Zurich Insurance: Earlier this month, the Competition Commission of India (CCI) approved Zurich Insurance Company’s acquisition of a 70% stake in Kotak Mahindra General Insurance Company.
Kotak Mahindra Bank has confirmed that Zurich Insurance Company will acquire a 70% stake in Kotak General Insurance Company Limited for Rs 5,560 crore in a single installment. The deal, which was announced in 2023, marks a significant development. Initially, Zurich Insurance had outlined plans to obtain 51% through a mix of capital infusion and share purchase totaling Rs 4,051 crore, with the remaining 19% to be acquired over three years.
Kotak Mahindra Bank emphasized that the planned acquisition of 70% is contingent upon meeting standard conditions precedent, such as obtaining regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI), which is responsible for overseeing the insurance sector in India.
Zurich’s investment marks the most significant single investment by a global strategic insurer in an Indian non-life insurance company to date. At the time of the announcement, both companies highlighted the potential synergy between Kotak Group’s extensive ‘phygital’ distribution network across India and Zurich’s robust global expertise in digital assets, as well as its B2B and B2C formats. This collaboration is expected to fuel rapid growth for the non-life insurer.
For more updates follow: stockeasynow
Earlier this month, the Competition Commission of India (CCI) announced its approval of Zurich Insurance Company’s acquisition of a 70% stake in Kotak Mahindra General Insurance Company. Notably, Kotak Mahindra General Insurance Company is a wholly-owned subsidiary of Kotak Mahindra Bank.
In a regulatory filing on Friday, Kotak Mahindra Bank referred to their disclosure dated November 2, 2023, regarding the proposed acquisition of shares of Kotak Mahindra General Insurance Company Limited by Zurich Insurance Company Ltd. The acquisition involves an initial purchase of 51% of the share capital through a mix of capital infusion and share acquisition, followed by an additional acquisition of a 19% stake within three years from the initial purchase. This process aims to raise Zurich’s shareholding to 70% of Kotak General’s share capital.
Kotak Mahindra Bank added that the involved parties, including the bank, Zurich, and Kotak General, have collectively agreed to modify the transaction. Instead of the previously outlined proposal, Zurich will now acquire a 70% stake in Kotak General through a combination of primary and secondary acquisitions in a single transaction. The total consideration for this acquisition is approximately ₹5,560 crore.
