Trusted Industries President Mukesh Ambani is now preparing to enter another new sector. In fact, 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 matter said that the German company wants to end two existing joint ventures in the country. Mukesh Ambani is ahead to grab this opportunity. Allianz and Jio Financial will jointly enter the life and general insurance business. Experts say that although these talks are in the initial stage, if this deal is closed, competition will increase due to Jio’s entry into the insurance market. Thousands of people will benefit from this. They may see a reduction in their insurance premiums.
There is no official statement yet
No official statement regarding this conversation has yet arrived. A Jio Financial spokesperson declined to comment on the company’s speculation. He said that if something like this happens, we will definitely give information. German company Allianz is reportedly considering exiting its two existing joint ventures with Bajaj Finserv Ltd, ending a partnership spanning more than two decades. Bajaj Finserv has confirmed that Allianz is “actively considering an exit” from its life and general insurance businesses.
Jio Financial’s entry into financial services
Jio Financial, currently headed by veteran banker KV Kamath has already forayed into financial services through shadow banking and insurance broking. The firm has partnered with BlackRock Inc. to enter the asset management business. Adding 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 such as South Africa and Canada, highlighting the sector’s growth potential. According to data from the insurance regulator, this presents considerable opportunities for companies such as Jio Financial and Allianz.
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