Bajaj Finserv along with Bajaj Holdings & Investment Ltd and Jamnalal Sons Private Ltd acquired 23 per cent stake in its insurance subsidiaries – Bajaj General Insurance and Bajaj Life Insurance – from Allianz SE, for Rs. 12,190 crore and Rs. 9,200 crore respectively.
The acquisition takes the ownership of the Bajaj Group in both insurance companies to 97 per cent from 74 per cent, giving Bajaj Finserv complete control of the insurance companies with 75.01 per cent stake, the company said in a stock exchange filing.
The transfer of Allianz’s remaining 3 per cent stake is expected to be completed over the next few months through a proposed buyback of shares by the insurance companies.
If the buyback is completed, the stake of Bajaj Finserv is expected to go up to approximately 77.3 per cent with Bajaj Holdings & Investment Limited holding approximately 18.1 per cent stake with the balance being held by Jamnalal Sons Private Ltd.
The transaction, the largest ever in the Indian insurance sector, also marks one of the most significant acquisitions of a global joint venture partner by an Indian business group. It comes after India recently allowed 100 per cent foreign direct investment in insurance sector.
The Bajaj Group previously announced its agreement to expand ownership in both insurance companies from 74 per cent to 100 per cent through a Share Purchase Agreement on 17 March 2025.
In a separate statement, Allianz said it expects to complete the sale of the remaining stake of 3 per cent until second quarter of 2026.
India remains an important growth market for Allianz, with a strong ambition to continue serving its dynamic and rapidly expanding insurance sector also in the future, Allianz said.
Last year, Allianz, through its wholly-owned subsidiary Allianz Europe B.V., have entered into a binding agreement with Jio Financial Services Limited (JFSL) to form a 50:50 domestic reinsurance joint venture and into a non-binding agreement for setting up equally owned joint ventures for both general and life insurance businesses in India.
Allianz will consider options for the redeployment of the proceeds that align with the company’s strategic priorities. This will include investments into new joint ventures in India.
Last month, Piramal Finance Ltd said it has agreed to sell its entire 14.72 per cent stake in Shriram Life Insurance Company Ltd to Sanlam Emerging Markets (Mauritius) Ltd. for Rs. 600 crore.
Read Allianz statement here: https://www.allianz.com/en/mediacenter/news/media-releases/260108-allianz-divestment-joint-ventures-bajaj.html
Read Bajaj Finserv statement here: https://www.bseindia.com/xml-data/corpfiling/AttachLive/f8bf721d-53ab-40f6-8c57-6f170590d86f.pdf
