Allianz has finalized agreements to sell its 26% stake in its Indian insurance joint ventures, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company, to the Bajaj Group. The total consideration for the sale is approximately $2.8 billion, which Allianz may receive in installments.
The decision to sell follows constructive discussions with Bajaj Finserv. Despite this transaction, India remains a key growth market for Allianz. The company intends to pursue new opportunities to strengthen its position in the market and potentially expand its role beyond that of an investor to include operational involvement.
Allianz plans to allocate the proceeds from the sale in a manner that supports its strategic goals, including reinvestment in potential new ventures within India. The company will also adhere to its capital management policy, as updated at the December 2024 Capital Markets Day, which includes a minimum level of earnings distribution and the flexibility to fund disciplined deployments.
The transaction is subject to regulatory approvals, which are anticipated to take several months. Upon the transfer of shares and the cessation of Allianz’s role as a promoter of the joint ventures, the agreements between Allianz SE and Bajaj Finserv Ltd. will be terminated.
