Jio Financial Services invests ₹147 cr in Allianz Jio Reinsurance to fund business

Jio Financial Services Ltd</a> on Thursday (March 5) said it has subscribed to 14.75 crore equity shares of ₹10 each in its joint venture, Allianz Jio Reinsurance Ltd (AJRL), for cash at par, aggregating ₹147.45 crore. The amount will be used by Allianz Jio Reinsurance Ltd to fund its business operations.

With this latest subscription, Jio Financial’s total investment in Allianz Jio Reinsurance Ltd stands at ₹150 crore. The transaction is a related-party deal executed on an arm’s length basis.

The company confirmed that neither its promoters nor the promoter group or other group companies have any interest in the investment. No governmental or regulatory approvals were required for the transaction.

Also Read: Jio Financial launches early access programme for its AI-powered finance app

Last year in November, Jio Financial Services and Allianz of Germany incorporated a joint venture company named Allianz Jio Reinsurance Ltd to carry on the business of reinsurance in India.

Allianz Jio Reinsurance Ltd has been incorporated pursuant to the receipt of a no objection certificate from the Insurance Regulatory and Development Authority of India, it said.

Also Read: Jio Financial Services unit launches AI-powered JioFinance app, rolls out ‘Finsider’ early access

Jio Financial and Allianz on July 18, had announced a binding agreement to form a 50:50 domestic reinsurance joint venture to serve the dynamic and high-growth insurance market in India. The announcement came months after Allianz parted ways with the Bajaj Group financial services firm Bajaj Finserv.

The reinsurance partnership brings together Jio Financial Services Ltd's deep local expertise and robust digital footprint with Allianz's strong underwriting and global reinsurance capabilities, the statement had said.

The joint venture will leverage Allianz's existing Allianz Re and Allianz Commercial portfolios and activities in India. It will also benefit from Allianz's global setup, including its pricing, risk selection and portfolio management expertise, it had said.

Shares of Jio Financial Services Ltd ended at ₹243.10, up by ₹1.85, or 0.77%, on the BSE.

Also Read: Jio Financial infuses ₹2,000 crore into Jio Credit; Q3 profit at ₹269 crore

Note To Readers

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.