Bajaj to acquire Allianz's 26% stake, ending 24-year joint venture in insurance businesses

For this, Bajaj Finserv signed Share Purchase Agreements to buy Allianz's 26% stake in the businesses to gain full ownership from the current 74% Bajaj owns.

Bajaj is terminating its now 24-year-old joint venture with German financial services firm Allianz SE by acquiring the latter's stake in their insurance businesses.

The joint venture will officially get terminated upon the completion of the first acquisition tranche of at least 6.1 per cent and the reclassification of Allianz from being a Promoter to Investor. (Representational Image/Pexel)

These insurance businesses are Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC).

For this, Bajaj Finserv signed Share Purchase Agreements (SPAs) to buy Allianz's 26 per cent stake in the businesses to gain full ownership from the current 74 per cent Bajaj owns.

The joint venture will officially get terminated upon the completion of the first acquisition tranche of at least 6.1 per cent and the reclassification of Allianz from being a Promoter to Investor, announced the company in its official statement on Monday, March 18, 2025.

Once the joint ventures are terminated, the Bajaj Group and Allianz aim to independently do business in India.

However, this deal is also subject to regulatory approvals, including approvals from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI).

The agreed consideration for the 26 per cent stake in BAGIC and BALIC is Rs. 13,780 crore and Rs. 10,400 crore respectively.

The terms of the agreement propose 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, aggregating to 26 per cent in each of the insurance companies.

After the acquisition, Bajaj Finserv's stake will be 75.01 per cent in both the companies.

Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, said, “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 entered into agreements that will ensure continuity of reinsurance and other services during the transition, the company said.