The Indian market’s combined ratios has fluctuated between 110 and 125 over the past five years, and most insurers have become dependent on investment income to generate profitability. The sustainability of such earnings may put the long-term viability of many insurers into question.

Reliance Capital Ltd., controlled by Ambani, is discussing the contours of a deal to sell Mumbai-based Reliance General Insurance to Hero FinCorp. Ltd. the people said, asking not to be named as the information is not public. Negotiations are ongoing and may not result in a deal, the people said.