Manulife and Mahindra form life insurer joint venture in India

Each company has committed up to $400m.

Manulife Financial Corporation and Mahindra & Mahindra Ltd. have agreed to set up a 50:50 life insurance joint venture in India, pending regulatory approval. 

The partnership will focus on offering long-term savings and protection products for both urban and rural customers.

The joint venture combines Mahindra’s extensive distribution network in rural and semi-urban areas with Manulife’s agency capabilities in urban markets. 

Each company has committed up to $400m, with an expected initial investment of $140m each over the first five years.

India’s life insurance market has grown at a compound annual rate of 12% over the past five years and generated over $20b in new business premiums. 

Despite this growth, insurance penetration remains low, leaving significant room for expansion. The market is expected to become the world’s fourth largest in the next decade.

The companies will now work together to secure an insurance license.