Reliance group-owned Jio Financial Services has reportedly reached a preliminary agreement with Germany’s Allianz SE to establish an insurance business in India.

The talks follow Allianz’s recent decision to sell its 26% stake in non-life and life insurance joint ventures with Bajaj Finserv to the Bajaj Group for approximately 2.6 billion euros ($2.82 billion).

While Jio and Allianz are finalizing the ownership structure, Allianz aims to secure a majority stake in the venture. However, the company is also open to governance rights with a possibility of gaining control in the future.

The German insurer has emphasized that India remains a crucial growth market, and it continues to explore new opportunities to strengthen its position in the country’s insurance sector.