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Zurich Insurance Group is holding active discussion to buy up to 51% of India’s Kotak General Insurance, a deal that would be Zurich Insurance’s first big bet on the fast-growing insurance market in South Asia.
Uday Kotak, Asia’s richest banker, backed Indian company is valued at around $ 800 Mn based on the early-stage negotiations. Zurich Insurance has shown a keen interest in a minority stake of 49% or a majority of 51% and secure the deal for the Swiss insurer by paying $ 400 Mn for the transaction.
Kotak is yet evaluating offers, including from other investors, but prefers to retain “control of the company” post-sale of the stakes. It is hoping to get an investor who can help them turn around the business and grow faster.
Zurich, one of Europe’s largest insurers, and Kotak General Insurance, fully owned by Indian banking giant Kotak Mahindra Bank have not yet made any official confirmation about the stake sale. In 2021, India’s insurance sector was liberalized by allowing foreign companies to acquire majority stakes of up to 74% in an Indian insurer, from 49%.