Zurich Insurance eyes 51% of Kotak’s general insurance arm

Zurich Insurance Group is in talks to buy up to 51% of Kotak General Insurance, a deal that would mark its first major bet on the fast-growing South Asian insurance market.

Zurich Insurance has expressed interest in both a minority stake of 49% or taking up a majority 51% stake, the sources said.

The stake the Swiss insurer wants to secure will be worth around $400 million, they said. Kotak is still evaluating offers, including from other investors, but it prefers retaining “control of the company” after the stake sale, the first source said.

A spokesperson for Zurich, one of Europe’s largest insurers, said “as a matter of principle, we don’t comment on market rumors and speculations.” Kotak General Insurance, which is fully-owned by Indian banking giant Kotak Mahindra Bank, did not respond to Reuters queries.