Bajaj Finserv to buy out Allianz’s stake in life & general insurance arms for over ₹24,000 crore

Bajaj Finserv Ltd on Monday (March 17) said it has approved the acquisition of Allianz SE’s entire 26% stake in their joint insurance ventures—Bajaj Allianz General Insurance Company Ltd (BAGIC) and Bajaj Allianz Life Insurance Company Ltd (BALIC).The agreed consideration for a 26% stake in BAGIC and BALIC is ₹13,780 crore and ₹10,400 crore respectively. Bajaj Allianz General Insurance Company has been valued at ₹53,346 crore, while Bajaj Allianz Life Insurance Company is valued at ₹40,000 crore as part of the transaction.
The 24-year-old joint venture agreements between the Bajaj Group and Allianz SE in respect of insurance businesses will stand terminated upon the completion of the first tranche of acquisition of at least 6.1% and reclassification of Allianz from being a Promoter to Investor.
Also Read: Bajaj Finserv aims for ₹20,000 crore net profit by FY29 – Check other guidance parametersUnder the terms of the Share Purchase Agreement, it is proposed that Bajaj Finserv will acquire approximately 1.01%, Bajaj Holdings and Investment Ltd. approximately 19.95% and Jamnalal Sons Pvt. Ltd. approximately 5.04%, aggregating to 26% in each of the insurance companies.
Post-acquisition, Bajaj Finserv’s stake will be 75.01% in both companies. Once the joint ventures are terminated under the terms of the SPA, the Bajaj Group and Allianz aim to independently pursue their insurance strategies in India.The deal is subject to regulatory approvals, including clearance from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI). Bajaj Finserv stated that the acquisition will drive long-term value creation and strengthen its position in India’s insurance market.

Also Read: Bajaj Finserv Q3 results: Net profit rises marginally, revenue up 10%

The deal marks the end of Bajaj and Allianz’s long-standing partnership and will give the Bajaj Group full ownership of both insurance 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 ₹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. Given the advantage of 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.”

Shares of Bajaj Finserv Ltd ended at ₹1,871.85, up by ₹64.90, or 3.59%, on the BSE.