Newsletter
Mahindra and Mahindra has entered into an agreement with Manulife to establish a 50:50 life insurance joint venture.
Manulife, a Canada-based financial services company, provides life and health insurance, wealth and asset management, and financial advice globally.
FYI: the two entities already have an investment management platform, Mahindra Manulife Investment Management, which was launched in 2020.
The deets: the total capital commitment from each shareholder will be up to ₹3,600 crore, or $400 million, over the first 10 years. Both shareholders are expected to invest up to ₹1,250 crore each during the initial five years of the JV.
The new life insurance company will zero in on India’s surging demand for protection and savings solutions, reaching customers across both rural and urban areas.
It also aims to power India’s ‘Insurance for All’ ambition by 2047, offering long-term protection and savings products thoughtfully crafted for a wide range of income segments.
Zoom out: India’s life insurance industry has crossed $20 billion in new business premiums and has been expanding at a steady 12% annual rate over the past five years.
Yet, despite this momentum, the country still faces a significant protection gap and low insurance penetration, leaving ample room for long-term growth. This JV aims to help bridge that gap, expanding access to protection and savings solutions across income segments
