Shriram General Insurance: KKR to buy 9.9% stake in Shriram General Insurance for Rs 1800 crore

Chennai / Mumbai: US private equity firm KKR & Co has agreed to buy a 9.9% stake in Shriram General Insurance Company for around Rs 1,800 crore, valuing the company at around Rs 18,000 crore, the two companies said in a statement on Monday.

As part of the deal, Shriram General would appoint an executive from the New York-based alternate asset manager as a member on its board of directors, a company official familiar with the matter told ET.

The deal is subjected to necessary approvals.

“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,” said Gaurav Trehan, CEO of KKR India.

Anil Kumar Aggarwal, managing director of Shriram General, said premium flowing in from underwriting electric vehicles (EVs) has posted strong growth. In March, the company registered Rs 3 crore in premia from EVs alone.

He estimates that total premium collections for the last fiscal ended March 31 reached Rs 100 crore, a little over thrice from the previous year.

Jaipur-headquartered Shriram General Insurance is a joint venture between Shriram Capital, the holding company of Shriram group’s financial business, and South Africa’s Sanlam.

The company plans to expand into new business segments and significantly augment digital capabilities in the future.

Founded in 2008, Shriram General Insurance has over 4.34 million live policies and manages assets worth Rs 10,685 crore as of end-March against Rs 10,300 crore a year ago.

Jasmit Gujral, executive vice-chairman at Shriram General Insurance, said the 14-year-old company is accelerating efforts to sharpen its digital presence as over 95% of its underwriting take place on its mobile applications and other web platforms.

KKR’s investment will position Shriram General Insurance for continued growth in India’s fast-growing general insurance industry, the companies said in the statement.

The transaction will be KKR’s third investment in Indian insurance segment. The firm had previously invested in SBI Life and Max Life Insurance.

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.

KKR, which manages $470 billion globally, has an India exposure of around $6 billion in India across various asset classes.

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