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(Bloomberg) -- Allianz SE has agreed to sell its 26% stake in Indian joint ventures for about €2.6 billion ($2.8 billion) to local partner Bajaj Group, according to a statement.

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The German insurance company has entered into binding agreements with Bajaj Finserv Ltd. to sell the stakes in Bajaj Allianz General Insurance Co. and Bajaj Allianz Life Insurance Co. to Bajaj Group, it said in the statement on Monday. It may receive the proceeds in several tranches, it added.

Bloomberg News reported in October that Allianz was in talks to end the JV as there was a dispute over the direction of the partnership.

“India continues to be one of Allianz’s growth markets, and Allianz will explore new opportunities that strengthen its position in the market,” it said in the statement. “As the proceeds become available, Allianz will consider options for their deployment that support the company’s strategic ambitions, in particular the reinvestment of sale proceeds into potential new opportunities in India.”

India’s insurance penetration rate — the ratio of premiums to gross domestic product — is less than half that of countries such as South Africa and Canada, implying strong growth prospects for the sector, insurance regulator data show.

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