Zurich in talks to buy $400m stake in Indian general insurer
Swiss insurer Zurich Insurance Group is in talks to acquire up to 51% stake in India’s Kotak General Insurance, according to Reuters. If the deal comes to fruition, it will mark Zurich’s first major foray into the rapidly expanding South Asian insurance market.
Kotak General Insurance is a fully-owned subsidiary of Indian banking giant Kotak Mahindra Bank. It was established to service the growing non-life insurance segment in the country. The business currently has 25 branches spread across the nation offering an array of non-life products like motor, health, home and commercial insurance.
According to a Reuters June 14 report, Zurich Insurance has indicated an interest in acquiring either 49% or a majority stake of 51% in Kotak General.
Talks are at an early stage with no official sale process yet launched or disclosed by either party. However, Reuters said, the ongoing negotiations estimate the value of the Indian company to be approximately $800 million.
Kotak is currently assessing offers, which include those from other investors. However, its preference is to maintain “control of the company” post-stake sale, Reuters cited a source familiar with the matter.
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