Global investment firm KKR on Monday said it will acquire a 9.99 per cent stake Shriram General Insurance Company. KKR has signed definitive agreements to acquire the stake in the general insurance company, subject to the receipt of the necessary regulatory approvals.
Founded in 2008, Shriram General Insurance is a joint venture between Shriram Capital, the holding company for Shriram Group's financial services business, and Sanlam Limited, a leading pan-African financial services group.
"KKR's investment will position Shriram General Insurance for continued growth in India's fast-growing general insurance industry," a release said. However, it didn't disclose the acquisition cost.
Shriram General Insurance offers a complete range of general insurance products, ranging from motor, travel, home and personal accident in the retail space to customised products like fire, engineering, and marine insurance in the corporate space. It also offers a range of products for rural India.
KKR's investment builds on strong tailwinds in the Indian general insurance industry and Shriram General Insurance's continued expansion into new segments and investment in its digital capabilities to meet the evolving needs and preferences of Indian consumers, the release said.
KKR has been investing in India's financial services sector for some time. Some of its investments in the sector have included Housing Development Finance Corporation, SBI Life Insurance, Max Life through Max Financial Services, and Five-Star Business Finance. Since setting up its Mumbai office in 2009, KKR has made more than 20 investments in India with more than a dozen active portfolio companies currently.
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Commenting on the announcement, Shriram General Insurance MD and CEO Anil Kumar Aggarwal said, "We are delighted to welcome KKR as our investor, and look to benefit from their global insurance expertise, as well as significant experience taking Indian companies to the next level. We look forward to collaborating closely to strengthen Shriram General Insurance's offerings to Indian consumers and achieve continued success."
KKR India Partner and CEO Gaurav Trehan said that Shriram General Insurance has been one of the standout performers in India's fast-growing general insurance industry, and continues to build on its record by developing new capabilities, channels, and products to meet the growing needs of Indian consumers.
"We are truly excited to work with the Shriram Group and SGI's high-quality management team to achieve their vision of serving their customers, and look forward to sharing our experience to take the company to new heights," he added.
Shriram General Insurance operated 203 branches in 26 states/ union territories, with an employee count of 3,083, as of March 31, 2022. It managed assets worth Rs 10,685 crore and 43.44 lakh live policies.
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