After BlackRock, Jio Financial Services forms JV with Allianz to enter reinsurance biz — 3 takeaways

Jio Financial Services, which is the core investment company of Reliance Industries, and Allianz have incorporated a joint venture (JV) company, “Allianz Jio Reinsurance Limited” (AJRL) on September 8, 2025, to carry on the business of reinsurance in India. The 50:50 reinsurance joint venture marks a significant step into the country’s growing insurance sector.

The domestic JV will combine JFSL’s local expertise and digital infrastructure with Allianz’s global underwriting capabilities and reinsurance experience. Allianz has been reinsuring risk in India through its reinsurance arm, Allianz Re, for over 25 years.

Jio Financial says the transaction does not fall within related party transaction and none of the company’s promoter or group companies have any interest in it. "The Company and Allianz have incorporated a joint venture company named “Allianz Jio Reinsurance Limited” (“AJRL”) on September 8, 2025, to carry on the business of reinsurance in India, subject to regulatory approvals," a Jio Financial exchange filing said.

The company says it will invest ₹2.50 lakh towards initial subscription of 25,000 equity shares of face value ₹10 each for 50% stake.

3 key takeaways from the JV:

1. Allianz’s existing reinsurance and commercial operations in India will be incorporated into the JV.

2. The partnership supports India’s ‘Insurance for All by 2047’ goal by providing customised reinsurance solutions.

3. JFSL and Allianz have also signed a non-binding agreement to explore joint ventures in life and general insurance.

Jio Financial reported a 47% year-on-year rise in consolidated revenue from operations at ₹612 crore against ₹418 crore in the year-ago period.

As of June 30, 2025, JioBlackRock Asset Management’s AUM crossed ₹17,800 crore, while Jio Credit Limited (JCL) reported AUM of ₹11,665 crore, up from ₹217 crore in Q1 FY25. Pre-provisioning operating profit rose 8% YoY to ₹366 crore, and profit after tax (PAT) grew 4% to ₹325 crore from ₹312.63 crore in Q1 FY25.

During Q1 FY26, JioBlackRock Asset Management in May had also received approval to commence operations and launched its first new fund offer (NFO) for three debt funds on June 30. The NFO attracted over ₹17,800 crore in three days, placing it among India’s top 15 fund houses by debt AUM. Other JioBlackRock entities, JioBlackRock Investment Advisers and JioBlackRock Broking, also received approvals to start wealth management and broking operations during the quarter.

JCL also launched its market borrowings program during the quarter and raised funds at competitive rates, and acquired SBI's 14.96% stake in Jio Payments Bank Limited (JPBL) for ₹105 crore. As of June 30, JPBL had 2.58 million customers and a deposit base of ₹358 crore.

Jio Financial Services shares are trading 1.08% down at ₹307.80 on the BSE today.