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Manulife, Mahindra Strike 50:50 India Life Insurance JV With Up to $400 Million Each

The partners will seek an Indian license next, backed by up to US$400 million apiece with about US$140 million expected over the first five years.

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Signage is seen on Manulife Financial Corp.'s office tower in Toronto, Tuesday, Feb. 11, 2020. Manulife Financial Corp. is boosting its quarterly dividend 12 per cent after it capped a stronger 2019 with net earnings more than doubling in the fourth quarter. THE CANADIAN PRESS/Cole Burston
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Overview

  • The companies signed an agreement on November 12 to establish a 50:50 life insurer in India, subject to regulatory approval.
  • Each shareholder plans a total commitment of up to US$400 million, with expected funding of roughly US$140 million within five years.
  • The next step is a joint application for an insurance license in India before operations can begin.
  • The venture targets long-term savings and protection for rural and semi-urban customers while offering protection-led products to urban markets.
  • The tie-up builds on their 2020 Mahindra Manulife asset-management partnership, with advisers named as Debevoise & Plimpton, Kotak Investment Banking and AZB & Partners.