Global investment firm, KKR and Shriram General Insurance Company (SGI)  have announced the signing of definitive agreements under which, subject to the receipt of the necessary regulatory approvals, KKR will acquire a 9.99% stake in SGI.

KKR’s investment will help position SGI for continued growth in India’s fast-growing general insurance industry.

Founded in 2008, SGI 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 serviced group.

SGI, one of India’s leading general insurance companies today, adopts a customer-centric approach towards business, and are focused on nurturing homegrown talent and maximising technology to meet the needs of underserved segments of the economy.

KKR’s investment into SGI 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.

Furthermore, KKR’s investment in SGI will help to build on its track record and significant experience in India, including in the financial services sector.

Some of KKR’s investments in the sector have included Housing Development Finance, 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, through Max Financial Services, and Five-Star Business Finance – a leading lender to small businesses.

Partner and CEO of KKR India, Gaurav Trehan, commented: “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.

“We are truly excited to work with the Shriram Group and SGI’s high-quality management team to achieve their vision of serving their customers, and look forward to sharing our experience to take the company to new heights.”

Managing Director and CEO of Shriram General Insurance, Anil Kumar Aggarwal, added:  “We are delighted to welcome KKR as our investor, and look to benefit from their global insurance expertise, as well as significant experience 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.”