Bajaj to buy out Allianz's stake in insurance joint ventures after 24 years

The two firms have had a joint venture in the insurance sector for 24 years, and the partnership will officially come to an end once the first tranche of at least 6.1% is acquired and Allianz is reclassified from a promoter to an investor.

In Short

• Bajaj to acquire Allianz’s 26% stake in Rs 24,180 crore deal
• Regulatory approvals awaited for Bajaj’s 100% ownership in insurance arms
• Bajaj eyes digital push after securing full ownership of insurers

Bajaj Finserv Ltd. has signed definitive agreements to acquire Allianz SE’s 26% stake in Bajaj Allianz General Insurance (BAGIC) and Bajaj Allianz Life Insurance (BALIC) for a total of Rs 24,180 crore.

The acquisition will increase Bajaj Group’s ownership in both insurance companies to 100% from the current 74%, bringing them fully under the Bajaj umbrella.

The transaction, which is subject to regulatory approvals from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI), marks the conclusion of long-standing discussions between Bajaj and Allianz for a smooth transition.

The two firms have had a joint venture in the insurance sector for 24 years, and the partnership will officially come to an end once the first tranche of at least 6.1% is acquired and Allianz is reclassified from a promoter to an investor.

Bajaj Finserv Ltd. will acquire approximately 1.01% in each of the insurance companies, Bajaj Holdings and Investment Ltd. will pick up 19.95%, and Jamnalal Sons Pvt. Ltd. will take 5.04%, together making up Allianz’s full 26% stake. Allianz will receive Rs 13,780 crore for its stake in BAGIC and Rs 10,400 crore for BALIC.

“Together with Allianz, we have built two of the strongest insurance companies in India with a combined premium exceeding Rs 40,000 crore, while maintaining industry-best solvency margins,” said Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv. “Given the advantage of a single ownership in both companies, we are confident that the acquisition will become a big driver of value for our stakeholders in the years to come.”

Bajaj Finserv and Allianz have signed additional agreements to ensure continuity of reinsurance and other services during the transition. The companies are committed to a seamless transfer, keeping the interests of policyholders, intermediaries, and stakeholders in focus.

Following the completion of the transaction, Bajaj Group will take full control of both insurance businesses, while Allianz is expected to pursue its independent insurance strategy in India. The acquisition is positioned as a major step in Bajaj’s expansion plans, with the company looking to leverage next-generation insurance solutions and digital capabilities to strengthen its market presence.