The joint venture (JVCo), which will be incorporated as a public limited company under Indian law, will operate in the life insurance sector and provide long-term savings and protection solutions tailored to India’s diverse demographics.The agreement provides for equal share ownership, with M&M and Manulife each owning 50% of the paid-up share capital in the JVCo upon incorporation.
Under the arrangement, both M&M and Manulife will have the right to nominate two directors each to the JVCo board. They will also retain key governance rights, including approving changes to the capital structure, the annual business plan and the appointment or removal of senior management personnel.
The total capital commitment for the JVCo will not exceed Rs 3,600 crore from each shareholder for the first ten financial years, with an initial expected investment of Rs 1,250 crore (US$140 million) from each party within the first five years. The new venture builds on the companies’ existing partnership, following the successful launch of Mahindra Manulife Investment Management in 2020. The life insurance JV aims to become a leading player in the Indian market. rural and semi-urban markets, while leveraging technology and customer-centric models to expand reach in urban areas. According to the company, the initiative is in line with the Indian vision ‘Insurance for All by 2047’.
The announcement also underlined the strong growth trajectory of the Indian life insurance market, which has surpassed $20 billion in new insurance premiums and is growing at a CAGR of 12%. The sector’s low penetration levels and protection gap continue to provide ample room for longer-term growth.
M&M said it will make the required disclosures once the joint venture is formally established.
“Mahindra’s brand strength, deep distribution capabilities in rural and semi-urban India and execution excellence make life insurance a logical extension of our goal of building a comprehensive portfolio of financial services. Manulife is the best natural partner for us given their global capabilities in insurance products, underwriting and reinsurance. With a focus on leveraging technology, the joint venture will build an efficient, customer-centric insurer in India. We believe this joint venture represents a highly attractive opportunity to deliver meaningful value to our shareholders,” said Anish Shah, Group CEO & Managing Director, Mahindra Group.
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