Zurich expands its stake in Indian insurance company
Published: Wednesday, Jun 19th 2024, 07:20
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The Zurich Insurance Group is expanding its majority stake in India's Kotak Mahindra General Insurance as planned. The company announced on Wednesday that it is investing a total of USD 670 million in the 70 percent stake.
Zurich had already acquired a 51 percent stake in the Indian insurer in November, paying USD 488 million to Kotak Mahindra Bank Limited.
Zurich had already held out the prospect of increasing its stake at the time. According to Zurich, the transaction represents the largest foreign investment in India's general insurance market and is the first by a foreign insurer since the foreign direct investment limit was raised from 49 to 74 percent in 2021.
The amount was paid through a combination of new growth capital and the purchase of shares, according to the press release.
According to the press release, India's general insurance market is set for significant growth. This will be driven by greater consumer awareness of the benefits of insurance, the continued development of digital and financial infrastructure and a large and growing middle class. In addition, the strong growth in the Indian SME and corporate sector will increase the demand for commercial insurance solutions.
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