Allianz Exits Indian Insurance Market, Sells Stake to Bajaj Group
Mumbai, March 18, 2025 – German insurance company Allianz SE has decided to sell its stake in its Indian insurance joint ventures with the Bajaj group. This move comes roughly one and a half months after the Indian government increased foreign direct investment (FDI) in the insurance sector to 100 percent.
Allianz will sell its 26 percent stakes in the life and non-life insurance joint ventures for Rs 24,600 crore (approximately €2.6 billion).
Allianz entered into binding share purchase agreements with Bajaj Finserv Ltd to sell this stake in Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). The Bajaj group will be acquiring the stake. The transaction is subject to regulatory approvals, which are expected to take several months.
Bajaj Finserv will acquire 11.13 lakh equity shares of Rs 10 each in BAGIC at a price of Rs 4,808.24 per share and 15.22 equity shares of Rs 10 each in BALIC at a price of Rs 2,654.12 per share. This amounts to a 1.01 percent equity stake in each company. This is according to the share purchase agreements executed with Allianz. Allianz may receive the proceeds in several tranches, the company said in a statement.
BAGIC reported a premium of Rs 20,472 crore for the fiscal year 2024. BALIC reported a premium income of Rs 11,492 crore during the same period, according to the Life Insurance Council.
Following the acquisition, Bajaj Finserv will hold 75.01 percent of the total equity share capital in both BAGIC and BALIC. Additionally, Bajaj Holdings and Investment Ltd. and Jamnalal Sons Pvt Ltd will acquire approximately 19.95 percent and 5.04 percent of the paid-up equity capital in each of the two insurance companies, respectively.
In line with this decision, the board also approved the acquisition of Allianz’s entire equity stake in Bajaj Allianz Financial Distributors Limited (BAFDL), a 50:50 joint venture with Bajaj Finserv. Bajaj Finserv will acquire 12 lakh equity shares of the face value of Rs 10 each in BAFDL for a consideration not exceeding Rs 12.5 crore.
“The decision to sell is the result of constructive and amicable talks with Bajaj Finserv Ltd. India continues to be one of Allianz’s growth markets, and Allianz will explore new opportunities that strengthen its position in the market and expand its potential to serve not only as an investor but also as an operator,” the Munich-based firm said.
“As the proceeds become available, Allianz will consider options for their deployment that support the company’s strategic ambitions, in particular the reinvestment of sale proceeds into potential new opportunities in India,” said Allianz. Allianz will adhere to its capital management policy updated at the December 2024 Capital Markets Day.
“Upon the transfer of shares and the cessation of Allianz being a promotor of the joint ventures, also the joint venture agreements between Allianz SE and Bajaj Finserv Ltd. will be terminated,” the company said.
