Chubb eyes 49% in Kotak insurance arm

US insurer Chubb is in talks to acquire a 49% stake in Kotak General Insurance and has become a more favoured suitor than Zurich Insurance Group, two people with direct knowledge of the discussions said.

Chubb has an edge over Zurich as it is more amenable to leaving control with Kotak Mahindra Bank and because Kotak believes it shares more common business areas with Chubb such as auto insurance, according to one of the people.

Zurich has been discussing a stake of either 49% or 51% and the majority stake would likely value the firm at around $800 million, the sources have previously said.

But if Chubb were to win out, the deal would value Kotak at less than $800 million as it would not include a so-called buy our premium.

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