According to persons familiar with the situation, Kotak Mahindra Bank Ltd., which is funded by billionaire Uday Kotak, is thinking of selling a small portion of its general insurance division.
According to the sources, the lender is collaborating with Morgan Stanley on a prospective sale of a stake in Kotak General Insurance that may generate up to a few hundred million dollars. The persons, who asked not to be identified since the material is private, claimed that the procedure may attract both possible financial investors and strategic partners. The persons said that because discussions are still in the early stages, the lender may decide not to proceed with the stake sale and deal specifics including size and structure may change. Representatives from Morgan Stanley and Kotak Mahindra Bank declined to comment.
If a transaction could be reached, the lender would join many other Asian banks looking to combine their insurance businesses. Bloomberg News has reported that Indonesia’s PT Astra International is evaluating options, including a partial sale of its life insurance subsidiary, and that Bank for Investment and Development of Vietnam JSC is considering restarting the sale of its stake in a joint venture with Metlife Inc. A 15-year bancassurance cooperation between Dah Sing Financial Holdings Ltd. and Sun Life Financial Inc. was launched in Hong Kong last month.
According to its website, Kotak General Insurance was founded in 2015 and will have 25 branches around India with more than 1,300 workers by the end of 2022. The website reveals that the Kotak Mahindra Bank wholly-owned subsidiary offers a variety of insurance product categories, including commercial, health, and car.
