‘Mahindra Finance dividends to fund life insurance foray’

The Mahindra Group is confident that the dividend from its financial servicessubsidiary will be more than sufficient to fund its ₹3,600 crore investment over a decade into its life insurance foray, as it bets on its distribution reach inunderpenetrated rural and semi-urban India.

- Anshika Kayastha & Ankit Gohel

The JV of Mahindra Finance with Canada's Manulife will apply for a licence in two to three months.

The group on Thursday announced its entry into life insurance througha joint venturewithitsasset management partner, Canada’s Manulife group. Mahindra will invest ₹250 croreeach forthe firstfive years, the company said.

“Thisactually will be funded bythe dividend that Mahindra & Mahindra (M&M) Limited earns from Mahindra Finance,” Group chief executive officer and managing director Anish Shah said ina media call to announce the 50:50 joint venture. “Onlyabout one-third of the dividend it earns from Mahindra Finance will be required for funding this over the first five years.”