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What is the story about?
Passenger and Commercial vehicle manufacturer Mahindra & Mahindra (M&M) Ltd. has informed the exchanges on Thursday, November 13, that it has entered into an agreement with Manulife to establish a 50:50 life insurance joint venture (JV).
The JV will be subject to regulatory approval.
M&M mentioned in its exchange filing that the vision is to be the Number One life insurance company for rural and semi-urban India, and in serving urban customers through leadership in protected solutions.
On receiving regulatory approval, the JV will expand on the collaboration between Mahindra and Manulife in India. The two entities already have an investment management platform, Mahindra Manulife Investment Management, which was launched in 2020.
The total capital commitment from each shareholder will be up to ₹3,600 crore or $400 million for the first 10 years and both are likely to invest up to ₹1,250 crore each during the first five years of the JV, M&M added.
This JV will aim to offer long-term savings and protection solutions in-line with India's "Insurance for All" vision by 2047 and utilize Mahindra's distribution reach in rural and semi-urban areas and Manulife's agency capabilities catered to urban customers.
India's life insurance market has surpassed $20 billion in new business premiums, and is growing at a Compounded Annual Growth Rate (CAGR) of 12% over the last five years. "Yet, India continues to have a high protection gap and low insurance penetration, providing long-term growth potential," M&M wrote in its filing, adding that these tailwinds position India to be the fastest growing life insurance market over the next decade.
More details about the JV:
"With a focus on leveraging technology the joint venture will build an efficient, customer-centric insurer in India. We are confident that this joint venture offers a very compelling opportunity to create meaningful value for our shareholders," Anish Shah, Group CEO and MD of the Mahindra Group was quoted as saying.
The move increases competition in India's life insurance sector. In July this year, Jio Financial Services and Allianz Group had announced a 50:50 reinsurance JV and also signed a non-binding agreement to set up equally owned JVs for general and life insurance businesses in India.
Shares of Mahindra & Mahindra ended little changed on Wednesday, closing 0.2% lower at ₹3,740.3. The stock made a new record high of ₹3,781 in intraday trade and has risen 21% so far in 2025.
The JV will be subject to regulatory approval.
M&M mentioned in its exchange filing that the vision is to be the Number One life insurance company for rural and semi-urban India, and in serving urban customers through leadership in protected solutions.
On receiving regulatory approval, the JV will expand on the collaboration between Mahindra and Manulife in India. The two entities already have an investment management platform, Mahindra Manulife Investment Management, which was launched in 2020.
The total capital commitment from each shareholder will be up to ₹3,600 crore or $400 million for the first 10 years and both are likely to invest up to ₹1,250 crore each during the first five years of the JV, M&M added.
This JV will aim to offer long-term savings and protection solutions in-line with India's "Insurance for All" vision by 2047 and utilize Mahindra's distribution reach in rural and semi-urban areas and Manulife's agency capabilities catered to urban customers.
India's life insurance market has surpassed $20 billion in new business premiums, and is growing at a Compounded Annual Growth Rate (CAGR) of 12% over the last five years. "Yet, India continues to have a high protection gap and low insurance penetration, providing long-term growth potential," M&M wrote in its filing, adding that these tailwinds position India to be the fastest growing life insurance market over the next decade.
More details about the JV:
- It will be incorporated as a public limited company.
- Both Mahindra & Manulife will have the right to nominate two directors each to the JV board.
- Mahindra will have the right to restrict any change in the capital structure of the JV company including fresh equity infusion other than that agreed between the two partners.
"With a focus on leveraging technology the joint venture will build an efficient, customer-centric insurer in India. We are confident that this joint venture offers a very compelling opportunity to create meaningful value for our shareholders," Anish Shah, Group CEO and MD of the Mahindra Group was quoted as saying.
The move increases competition in India's life insurance sector. In July this year, Jio Financial Services and Allianz Group had announced a 50:50 reinsurance JV and also signed a non-binding agreement to set up equally owned JVs for general and life insurance businesses in India.
Shares of Mahindra & Mahindra ended little changed on Wednesday, closing 0.2% lower at ₹3,740.3. The stock made a new record high of ₹3,781 in intraday trade and has risen 21% so far in 2025.
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