Zurich Insurance has recently commenced a major acquisition in the India insurance market

Zurich Insurance completed acquiring 70% stake in Kotak Mahindra General Insurance for ₹5,560 crore, marking the largest foreign investment in India's general insurance sector after FDI limit hike.

This is a historic deal where the Kotak Mahindra General Insurance Company Limited has received 70% bid of the Zurich Insurance Company Ltd for ₹5,560 crore (USD 670 million). This deal is the biggest cross-border investment in the general insurance industry of India and the first big deal after the Indian government increased the FDI limit to 74% in 2021.

The acquisition process, which started with initial disclosures on 2 November 2023, and further updates on 23 February and 5 June 2024, has been completed after meeting all the terms that are conditions precedent and obtaining regulatory approvals as necessary.

Tulsi Naidu, Regional Chief Executive Officer, Asia Pacific at Zurich Insurance Group has welcomed the acquisition terming it a strategic move that will enable Zurich to be a major player in the growth market in India. Speaking about the potential of the Indian insurance market, Naidu noted, ‘We have vast opportunities in the insurance segment within India and with Kotak we are ready to create new opportunities for its evolution’.

To address the insurance protection gap in India, Zurich targets to capitalize on its scale, specialized skills in underwriting sophisticated risks, advanced digital solutions, and deep technological prowess. The purpose is to create a protective shield by developing ‘Nomalocity’ that is easy and effective among the Indian customers and businesses.

Speaking to the press, Shanti Ekambaram, the Deputy Managing Director of the merged entity, said that they aim to increase insurance penetration in India, thus supporting the IRDAI’s vision of achieving Insurance for all by 2047. The merger of Zurich and Kotak will be soon complemented by the creation of a new brand that will unite them both.

The acquisition was important for Kotak Mahindra General Insurance, mainly because it is the firm’s goal to improve the insurance density of the country with the help of technology, the scale, and the integration of best practices from around the world, according to the company’s Managing Director & CEO Suresh Agarwal.

Also Read: New surrender value norms for life insurance policies are now in force

Thus, with the increasing insurance business in the India region, the industry is looking forward to the new opportunities and effective and customer-oriented products created by the strategic partnership of Zurich Insurance.