Chubb Limited (NYSE:CB) is in talks to acquire a 49% stake in India's Kotak General Insurance and has become a more favoured suitor than Zurich Insurance Group (ZURN.S), two people with direct knowledge of the discussions said. Chubb has an edge over Zurich because it is more amenable to leaving control with India's Kotak Mahindra Bank Limited (BSE:500247) and because Kotak believes it shares more common business areas with Chubb such as auto insurance, according to one of the people. Zurich has been discussing a stake of either 49% or 51% and the majority stake would likely value the company at around $800 million, the sources have previously said.

But if Chubb were to win out, the deal would value Kotak at less than $800 million as it would not include a so-called buyout premium, they said. Kotak, one of India's smaller general insurance firms, has been looking to sell a stake to achieve faster growth in a market seen as having huge potential. It is controlled by Uday Kotak, who is Asia's richest banker worth $14 billion according to Forbes.

Kotak General Insurance continues to have discussions with Zurich, though separate talks with private equity firm The Carlyle Group Inc. (NasdaqGS:CG) have not worked out, the people added. They were not authorised to speak to media and declined to be identified. Chubb and Kotak did not respond to Reuters queries seeking comment.

Zurich and Carlyle declined to comment.