Investment firm KKR will acquire close to 10 percent stake in Shriram General Insurance Company, a statement said. Shriram General Insurance (SGI) is backed by Shriram Group and pan-African financial services group Sanlam.
Definitive agreements were signed on Monday between KKR, SGI and Sanlam under which KKR will acquire 9.99 percent stake in SGI, the insurer said in a statement on Monday.
The deal, whose size was not disclosed, is subject to receipt of necessary regulatory approvals.
KKR's investment will position SGI for continued growth in India's fast-growing general insurance industry, it added.
The investment builds on strong tailwinds in the Indian general insurance industry and SGI's continued expansion into new segments and investment in its digital capabilities to meet the evolving needs and preferences of Indian consumers, it said.
SGI looks to benefit from KKR's global insurance expertise as well as significant experience taking Indian companies to the next level, Anil Kumar Aggarwal, Managing Director and CEO of SGI said.
''We look forward to collaborating closely to strengthen Shriram General Insurance's offerings to Indian consumers and achieve continued success,'' Aggarwal said.
Gaurav Trehan, Partner and CEO of KKR India, said SGI has been one of the standout performers in India's fast-growing general insurance industry. 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 today. It has investments in companies such as HDFC, SBI Life Insurance, Max Life (through Max Financial Services) and Five-Star Business Finance - lender to small businesses.
(With PTI inputs)