India, Nov. 13 -- Mahindra & Mahindra Ltd. and Manulife have agreed to set up a life insurance joint venture in India, five years after they got together to sell mutual funds in the world's fourth largest stock market.

The Mahindra-Manulife life-insurance JV aims to offer long-terms savings and insurance for the hinterland, according to a statement on Thursday. The idea is to marry Mahindra's deep distribution in rural with Manulife's agency in urban to become "the #1 life insurance company for rural and semi-urban India, and serve Urban India with tailormade solutions.

Mahindra and Manulife have committed to invest Rs.3,600 crore each in the JV, with Rs.1,250 crore expected from each partner in the first five years. The JV is subject t...