Bajaj Finserv and other promoter entities have agreed to acquire Allianz’s 26% stake in their two joint ventures (JVs) – Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC).
This would offer Bajaj Group 100% ownership in the JVs.
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The transaction is valued at Rs241.8bn, with Rs137.8bn for BAGIC and Rs104bn for BALIC.
Under the share purchase agreements signed, Bajaj Finserv will acquire around 1.01% in each company, increasing its holding to 75.01%.
Bajaj Holdings and Investment, along with Jamnalal Sons, will acquire approximately 19.95% and 5.04% of the paid-up equity capital, respectively, in each insurance company.
Consequently, Bajaj Finserv and these promoter entities will collectively hold the entire equity share capital in BAGIC and BALIC.
This marks the end of Allianz’s 24-year alliance with Bajaj Group, with the companies planning to independently pursue their Indian insurance strategies upon deal completion.
To ensure a smooth transition, both entities have entered into agreements for continuity of reinsurance and other services.
The acquisition is contingent upon regulatory approvals, including from the Competition Commission of India and the Insurance Regulatory and Development Authority of India (IRDAI).
Bajaj Finserv managing director and chairman Sanjiv Bajaj said: “Together with Allianz, we have built two of the strongest insurance companies in India with a combined premium exceeding Rs40,000 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 a 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.”
Allianz has expressed its intention to seek new opportunities in the market, aiming to expand its capabilities “not only as an investor but also as an operator”.
Last month, Bajaj Allianz Life Insurance implemented the Bima-ASBA facility, an initiative by the IRDAI to streamline the insurance premium payment process.
