Mahindra and Manulife to launch new insurance company, invest ₹7,200 crore

Mahindra & Mahindra and Canada’s Manulife have joined forces to launch a life insurance company in India. The deal is currently subject to regulatory approvals. The two companies plan to invest up to ₹3,600 crore over the first five years, with an initial investment of ₹1,250 crore. Upon receiving regulatory approvals, the new company will apply for an insurance license and commence operations.

Kotak Investment Banking acted as the financial advisor to the Mahindra Group in this deal, while AZB & Partners provided legal advice. Manulife’s advisor is Debevoise & Plimpton LLP.

Previously, the two companies joined forces in 2020 to launch Mahindra Manulife Investment Management in the mutual fund segment. This new life insurance company will meet the growing need for protection and savings solutions in India, especially in rural and semi-urban areas. Dr. Anish Shah, Managing Director and CEO of Mahindra Group, said, “This joint venture, focused on leveraging technology, will create an efficient and customer-centric insurance company in India.” He further added, “We believe this joint venture offers an attractive opportunity to create meaningful value for our shareholders.”

Manulife President and CEO Phil Witherington described this as a milestone in the company’s Asia expansion. He said, “This will strengthen our diverse portfolio and position us for tremendous growth in the larger economy of the future.” The joint venture aims to contribute to India’s ‘Insurance for All’ vision by 2047 and provide long-term protection and savings products for different income segments.