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After exiting Bajaj JV, Allianz plans new deal with Jio Financial: report
The Munich-based insurer is said to be looking for a majority stake, but if that is not feasible, it is open to securing governance rights with a path to taking control in future
German insurer Allianz SE and Mukesh Ambani-led Jio Financial Services Ltd have reached a preliminary deal to form an insurance business in India, Bloomberg reported, citing people familiar with the matter.
The agreement comes after Allianz agreed earlier this week to sell its stake in joint ventures with Bajaj Finserv Ltd for $2.8 billion.
Jio and Allianz are finalizing the ownership structure and a formal announcement would follow after Allianz-Jio venture secures necessary approvals from regulators, including the Competition Commission of India and the Insurance Regulatory and Development Authority of India, the report added.
Allianz and Reliance Industries Ltd, the parent of Jio Financial, have been in talks for several months, the report said, adding that the discussions intensified after Allianz said it was actively considering an exit last October.
The Munich-based insurer is looking for a majority stake, but if that is not feasible, it is open to securing governance rights with a path to taking control in the future, the report added.
Allianz said in a statement that it would explore new opportunities that strengthen its position in the market and expand its potential to “serve not only as an investor but also as an operator.”
Similarly, during the annual general meeting in 2023, RIL chairman Mukesh Ambani had said that Jio Financial would enter the insurance segment to offer simple yet smart life, general, and health insurance products through a seamless digital interface, potentially partnering with global players.
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