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Tuesday , 12 December 2017
Breaking News

Kotak Life Insurance is now 100% owned by Kotak Mahindra Bank

Kotak Mahindra Bank, the parent company of Kotak Life Insurance has made an announcement that it would be buying out the shares held by it’s joint venture partner Old Mutual making it a 100% subsidiary of Kotak Mahindra Bank.

Kotak Life Insurance which is been doing well since its inception has decided to buy 26% stake at Rs.1297 crore. This values Kotak Mahindra Bank at approx Rs.5,000 crores which was formed at a equity base of less than 600 crores making it valued at close to 9 times its actual investment. The actual value as on 31st March 2017 of he brand is Rs.1,825 crores

Once the transaction is completed, Kotak Life Insurance will be 100% subsidiary subject to regulatory approvals.  Old Mutual is an insurance company based in the U.K. and the joint ventureship was formed when Kotak Life Insurance was floated in line with the regulatory approvals and rules that any Indian Company forming the Insurance company for the first time will have to have a partner who has an experience in this field and once the brand/company is established, the Indian counterpart can buyout its foreign counterpart.

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