Allianz has entered a preliminary agreement with Jio Financial Services (JFSL) to form an insurance joint venture (JV) in India, reported Bloomberg, citing sources.
The partnership, which is currently being finalised, could see the German insurer aim for a majority stake in the venture.
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However, Allianz is also open to initially securing governance rights, with the possibility of gaining control in the future if a majority stake is not attainable at present.
The proposed collaboration would encompass both health and general insurance sectors.
This agreement is still under negotiation and subject to change, Bloomberg noted.
The news agency further said that Jio did not respond to a query and a spokesperson from Allianz refused to comment on the matter.
This move follows Allianz’s recent decision to exit insurance JVs with Bajaj.
Under the agreement, the company decided to sell its 26% stake in Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company to Bajaj Finserv and other promoter entities for $2.8bn (€2.59bn).
Allianz posted a net income attributable to shareholders of €2.4bn in the fourth quarter of 2024, a 14.9% rise from the prior year.
The insurer’s full-year net income attributable to shareholders reached €9.9bn, up 16.3% from 2023.
JFSL has been publicly traded on the Bombay Stock Exchange and the National Stock Exchange since 21 August 2023.
The company operates a range of consumer-facing financial services including Jio Finance, Jio Insurance Broking, Jio Payment Solutions, Jio Leasing Services, Jio Finance Platform and Service and Jio Payments Bank.
In 2023, JFSL and BlackRock set up Jio BlackRock, a 50:50 JV in India that unifies the expertise of both entities to offer “affordable” investment solutions.
