Jio Financial Services, owned by Indian billionaire Mukesh Ambani, is reportedly in talks with Allianz SE to establish a new insurance partnership in India, according to sources familiar with the situation.
According to The Economic Times, the potential collaboration between Jio Financial and Allianz is focused on setting up both general and life insurance businesses in India.
However, the talks are still in the early stages, and no final agreements have been reached, according to individuals with knowledge of the matter, who spoke on condition of anonymity.
The discussions come as Allianz is considering an exit from its two long-standing joint ventures in the country with Bajaj Finserv Ltd.
According to Bloomberg’s report, Allianz has been engaging in separate discussions to unwind its joint ventures with Bajaj Finserv – Bajaj Allianz Life Insurance Co and Bajaj Allianz General Insurance Co – due to disagreements over control and strategic direction.
The German insurer has been looking to increase its stake in the ventures, but Bajaj has resisted, leading to tensions that have escalated over time. Allianz currently holds a minority interest in the partnerships, with Bajaj owning 74%.
Bajaj Finserv confirmed in a statement that Allianz is exploring an exit from the joint ventures, citing a difference in strategic priorities. However, it noted that Allianz remains committed to the Indian insurance market overall.
The company added that if Allianz does proceed with its exit, both parties would work to ensure a smooth transition.
The talks between Allianz and Jio Financial continue as the insurance giant eyes a majority stake in Income Insurance Ltd.
If successful, Allianz will become the fourth largest composite insurer in Asia and a leading player in Singapore’s property and casualty (P&C) sector, according to Fitch Ratings.
However, the insurance giant has been facing Singaporean government pushback, with Minister for Culture, Community, and Youth Edwin Tong claiming that the deal does not align with the public interest in its current form.
This month, Singapore has passed an amendment to the Insurance Act, potentially blocking Allianz’s proposed acquisition of a majority stake in Income Insurance.
According to Bloomberg’s report, the amended bill will see Singapore’s financial regulator require the relevant government ministry’s approval to greenlight transactions involving insurance companies that are co-operatives or are connected to co-operatives.
