Bajaj Group to Take Full Control of Insurance Businesses with Allianz Stake Buyout

Bajaj Group is acquiring Allianz SE’s 26% stake in Bajaj Allianz Life and Bajaj Allianz General Insurance for ₹24,180 crore, ending their 24-year partnership. Bajaj Finserv and other promoter entities will purchase the shares, increasing Bajaj’s ownership to 100%. The deal, still pending regulatory approvals, involves Bajaj Finserv acquiring 1.01%, Bajaj Holdings 19.95%, and Jamnalal Sons 5.04%, bringing Bajaj Finserv’s stake to 75.01%. Additionally, Bajaj Finserv will buy Allianz’s 50% stake in Bajaj Allianz Financial Distributors Ltd for ₹12.5 crore. Allianz, while exiting the JVs, remains interested in India’s market and plans to reinvest the proceeds. Allianz initially sought a higher stake but Bajaj resisted, leading to this buyout.

Bajaj Group to Take Full Control of Insurance Businesses with Allianz Stake Buyout

The Bajaj Group is making a major move in the insurance sector by acquiring Allianz SE’s 26% stake in their two joint ventures, Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance. This ₹24,180 crore deal marks the end of a 24-year partnership between the two companies. Bajaj Finserv, along with other promoter firms, will oversee the acquisition, which includes purchasing Allianz’s ₹13,780 crore stake in Bajaj Allianz General Insurance and ₹10,400 crore stake in Bajaj Allianz Life Insurance. Currently, Allianz owns 26% in both companies, with Bajaj holding the remaining shares.

Once finalized, this transaction will give the Bajaj Group full ownership of both insurance companies, increasing its stake to 100%. However, the deal is subject to regulatory approvals from authorities such as the Competition Commission of India and the Insurance Regulatory and Development Authority of India.

To complete the acquisition, different Bajaj Group entities will purchase Allianz’s shares. Bajaj Finserv will acquire approximately 1.01%, Bajaj Holdings and Investment Ltd will take 19.95%, and Jamnalal Sons Pvt. Ltd will buy 5.04%, totaling 26% in each company. After the transaction, Bajaj Finserv’s overall stake in both companies will increase to 75.01%.

In addition to the insurance businesses, Bajaj Finserv’s board has approved the acquisition of Allianz’s 50% stake in Bajaj Allianz Financial Distributors Ltd, a financial distribution joint venture. Bajaj Finserv will purchase 1.2 million equity shares at ₹10 per share, amounting to ₹12.5 crore.

In a separate statement, Allianz reaffirmed that India remains an important market for the company and that it will continue to explore new investment opportunities in the country. Allianz also mentioned that it plans to reinvest the proceeds from this sale into other potential business ventures.

Interestingly, Allianz had initially expressed interest in increasing its stake in the joint ventures, especially after recent regulatory changes in the Indian insurance sector created a more favorable environment for foreign investors. However, Bajaj was unwilling to reduce its majority ownership. Following months of discussions, Allianz ultimately decided to exit the partnership entirely, leading to this agreement.

This strategic move strengthens the Bajaj Group’s position in the Indian insurance market, giving it complete control over its insurance businesses. For Allianz, this exit enables the company to focus on new opportunities in India’s financial sector.

The deal highlights the evolving landscape of the Indian insurance industry, where local players are increasingly taking the lead. It also reflects Bajaj’s confidence in its insurance businesses and its long-term commitment to expanding in the sector. Meanwhile, Allianz’s decision to exit suggests a strategic shift toward reinvesting in other areas of India’s financial market.

Overall, this acquisition is a significant development for both companies. For Bajaj, it means greater control and autonomy over its insurance operations, while Allianz can redirect its resources toward new ventures in India. The deal also underscores the importance of regulatory approvals in high-value transactions, as its completion depends on clearance from Indian authorities.