Kotak Bank gets RBI approval to offload 70% stake in General Insurance arm to Zurich Insurance

6 Jun 2024 , 09:43 AM

Kotak Mahindra Bank announced on Wednesday that it has acquired RBI approval to sell a 70% stake in its general insurance subsidiary to Zurich Insurance Company. In November of last year, Zurich Insurance Company announced plans to acquire a 51% stake in Kotak Mahindra General through a combination of capital infusion and share purchase, followed by a subsequent 19% stake acquisition within three years of the initial acquisition for ₹5,560 Crore.

Kotak Mahindra General Insurance is a 100% subsidiary of Kotak Mahindra Bank.

Under present regulatory restrictions, a foreign firm can own up to 74% of an insurance venture in India.

Earlier this month, the Competition Commission of India (CCI) authorised Zurich Insurance Company Ltd’s acquisition of a 70% share in the insurer.

The acquirer is a wholly-owned subsidiary of Zurich Insurance Group Ltd. It is a leading multi-line insurer that serves individuals and businesses in over 200 countries and territories.

Kotak General Insurance is strongly aligned with Zurich’s vision, with the goal of creating a differentiated value offer for consumers by delivering new products and best-in-class experiences via a digitally enabled journey.

Kotak General Insurance, founded in 2015 as a wholly-owned subsidiary of Kotak Mahindra Bank Limited, is one of India’s newest and fastest growing general insurance franchises. Kotak General Insurance’s pan-India platform serves a diverse range of consumer groups and geographies, including direct-to-customer digital channels, important financial institution relationships, multiline agencies, and access to Kotak Mahindra Group customers.

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