Mukesh Ambani’s Jio Financial in Talks with Allianz to Form Insurance JVs in India Amid Bajaj Exit Plans

Jio Financial Services Ltd., led by billionaire Mukesh Ambani, has engaged in discussions with Allianz SE to form an insurance partnership in India, according to sources familiar with the matter. Allianz is reportedly seeking to dissolve two existing joint ventures in the country as part of this potential collaboration.

The two companies are exploring the creation of both a general insurance and life insurance business in India, though the talks are still in the early stages. Sources who requested anonymity due to the sensitive nature of the discussions noted that the partnership may not materialise.

Allianz has signalled to its current partner, Bajaj Finserv Ltd., that it is "actively considering an exit" from their joint ventures, according to a statement from Bajaj following Bloomberg's report. Despite this, Allianz remains committed to the Indian insurance market. The split is believed to stem from disagreements regarding the direction of the partnership, according to individuals with knowledge of the situation.

A spokesperson from Jio Financial declined to comment on speculation, stating, "We will continue to disclose any material developments as required." Allianz also declined to comment on market rumours.

Jio Financial, under the leadership of veteran banker K.V. Kamath, already operates a shadow banking service and an insurance brokerage and has partnered with BlackRock Inc. to establish an asset management firm. Expanding into the insurance sector would further Jio Financial's goal of becoming a major player in financial services.

India’s insurance penetration rate, which measures premiums as a percentage of GDP, is significantly lower than that of countries like South Africa and Canada, highlighting the sector’s potential for growth, according to data from the insurance regulator.