Major Acquisition Marks End of 25-Year Partnership

Mumbai: Bajaj Finserv has announced a landmark deal to acquire Allianz SE’s 26% stake in both Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance for ₹24,180 crore ($2.83 billion), taking full control of its insurance ventures.

Despite this strategic move, Bajaj Finserv shares fell over 1% to ₹1,845 in early trade on March 18, extending gains for a third consecutive session. The transaction marks the end of a nearly 25-year partnership between the Indian financial giant and the Munich-based insurer Allianz SE.

This acquisition will increase Bajaj’s ownership in both insurers from 74% to 100%. The company has earmarked:

₹13,780 crore for the general insurance business
₹10,400 crore for the life insurance segment

The deal is subject to regulatory approvals from entities including the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI).

Bajaj Finserv’s Strategy for Full Control Over Insurance Business

Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, highlighted the significance of the acquisition, stating that Allianz’s collaboration helped maintain strong solvency margins and scale operations to over ₹40,000 crore in premium collections.

He added that the move to full ownership will unlock new growth opportunities:

“A single ownership structure in both companies will be a significant value driver for our stakeholders in the years ahead.”

With complete control, Bajaj Finserv aims to:

Streamline operations across both insurance verticals.
Enhance product offerings in life and general insurance.
Drive long-term profitability by leveraging its existing financial services ecosystem.

Allianz’s Exit Strategy and Future Plans for India

While Allianz SE is exiting its direct stake in Bajaj Allianz, the German financial services firm reaffirmed its commitment to India’s insurance market.

The company stated that it plans to reinvest the proceeds from the sale into new opportunities aligned with India’s ‘Insurance for All by 2047’ vision. The insurer did not disclose specific plans but noted that it will evaluate future investments as funds become available.

Financial Performance and Market Impact

Bajaj Finserv’s latest acquisition follows strong financial performance in Q3FY25, reinforcing its position as a leader in India’s financial services industry.

Q3FY25 Financial Highlights:

Consolidated Net Profit: ₹2,231 crore (up 3% YoY)
Revenue from Operations: ₹32,042 crore (up 10% from ₹29,038 crore in Q3FY24)
Assets Under Management (AUM): ₹3,98,043 crore as of December 31, 2024 (up 28% YoY)

Despite the broader market correction, Bajaj Finserv shares have surged nearly 20% year-to-date (YTD).

At 9:30 am on March 18, shares were trading at ₹1,860 on the NSE, down 0.6% from the previous close.

Industry Implications: What This Means for Indian Insurance Sector

Bajaj Finserv’s move to acquire Allianz’s stake signals a broader trend of Indian companies consolidating full ownership in financial services.

Impacts of this deal include:

Increased competition among Indian insurers, as Bajaj gains more control over strategic decisions.
Higher investor confidence in Bajaj Finserv’s long-term growth strategy.
Potential reinvestment from Allianz into other financial ventures in India.