Mukesh Ambani
Reliance Industries Chairman Mukesh Ambani is now preparing to enter another new sector. Actually, Mukesh Ambani’s company Jio Financial Services Limited has started talks with German insurance company Allianz SE to enter the Indian insurance market. According to Business Standard, two sources close to the development said that the German firm wants to end two existing joint ventures in the country. Mukesh Ambani is ahead to capitalize on this opportunity. Allianz and Jio Financial will together enter the general insurance and life insurance business. Experts say that although these talks are in the initial stage, but if this deal is done then competition will increase due to Jio’s entry in the insurance market. Lakhs of people will benefit from this. They may see a reduction in their insurance premiums.
No official statement yet
No official statement has come yet regarding this conversation. A Jio Financial spokesperson declined to comment on the company’s speculations. Said that if something like this happens then we will definitely give information. According to reports, German company Allianz is considering exiting its two existing joint ventures with Bajaj Finserv Ltd, which will end a partnership spanning more than two decades. Bajaj Finserv has confirmed that Allianz is “actively considering an exit” from its life and general insurance ventures.
Jio Financial’s entry into financial services
Jio Financial, currently led by veteran banker K.V. Kamath, has already entered financial services through shadow banking operations and insurance brokerage. The firm has teamed up with BlackRock Inc. to enter the asset management business. The addition of insurance to its portfolio will boost Jio Financial’s ambitions to become a major player in India’s financial sector. India’s insurance penetration rate is significantly lower than countries like South Africa and Canada, highlighting the growth potential of the sector. According to data from the insurance regulator, this presents huge opportunities for companies like Jio Financial and Allianz.
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