Piramal Finance and Zurich Insurance may not go ahead with a joint bid for Reliance General Insurance Company (RGIC). According to sources, there is a difference between the two sides on issues such as shareholders agreement and valuation.

In the first round, both companies had submitted separate non-binding bids for the general insurance business of Reliance Capital. However, they were exploring a joint venture to place a common bid.

Advent also in race

Advent is also in the race to acquire the insurance business of Reliance Capital. In the first round, Advent had submitted the highest non-binding bid of ₹7,000 crore, which was almost double the amount offered by two other bidders — Piramal and Zurich Insurance.

Sources said that Advent may not be comfortable with IRDAI guidelines that stipulate a five-year lock-in period for private equity investors in the Indian insurance business.

Aditya Birla Sun Life and Nippon Life of Japan had engaged in merger talks for Reliance Nippon Life Insurance. Those talks also failed due to the differences between both companies on multiple issues.