Uday Kotak-founded Kotak Mahindra Bank and Switzerland-based Zurich Insurance have entered into definitive agreements.
Zurich Insurance will invest approx Rs 4,051 crore to acquire a 51% stake in Kotak General Insurance through a combination of fresh growth capital and share purchase.
The Switzerland-based company will also acquire an additional stake of 19% within a period of three years.
Established in 2015 as a fully owned subsidiary of Kotak Mahindra Bank Limited, Kotak General Insurance is an Indian general insurance franchises.
According to Zurich Insurance, India is expected to become the third largest global economy by 2030 and presents significant untapped potential for the development of insurance solutions.