Zurich Insurance to Buy 51% in India’s Kotak General for $487 Million

Zurich Insurance Co. has agreed to buy a majority stake in Kotak Mahindra General Insurance Co. for 40.51 billion rupees ($487 million), including infusion of fresh capital.

The Switzerland-based insurer will buy 51% stake in Kotak Mahindra Bank’s insurance unit through a combination of fresh capital and share purchase, and will buy another 19% within three years, the Indian lender said in an exchange filing. All three financial companies have entered into definitive agreements for the deal.

“India is one of the world’s most important markets with immense potential,” said Tulsi Naidu, CEO Asia Pacific for Zurich Insurance.

Zurich Insurance will infuse about 16.09 billion rupees fresh growth capital in Kotak General Insurance as part of the deal, which values the insurer at more than 79 billion rupees, on a post money valuation.

The deal is expected to be closed by June 30 subject to customary conditions and approvals.