Bajaj Finserv Ltd. (BFS), a key player in India’s financial services sector, has signed Share Purchase Agreements (SPAs) to acquire Allianz SE’s 26% stake in Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). This acquisition will increase Bajaj Group’s ownership in both insurance businesses to 100%, marking a significant transition in their long-standing partnership.
The acquisition, valued at ₹13,780 crore for BAGIC and ₹10,400 crore for BALIC, is subject to regulatory approvals, including clearance from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI). The transaction signifies the end of a 24-year-old joint venture between Bajaj and Allianz, with Allianz reclassified from promoter to investor upon completion of at least 6.1% of the first tranche acquisition.
Under the agreement, Bajaj Finserv Ltd. will acquire 1.01%, Bajaj Holdings and Investment Ltd. will take 19.95%, and Jamnalal Sons Pvt. Ltd. will acquire 5.04%, collectively forming the 26% acquisition. Post-acquisition, BFS will hold 75.01% in both insurance firms.
Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, emphasized the significance of this acquisition, stating, “Together with Allianz, we have built two of India’s strongest insurance companies, with a combined premium exceeding ₹40,000 crore while maintaining industry-best solvency margins. This acquisition strengthens our position and enables us to drive greater value for our stakeholders.”
Bajaj Finserv plans to leverage technology-driven insurance solutions to expand its presence across multiple geographies and enhance consumer access to financial protection. The deal allows Bajaj to integrate and develop next-gen insurance products, capitalizing on India’s growing insurance market.
Both companies have assured a seamless transition, with continuity in reinsurance and other services during the interim period. Bajaj Finserv and Allianz have mutually agreed to ensure minimal disruption to policyholders, intermediaries, and stakeholders.
Following the completion of the transaction, Bajaj and Allianz will pursue independent insurance strategies in India, signaling Allianz’s exit from the Indian insurance market. However, Bajaj Finserv remains committed to expanding and innovating within India’s evolving insurance landscape, positioning itself for sustained growth.
This acquisition strengthens Bajaj Finserv’s financial services portfolio, which includes loans, mortgages, brokerage, mutual funds, and investments. The firm has been accelerating digital transformation efforts and deepening financial inclusion to enhance customer reach.
