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.

Zurich's initial investment amount includes fresh growth capital of up to about INR16.09 billion in the insurance business, the Indian bank said. The planned acquisition values the insurance business at about INR79.43 billion, it added.

For the fiscal year ended March, Kotak Mahindra General Insurance generated gross written premiums of INR11.48 billion, the bank said.

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.

"India is one of the world's most important markets with immense potential and we are pleased to be making a significant commitment with an excellent partner," said Tulsi Naidu, CEO for Asia Pacific at Zurich.

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 0133ET