Top Indian law firms Cyril Amarchand Mangaldas and AZB & Partners have advised Zurich Insurance Company on the acquisition of a majority stake in Kotak Mahindra General Insurance Company from Kotak Mahindra Bank for USD 488 million.
The transaction represents the largest single investment by a global strategic insurer in the Indian non-life insurance sector.
Under the terms of the agreement, Zurich Insurance will acquire a 51% stake in Kotak Mahindra General Insurance through a combination of fresh growth capital and share purchase. Zurich Insurance will acquire an additional stake of up to 19 percent over time, the life insurer said in a statement.
“India is expected to become the world’s third largest economy by 2030 and offers significant untapped potential for the development of insurance solutions,” Zurich Insurance said in a statement.
The CAM team advising Zurich Insurance was led by partner Indranath Bishnu, supported by labour partner Ankita Ray and antitrust partner Kirthi Srinivas.
Bishnu has advised on a number of top deals in the insurance sector, including the record-breaking $2.7 billion IPO of Life Insurance Corporation of India (LIC), the demerger of Bharti AXA’s general insurance business and the $1.3 billion IPO of State Bank of India Life Insurance.
AZB acted for Kotak Mahinda Bank in this transaction.
