Reliance Industries Ltd is in discussions with global and domestic executive head hunters to find a leader for insurance business of its recently-demerged entity Jio Financial Services Ltd, said a report on Wednesday.
Executives from RIL have met several firms in recent weeks to help them map top talent across life, health and general insurance segments. Korn Ferry and Spencer Stuart Inc are among the firms that have held talks with representatives from the Mukesh Ambani-led conglomerate, reported Bloomberg quoting sources.
At RIL’s 46th annual general meeting on Monday, its chairman Mukesh Ambani said JFS will enter the insurance segment.
“JFS will enter the insurance segment to offer simple, yet smart, Life, General, and Health insurance products through a seamless digital interface, potentially partnering with global players. It will use predictive data analytics to co-create contextual products with partners and cater to customer requirements in a truly unique way,” he said.
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.
It will leverage 450 million mobile phone subscribers’ base of the telecom arm, Jio to sell its products, including payment services, he said.
JFS plans to democratise financial services for 1.42 billion Indians, giving them access to simple, affordable, innovative, and intuitive products and services, he added.
JFS has recently announced a joint venture with BlackRock for mutual funds business.
“BlackRock is the world’s largest asset management company, managing assets worth over $11 trillion with a stellar reputation and track record. The JV will synergise the respective strengths of JFS and BlackRock to deliver tech-enabled, affordable and innovative investment solutions,” he said.
Larry Fink, Chairman & CEO of BlackRock also spoke at the RIL AGM.
“We see enormous potential for growth in the country’s asset management industry. We see growing financialization and a shift from unmanaged and physical assets to saving and investing, and we expect this to increase as per capita GDP continues to rise and technology advances digital inclusion,” said the BlackRock CEO.
On Wednesday at 1500 hours, JFS’ scrip on BSE was trading 5% higher at Rs 231.25.
