KKR to buy 9.9% stake in Shriram General Insurance

Global investment firm KKR will acquire a 9.99% stake in Shriram General Insurance. KKR’s investment will position Shriram General Insurance to grow in India’s fast-growing general insurance industry. The financial details of the deal have not been shared by the companies so far.

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. One of India’s leading general insurance companies, Shriram General Insurance is focused on nurturing homegrown talent and maximising technology.

"KKR’s 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," a company statement said.

Anil Kumar Aggarwal, Managing Director and CEO of Shriram General Insurance, said the company plans to benefit from KKR's global insurance expertise and significant experience in 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,” it added.

KKR India partner and CEO Gaurav Trehan said Shriram General Insurance has been one of the standout performers in India’s fast-growing general insurance industry. The company continues to build on its record by developing new capabilities, channels, and products for Indian consumers.

KKR has a significant track record of investing in India, including in financial services sector. Before this, KKR had invested in HDFC, SBI Life Insurance, a joint venture between the State Bank of India and BNP Paribas Cardif, Max Life, one of India’s largest private life insurance players, via Max Financial Services, and Five-Star Business Finance. After opening its Mumbai office in 2009, KKR has invested in over 20 companies in India, with more than a dozen active portfolio companies today.

KKR offers alternative asset management as well as capital markets and insurance solutions. Shriram General Insurance Company, as of December 31, 2021, held a solvency margin ratio of 4.70. As of March 31, 2022, seven times of capital invested has been paid as a dividend, the company said.

As of March 31, 2022, seven times of capital invested has been paid as a dividend, and the Company operates 203 branches in 26 states / UT, counts 3083 talented staff as its employees, and manages assets worth Rs 10,685 crore and 4.344 million live policies. Shriram General Insurance Business is owned by Shriram Capital, amounting to 76.63% paid-up capital of the company.