After partnering with BlackRock in asset management and broking space, Mukesh Ambani's Jio Financial now joins hands with Allianz for reinsurance business

Just four months after Allianz SE ended its more than two-decade-old partnership with Bajaj Finserv, the insurance major is joining hands with Mukesh Ambani-owned Jio Financial Services (JFS).

 

JFS already has a wide-ranging partnership with investment giant BlackRock across asset management and stock broking. JFS and Allianz Europe BV have now entered into a binding agreement to form a 50:50 reinsurance joint venture. The two companies have also entered into a non-binding agreement to set up equally owned joint ventures for general as well as life insurance businesses in India.

 

Allianz has been reinsuring risk in India for the past 25 years. The JV with JFS will leverage the existing Allianz Re and Allianz Commercial portfolios and activities in India.

 

The reinsurance partnership will bring together JFS’s deep local expertise and robust digital footprint with Allianz’s strong underwriting and global reinsurance capabilities. It will also benefit from Allianz’s global set up including its pricing, risk selection and portfolio management expertise, the two companies said.

 

“India is witnessing a transformative surge in insurance demand, driven by prosperity, growing financial awareness, and rapid digital adoption,” claimed Isha Ambani, non-executive director of JFS.

 

“This partnership, combining Allianz’s global reinsurance expertise with JFS’s deep understanding of the Indian market and strong digital infrastructure, aims to deliver innovative and customised reinsurance solutions to insurers,” she said.

 

Allianz was earlier present in India through separate life and general insurance partnerships with non-banking finance company Bajaj Finserv. In March, Bajaj Finserv had announced it would acquire the 26 per cent interest owned by Allianz in Bajaj Allianz General Insurance Company for Rs 13,780 crore and Bajaj Allianz Life Insurance Company for Rs 10,400 crore.  Bajaj Group would then get 100 per cent ownership of the two companies.

 

However, even at that time Allianz had indicated it wanted to be present in India’s insurance space and that India would continue to be one of its growth markets.

 

In May this year, the Competition Commission of India approved Bajaj Finserv’s acquisition of Allianz’s 26 per cent stake in the two insurance ventures. 

 

India is already the world’s fourth largest economy and the country’s expanding middle class and increasing demand for insurance solutions present a compelling opportunity for long-term value creation, Allianz said late on Friday.

 

“We are proud to partner with Jio Financial Services to support the democratization of access to world-class financial services for the people of India, with the opportunity to serve a growing number of consumers who are seeking the right protection for themselves, their families and their businesses,” said Oliver Bate, CEO of Allianz SE.

 

Mukesh Ambani’s Reliance Industries is already India’s largest retailer and is the top telecom company in the country. It has big ambitions in the financial services space too and can leverage the massive reach and technology of Reliance Retail Ventures and Reliance Jio.

 

The company has a partnership with investment giant BlackRock in the asset management space. Jio and BlackRock had also received approval from the Securities and Exchange Board of India in June to commence operations as an investment adviser. The same month, the market regulator also approved their plans for a stock broking venture.

 

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