Kathmandu. Mahindra & Mahindra Ltd (M&M) has announced that it will launch life insurance companies in India in partnership with Canadian investors.
Mahindra & Mahindra (M&M) has entered into an agreement with Manulife, a Canadian financial services multinational company, to establish a 50% stake in life insurance company. The MoU will come into effect after the approval of the Indian regulator.
The total capital commitment from both the parties for the proposed insurance company is up to Rs 3,600 crore (US$400 million). According to Indian media reports, both sides are expected to invest Rs 1,250 crore (US$140 million) in the first five years.
After signing the agreement, Anish Shah, managing director of Mahindra Group, said that they plan to enter into the non-life insurance service in the future once the government grants unified license.
Only two per cent of life insurance branches are in rural India, Mahindra said in a statement to investors, adding that Mahindra Life Insurance is a “logical extension” of its services as it has an extensive automotive distribution network and offers retail loans through Mahindra & Mahindra Financial Services.
