Jio Financial Services will enter the insurance segment to offer life, general, and health insurance products, said Reliance Industries' chairman Mukesh Ambani on August 28.
Speaking at the annual general meeting, Ambani said, "Jio Financial Services will...offer simple, yet smart, life, general, and health insurance products through a seamless digital interface, potentially partnering with global players."
JFS will use predictive data analytics to co-create contextual products with partners and cater to customer requirements in a truly unique way, he added.
Check out Reliance AGM 2023 LIVE updates
JFS listed as a separate entity on the bourses on August 21. Shareholders were issued 1 share of JFS for every 1 share of RIL held, in the demerger. "It was like a mini bonus for our shareholders," said Ambani.
Jio Financial Services' tie-up with Blackrock
While JFS had already announced a partnership with globally renowned Blackrock to enter the asset management industry, the company has now officially announced its foray into the insurance segment too with a potential global partner.
Also Read: 'Jio Finance to have a digital-first approach'
"This (financial services) is a highly capital-intensive business. RIL has provided JFS with a strong capital foundation to build a best-in-class, trusted financial services enterprise," Ambani said.
Reliance has capitalised JFS with a net worth of Rs 1,20,000 crore to create one of the world’s highest capitalised financial service platforms at inception, he added.
Insurance a great opportunity for Jio Financial Services
Foreign broking firm CLSA had mentioned in a recent report that Jio already has a broking business in place with over 17 insurance partners, which can be scaled up faster. While life insurance penetration in India is in line with world average, non-life insurance penetration is significantly behind the world average. This presents a great opportunity for JFS.
Also Read: CLSA maintains 'buy' rating on Reliance, raises target price to Rs 3,060 a share
“It will be interesting to see the impact Jio can make on pricing in the industry while we believe covering more lives could be a key focus area for Jio… We believe Jio’s entry point could be corporate-relationship-driven segments such as group health and commercial insurance,” said analysts at CLSA.
Jio Financial Services closed at Rs 210.10 on the NSE, lower by 2.05 percent from previous close.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
