Kotak Life teams up with Mahindra Finance to offer life insurance to customers

Kotak Mahindra Life Insurance Company Limited, on Thursday, June 13, announced a corporate agency partnership with Mahindra and Mahindra Financial Services, a non-banking financial company (NBFC), to offer life insurance to the latter's 10 million customers.

According to a regulatory filing, Mahindra Finance will gradually offer these services through its extensive network of more than 1400 branches in all states and union territories.

Following this development, the company's shares were trading 1.5% higher at ₹294.7 apiece on the National Stock Exchange and gained 1.5% to ₹294.6 on the BSE.

The scrip has declined 0.2% in the past year and 6.6% on year to date basis.

Raul Rebello, Managing Director (MD) and CEO of Mahindra Finance said, "It is a significant step in our commitment to facilitate agile and efficient insurance solutions powered with personalised customer experience. Our aim is to help facilitate sustainable growth while delivering on our commitment to being a responsible financial solution partner to Emerging India."

Mahesh Balasubramanian, MD of Kotak Mahindra Life Insurance, said that the collaboration will extend its reach to the untapped segments of the population.

"By leveraging on Mahindra Finance's customer reach and our expertise in life insurance, we can now offer life insurance solutions and provide financial security to customers of Mahindra Finance," he added.

Mahindra Finance's consolidated net profit declined around 10% to ₹619 crore in Q4 FY24, as against ₹684 crore in the year-ago period. The profit after tax (PAT) declined year-on-year (YoY) due to a surge in expenses and a one-time provision of ₹136 crore due to fraud.

The company's expenses grew 36% to ₹2,874.56 crore in the January-March quarter of FY24, compared to ₹2,112.9 crore in the same period last year.