Manulife Financial Corporation and Mahindra & Mahindra have signed an agreement to establish a life insurance joint venture (JV) in India, both holding an equal stake. 

The arrangement, which is pending regulatory approval, will see both companies invest up to $400m each, with $140m expected from each party in the first five years. 

According to a joint statement, the JV will focus on providing long-term savings and protection solutions tailored to the Indian population.  

The initiative aligns with the country’s Insurance for All vision for 2047. 

The partnership will make use of Mahindra’s established presence in rural and semi-urban regions alongside Manulife’s experience in serving urban customers through its agency network. 

It will focus on deploying new technologies and targeting different market segments, with particular emphasis on underserved areas. 

Manulife CEO and president Phil Witherington said: “This will further strengthen our diverse portfolio and positions us for tremendous growth in a mega economy of the future.  

“We have a trusted partner in Mahindra Group, with whom we already have a successful asset management collaboration, and we see tremendous opportunity to build on our efforts by leveraging their deep distribution network alongside our industry-leading agency distribution and insurance expertise.” 

This new life insurance venture follows the establishment of Mahindra Manulife Investment Management in 2020.  

The companies stated that they will now work together on applying for an insurance licence as the next step towards launching the new venture. 

Mahindra Group CEO and MD Anish Shah said: “Manulife is the best natural partner for us given their global capabilities in insurance products, underwriting and reinsurance.  

“With a focus on leveraging technology, the JV will build an efficient, customer-centric insurer in India. We are confident that this JV offers a very compelling opportunity to create meaningful value for our shareholders.”