Bajaj Finserv has signed an agreement with Allianz SE to acquire the 26% stake held by the German insurer in Bajaj Allianz General Insurance (BAGIC) and Bajaj Allianz Life Insurance (BALIC) for ₹24,180 crore ($2.83 billion). This deal will make Bajaj Finserv the sole owner of both companies, increasing its stake from 74% to 100%, the company announced on March 17.
As part of the deal, Bajaj Finserv will pay ₹13,780 crore to acquire Allianz’s stake in BAGIC and ₹10,400 crore for BALIC. The move is expected to strengthen Bajaj Finserv’s position in the insurance sector and drive further growth.
Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, noted that the joint venture with Allianz has helped the company maintain high solvency margins and surpass ₹40,000 crore in premiums. He said full ownership of the two companies would enhance value creation for stakeholders and enable more efficient strategic decision-making.
The transaction is subject to approvals from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI), among others.
Even after the sale of the stake, Allianz SE has reaffirmed its India commitment and will reinvest in new opportunities in India. The company stated that it is interested in backing the Indian government’s “Insurance for All by 2047” vision and will evaluate possible investment opportunities following the completion of the stake sale.
This acquisition is a big twist in India’s insurance sector, transforming Bajaj Finserv into a full-fledged independent player in the life and general insurance segments.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com.
Source: Moneycontrol.
News Desk
