regulatory approvals from the Insurance Regulatory and Development Authority of India, the Reserve Bank of India (RBI), and the Competition Commission of India.
"With an appropriate combination of technology, scale, and a tangible commitment to the customer, the alliance represents a significant step forward in further implementing our strategy to deepen insurance penetration in India." "With its deep global relationships, robust capabilities in complex risk, and successful track record of long-term alliances, Zurich, a premier global insurer, will help Kotak General Insurance grow rapidly and deliver exceptional value to our customers," said Gaurang Shah, Chairman, Kotak Mahindra General Insurance Company. Kotak Mahindra Bank shares were trading 1.16% higher on the BSE at 1,743.75 a share at 10:15 a.m.