Zurich Insurance will buy 51 percent stake in Kotak General Insurance, deal worth Rs 4051 crore

Kotak Mahindra Bank, one of the country's largest private banks, said that Switzerland's Zurich Insurance will buy more than half i.e. 51 percent stake in Kotak General Insurance.

This deal will be for Rs 4,051 crore. The investment by Zurich Insurance Company will be made through a combination of Fresh Grow Capital and share purchase.

Kotak Bank said that after a 51 percent stake, Zurich Insurance will buy another 19 percent stake in Kotak General Insurance in three years. Tulsi Naidu, Zurich's chief executive for Asia Pacific, said India is one of the world's most important markets with immense potential and we are pleased to make this important commitment with an excellent partner.

Deepak Gupta, Managing Director and Chief Executive, of Kotak General Insurance, said that the combined expertise and resources of the respective companies will enable us to provide innovative solutions to meet the growing needs of our customers.

Kotak Mahindra Bank and Kotak Mahindra General Insurance Company have entered into a definitive agreement for a stake sale with Zurich Insurance Company.

The deal is yet to receive approval from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Competition Commission of India (CCI).

Kotak General Insurance's loss for the September quarter narrowed to Rs 7 crore from Rs 17 crore a year ago. As of September 30, its capital, reserves, and surplus stood at Rs 379 crore. Zurich is a leading multi-line insurer with a presence in more than 200 countries and territories.

On Thursday, till the time of writing the news, the share of Kotak Mahindra Bank was trading at Rs 1736.20 with a rise of Rs 11.80.