Zurich has been analysing the Indian market for several years. Credit: Jonathan Weiss via Shutterstock.

Zurich Insurance Group is looking to acquire an interest of up to 51% in Indian insurer Kotak General Insurance, reported Reuters, citing sources.

The early talks have valued the general insurer, which is supported by billionaire banker Uday Kotak, at nearly $800m.

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According to the sources, Zurich Insurance has expressed the willingness to acquire a 49% minority stake or a 51% majority stake.

Requests for comments from Reuters went unanswered by Kotak General Insurance, which is owned by Kotak Mahindra Bank (Kotak).

The company added that the stake being considered could be valued at around $400m.

The first source stated that Kotak is still examining offers, including those from other investors, although it prefers to keep the “control of the company” after the deal.

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A Zurich Insurance representative declined to comment stating that the Swiss company does “comment on market rumours and speculations”.

According to the first source, Kotak General Insurance is in talks to sell a stake to find an investor who can help them “turn around the business and grow faster”.

The insurer holds a relatively smaller share of the Indian insurance market.

In 2021–2022, Kotak’s unit reported a $10m loss and a premium income of $91.35m, while its larger rival HDFC Ergo made $1.66bn in premiums.

Zurich has been analysing the Indian market for several years, where profit margins are higher and greater than in Europe.

While the Kotak insurance division’s interest in selling a stake has previously been reported, this is the first time that information about its discussions with Zurich, the prospective deal size, and valuation has been made public.