Jio Financial and Allianz reportedly exploring new insurance tie-up

Jio Financial and Allianz reportedly exploring new insurance tie-up | Insurance Business Asia

Life & Health

Jio Financial and Allianz reportedly exploring new insurance tie-up

Potential collaboration revealed as insurer plans to scrap joint ventures

Life & Health

By
Roxanne Libatique

Jio Financial Services, owned by Indian billionaire Mukesh Ambani, is reportedly in talks with Allianz SE to establish a new insurance partnership in India, according to sources familiar with the situation.

However, the talks are still in the early stages, and no final agreements have been reached, according to individuals with knowledge of the matter, who spoke on condition of anonymity.

The discussions come as Allianz is considering an exit from its two long-standing joint ventures in the country with Bajaj Finserv Ltd.

Allianz’s joint ventures in India

According to Bloomberg’s report, Allianz has been engaging in separate discussions to unwind its joint ventures with Bajaj Finserv – Bajaj Allianz Life Insurance Co and Bajaj Allianz General Insurance Co – due to disagreements over control and strategic direction.

The German insurer has been looking to increase its stake in the ventures, but Bajaj has resisted, leading to tensions that have escalated over time. Allianz currently holds a minority interest in the partnerships, with Bajaj owning 74%.

Bajaj Finserv confirmed in a statement that Allianz is exploring an exit from the joint ventures, citing a difference in strategic priorities. However, it noted that Allianz remains committed to the Indian insurance market overall.

The company added that if Allianz does proceed with its exit, both parties would work to ensure a smooth transition.

Allianz SE majority stake in Income Insurance

The talks between Allianz and Jio Financial continue as the insurance giant eyes a majority stake in Income Insurance Ltd.

This month, Singapore has passed an amendment to the Insurance Act, potentially blocking Allianz’s proposed acquisition of a majority stake in Income Insurance.