Bharti Enterprises, a subsidiary of Bharti Group, had announced in June its intention to sell its stake in the insurance businesses to RIL, saying that financial services ventures did not fit into Bharti's long-term growth plans.

"The contemplated acquisition of Bharti's shareholding of 74 percent in Bharti AXA Life Insurance and Bharti AXA General Insurance are being jointly terminated as a result of the parties being unable to reach agreement on the long term vision and joint governance of the ventures," RIL said in a statement.

In financial year 2011, Bharti AXA Life collected premiums of Rs.7.9 billion and Bharti AXA General Insurance collected gross direct premiums of Rs.5.5 billion.

The deal was part of the Mukesh Ambani-led group's foray into the financial services space.

The company currently has an equal joint venture with US financial services giant D E Shaw, D E Shaw India Financial Services, which is expected to start operations in January. It is eyeing the entire spectrum of financial services from mutual funds to running for a banking license.