Zurich Insurance Buys 70% Stake in Kotak Unit for $667 Million

Zurich Insurance Group AG completed a transaction for a majority stake in Kotak General Insurance Company Ltd., becoming the first foreign insurer to enter India after regulations were relaxed three years ago.

Zurich Insurance bought a 70% stake in Kotak for 55.6 billion rupees ($667 million) from Kotak Mahindra Bank Ltd through a combination of fresh capital and shares, according to a statement. It represents the largest foreign investment in India’s general insurance market to date, the company said.

Zurich Insurance said it would acquire 51% of Kotak for 40.51 billion rupees and another 19% within three years when ...