Mahindra & Mahindra Ltd. and Manulife Financial Corporation announced Wednesday they have agreed to establish a 50-50 life insurance joint venture in India, pending regulatory approval.
The partnership combines Mahindra's extensive distribution network in rural and semi-urban areas with Manulife's agency capabilities targeting urban customers. Each company has committed up to Rs 3,600 crores ($400 million) in total capital, with an expected Rs 1,250 crores ($140 million) investment from each partner over the first five years.
The venture aims to become the leading life insurance provider for rural and semi-urban India while establishing a strong presence in urban protection solutions. The companies plan to offer long-term savings and protection products tailored to India's diverse population, supporting the country's "Insurance for All" vision by 2047.
India's life insurance market has grown 12% annually over the past five years, surpassing $20 billion in new business premiums. Despite this growth, the country maintains low insurance penetration and a significant protection gap, positioning it to become the world's fastest-growing life insurance market over the next decade and potentially the fourth largest globally.
Dr. Anish Shah, Group CEO and Managing Director of Mahindra Group, described life insurance as a natural extension of the company's financial services portfolio. "Manulife is the best natural partner for us given their global capabilities in insurance products, underwriting and reinsurance," Shah said.
Phil Witherington, President and CEO of Manulife, called the agreement "an important milestone" for entering one of the world's fastest-growing insurance markets. "We have a trusted partner in Mahindra Group, with whom we already have a successful asset management collaboration," he said.
The partnership builds on the companies' existing relationship through Mahindra Manulife Investment Management, launched in 2020. Following the signing, both companies will jointly apply for an insurance license from Indian regulators.
Kotak Investment Banking served as financial adviser and AZB & Partners as legal counsel to Mahindra Group. Debevoise & Plimpton LLP acted as legal counsel to Manulife.