Mahindra & Mahindra (M&M) and Canada’s Manulife have agreed to set up a 50:50 life-insurance joint venture in India, subject to regulatory approvals. The partnership — building on the two companies’ earlier success with Mahindra Manulife Investment Management (launched in 2020) — is structured as a large capital commitment and aims to target under-served segments across rural, semi-urban and urban India with long-term savings and protection products.

Deal structure and capital plans

Under the definitive agreement, each partner has committed up to ₹3,600 crore (roughly USD 400 million) in total capital to the venture, making the combined commitment ₹7,200 crore. In the initial phase, each shareholder is expected to invest ₹1,250 crore (about USD 140 million) over the first five years following regulatory clearance and commencement of operations.

Once formal approvals are obtained, the JV will apply for a life-insurance licence and begin operational build-out. As per the terms, M&M will hold 50% of paid-up share capital in the proposed JV company, while Manulife (or its affiliates) will hold the remaining 50%.

Strategic rationale: distribution, technology and protection focus

The joint venture explicitly targets three interlinked objectives:

• Reach rural and semi-urban India by leveraging Mahindra’s extensive brand recognition and deep distribution capabilities in those geographies.

• Serve urban customers primarily through leadership in protection solutions and targeted insurance propositions.

• Leverage technology to create an efficient, customer-centric insurer that can scale and keep costs competitive.

Mahindra’s leadership highlighted the logic of the move: the group’s brand strength and distribution in rural and semi-urban areas make life insurance a “logical extension” of its financial services ambitions. Manulife brings global insurance product design, underwriting and reinsurance expertise that complements Mahindra’s local reach.

Governance rights and operational controls

The joint-venture agreement spells out several governance provisions:

• Board representation: Each partner will have the right to nominate two directors to the JV board.

• Capital and business-plan controls: M&M will have rights to restrict changes in the JV’s capital structure (including any fresh equity infusion) except as agreed between the shareholders. It will also have the right to restrict approval and amendments to the annual business plan and distribution strategy, as defined in the joint-venture agreement.

• Management appointment rights: M&M will have the right to appoint, replace and remove certain key management personnel after their initial appointment.

These terms indicate a partnership designed to balance shared ownership with checks that preserve each partner’s strategic interests and control over critical decisions.

Advisors and legal counsel

The companies appointed external advisors for the transaction: Kotak Investment Banking acted as financial adviser to the Mahindra Group, while AZB & Partners served as legal counsel to Mahindra. Debevoise & Plimpton LLP acted as legal counsel for Manulife.

Executive perspectives

Dr. Anish Shah, Group CEO & Managing Director of Mahindra Group, framed the JV as a technology-led effort to build an “efficient, customer-centric insurer in India,” and said the partnership creates a compelling opportunity to generate meaningful shareholder value.

Phil Witherington, President and CEO of Manulife, described the agreement as an important milestone in entering “one of the world’s fastest growing insurance markets.” He said the JV strengthens Manulife’s diverse portfolio and positions the company for significant growth in what he called “a mega economy of the future.” Witherington also stressed the advantages of blending Mahindra’s distribution network with Manulife’s industry-leading agency distribution and insurance expertise.

Product focus and policy intent

The JV will concentrate on long-term savings and protection solutions, tailored to the diverse needs of India’s population. The aim is explicitly aligned with India’s broader policy aspiration of “Insurance for All” by 2047, indicating a multi-decade horizon for driving insurance penetration and reducing the protection gap across income segments.

Market context — life insurance on the rebound

The timing of the JV comes against a backdrop of renewed momentum in India’s life-insurance sector. Key industry data for October 2025 show a sharp revival:

• New business premiums rose 12.1% year-on-year to ₹34,007 crore, marking the second consecutive month of double-digit growth.

• This growth was fuelled by stronger demand for individual recurring-premium products, a favourable base effect and a GST reduction on individual life policies, which helped sustain sales across insurers.

• The October uptick, while slightly below the 13.2% rise recorded a year earlier, followed a 5.2% contraction in August 2025, signalling a meaningful rebound.

• In particular, non-single premium (recurring premium) business grew 21.3% in October 2025 versus 9.7% a year earlier, as consumers shifted back toward recurring-payment products once regulatory changes on surrender values normalised.

• Private insurers continued to gain share in the recurring-premium segment, while LIC (Life Insurance Corporation of India) retained leadership in single-premium and group business lines.

These market dynamics — rising demand for protection and recurring savings, regulatory tailwinds and a shift away from single-premium models — create a favourable environment for a new, technology-forward insurer with deep rural distribution.

Why this JV matters

Several structural points make the Mahindra-Manulife JV strategically important:

• Under-penetration and a protection gap: India still has relatively low life-insurance penetration compared with many large economies, providing long-term growth headroom.

• Complementary strengths: Mahindra’s on-ground distribution and brand affinity in non-metro India combine with Manulife’s global insurance expertise and agency network to create a balanced capability set.

• Capital backing: The sizeable initial and committed capital (₹1,250 crore each in the first five years and up to ₹3,600 crore each overall) gives the JV room to scale product distribution, invest in tech and build the agency and partner ecosystem.

• Regulatory and macro tailwinds: Supportive regulation, rising incomes, and product shifts toward recurring premiums enhance market potential.

Manulife’s scale and reach

To underscore the partner’s global capabilities, the filing notes that as of the end of 2024 Manulife had more than 37,000 employees, over 109,000 agents, thousands of distribution partners, and served over 36 million customers across Canada, Asia, Europe and the US. These resources will be an important input to product design, underwriting and reinsurance strategy for the India JV.

Next steps and timeline

Following signing, Mahindra and Manulife teams will jointly apply for an insurance licence and advance operational preparations. The JV’s ability to execute quickly will hinge on regulatory approvals and the speed at which the partners can build distribution, technology stacks and backend underwriting capabilities.

Bottom line

The 50:50 Mahindra–Manulife life-insurance JV represents a high-stakes, well-capitalised play on the long-term growth story for life insurance in India. By combining Mahindra’s rural and semi-urban distribution strengths with Manulife’s global insurance know-how and agency reach, the partnership aims to address the protection gap, capture shifting customer preferences toward recurring premiums, and contribute to India’s “Insurance for All” vision by 2047. If regulatory approvals are secured and execution holds, the JV could become a major new competitor in the country’s fast-evolving insurance landscape.

With inputs from agencies

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