NEW DELHI: Bajaj Finserv has signed a binding agreement to acquire Allianz SEโs 26% stake in Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC).
This move will give Bajaj Group full ownership of both insurance firms.
The acquisition is valued at โน13,780 crore for BAGIC and โน10,400 crore for BALIC, totaling โน24,180 crore.
Following regulatory approvals from the Competition Commission of India and IRDA, Bajaj Groupโs stake in both companies will rise from 74% to 100%.
The acquisition will be divided between Bajaj Finserv (approximately 1.01%), Bajaj Holdings and Investment (approximately 19.95%), and Jamnalal Sons (approximately 5.04%). After this transaction, Bajaj Finserv will hold 75.01% in both firms.
Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, said, โTogether with Allianz, we have built two of the strongest insurance companies in India with a combined premium exceeding โน40,000 crore. We remain committed to creating better access to insurance in India, greater financial resilience, and superior customer experience.โ
The partnership between Bajaj Group and Allianz SE lasted 24 years. After the completion of the first tranche of the acquisition, Allianz will no longer be classified as a promoter but will shift to an investor role.
Allianz announced that it would explore new investment opportunities in India after receiving the sale proceeds. The company stated, โAs the proceeds become available, Allianz will consider options for their deployment that support the companyโs strategic ambitions.โ
In addition to the insurance stakes, Bajaj Finserv will also acquire Allianzโs 50% stake in Bajaj Allianz Financial Distributors for up to โน12.5 crore.
Bajaj Allianz General Insurance reported a 33% growth in gross written premium to โน20,630 crore in FY24. Its market share increased from 6.4% to 7.3%, despite a natural catastrophe loss of โน118 crore before tax. The company maintained a combined ratio of 99.9% and a solvency ratio of 349%.
Bajaj Allianz Life Insurance reported a 21% rise in individual rated new business premium to โน6,326 crore. Its market share rose from 5.0% to 5.8%. The companyโs assets under management stood at โน1,09,829 crore, with a solvency ratio of 432%.
Bajaj Finservโs consolidated net profit increased 3.4% to โน2,231 crore in Q3 FY25. Shares of Bajaj Finserv were down 1.72% at โน1,839.65 following the announcement.
With Bajaj Finservโs acquisition ensuring full ownership, the company is expected to drive greater value for stakeholders in the years to come.
