Allianz SE has finalized a deal to sell its 26% stake in its Indian joint ventures for around €2.6 billion, equivalent to $2.8 billion. The buyer is Bajaj Group, Allianz’s local partner in India, according to a recent statement.
The German insurance giant has entered into binding agreements with Bajaj Finserv Ltd. to transfer its holdings in Bajaj Allianz General Insurance Co. and Bajaj Allianz Life Insurance Co. to Bajaj Group. The statement indicated that the proceeds from the sale may be received in installments.
Bloomberg News reported in October that Allianz was exploring the possibility of ending the joint ventures due to disagreements regarding the partnership’s strategic direction.
“India remains a key growth market for Allianz, and the company will assess new opportunities to enhance its market position,” the statement said. “As the proceeds become available, Allianz will consider options for their allocation that support the company’s strategic goals, particularly the reinvestment of sales proceeds into potential new opportunities in India.”
Data from the insurance regulator reveals that India’s insurance penetration rate, which is the ratio of premiums to its gross domestic product, is less than half that of countries like South Africa and Canada. This suggests significant growth potential for the insurance sector in India.
