Bajaj Finserv has finalized a binding agreement to buy Allianz SE’s 26% stake in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance for ₹24,180 crore. This move ends a 24-year-long joint venture. Following the acquisition, Bajaj Finserv’s ownership will rise to 75.01%, with promoter entities Bajaj Holdings & Investment and Jamnalal Sons collectively holding 24.99%.
Deal Structure and Stake Allocation
Bajaj Finserv will purchase 1.01% in both insurance companies. The remaining stake will be split between Bajaj Holdings & Investment and Jamnalal Sons, acquiring 19.95% and 5.04%, respectively. Allianz will receive the proceeds in multiple tranches, subject to regulatory approvals from the Competition Commission of India and IRDA.
Independent Strategies Post Acquisition
With the joint venture terminated, both Bajaj and Allianz will independently pursue their insurance strategies in India. Allianz is considering reinvesting the proceeds from the sale into emerging opportunities within the country.
Sanjiv Bajaj, chairman of Bajaj Finserv, expressed confidence in the acquisition’s potential. He highlighted that the unified ownership would drive long-term value for stakeholders.
Financial Performance of Insurance Ventures
In FY24, Bajaj Allianz General Insurance saw a 33% rise in gross written premium, reaching ₹20,630 crore, increasing its market share to 7.3%. Despite natural catastrophe losses of ₹118 crore, the company’s profit after tax grew by 15% to ₹1,550 crore, with a robust solvency ratio of 349%.
Similarly, Bajaj Allianz Life Insurance’s individual rated new business premium increased by 21% to ₹6,326 crore, raising its market share to 5.8%. The insurer reported an AUM of ₹1,09,829 crore with a solvency ratio of 432%.
Future Prospects
This acquisition marks a significant shift for Bajaj Finserv, positioning the company for greater control and strategic flexibility. Allianz’s focus on exploring new ventures in India reflects the country’s growing importance in the global financial market. The completion of this deal is set to redefine Bajaj Finserv’s role in the Indian insurance landscape.
