In a landmark move aimed at expanding financial inclusion and strengthening India’s life insurance ecosystem, Mahindra & Mahindra Ltd. (M&M) and Manulife have announced the formation of a 50:50 life insurance joint venture, subject to regulatory approval. The partnership combines Mahindra’s extensive reach in rural and semi-urban markets with Manulife’s global insurance expertise to deliver innovative, customer-centric financial protection and savings solutions across India.
The new joint venture will play a pivotal role in advancing India’s “Insurance for All by 2047” vision, an initiative by the Insurance Regulatory and Development Authority of India (IRDAI) aimed at closing the nation’s protection gap and expanding coverage for all citizens.
Building the Future of Inclusive Insurance
The joint venture aims to become the #1 life insurance company for rural and semi-urban India, while also serving urban customers through leadership in protection and long-term savings solutions.
With Mahindra’s strong presence in rural India and Manulife’s global expertise in creating new products and managing risks, the venture plans to provide easy-to-use life insurance products that meet the needs of India’s varied population and economy.
Each partner has committed a capital investment of up to ₹3,600 crores (US$400 million), with ₹1,250 crores (US$140 million) to be invested by each over the first five years. The joint venture will build on the successful collaboration between the two companies through Mahindra Manulife Investment Management, launched in 2020.
India: A Rapidly Growing Life Insurance Market
India’s life insurance market has surpassed US$20 billion in new business premiums, growing at a compound annual growth rate (CAGR) of 12% over the past five years, according to IRDAI data. Despite this progress, the country continues to face a significant protection gap and low insurance penetration, creating vast opportunities for growth.
Industry forecasts, including those by McKinsey & Company, suggest that India is on track to become the world’s fourth-largest life insurance market within the next decade, driven by a rising middle class, strong GDP growth, and a supportive regulatory environment.
Leaders’ Perspectives on the Partnership
Dr Anish Shah, Group CEO and Managing Director of the Mahindra Group, expressed optimism about the partnership’s potential, stating:
“Mahindra’s brand strength, deep distribution capabilities in rural and semi-urban India, and execution excellence make life insurance a natural extension of our financial services portfolio. Manulife, with its global expertise in insurance, underwriting, and reinsurance, is the perfect partner. Together, we aim to build a tech-enabled, customer-centric insurer that delivers real value to our shareholders and communities.”
Phil Witherington, President and CEO of Manulife, emphasised the strategic significance of entering the Indian market:
“This partnership marks an important milestone for Manulife as we enter one of the world’s fastest-growing insurance markets. India’s strong economic growth and evolving financial landscape present a tremendous opportunity. Our collaboration with Mahindra, built on trust and shared values, will enable us to deliver high-quality insurance solutions to millions of customers.”
Next Steps and Advisory Support
Following the signing of the agreement, Mahindra and Manulife teams will jointly apply for an insurance licence in India. The transaction has been supported by Kotak Investment Banking as financial advisor and AZB & Partners as legal counsel to Mahindra Group, while Debevoise & Plimpton LLP acted as legal counsel to Manulife.
Once approved, this partnership is expected to reshape India’s life insurance landscape by offering integrated, digitally enhanced protection and savings solutions, contributing to the country’s long-term financial inclusion goals.
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