Jio Financial Services and Allianz SE have formed a preliminary agreement to establish an insurance business in India. The deal follows Allianz’s sale of its stake in partnerships with Bajaj Finserv. Allianz seeks a majority stake and governance rights, emphasizing the importance of India as a growth market in insurance.
Reliance Group’s Jio Financial Services has entered into a preliminary agreement with Allianz SE of Germany 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 non-life and life insurance partnerships with Bajaj Finserv for approximately 2.6 billion euros ($2.82 billion).
The agreement signals ongoing negotiations regarding the ownership structure, with Allianz aiming to secure a majority stake in the new venture. Additionally, they are interested in obtaining governance rights to facilitate potential control in the future. Neither Jio Financial nor Allianz provided immediate comments in response to inquiries from Reuters.
Allianz has emphasized that India remains a crucial growth market for the company, indicating its intent to explore new opportunities that will bolster its standing within the Indian insurance sector.
The preliminary agreement between Jio Financial Services and Allianz SE marks a significant move in the Indian insurance market. With Allianz aiming for a majority stake and governance rights, the partnership is poised for strategic growth in a vital market. This development follows Allianz’s recent divestment of its interests in previous partnerships, indicating a fresh focus on expansion in India.
Original Source: www.business-standard.com
