Mukesh Ambani launched a 50-50 joint venture between Jio Financial and Allianz to establish a reinsurance business in India. The joint statement from Friday explains how Jio’s digital network will unite with Allianz’s worldwide reinsurance and underwriting capabilities.
Jio Financial and Allianz have established a non-binding agreement to create equal ownership general and life insurance businesses in India in addition to their reinsurance joint venture. The Indian insurance market shows potential for expansion because its penetration rate stands at 3.7% of GDP while Japan and South Korea maintain higher levels of insurance penetration.
The German insurer ended its business relationships with Bajaj Finserv in India to start this new partnership. Jio Financial operates digital banking services and has invested in BlackRock for investment services as part of its financial services expansion strategy.
The new reinsurance project will begin operations after receiving all necessary statutory and regulatory approvals which demonstrates the partners’ faith in India’s developing insurance sector and its substantial growth prospects.
