KKR buys minority stake in India's Shriram General Insurance
KKR has acquired a 9.99% stake in Shriram General Insurance, an Indian insurer backed by local conglomerate Shriram Group and African financial services group Sanlam, for an undisclosed sum.
Anil Kumar Aggarwal, a managing director and CEO of Shriram General, told VCCircle that the private equity firm had paid nearly INR 18bn (USD 237m) and would also get a board seat.
TPG Capital is an existing investor in the company. Gaurav Trehan, whom KKR recruited from TPG to head up its India private equity operations in 2020, previously served on the board of both Shriram General and Shriram Life Insurance. TPG has previously backed numerous Shriram Group entities.
Founded in 2008, Shriram General offers a complete range of general insurance products, ranging from motor, travel, home, and personal accident in the retail space to fire, engineering, and marine insurance in the corporate space. It also has products aimed at customers in rural India.
The company manages INR 106.9bn in assets across 4.34m live policies, with a solvency margin ratio of 4.70 as of December 2021. It has 203 branches in 26 states and union territories with 3,083 staff.
Sanlam’s partnership with Shriram Group dates to 2006 and the launch of Shriram Life Insurance. In addition to the two insurance businesses, it has interests in Shriram Capital and Shriram Transport Finance.
Shriram Capital, a holding company, is in the process of spinning out the insurance entities and merging its two lending arms, Shriram Transport Finance and Shriram City Union Finance.
KKR said in a statement that its 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.
“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,” Trehan said.
KKR’s previous investments in India’s financial services sector include Housing Development Finance Corporation, SBI Life Insurance, Max Life, and Five-Star Business Finance. Since setting up its Mumbai office in 2009, the firm has made more than 20 investments in India and has over a dozen active portfolio companies in the country.
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