Jio Financial To Team Up With German Company Allianz For Insurance Venture: Report

German financial services company Allianz SE has plans to establish a general insurance and a life insurance company in partnership with Jio Financial Services Ltd in India, The Economic Times reported. This development follows reports of the company splitting from long-time insurance-providing partner Bajaj Finserv Ltd.

Jio Financial Services declined to comment on the speculation, stating “If and when there are any material developments with respect to the company, we will continue to make necessary disclosures in accordance with our obligations, as we always have.”

The Bajaj and Allianz Split

On October 22, Bloomberg reported that Allianz SE was in talks to split with Bajaj Finserv Ltd, and scrap its two joint ventures, Bajaj Allianz Life Insurance Co and Bajaj Allianz General Insurance. The separation, according to sources, was because the Indian company was not allowing its German partner to raise its stakes at a discounted price. The two parties also had a dispute over the direction of the partnership and Allianz reportedly believes that it is not given a say in strategic decisions, sources said. Bajaj Finserv holds a 74% stake in each of the two ventures.

Bajaj confirmed in a statement to Bloomberg that due to its strategic priorities, “[Allianz SE] is actively considering an exit from the life and general insurance joint ventures. It has indicated that it remains committed to the Indian insurance market but will not speculate on alternatives.” Allianz did not comment.

JioFinancial’s Insurance Ventures

Jio Insurance Broking Ltd, under Jio Financial Services, expanded its insurance offerings to health insurance and life insurance for auto and two-wheeler insurance in Q2FY25. It has tie-ups with 31 insurance providers across life, health and general insurance, and across three distribution channels—Direct to Customer, embedded & ecosystem sales, and institutional sales. In its Q2FY25’s financial report, the company indicated that it had seen a strong growth trajectory, enabling extended warranty on consumer durables and devices.

In May this year, Jio Financial Services launched the “JioFinance” app that integrates digital banking, UPI transactions, bill settlements, and insurance advisory, and offers a consolidated view of accounts and savings, on a single platform. Jio said that the app aimed to provide “everything related to finance in a single platform for any user across all demographics.”

In Q2FY25, Jio Financial Services reported a profit after tax of Rs 689 crore, a 3% Year on Year (YoY) growth from Rs 668 crore. Its total revenue also grew to Rs 694 crore from Rs 608 crore, a 14% YoY increase. Interest income accounted for the largest contributor in revenue rising 56% YoY to Rs 93 Crore from Rs 40 Crore.

Also Read:

• Jio sheds 11M users in Q2FY25 but ARPU, 5G migration and data consumption keep growth steady
• Jio Subscriber Base Falls After Tariff Hike Despite Uptick In 5G Customers in Q2FY25
• Earnings call: Jio’s 5G Transition Ahead of Schedule, Powers New AI and Security Services
• Jio Brain, Connected Intelligence, PhoneCall AI: Takeaways from Reliance AGM 2024

The post Jio Financial To Team Up with German Company Allianz for Insurance Venture: Report appeared first on MEDIANAMA.