Mukesh Ambani’s Jio Financial Services Ltd. agreed to form a reinsurance venture with Allianz SE in India, advancing the billionaire’s quest to broaden his reach in the sector.
The 50-50 venture combines Jio’s local digital footprint with Allianz’s global underwriting and reinsurance capabilities, the companies said in a statement late Friday. Jio and Allianz also signed a non-binding agreement to set up equally owned general and life insurance businesses in India.
Bloomberg News previously reported the companies’ joint-venture plan, which expands Ambani’s footprint in the insurance sector. His Jio Financial already offers digital banking and has struck a deal with BlackRock Inc. for investment-fund services.
The agreement with Jio comes after the German insurer sold its holdings in ventures with Bajaj Finserv Ltd. in India. The new reinsurance project will start operating after the companies have received statutory and regulatory approval.
India’s insurance penetration — the ratio of premiums to gross domestic product — is about 3.7%, well below other Asian countries including Japan, South Korea and Thailand, according to data from the local insurance regulator.
Photograph: Signage for Jio Financial Services Ltd. at the Bombay Stock Exchange. Photo credit: Dhiraj Singh/Bloomberg
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