Allianz and Jio commit to launching Indian reinsurance JV

By Chris Munro

July 21 - (The Insurer) - Allianz Group and Jio Financial Services Limited have agreed to establish a reinsurance joint venture that will support India’s stated vision of 'Insurance for All' by 2047.

The binding agreement will combine Allianz’s global underwriting and reinsurance capabilities with Jio’s local market knowledge and reach, the two companies said in a statement on Friday.

The 50:50 domestic reinsurance joint venture will target opportunities in both the general and life insurance sectors.

India’s non-life and life insurance markets continue to grow at a rapid pace, with the country booking $136.0 billion of combined premium across both sectors in 2023, growth of 4.8% year on year, according to figures from Swiss Re.

In 2023, India’s non-life insurance market booked $35.8 billion of premium, an increase of 10.4% from 2022, while its life sector generated $100.2 billion of premium, up 2.9%, the Swiss Re figures show.

Jio, originally incorporated as Reliance Strategic Investments Private Limited in 1999, describes itself as “a new-age institution, which operates a full-stack financial services business”.

According to Jio, “its digital-first model aims to ensure the holistic financial well-being of Indian citizens by enabling them to borrow, transact, save and invest seamlessly”.

As Allianz and Jio noted, India is the world’s fourth-largest economy and has strong economic growth, supported by favourable demographics.

They said that India’s expanding middle class and rising insurance demand “present a compelling opportunity for long-term value creation”.

“The JV will leverage Allianz’s existing Allianz Re and Allianz Commercial portfolios and activities in India,” a statement from the two companies declared.

“It will also benefit from Allianz’s global setup, including its pricing, risk selection and portfolio management expertise. Allianz Re has been reinsuring risk in India for over 25 years,” they added.

The joint venture will launch operations once it has received the necessary statutory and regulatory approvals.

In a statement, Allianz and Jio said they have also entered into a non-binding agreement to establish equally owned joint ventures for both general and life insurance businesses in India.

Isha Ambani, non-executive director at Jio, said “India is witnessing a transformative surge in insurance demand”.

That insurance demand is being driven by rising prosperity, growing financial awareness, and rapid digital adoption, Ambani noted.

“Aligned with the national goal of ‘Insurance for All by 2047’, we are committed to building a stronger and more inclusive insurance ecosystem that ensures broader access to protection for every Indian. We are excited to shape this transformative journey together,” Ambani added.