NEW DELHI: Bajaj Finserv has signed a binding agreement to acquire Allianz SE’s 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 ₹13,780 crore for BAGIC and ₹10,400 crore for BALIC, totaling ₹24,180 crore.
Following regulatory approvals from the Competition Commission of India and IRDA, Bajaj Group’s 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, “Together with Allianz, we have built two of the strongest insurance companies in India with a combined premium exceeding ₹40,000 crore. We remain committed to creating better access to insurance in India, greater financial resilience, and superior customer experience.”
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, “As the proceeds become available, Allianz will consider options for their deployment that support the company’s strategic ambitions.”
In addition to the insurance stakes, Bajaj Finserv will also acquire Allianz’s 50% stake in Bajaj Allianz Financial Distributors for up to ₹12.5 crore.
Bajaj Allianz General Insurance reported a 33% growth in gross written premium to ₹20,630 crore in FY24. Its market share increased from 6.4% to 7.3%, despite a natural catastrophe loss of ₹118 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 ₹6,326 crore. Its market share rose from 5.0% to 5.8%. The company’s assets under management stood at ₹1,09,829 crore, with a solvency ratio of 432%.
Bajaj Finserv’s consolidated net profit increased 3.4% to ₹2,231 crore in Q3 FY25. Shares of Bajaj Finserv were down 1.72% at ₹1,839.65 following the announcement.
With Bajaj Finserv’s acquisition ensuring full ownership, the company is expected to drive greater value for stakeholders in the years to come.