Freshfields in Zurich Insurance’s Landmark entry into Indian market

Global insurance provider Zurich Insurance Group (‘Zurich’) has enlisted the legal counsel of Freshfields Bruckhaus Deringer (Freshfields) for its acquisition of a majority stake in India’s Kotak Mahindra General Insurance Company Limited (Kotak General Insurance) from parent company Kotak Mahindra Bank Limited (Kotak Mahindra Bank). The transaction, finalized on November 2, 2023, amounts to US$488 million.

This substantial and strategic investment, contingent upon customary closing conditions and regulatory approvals in India and Switzerland, positions Zurich as one of the pioneering foreign insurers to enter the Indian insurance market through majority ownership of a joint venture. It is poised to mark the largest foreign insurer investment in India’s insurance sector since the implementation of regulatory changes allowing majority foreign ownership in 2021.

India is increasingly recognized as one of the most promising insurance markets globally. The nation’s impressive economic growth, substantial population, and the existing low levels of insurance penetration collectively offer remarkable growth opportunities for insurance providers.

Kotak General Insurance, established in 2015 as a wholly-owned subsidiary of Kotak Mahindra Bank, has rapidly evolved into one of India’s youngest and fastest-growing general insurance franchises. It offers a diverse range of non-life insurance products, encompassing Motor, Health, Home, and Commercial categories, serving a broad and diverse customer base across various regions. In line with Zurich’s strategic vision, this proposed joint venture aspires to provide a distinctive value proposition to customers, establishing a digitally-enabled, best-in-class insurer.

The Freshfields team advising on the transaction is led by partner and global co-head of M&A Robert Ashworth and partners Jon Bowden and Arun Balasubramanian. They are supported by Global Transactions associate Dickson Chan, counsel David Schwintowski, senior associate Alice Boughton and associate Samuel Pullin. IP advice was provided by partner Richard Bird and associate Harshavardhan Ganesan. Antitrust advice was provided by counsel Laurent Bougard and associate Charles Tay.