Bajaj Finserv is set to acquire German financial services firm Allianz SE’s 26% stake in their insurance businesses, signaling the end of their 24-year joint venture. The move will give Bajaj full ownership of Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC).
The acquisition, for which Bajaj Finserv signed Share Purchase Agreements, will be completed in tranches. The official termination of the joint venture hinges upon the completion of the first acquisition phase, which involves at least 6.1% of the stake, 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 intend to operate independently within India. However, the deal is contingent upon regulatory approvals, including those from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI).
The agreed-upon consideration for the 26% stake is substantial: Rs. 13,780 crore for BAGIC and Rs. 10,400 crore for BALIC. According to the agreement, Bajaj Finserv Ltd. will acquire approximately 1.01%, Bajaj Holdings and Investment Ltd. will acquire approximately 19.95%, and Jamnalal Sons Pvt. Ltd. will acquire approximately 5.04%, totaling the 26% stake in each insurance company. Post-acquisition, Bajaj Finserv’s stake in both companies will increase to 75.01%.
Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, commented on the deal, stating, “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.”
He added, “We remain committed to creating better access to insurance in India, greater financial resilience, and superior experience for our customers.” Bajaj expressed confidence in the acquisition, stating, “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.”
To ensure a smooth transition, Bajaj Finserv and Allianz have also established agreements for the continuation of reinsurance and other essential services, the company said.
