Listing-bound Jio Financial Services (JFS) is all set to apply for insurance licence and is looking forward to offer insurance services from 2024, a media report quoting sources suggested. Jio Financial Services will soon apply for insurance licence from IRDAI, ET NOW tweeted, noting that the regulator takes 6-8 months for final approval in such cases. As per the report, Jio Financial Services plans to enter both general and life insurance businesses.
At the time of writing this story, shares of HDFC Life Insurance were trading 1.86 per cent lower at Rs 646.90. SBI Life shares were down half-a-per cent. ICICI Prudential Life was flat at Rs 580 while LIC was up 2 per cent at Rs 639.30. ICICI Lombard rose half-a-per cent at Rs 1,380.30. As per ET NOW, Jio Financial plans a capital base of Rs 1,000 crore each for life and general insurance business.
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Jio Financial Services is the demerged entity of Reliance Industries (RIL). The oil-to-telecom major had demerged its financial services business into Reliance Strategic Investments, which was later renamed as Jio Financial Services with effect from July 25. Jio Financial Services recently entered into a joint venture with BlackRock recently for entry in the asset management business. The demerged entity of Mukesh Ambani-led RIL, and BlackRock had announced a 50:50 joint venture, “to deliver tech-enabled access to affordable, innovative investment solutions for millions of investors in India”.
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Shareholders, who held Reliance Industries shares on the record date, would get Jio Financial Services shares in the 1:1 ratio. The listing is likely in thee next 2-3 months. JFS has been valued at around $20 billion after its stock price was set at a much higher-than-expected Rs 261.85 in its demerger from Reliance Industries.
