Jio Financial Services (JIOFIN), owned by the Reliance group, has reached a preliminary agreement with Germany’s Allianz SE (ALV) to establish an insurance business in India, Bloomberg News reported on Thursday. The report cited sources familiar with the matter.
This development follows Allianz’s recent agreement to sell its 26% stake in its non-life and life insurance joint ventures with Bajaj Finserv (BAJAJFINSV) to the Bajaj Group for approximately 2.6 billion euros (around $2.82 billion).
Bloomberg indicated that Mukesh Ambani’s Jio and Allianz are finalizing the ownership structure of the new venture. Allianz is reportedly seeking a majority stake in the partnership, but is also considering securing governance rights with a provision to gain control in the future, according to the report.
Allianz and Jio Financial Services have not yet responded to requests for comments from Reuters regarding the report. The German insurer has previously stated that India is a critical growth market for the company and that it plans to investigate new opportunities to strengthen its position within the Indian insurance sector.
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