Jio Financial Services has reached a preliminary agreement with Allianz SE to create an insurance business in India. Following Allianz’s divestment of its stake in Bajaj Finserv, the new venture aims for a majority ownership by Allianz. This collaboration highlights Allianz’s focus on growth in the Indian insurance sector.
Reliance Group’s Jio Financial Services has entered a preliminary agreement with Germany’s Allianz SE to establish an insurance business in India, as reported by Bloomberg News. This development follows Allianz’s recent decision to divest its 26% stake in its joint ventures with Bajaj Finserv for approximately 2.6 billion euros (around $2.82 billion).
The discussions between Jio and Allianz are focused on finalizing the ownership structure of the new venture. Allianz is seeking a majority stake, while also being open to acquiring governance rights to eventually gain control over the partnership. Both Jio Financial and Allianz have yet to respond to inquiries from Reuters regarding the matter.
Allianz has reiterated its commitment to the Indian market, highlighting its potential for growth. The company intends to explore new opportunities that bolster its position within India’s insurance sector and respond to the dynamic market conditions.
The collaboration between Jio Financial Services and Allianz SE marks a strategic move towards establishing a robust insurance business in India. With Allianz’s aim for a controlling stake and Jio’s significant influence, the venture is poised to tap into India’s promising insurance market, further affirming Allianz’s investment in the region. The ongoing discussions illustrate the dynamic nature of the sector and its potential for growth.
Original Source: www.business-standard.com