Bajaj Finserv is set to acquire Allianz SE’s 26% stake in Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company for ₹24,180 crore. This move will give the Bajaj Group complete ownership of the joint ventures and conclude their 24-year-old insurance partnership with Allianz SE.
The share purchase agreements (SPAs) were signed on March 17, with the total consideration for acquiring the stakes in the general and life insurance JVs set at ₹13,780 crore and ₹10,400 crore, respectively. “The execution of the SPAs marks the culmination of constructive and amicable discussions to ensure a seamless transfer of the stake of Allianz. The acquisition is subject to regulatory approvals,” Bajaj Finserv announced.
Under the terms, Bajaj Finserv will acquire approximately 1.01%, Bajaj Holdings and Investment approximately 19.95%, and Jamnalal Sons approximately 5.04%, collectively representing 26% of each insurance company. Following the acquisition, Bajaj Finserv’s stake in both companies will increase to 75.01%.
The joint venture agreements will be terminated after the initial acquisition of at least 6.1% of the shares and the reclassification of Allianz from a promoter to an investor.
Sanjiv Bajaj, the CMD of Bajaj Finserv, commented, “Together with Allianz, we have built two of the strongest insurance companies in India with a combined premium exceeding ₹40,000 crore, while maintaining industry-best solvency margins. Given the advantage of a single ownership in both companies, we are confident the acquisition will become a big driver of value for our stakeholders in the years to come.”
Both the Bajaj Group and Allianz have indicated their intention to pursue independent insurance strategies in India following the termination of the JVs. This decision coincides with the Indian government’s decision to raise the foreign direct investment (FDI) limit in the insurance sector from 74% to 100%.
Announcing the proposal to increase FDI in insurance in her Budget 2025-26 speech last month, Finance Minister Nirmala Sitharaman said the enhanced FDI limit will be available only to companies which invest the entire premium in India. Current guardrails and conditionalities associated with foreign investment will be reviewed and simplified, she had said.
In a separate release regarding the sale of its 26% stake in the non-life and life insurance JVs to the Bajaj Group for approximately EUR 2.6 billion, Allianz stated that India remains a key growth market for the company. Allianz said it will explore new opportunities to strengthen its position in the market and expand its potential to serve not only as an investor but also as an operator. “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,” it said.
