Jio Financial Services and Allianz SE Partner for Insurance Venture in India
Reliance’s Jio Financial Services has made 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. Allianz aims for a majority interest in the new venture, seeing India as a vital growth market.
Jio Financial Services, part of the Reliance Group, has entered into a preliminary agreement with Germany’s Allianz SE to create an insurance venture in India, as reported by Bloomberg News. This development follows Allianz’s recent decision to divest its 26% stake in its non-life and life insurance joint ventures with Bajaj Finserv for approximately €2.6 billion ($2.82 billion).
The discussions between Jio and Allianz are focused on establishing the ownership structure of the new venture. Allianz is pursuing a majority stake in this collaboration while also seeking governance rights that could lead to future control. The German insurer emphasizes that India is a significant growth market, prompting its exploration of opportunities to enhance its presence in the insurance sector.
Neither Allianz nor Jio Financial Services provided immediate comments regarding the agreement when approached by Reuters.
The agreement between Jio Financial Services and Allianz SE signifies a strategic move to penetrate India’s expanding insurance market. As Allianz seeks to solidify its influence through majority stakes and governance rights, both companies aim to capitalize on growth opportunities in this crucial sector.
Original Source: www.business-standard.com
