“We can plan getting into non-life business if composite license is allowed by the government afterwards.Mahindra brand strength, deep distribution capabilities in rural and semi-urban India and execution excellence make life insurance a logical extension towards our goal of building a comprehensive financial services portfolio. We want to be the the number one life insurance company for rural and semi-urban India ”Anish Shah, Group CEO & Managing Director, Mahindra Group
Mumbai: Indian auto major Mahindra & Mahindra Ltd. (M&M) and Canadian financial service multinational Manulife today have entered into an agreement to establish a 50:50 life insurance joint venture in the country, subject to regulatory approval.
The total capital commitment from each shareholder is up to Rs 3,600 crores (US$400 million), each shareholder is expected to invest Rs 1,250 crores (US$140 million) in the first five years.
Following today’s signing, Mahindra and Manulife teams will work together to apply for an insurance license.
Anish Shah, Group CEO & Managing Director, Mahindra Group, said,“We can plan getting into non-life business if composite license is allowed by the government afterwards. Mahindra brand strength, deep distribution capabilities in rural and semi-urban India and execution excellence make life insurance a logical extension towards our goal of building a comprehensive financial services portfolio.”
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, said Shah.
“We are confident that this joint venture offers a very compelling opportunity to create meaningful value for our shareholders,” added Shah.
Only two per cent of life insurance branches are in India’s rural areas, Mahindra said in a presentation to investors.
Mahindra, which has an extensive automotive dealership network and offers retail loans through Mahindra & Mahindra Financial Services said life insurance was a “logical extension” of its existing services.
Phil Witherington, President and CEO(in pic), Manulife, said, “Today marks an important milestone as we seek to enter one of the world’s fastest growing insurance markets – India. This will further strengthen our diverse portfolio and positions us for tremendous growth in a mega economy of the future.”
“We have a trusted partner in Mahindra Group, with whom we already have a successful asset management collaboration, and we see tremendous opportunity to build on our efforts by leveraging their deep distribution network alongside our industry-leading agency distribution and insurance expertise,” said Witherington.
Led by Life Insurance Corporation, India has currently 27 life insurance companies.In financial year 2024-25, the insurance sector collected premiums of over Rs 11.93 lakh crore. Of this, life insurance accounted for nearly Rs 8.86 lakh crore.
Upon regulatory approval, this joint venture will expand on the collaboration between Mahindra and Manulife in India, following the successful launch of Mahindra Manulife Investment Management in 2020.
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’sfastest-growing markets.
Kotak Investment Banking acted as financial adviser and AZB & Partners acted as legal counsel to Mahindra Group. Debevoise & Plimpton LLP acted as legal counsel to Manulife.
The vision of the new life insurance joint ventutre is to be the the number one life insurance company for rural and semi-urban India, and in serving urban customers through leadership in protection solutions.The joint venture aims to offer long-term savings and protection solutions tailored to the diverse and growing needs of India’s population, in line with India’s “Insurance for All” vision by 20471
Combining Mahindra’s deep access and extensive distribution in rural and semi-urban areas with Manulife’s proven quality agency capabilities catered to urban customers, the joint venture will create long term value by driving customer centricity and leveraging new technologies.
The life Insurance market has surpassed US$20 billion in new business premiums, growing at a 12% CAGR over the past five years.Yet, India continues to have a high protection gap and low insurance penetration,providing significant long-term growth potential. These tailwinds position India to become the world’s fastest growing life insurance market over the next decade, on track to become the fourth largest globally.This growth is underpinned by robust GDP expansion, a rising middle class, and a supportive regulatory environment.