March 20 (Reuters) – Jio Financial Services (JIOF.NS), owned by the Reliance group, has entered a preliminary agreement with Germany’s Allianz SE (ALVG.DE) to establish an insurance business in India, Bloomberg News reported on Thursday. The report cited sources familiar with the matter.
The development follows Allianz’s recent decision to sell its 26% stake in its non-life and life insurance joint ventures with Bajaj Finserv to the Bajaj Group for approximately 2.6 billion euros (equivalent to $2.82 billion).
Bloomberg’s sources indicated that Mukesh Ambani’s Jio and Allianz are currently finalizing the ownership structure for the new venture.
According to the report, Allianz is seeking a majority stake in the venture. However, they are also open to securing governance rights with a strategic plan for future control.
Neither Allianz nor Jio Financial Services has yet responded to Reuters’ requests for comments.
Allianz has previously stated that India is a key growth market. They also indicated that the company intends to explore new possibilities to strengthen its position in the Indian insurance market.
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