Jio Financial Services has reached a preliminary agreement with Allianz SE to establish an insurance business in India. This follows Allianz’s sale of its stake in joint ventures with Bajaj Finserv. The two companies are negotiating the ownership structure, with Allianz aiming for a majority stake. Allianz views India as a key growth market.
Jio Financial Services, owned by the Reliance Group, has entered a preliminary agreement with Germany’s Allianz SE to develop an insurance business in India. This strategic partnership follows Allianz’s recent decision to divest its 26% stake in existing life and non-life insurance joint ventures with Bajaj Finserv to the Bajaj Group for approximately 2.6 billion euros ($2.82 billion).
Reports suggest that Jio and Allianz are currently negotiating the ownership structure of the new venture. Allianz is seeking a majority stake but is also considering options for governance rights to facilitate future control. Despite the ongoing discussions, neither Allianz nor Jio Financial has commented on the situation at this time.
Allianz has emphasized that India continues to be a critical market for growth and has indicated its intention to pursue new opportunities to bolster its presence in the Indian insurance sector. This collaboration aims to leverage both Jio’s extensive reach within the market and Allianz’s insurance expertise.
The preliminary agreement between Jio Financial Services and Allianz SE represents a significant move in the Indian insurance landscape. With Allianz seeking a majority stake and governance rights, this venture underscores the importance of India as a growing market. The collaboration aims to combine Jio’s market reach with Allianz’s insurance acumen, setting the stage for enhanced services in India’s insurance sector.
Original Source: www.business-standard.com
