Allianz SE eyes partnership with Jio Financial after ending $2.8 billion JV

German firm Allianz may join hands with Mukesh Ambani-led Jio Financial Services as it seeks fresh entry into India's life and general insurance sector

German financial giant Allianz SE is intensifying efforts to enter into a strategic partnership with Jio Financial Services (JFSL), led by Mukesh Ambani, for a fresh entry into India’s life and general insurance sector, according to a report by The Economic Times. This move follows Allianz’s recent decision to end its 24-year-long joint venture with the Bajaj Group.

 

Exit from Bajaj, plans for Jio Financial

Allianz announced on Monday that it would sell its 26 per cent stake in Bajaj Allianz General Insurance Co and Bajaj Allianz Life Insurance Co to its Indian partner for $2.8 billion. The payout may happen in phases.

 

Reports indicate that discussions between Allianz and Reliance Industries (RIL), which owns Jio Financial Services, have been ongoing for several months. Bloomberg reported early talks between the two entities in October 2024 after Allianz publicly acknowledged its plan to exit Bajaj.

 

Allianz is seeking a minimum 50 per cent stake in any new insurance venture, with the possibility of increasing its holding. The company also wants a greater say in management and operations.

 

Neither entities has confirmed the talks. However, a formal announcement is expected after the partnership secures regulatory approvals bodies Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (Irdai).

 

Allianz-Jio Financial partnership

Allianz has spoken on India’s importance as a key growth market and expressed its intent to reinvest the proceeds from the Bajaj exit into new opportunities in the country.

 

“India will continue to be one of Allianz’s main growth markets, and Allianz will explore new opportunities to further grow its participation in the Indian insurance market in the future, not only as an investor but also as an operator,” the company told Business Standard. 

 

 

Beyond insurance, Allianz has been increasing its foreign direct investment (FDI) in India, deploying around $1.5 billion in alternative investments. It is a significant institutional investor in Indian equities, debt markets, and infrastructure projects.

 

Globally, Allianz has been pursuing growth opportunities after setbacks in key markets like Singapore and Europe. Its 2024 bid to acquire a majority stake in Singapore’s Income Insurance was blocked by the government. Additionally, talks with French asset management firm Amundi to create a ‘European BlackRock’ with 2.8 trillion euro in assets were put on hold. Allianz is currently competing with other bidders to acquire the Royal Automobile Club of Western Australia.

 

Meanwhile,  Jio Financial Services has been preparing for its entry into the life, general, and health insurance segments through a fully digital platform, as Mukesh Ambani had hinted during RIL’s 2023 annual general meeting.

 

Currently, JFSL operates an insurance broking business, offering a direct-to-consumer portfolio of 54 plans across auto, health, and life insurance. It is also expanding its institutional insurance platform with services like group term life, medical, personal accident, and commercial insurance.