Chubb plans 49% stake in Kotak General Insurance

Kotak General Insurance was deemed a favoured candidate compared to Zurich Insurance Group.

Insurer Chubb is currently in discussions to acquire a 49% stake in India's Kotak General Insurance, reported by Reuters.

The Indian insurer has become a more favoured candidate compared to Zurich Insurance Group, according to sources with direct knowledge of the talks.

READ MORE: Exclusive: Chubb seeks 49% of India's Kotak General Insurance, has edge over Zurich -sources

Chubb's appeal lies in its willingness to let Kotak Mahindra Bank retain control and its shared focus on common business areas, such as auto insurance. 

Zurich, on the other hand, has been discussing a stake of either 49% or 51%, valuing the company at approximately $800m for a majority stake.

If Chubb wins the deal, the valuation of Kotak would be less than $800m, as it wouldn't include a buyout premium. 

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Kotak General Insurance has been seeking a stake sale to accelerate growth in a market with significant potential.

Chubb's entry into the Indian market would mark a fresh attempt after a previous deal with HDFC General Insurance in 2007.