A major shake-up in India's insurance sector! German financial powerhouse Allianz is officially exiting its joint venture with the Bajaj Group.
The company has signed a deal with Bajaj Finserv to sell its 26% stake in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance—marking the end of a partnership that began at the turn of the century.
And the numbers? ₹13,780 crore for the general insurance stake and ₹10,400 crore for the life insurance stake. Once the transaction goes through, Bajaj Group’s ownership in both firms will jump from 74% to a full 100%. But, of course, this is subject to approvals from the Competition Commission of India (CCI) and insurance regulator IRDAI.
So, who’s buying what? Bajaj Finserv will pick up a little over one percent in each company. Bajaj Holdings & Investment will grab nearly 20 percent, while Jamnalal Sons, another investment holding company of Bajaj Group, will secure the remaining five percent.
Sanjiv Bajaj, Chairman & MD of Bajaj Finserv, called this a milestone, stating that, alongside Allianz, they’ve built two of India’s strongest insurance companies. Today, their combined premium income stands at a whopping ₹40,000 crore.
But why did Allianz end its alliance with Bajaj? According to media reports, the exit follows years of unsuccessful attempts to increase its stake in the Bajaj joint venture. Some reports also suggest Allianz is eyeing a potential tie-up with Mukesh Ambani’s Jio Financial Services for both life and general insurance. This speculation first surfaced in October 2024, when Bloomberg reported on the possibility of such a partnership. The buzz grew stronger after Allianz hinted at its future plans, stating it would consider “reinvesting the sale proceeds into potential new opportunities in India.”
