Mahindra Group and Manulife Forge New Life Insurance Partnership
Indian automotive giant Mahindra & Mahindra Ltd. (M&M) has entered into a significant agreement with Canada's Manulife Financial Corporation to establish a 50:50 life insurance joint venture in India. The announcement, made on November 13, 2025, follows approval from M&M's board of directors and marks a major expansion of the companies' existing collaboration in the Indian financial services sector.
Strategic Partnership and Capital Investment
The proposed joint venture will see both companies holding equal stakes in the paid-up share capital, with M&M controlling 50% and Manulife or its affiliates holding the remaining 50%. According to the official release, the total capital commitment from each shareholder could reach up to ₹3,600 crore (approximately $400 million), with initial investments of ₹1,250 crore (US$140 million) from each partner within the first five years.
Anish Shah, Group CEO & Managing Director of Mahindra Group, emphasized the strategic fit of the partnership, stating that "Manulife is the best natural partner for us given their global capabilities in insurance products, underwriting and reinsurance." He further highlighted their confidence that "this joint venture offers a very compelling opportunity to create meaningful value for our shareholders."
Governance Structure and Regulatory Process
The joint venture agreement outlines specific governance provisions, including equal board representation with each company having the right to nominate two directors. M&M will maintain significant control over key decisions, including the right to restrict changes to the capital structure and approval of annual business plans and distribution strategies. Additionally, Mahindra will have authority over the appointment and removal of certain key management personnel.
The establishment of this life insurance venture remains subject to regulatory approvals from Indian authorities. Following the signing of the agreement, both companies will collaborate to apply for the necessary insurance license. This new venture builds upon their successful previous collaboration through Mahindra Manulife Investment Management, which launched in 2020.
Market Impact and Future Prospects
This partnership represents a substantial commitment to India's growing insurance sector, with both companies aiming to leverage technology to create an efficient, customer-centric insurance provider. The joint venture is positioned to strengthen both companies' footprint in what M&M described as "one of the world's fastest-growing markets" while enhancing financial wellbeing for Indian customers.
Kotak Investment Banking served as financial adviser to Mahindra Group, with AZB & Partners providing legal counsel. Manulife was represented by Debevoise & Plimpton LLP as legal counsel for this significant financial services expansion into the Indian market.
