Les Owen, chief executive of Axa Asia Pacific, with Bharti chief Sunil Mittal in New Delhi on Wednesday. A Telegraph picture

New Delhi, Aug. 24: Axa, the world’s largest insurer, has joined hands with Sunil Mittal-owned Bharti Enterprises to establish a life insurance venture in the country.

The two firms are also planning to enter the mutual fund and pension sectors at a later stage.

“Yes, these plans are definitely on the cards. But at the moment, we need to focus on the life insurance business,” said Mark Pearson, regional chief executive (life) at Axa. The French company manages funds worth more than $1 trillion.

The Bharti group will hold 74 per cent in the venture and Axa 26 per cent. Axa’s investment will be routed through its subsidiary, Axa Asia Pacific Holdings Ltd.

The new company ? Bharti Axa Life Insurance Company ? plans to apply to the Insurance Regulatory and Development Authority (IRDA) next week for a licence.

Bharti Axa Life Insurance Company plans to invest Rs 500 crore in this business over the next three years. It is expected to kick-start operations from early next year, said Sunil Mittal, chairman and group managing director of Bharti Enterprises.

Mittal added the group was willing to partner Axa in other ventures as well.

“As we grow along, it will be natural to consider each other as partners in other ventures,” said Mittal.

Last week, there was a buzz that IDBI would partner Axa and Bharti in the life insurance venture. IDBI’s board met last Thursday but did not pick from a bunch of foreign suitors that included Axa, Fortis of Belgium, Generali of Italy and Dai Ichi Bank of Japan.

With Axa and Bharti announcing their insurance venture today, IDBI clearly isn’t going to be the third partner in it.

Bharti Axa will be among four new players in the life insurance segment who hope to enter the market next year. Thirteen private life insurers already operate in the domestic market.

Axa is keeping its options open on its foray into the general insurance business. Officials said the company might look at a number of Indian firms having expertise in motor and mortgage business for a possible tieup.

Before commencing operations, the company will have to get a green signal from the foreign investment promotion board and other statutory bodies. According to Les Owen, chief executive of Axa Asia Pacific, the insurer may hold more than 26 per cent in the proposed mutual fund arm with Bharti Enterprises.