Billionaire Mukesh Ambani’s, Jio Financial Services, is rumoured to be in talks with Allianz SE to roll out a joint venture general and life insurance company. However, neither side has confirmed the deal officially yet.
Bloomberg has reported that the two companies are looking to effectively consolidate Jio's existing financial services structure with the global knowledge of insurance Allianz possesses.
This new joint venture follows the latest announcement by Allianz to withdraw from its twenty years long Bajaj Finserv alliance. The two companies have been in a solid partnership since 2001. Allianz holds 26% in Bajaj Allianz General and Life Insurance.
Bajaj Finserv has commented, "Allianz has communicated to Bajaj that as part of its strategic priorities, it is contemplating an exit from the life and general insurance joint ventures,". This follows a spate of disagreement over the direction of partnership.
This leaves Bajaj Finserv with two options, either buy out the stake from Allianz or seek an IPO. However, the operations will not suffer as Allianz involvement has primarily been at the board level.
The rumoured partnership would fit perfectly with Jio Financial's recent deals, particularly its collaboration with BlackRock Inc. to strengthen its asset management capabilities in India. The strategy here appears to form part of an overarching aim to expand its footprint across all financial services.
Industry watchers eagerly await to see if Jio Financial Services and Allianz SE can consummate this joint venture.