Mahindra & Mahindra Financial has put on hold its planned joint venture with XL Catlin, following the major insurer’s acquisition by AXA.

AXA already has an existing joint venture in India with Bharti Enterprises.

In February, Mahindra and XL Catlin agreed to form a joint venture, giving the latter access to India’s burgeoning insurance market. But in March, it was revealed that AXA would acquire 100% of XL Catlin, which provides property, casualty and specialty re/insurance to commercial clients. The deal is worth US$15.3 billion

India’s insurance regulations forbid entities from owning multiple licences in the life and general insurance segments.

“With XL Catlin having been taken over by AXA, we will have to revisit the plan as AXA has presence in both life and general insurance business,” a source familiar with the issue told The Economic Times. “We are waiting further details from XL on the matter.”

Mahindra was supposed to own 51% of the proposed joint venture, with XL Catlin owning the rest. In October 2017, XL Group bought a 20% stake in Mahindra Insurance Brokers for INR2.6 billion (US$37.75 million).

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