Jio Financial Services has preliminarily partnered with Allianz SE to create an insurance business in India. This follows Allianz’s sale of a stake in Bajaj Finserv. Discussions regarding ownership structure are ongoing, with Allianz seeking a major stake and governance rights for future control.
Jio Financial Services, a subsidiary of the Reliance group, has formed a preliminary agreement with Germany’s Allianz SE to establish an insurance business in India, as reported by Bloomberg News. This announcement follows Allianz’s recent decision to sell its 26% stake in joint ventures with Bajaj Finserv to the Bajaj Group for approximately 2.6 billion euros, equivalent to $2.82 billion.
Currently, discussions are ongoing regarding the ownership structure between Jio and Allianz. Allianz is pursuing a majority stake in the new venture while also seeking governance rights that would facilitate a potential future control over the operation. Both Jio Financial and Allianz have not provided immediate comments regarding the agreement.
Allianz has emphasized that India remains a crucial market for its growth strategy, demonstrating its intention to seek new opportunities that can solidify its presence within the Indian insurance sector. The development of this venture signals a progressive step in enhancing Allianz’s insurance operations in India.
In conclusion, Jio Financial Services and Allianz SE are collaborating to launch an insurance business in India, following Allianz’s recent divestment from Bajaj Finserv. The two companies are negotiating the terms of their partnership, with Allianz aiming for a controlling interest to strengthen its influence in the burgeoning Indian market, reflecting its commitment to growth in the region.
Original Source: www.business-standard.com
