Zurich Insurance coverage Group has secured Indian competitors regulator approval to amass a 70% stake in Kotak Mahindra Common Insurance coverage Firm (KMGIC).
The transfer is a strategic effort by the Switzerland-based insurer to determine a sturdy presence within the Indian non-life insurance coverage market.
In an announcement, the Competitors Fee of India mentioned: “Competitors Fee of India approves acquisition of 70% stake in Kotak Mahindra Common Insurance coverage Firm by Zurich Insurance coverage Firm.”
Zurich Insurance coverage Firm is a completely owned subsidiary of Zurich Insurance coverage.
Final November, Zurich Insurance coverage agreed to amass a 51% stake in KMGIC for roughly Rs40.51bn ($488m).
The funding combines recent capital infusion and share buy, representing the most important funding by a world strategic insurer in an Indian non-life insurance coverage firm.
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The transaction is predicted to be finalised by 30 June 2024, reported HinduBusinessline.
Following the preliminary acquisition, Zurich Insurance coverage to buy a further 19% stake inside three years of closing the deal, elevating its possession within the Indian insurer to 70%.
That is a part of Zurich’s technique to carve out a “main non-life insurance coverage franchise” in India.
Upon the completion of the 51% stake acquisition, KMGIC will not be a subsidiary of Kotak Mahindra Financial institution, which presently holds a 100% stake within the basic insurance coverage firm.
The proposed transaction values KMGIC at Rs79.43bn on a post-money foundation.
KMGIC affords a various portfolio of basic insurance coverage insurance policies together with motorized vehicle, house, and property, business and medical insurance.
Its product vary extends to legal responsibility insurance coverage, prolonged guarantee insurance coverage, numerous medical insurance plans equivalent to hospital money, well being indemnity coverage, profit coverage and group insurance policy.
