Zurich Insurance will acquire 70 per cent stake in Kotak Mahindra General Insurance for ₹5,560 crore, by way of a single deal including primary and secondary trades.

Also read: CCI Approves Zurich Insurance’s Acquisition of Kotak General Insurance

“The parties to the aforesaid transaction, viz., the Bank, Zurich and Kotak General have mutually agreed that Zurich will acquire 70% stake in Kotak General by way of a combination of primary and secondary acquisitions in a single tranche,” Kotak Mahindra Bank notified the exchanges.

The parties had in November 2023 proposed that the 70 per cent stake buy would include an initial acquisition of 51 per cent of the share capital through a combination of capital infusion and share purchase worth ₹4,051 crore, followed by a subsequent acquisition of an additional 19 per cent stake within a period of three years thereafter.

Other terms of the transaction remain unchanged, the notification said, adding that the proposed acquisition is subject to regulatory approvals from RBI, IRDAI and CCI.

Zurich’s investment represents the single largest investment by a global strategic insurer in an Indian non-life insurer. The companies had then said that it would help combine the Kotak Group’s pan-India ‘phygital’ distribution presence and Zurich’s distinct global capabilities in digital assets, B2B and B2C formats to help the non-life insurer grow rapidly.

“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. With Kotak Mahindra Group’s high-quality franchise and expertise in Indian financial services, and Zurich’s deep distribution experience and class-leading capabilities in retail and commercial insurance, we are confident this partnership can bring strong innovation, know-how, and excellent customer experiences to the Indian general insurance market,” Tulsi Naidu, CEO Asia Pacific, Zurich Insurance had then said.