Bharti Enterprises chairman and managing director Sunil Bharti Mittal (left) and Henri de Castries, chairman of the AXA management board in Mumbai on Wednesday. (Reuters)

Mumbai, Dec. 13: After sewing up a joint venture in the life insurance space, Bharti and AXA are exploring ways to widen the scope of their business ties.

“We are discussing various options. Given AXA’s full range of services in the financial protection business, including asset management and property insurance, there could be several new joint ventures in the coming months,” said Bharti Enterprises chairman and managing director Sunil Bharti Mittal.

“We are confident about the extremely bright future of economic development in India and over time plan to develop other aspects of business, including asset management,” said Henri de Castries, chairman of the AXA management board.

Castries said Bharti would be the company’s preferred partner for its future financial joint ventures in the country.

Bharti AXA Life had commenced its operations in Hyderabad on August 22 and entered Mumbai in September. The company today launched its operations nationally by entering the markets of Delhi, Calcutta, Chennai and Bangalore.

“We have committed an investment of Rs 550 crore to the business over the next three years and have already infused Rs 188 crore,” said Nitin Chopra, chief executive officer of Bharti AXA Life.

Under the current regulations, a foreign partner is allowed to hold 26 per cent in a life insurance venture.

“However, we closely monitor the evolution of the regulation environment and provided the government allows, we will increase our stake in the venture,” said Castries.

The company will follow a multi-product, multi-distribution and multi-geography business model for the venture.

“Thus, while an insurance company advances to smaller towns at a later stage, we will adopt a parallel approach leveraging on the distribution and client base of Bharti Airtel. In our first phase, while we will set up our presence in 28 metros and cities, we will also enter 50 tier II and III towns,” said Chopra.

The company has already set up three distinct channels, including agency force, salaried advisor force and corporate agents and brokers. “We are working out various bancassurance relationships at present,” said Chopra.