Jio Financial Services has reached a preliminary agreement with Allianz SE to form an insurance business in India. This follows Allianz’s sale of its stake in joint ventures with Bajaj Finserv. The companies are negotiating ownership, with Allianz looking for a majority stake and governance rights.
Jio Financial Services, part of Reliance Group, has entered into a preliminary agreement with Germany’s Allianz SE to establish an insurance business in India. This strategic move follows Allianz’s recent decision to divest its 26% stake in its life and non-life insurance joint ventures with Bajaj Finserv, which was sold to the Bajaj Group for approximately 2.6 billion euros ($2.82 billion).
According to Bloomberg News, the ownership structure of the new venture is currently being negotiated, with Allianz seeking a majority stake. Furthermore, Allianz desires governance rights that could pave the way for future control of the joint enterprise. Both Allianz and Jio Financial Services did not provide immediate comments in response to inquiries from Reuters.
India is recognized by Allianz as a significant growth market in the insurance sector, and the company is actively pursuing new opportunities that would reinforce its competitive position in the industry.
In conclusion, the preliminary agreement between Jio Financial Services and Allianz SE marks a significant development in India’s insurance market. With Allianz’s recent stake sale and aspirations for a majority in the new venture, this partnership has the potential to enhance their competitive strength in this vital market. As both parties finalize the ownership details, their commitment to growth in India remains evident.
Original Source: www.business-standard.com
