Zurich Insurance to Take Control of Kotak Mahindra's Casualty Insurance Unit -- Update
November 02 2023 - 1:48AM
Dow Jones News
By Kosaku Narioka
Zurich Insurance Group agreed to acquire a majority stake in
Kotak Mahindra Bank's casualty insurance business and form a
strategic alliance with the Indian bank.
Zurich Insurance said Thursday that it would invest about 40.51
billion rupees ($486.5 million) to acquire a 51% stake in Kotak
Mahindra General Insurance and plans to buy an additional stake of
19% within three years from the initial purchase.
Zurich's initial investment amount includes fresh growth capital
of up to about INR16.09 billion in the insurance business, the
Indian bank said. The planned acquisition values the insurance
business at about INR79.43 billion, it added.
For the fiscal year ended March, Kotak Mahindra General
Insurance generated gross written premiums of INR11.48 billion, the
bank said.
Kotak Mahindra Bank Chief Executive Dipak Gupta said its
distribution channels in the country and Zurich's global
capabilities have potential to create a transformational impact for
the insurance business.
"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 Tulsi Naidu, CEO for Asia Pacific
at Zurich.
The acquisition is subject to approvals from Indian regulators,
the companies said. Kotak Mahindra General Insurance will cease to
be a subsidiary of Kotak Mahindra Bank once Zurich acquires the
majority stake.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
November 02, 2023 01:33 ET (05:33 GMT)
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