By Kosaku Narioka

Zurich Insurance Group agreed to acquire a majority stake in Kotak Mahindra Bank's casualty insurance business and form a strategic alliance with the Indian bank.

Zurich Insurance said Thursday that it would invest about 40.51 billion rupees ($486.5 million) to acquire a 51% stake in Kotak Mahindra General Insurance and plans to buy an additional stake of 19% within three years from the initial purchase.

Kotak Mahindra Bank Chief Executive Dipak Gupta said its distribution channels in the country and Zurich's global capabilities have potential to create a transformational impact for the insurance business.

The acquisition is subject to approvals from Indian regulators, the companies said. Kotak Mahindra General Insurance will cease to be a subsidiary of Kotak Mahindra Bank once Zurich acquires the majority stake.

Write to Kosaku Narioka at

(END) Dow Jones Newswires

11-02-23 0104ET