Manulife Financial and Mahindra & Mahindra have agreed to form a 50:50 life insurance joint venture, a move that positions both companies to deepen their reach in one of the world’s most dynamic insurance markets.
The partnership, which is subject to regulatory approval, aims to build a leading presence across rural, semi-urban, and urban India, with a stated ambition to become the top life insurer for customers outside major metropolitan centres while also competing strongly in urban protection products.
The venture will focus on long-term savings and protection solutions aligned with India’s “Insurance for All by 2047” strategy. It brings together Mahindra’s extensive distribution footprint in rural and semi-urban markets and Manulife’s agency strength and underwriting expertise for urban customers. Both companies expect to invest up to US$400 million in total, with an initial commitment of US$140 million each over the first five years.
This builds on the success of Mahindra Manulife Investment Management, launched in 2020, and signals a broader expansion of both companies’ financial services ambitions in India.
According to the companies, industry conditions provide favorable tailwinds. India’s life insurance sector has grown at 12% annually over the past five years, surpassing US$20 billion in new business premiums, yet the country still faces a substantial protection gap and relatively low insurance penetration.
A growing middle class, strong GDP trajectory, and regulatory reforms are contributing to expectations that India will become the fastest-growing life insurance market globally over the next decade and the fourth largest in total size, the companies said.
Manulife CEO Phil Witherington said the venture marks a strategic step into a high-growth market, noting that India aligns with the company’s long-term diversification goals and complements its existing collaboration with Mahindra. Dr. Anish Shah, Group CEO and Managing Director of Mahindra, said life insurance fits naturally within Mahindra’s financial services expansion and that Manulife’s global capabilities make it a strong partner.
With the agreement now signed, both teams will begin the process of applying for an insurance licence, paving the way for the creation of a new player in a rapidly expanding market.
