Bajaj Finserv is set to acquire the 26% stake held by Allianz SE, a German financial services firm, in their joint insurance businesses, effectively ending a 24-year partnership.
To finalize this, Bajaj Finserv has signed Share Purchase Agreements (SPAs) to acquire Allianz’s stake, aiming for full ownership of Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). Bajaj currently owns a 74% stake in these businesses.
The termination of the joint venture is scheduled upon the completion of the first acquisition tranche, which amounts to at least 6.1 per cent, and the reclassification of Allianz from a Promoter to an Investor, according to an official statement released on Monday, March 18, 2025. Following the termination of the joint ventures, the Bajaj Group and Allianz plan to operate independently within India.
However, the deal requires regulatory approvals, including clearance from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI).
The agreement values the 26 per cent stake in BAGIC and BALIC at Rs. 13,780 crore and Rs. 10,400 crore, respectively. The terms of the agreement stipulate that Bajaj Finserv Ltd. will acquire approximately 1.01 per cent, Bajaj Holdings and Investment Ltd. approximately 19.95 per cent, and Jamnalal Sons Pvt. Ltd. approximately 5.04 per cent, collectively accounting for 26 per cent of each insurance company. Post-acquisition, Bajaj Finserv’s stake in both companies will increase to 75.01 per cent.
Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, stated, “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.”
“We remain committed to creating better access to insurance in India, greater financial resilience, and superior experience for our customers,” he added. “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 also established agreements to ensure the continual provision of reinsurance and other services during the transition period, the company reported.
