Zurich Insurance Group AG (SWX:ZURN) is in talks to buy up to 51% of Kotak Mahindra General Insurance Company Limited, two sources with direct knowledge of the matter said, a deal that would mark its first major bet on the fast-growing South Asian insurance market. Backed by Asia's richest banker Uday Kotak, the early-stage negotiations value the Indian company at around $800 million, and Zurich Insurance has expresed interest in both a minority stake of 49% or taking up a majority 51% stake, the sources said. The stake the Swiss insurer wants to secure will be worth around $400 million, they said.

A spokesperson for Zurich, one of Europe's largest insurers, said "as a matter of principle, we don't comment on market rumours and speculations." Kotak General Insurance, which is fully-owned by Indian banking giant Kotak Mahindra Bank, did not respond to Reuters queries. While the Kotak insurance unit's interest in selling a stake has been reported earlier, its talks with Zurich, the potential deal size and valuation are being reported for the first time.