Manulife Financial Corp. signed a deal with India’s Mahindra & Mahindra to create a 50-50 life insurance joint venture aimed squarely at rural and semi urban customers.
Both companies call it a long game move in one of the fastest growing insurance markets anywhere. The venture still needs regulatory approval, but the intent looks firm.
Manulife said the partnership builds on their existing relationship, which already produced Mahindra Manulife Investment Management back in 2020.
Each shareholder committed up to $400 mn in total capital, and each expects to invest $140 mn across the first five years. Big money for a market where growth comes in unpredictable waves.
CEO Phil Witherington said Manulife has eyed India’s insurance space for years, waiting for the moment when conditions lined up. Maybe this is that moment.
He pointed to steady economic growth, rising maturity inside the insurance sector, and increasing household wealth across India. More wealth usually means more insurance demand, and Manulife wants in.
We’ve been looking at an India market entry from an insurance perspective for many years and have been really observing the environment to wait for the right moment
Phil Witherington, Chief Executive Officer and President
The company highlighted India’s strong GDP expansion, a swelling middle class, and a regulatory environment that feels supportive rather than restrictive.
According to our analysts, those factors matter more than people admit because India’s insurance penetration still sits well below global averages.
The timing matches Manulife’s refreshed corporate strategy. The firm wants to capture more Asian growth and push harder into wealth and asset management worldwide.
At the same time, it plans to deepen investment in Canada and maintain scaled growth in the United States. A wider spread of bets, maybe, but also a hedge against regional shocks.
The updated plan leans heavily on artificial intelligence to create value, build smoother distribution, and punch efficiency into operations. Everyone talks about AI, but insurers like Manulife seem determined to turn it into actual margin. Whether that plays out cleanly is another story.
Manulife reported C$1.8bn in net income attributed to shareholders for the third quarter, compared with C$1.84bn a year earlier. The company said performance stayed roughly in line with last year.
A net neutral market backdrop didn’t help or hurt much. Lower than expected returns on alternative long duration assets such as private equity, real estate, and timber were offset by stronger public equity gains.
We think the India venture signals the company’s confidence that long horizon plays in Asia still outperform most developed markets.
And honestly, with capital committed at this scale, they’re betting that rural and semi urban India will keep rising in ways the industry hasn’t fully priced in yet.
