Zurich Insurance Company, a multinational insurance company, received the Competition Commission of India’s (CCI’s) approval to acquire a 70% stake in Kotak Mahindra General Insurance Company.
Last November, the multinational insurance firm announced its entry in the Indian insurance market by making a strategic alliance with Kotak Mahindra Insurance to acquire a 51% stake worth $488 million in Kotak Mahindra General Insurance.
The transaction is anticipated to be the most significant foreign insurer investment in the Indian insurance sector since the country announced regulatory changes, paving the way for most foreign ownership in 2021.
Zurich Insurance will acquire a 51% stake through a combination of fresh growth capital and shares, a press release said.
In addition, the company will acquire the remaining 19% stake in Kotak Mahindra General Insurance over time.
Zurich Insurance is part of Zurich Group, and is present in more than 200 countries.
Zurich Insurance is the holding company of many subsidiaries and affiliates of the Zurich Insurance Group, except for the Zurich Insurance Group’s property loans and banking activities.
Kotak Mahindra General Insurance, a wholly owned subsidiary of Kotak Mahindra Bank, offers non-life insurance products such as vehicle, home, property, and commercial insurance.
Tulsi Naidu, Zurich’s chief executive officer of Asia Pacific, said in November that the company saw India as one of the most important markets with immense potential.