Allianz & Bajaj End 24-Year Partnership

After a 24-year partnership, German insurer Allianz SE and India’s Bajaj Finserv have officially parted ways. Allianz has announced the sale of its 26% stake in two joint ventures with Bajaj for approximately €2.6 billion ($2.84 billion). This agreement paves the way for the Bajaj Group to gain complete ownership of Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC).

Bajaj Group’s 100% Stake in Insurance

Once the transaction is completed, Bajaj Group’s ownership in BAGIC and BALIC will rise from 74% to 100%. The deal will be executed in phases, with at least 6.1% being acquired in the initial tranche, which will also reclassify Allianz from “promoter” to “investor”.

As per the agreement:

• Bajaj Finserv will acquire 1.01% of the shares
• Bajaj Holdings and Investment Ltd. will take 19.95%
• Jamnalal Sons Pvt. Ltd. will acquire the remaining 5.04%
• Post-acquisition, Bajaj Finserv will own 75.01% of both companies, while its promoter entities will hold the remaining 24.99%

Financial Breakdown of the Transaction

• Allianz’s stake in BAGIC is being purchased for ₹13,780 crore
• Its stake in BALIC is being acquired for ₹10,400 crore
• Additionally, Bajaj Finserv will acquire Allianz’s 50% stake in Bajaj Allianz Financial Distributors Ltd. (BAFDL) for up to ₹12.5 crore, gaining full ownership of the entity

A Strategic Realignment

Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, emphasized the importance of this acquisition, stating:

“Together with Allianz, we have built two of the strongest insurance companies in India, with a combined premium exceeding ₹40,000 crore while maintaining industry-best solvency margins. We remain committed to increasing access to insurance, enhancing financial resilience, and improving customer experience. The advantage of single ownership will drive significant value for our stakeholders in the years ahead.”

For Allianz, the exit aligns with its broader global strategy, allowing it to independently pursue its insurance plans in India. Despite the separation, Allianz and Bajaj have entered agreements ensuring continuity in reinsurance and other support services during the transition.

Regulatory Approvals

The transaction is subject to approvals from the Insurance Regulatory and Development Authority of India (IRDAI), the Competition Commission of India (CCI), and other regulatory bodies. Bajaj Finserv has assured that the transition will be seamless, minimizing disruptions for policyholders and stakeholders.

Allianz’s departure marks the end of a long-standing collaboration, but both companies are set to forge ahead with independent growth strategies.