Bajaj Finserv – Allianz to End Insurance JV: Bajaj Finserv has decided to fully buy Allianz’s 26% stake in its insurance companies under a big deal. The deal will be worth Rs 24,180 crore, which will make both Bajaj Finserv companies – Bajaj Alianz General Insurance (BAGIC) and Bajaj Alianz Life Insurance (BALIC) – fully Indian -owned companies. It is considered to be the biggest deal in the Indian insurance sector.
Bajaj Finserv, Allianz’s 24 -year -old JV will finish
Under this deal, the Bajaj Group will buy 26% stake of Allianz. Under this deal being held for Rs 24,180 crore, the stake in Bajaj Allianz Life Insurance will be purchased for Rs 13,780 crore, while Rs 10,400 crore will be invested to buy the share of Bajaj Aaliyanz General Insurance. After this acquisition, the share of Bajaj Finserv in these two companies will increase to more than 75%. With this deal, the ownership of Bagic and Balic will come completely to the Bajaj Group. With this, the joint venture of both about 24 years old will end.
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Why is Bajaj and Allianz partnership ending?
The partnership between Bajaj Finserv and Allianz began in 2001, when the boundary of foreign investment in the insurance sector in India was 26%. Although the government later increased this limit to 74%, despite this, the Bajaj Group was not in the right to reduce its stake. While Allianz wanted to increase its stake. Bajaj Finserv indicated only in October 2024 that Allianz wants to sell its stake.
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What did Sanjeev Bajaj say
Bajaj Finserv Chairman and Managing Director (CMD) Sanjeev Bajaj said, “We have created two strong insurance companies in India with Allianz, whose total premium is more than Rs 40,000 crore. Now that these companies will be completely owned by our stakeholders and we will be able to create more values.” At the same time, Allianz said in a statement issued about the acquisition, “This decision has been taken after a conversation with Bajaj Finserv. We will continue looking for new opportunities in the Indian market.”
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Acquisition process
Many regulatory permission will be required to complete the process of this acquisition. This includes the approval of the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority (IRDAI). At the same time, both companies will also have to make new agreements to continue their existing reinsurance agreements.
