Mahindra & Mahindra Ltd. (M&M) and Canada’s Manulife have entered into an agreement to form a 50:50 joint venture to establish a life insurance company in India, subject to regulatory approval.

As per the exchange filing, the total capital commitment for the venture is ₹7,200 crore (US$800 million)—₹3,600 crore from each partner. The joint venture is expected to begin with an investment of ₹1,250 crore (US$140 million) over the first five years.

Following the announcement, Mahindra & Mahindra shares dropped 0.55% to ₹3,733.05 on the BSE, while its market capitalisation slipped to ₹4.63 lakh crore. In the previous session, the stock had ended 0.07% higher at ₹3,753.60 apiece.

The auto heavyweight touched a 52-week high of ₹3,780.20 on November 12, 2025, and a 52-week low of ₹2,360.45 on April 7, 2025. The counter has risen 33% in a year, delivered 22% returns in the past six months, and gained nearly 8% in a month.

The new venture will expand their existing partnership in financial services and underscores a shared commitment to enhancing the financial wellbeing of customers in one of the world’s fastest-growing markets, M&M said in a BSE filing last night.

The release noted that the venture’s vision is to become the No. 1 life insurance company for rural and semi-urban India while serving urban customers through leadership in protection solutions. It aims to offer long-term savings and protection products tailored to India’s diverse and growing population, aligning with the national goal of achieving “Insurance for All” by 2047.

“This is a logical extension of our goal to build a comprehensive financial services portfolio,” said Dr. Anish Shah, Managing Director and CEO, Mahindra Group. “Manulife is a natural partner for us given their global capabilities in insurance and their track record of success. With a focus on leveraging technology, this joint venture will build an efficient, customer-centric insurer in India, creating meaningful value for our shareholders.”

By combining Mahindra’s extensive rural and semi-urban reach with Manulife’s global expertise and quality agency capabilities, the partnership seeks to build a customer-centric insurer driven by technology and innovation. The model leverages Mahindra’s strong brand and execution capabilities alongside Manulife’s deep experience in insurance products, underwriting, and reinsurance.

Phil Witherington, President and CEO of Manulife, called the agreement “an important milestone” in the company’s Asia growth strategy. “This will strengthen our diverse portfolio and position us for tremendous growth in a mega economy of the future. We have a trusted partner in Mahindra, with whom we already have a successful asset management collaboration, and we see tremendous opportunity to build on our efforts by combining their deep distribution network with our insurance expertise,” he said.

The announcement builds on the success of Mahindra Manulife Investment Management, their mutual fund joint venture launched in 2020. Following today’s signing, Mahindra and Manulife will jointly apply for an insurance license and initiate operational planning, the release noted.

India’s life insurance market, which has surpassed $20 billion in new business premiums and grown at a 12% CAGR over the past five years, continues to show immense potential. Despite strong growth, insurance penetration remains low and the protection gap wide—conditions that could make India the world’s fastest-growing life insurance market over the next decade, eventually becoming the fourth largest globally.

Kotak Investment Banking acted as Mahindra Group’s financial advisor, with AZB & Partners providing legal counsel. Debevoise & Plimpton LLP served as Manulife’s legal advisor.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)