Mahindra, Manulife to set up 50:50 JV for life insurance in India

Mahindra & Mahindra (M&M) and Manulife on Thursday agreed to establish a 50:50 life insurance joint venture (JV), the companies said in a joint statement. The new venture, subject to regulatory approval, will likely strengthen M&M and Manulife’s existing footprint in the country, underscoring their commitment to enhancing the financial well-being of customers in one of the world’s fastest-growing markets.

 

In a statement, the companies said they aim to be the best life insurance company for rural and semi-urban India and serve urban customers through leadership in protection solutions.

 

Commenting on the partnership, Mahindra Group's CEO and Managing Director Anish Shah said, “Manulife is the best natural partner for us given their global capabilities in insurance products, underwriting, and reinsurance. With a focus on leveraging technology, the JV will build an efficient, customer-centric insurer in India. We are confident that this joint venture offers a very compelling opportunity to create meaningful value for our shareholders.” 

 

Meanwhile, Manulife President and CEO Phil Witherington said, “This partnership will further strengthen our diverse portfolio and position us for tremendous growth in a mega economy of the future.”

 

"The total capital commitment from each shareholder is up to ?3,600 crore. We expect each shareholder to invest ?1,250 crore in the first five years," the companies said.

Expanding collaboration

The JV aims to offer long-term savings and protection solutions tailored to the diverse and growing needs of India’s population, in line with India’s “insurance for all” vision by 2047.

 

Upon receiving regulatory approval, this JV will expand on the collaboration between the two companies, following the successful launch of Mahindra Manulife Investment Management in 2020.

Life insurance market in India

India’s life insurance market is expanding. It is now worth over $20 billion and has been increasing by about 12 per cent every year for the past five years. Despite this, insurance penetration remains low, offering significant room for growth.

 

With a rising middle class, an expanding economy, and favourable regulatory reforms, India is projected to become the fourth-largest life insurance market globally in the coming years.

GST reforms for the insurance sector

In a major reform for the sector, the Goods and Services Tax (GST) Council in September 2025 exempted life and health insurance premiums from GST, effective from September 22.

 

The move makes term plans, unit-linked insurance policies (ULIPs), and health covers 18 per cent cheaper, improving affordability and widening access to financial protection for millions of Indians.