Zurich became the first foreign insurer to enter India since the FDI rules were amended to allow up to 74% foreign ownership in 2021

25 June 2024 — Andrei VICTOR
Zurich announced the successful completion of acquiring majority stake in Indian insurer Kotak General Insurance from Kotak Mahindra Bank Limited, following the receipt of all necessary regulatory approvals.

Zurich representatives mentioned in a statement that it acquired a 70% stake in Kotak General Insurance for a total consideration of ~ USD 670 million, through a combination of fresh growth capital and share purchase.

The transaction marks the largest foreign investment in India’s general insurance market and is the first by a foreign insurer since the foreign direct investment (FDI) limit was raised from 49% to 74% in 2021.

“With this entry, Zurich is fully committed to fostering the development and expansion of India’s insurance sector in keeping with the Insurance Regulatory and Development Authority of India’s (IRDAI) goal of achieving “Insurance for All” by 2047. The combined entity will bring to the Indian market, Zurich and Kotak’s collective commitment to trust, innovation, integrity, and customer service. In due course, the business will adopt a new brand that represents both Zurich and Kotak as shareholders”.

The transaction was announced in November 2023 and was subject to customary conditions precedent including regulatory approvals from the Reserve Bank of India, Insurance Regulatory and Development Authority of India, and the Competition Commission of India. All necessary approvals have been received.