KKR to buy 10% of Shriram General Insurance
Alternative investment firm KKR said Monday it has signed a deal to buy a 9.99% stake in Shriram General Insurance Company.
While the official announcement didn’t carry the amount of the deal, separate media reports said it is worth Rs 1,800 crore ($236 million).
Founded in 2008, Shriram General Insurance is a joint venture between Shriram Capital, the holding company for Shriram Group’s financial services business, and pan-African financial services group Sanlam.
The development comes after a busy year for KKR in India and after it raised $15 billion in the largest ever PE fund for Asia.
The PE firm has struck over half a dozen deals in the last 12 months, including a few late-stage venture-style transactions to invest in Lenskart and Livspace. It also struck two larger transactions, signing a control deal for Fogg and buying road assets from GIP. It has also struck some bolt-on deals in the country.
KKR’s investment in Shriram General Insurance builds on its track record and bets on housing finance company HDFC, SBI Life Insurance, Max Life Insurance, and non-bank lender Five-Star Business Finance.
Gaurav Trehan, Partner and CEO of KKR India, said, “Shriram General Insurance has been one of the standout performers in India’s fast-growing general insurance industry, and continues to build on their record by developing new capabilities, channels, and products to meet the growing needs of Indian consumers.”
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.
Shriram General Insurance is a 13-year-old company. It offers a range of general insurance products, including motor, travel, home and personal accident in the retail space to customized products like fire, engineering and marine insurance in the corporate space.
As of March 31, 2022, the company operated 203 branches in 26 states and union territories of India. It employs 3,083 people and manages assets worth Rs 10,685 crore and 4.344 million live policies.
