Join Us 
Business: The company arm controlled by the billionaire Mukesh Ambani is now holding talks with Germany’s Allianz SE to forge an insurance joint venture in India. Reports said that German insurance giant, Allianz, wants to untangle itself from two existing joint ventures in the country. It would create both a general and a life insurance company, the Economic Times further reported in this context.
Allianz’s Plans to Exit Existing Ventures. However, sources have informed the media that Allianz has already told its existing partner, Bajaj Finserv Ltd., that it is “actively considering an exit” from its existing joint ventures. Bajaj revealed this in a statement after a Bloomberg News report and said Allianz will remain committed to the Indian insurance market.
Jio Financial holds Talks with Allianz: It has been reported that the negotiations between Jio Financial and Allianz are in their initial stages. The companies might eventually opt out of taking the relationship forward.
No definitive response has been shown by Allianz or Jio Financial who have dismissed the talks as market rumors at this juncture.
Jio Financial Growth Plans: Jio Financial, led by banker K.V. Kamath, already runs a shadow bank and an insurance brokerage. Additionally, the company has partnered with BlackRock Inc. to start an asset management business. Going further forward in the insurance business also brings Jio Financial closer to its dream of becoming the big player in India’s financial services industry.
Indian Insurance Market: There is huge room for growth in India’s insurance market. Penetration, or the country’s ratio of premiums to GDP, is less than half the level seen in countries like South Africa and Canada, according to data from India’s insurance regulator. That leaves huge scope for growth right in the market itself, making this an attractive opportunity both for Jio Financial and Allianz.
