Zurich Insurance Group AG that completed its $666 million purchase of a 70 per cent stake in Kotak General Insurance Company last week, has plans to increase its headcount in the country by 40 per cent.
The Swiss firm plans to add 600 people in the next three years, following its acquisition. Zurich Insurance deems India a “super important, super attractive market”. Chief Executive Officer for Asia Pacific, Tulsi Naidu, said, “India will soon be the world’s third largest economy, the largest working age population, the biggest middle class amongst emerging markets, the strongest route of growth in the G20 for insurance,” according to a report in Bloomberg. The company’s Indian business employs 1,500 people.
Naidu highlighted the scope for the company to grow in commercial, small and medium enterprise, assurance, auto and general insurance. In the past few years, the business has already grown 40 per cent, said Naidu, as per the report.
The penetration level for general insurance is only a quarter of the world average, said Naidu, highlighting the development of digital that could enable insurance access.
The Kotak General Insurance deal made Zurich Insurance Group AG the first foreign insurer to enter the country after investment limits were eased in 2021.
Confirming the acquisition, Kotak had said, “We refer to our disclosures dated November 2, 2023 and February 23, 2024 in relation to the proposed acquisition of 70% shareholding in Kotak Mahindra GeneralInsurance Company Limited (“Kotak General”) by Zurich Insurance Company Ltd (“Zurich”) by way of a combination of primary and secondary acquisitions, for a total consideration of approximately Rs. 5,560 crore (“Transaction”). In this regard, we wish to update you that the Reserve Bank of India has, vide its letter dated June 4, 2024 received by the Bank on June 4, 2024, conveyed its approval for the Transaction.”