Mahindra & Mahindra, Manulife To Invest Rs 7,200 Cr In India Life Insurance JV

Mahindra & Mahindra (M&M) on Thursday said its board has approved the formation of a 50:50 joint venture with Canada-based Manulife Financial Corporation to enter India’s life insurance market, deepening the Mahindra Group’s presence in the country’s financial services sector. The proposed venture, which is subject to regulatory approvals, will see both M&M and Manulife hold equal stakes, 50 per cent each, in the paid-up share capital of the new life insurance company, the Indian automaker said in a stock exchange filing. “This new venture will strengthen Mahindra and Manulife’s existing footprint in India and underscores their commitment to enhancing the financial wellbeing of customers in one of the world’s fastest-growing markets,” M&M said in a statement. Each partner has committed up to Rs 3,600 crore in total capital for the venture, with an initial investment of about Rs 1,250 crore expected from each side within the first five years. The life insurance joint venture builds on the two companies’ existing partnership in asset management through Mahindra Manulife Investment Management, which launched in 2020. “Manulife is the best natural partner for us given their global capabilities in insurance products, underwriting and reinsurance,” said Anish Shah, Group CEO and Managing Director, Mahindra Group. “With a focus on leveraging technology, the joint venture will build an efficient, customer-centric insurer in India. We are confident this venture will create meaningful value for our shareholders.” Following the agreement, teams from both companies will begin the process of applying for an insurance license in India. For Manulife, which operates across Asia, the partnership represents an expansion into one of the world’s most promising insurance markets, where rising incomes and growing financial awareness continue to drive demand for life and protection products.