Mahindra will soon offer life insurance policies in India
What's the story
Mahindra & Mahindra and Canada's Manulife Financial Corporation have announced their plan to form a 50:50 life insurance joint venture in India. Subject to regulatory approval, this partnership is aimed at enhancing the financial wellbeing of customers in one of the world's fastest-growing insurance markets. The joint venture will leverage Mahindra's rural reach and Manulife's urban agency expertise.
Strategic goals
JV to offer long-term savings, protection solutions
The joint venture aims to offer long-term savings and protection solutions, targeting rural and semi-urban India as well as urban customers via leadership in protection solutions. The JV company will also focus on building a customer-centric insurer in India by leveraging technology.
Previous partnership
Joint venture builds on existing collaboration
The joint venture will build on the existing collaboration between Mahindra and Manulife in India. The two companies had previously launched Mahindra Manulife Investment Management in 2020. Under the terms of this agreement, both companies will have equal representation on the board of directors for the JV, with each company entitled to nominate two directors.
Financial details
Capital commitment and licensing process
The total capital commitment is up to ₹3,600 crore. The companies expect to invest ₹1,250 crore each over the first five years. After signing the agreement, teams from both Mahindra and Manulife will work together to apply for an insurance license for their new venture.
Leadership perspective
Mahindra Group CEO's statement
Commenting on the JV, Dr. Anish Shah, Group CEO & Managing Director of Mahindra Group said, "With a focus on leveraging technology the joint venture will build an efficient, customer-centric insurer in India." He added that he is confident this joint venture offers a compelling opportunity to create meaningful value for their shareholders.