Kotak Mahindra Bank and Zurich Insurance Group to forge strategic alliance
By Gloria Mathias
The partnership will involve Zurich investing (approximately) Rs 4,051 crore to acquire a 51% stake in Kotak General Insurance through a combination of fresh growth capital and share purchases.
Further, Zurich will acquire an additional stake of 19% within a period of three years from its initial transaction. Zurich’s investment represents the single largest investment by a global strategic insurer in an Indian non-life insurer.
Dipak Gupta, MD & CEO, Kotak Mahindra Bank said, “Kotak Mahindra Group’s pan-India ‘phygital’ distribution presence and Zurich’s distinct global capabilities in digital assets in B2B and B2C formats have the potential to create a transformational ‘digical’ impact for the Kotak General Insurance franchise, delivering innovation efficiently and rapidly in the Indian general insurance space.”
Tulsi Naidu, CEO Asia Pacific, Zurich Insurance Company said, “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.”
Gaurang Shah, Chairman, Kotak Mahindra General Insurance Company Limited said, “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.”
The transaction is subject to customary conditions precedent, including regulatory approvals from the RBI, IRDAI, and the Competition Commission of India.
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