Global insurance giant Allianz SE has exited its nearly 25-year-long joint venture with Bajaj Finserv, selling its 26 percent stake in Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). The deal, valued at Rs 24,180 crore (USD 2.83 billion), grants Bajaj Finserv full ownership of both firms.
With this sale, Bajaj Finserv increases its stake in the two insurance ventures from 74 percent to 100 percent, paying Rs 13,780 crore for BAGIC and Rs 10,400 crore for BALIC.
Strategic Shift for Allianz
Despite its exit from the joint ventures, Allianz SE reaffirmed its commitment to India’s insurance market. The company intends to reinvest the sale proceeds into new opportunities within India, aligning with the government’s “Insurance for All by 2047” vision.
“Allianz remains committed to India and will consider reinvestment options that align with our strategic ambitions,” the German insurer stated.
Bajaj Finserv Strengthens Insurance Portfolio
For Bajaj Finserv, acquiring full control over BAGIC and BALIC presents an opportunity to consolidate its insurance business and drive independent growth. Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, emphasized that complete ownership would create additional value for stakeholders.
“Our collaboration with Allianz helped establish a strong foundation with industry-best solvency margins and premiums exceeding Rs 40,000 crore. With full ownership, we expect to unlock further growth potential,” Bajaj stated.
Regulatory Approvals Required
The acquisition remains subject to regulatory clearances from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI). Once approvals are secured, Bajaj Finserv will officially take full control of both insurance firms.
A New Chapter in India’s Insurance Sector
With Allianz’s departure, India’s insurance landscape is set for a shift. Bajaj Finserv’s complete control over BAGIC and BALIC is expected to streamline operations, while Allianz’s reinvestment plans could introduce fresh competition and innovation in the industry.
Allianz also hinted at potential reinvestments, saying, "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."
