Mahindra & Mahindra Ltd. and Manulife have agreed to set up a life insurance joint venture in India, five years after they got together to sell mutual funds in the world’s fourth largest stock market.
The Mahindra-Manulife life-insurance JV aims to offer long-terms savings and insurance for the hinterland, according to a statement on Thursday. The idea is to marry Mahindra’s deep distribution in rural with Manulife’s agency in urban to become “the #1 life insurance company for rural and semi-urban India, and serve Urban India with tailormade solutions.
Mahindra and Manulife have committed to invest ₹3,600 crore each in the JV, with ₹1,250 crore expected from each partner in the first five years. The JV is subject to regulatory approval.
“With a focus on leveraging technology, the joint venture will build an efficient, customer-centric insurer in India,” Anish Shah, Group CEO and MD at M&M, said in a statement. “We are confident that this joint venture offers a very compelling opportunity to create meaningful value for our shareholders.”