Did Bajaj End Its 24-Year Partnership With Allianz?

Bajaj Group announced its decision to acquire Allianz‘s 26% stake in its life and general insurance ventures for a whopping Rs 24,180 crore on Wednesday.

This acquisition, which was disclosed in the stock exchange filing, will bring an end to a 24-year-long strategic partnership between the two companies in India.

Once the deal is finalised, Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance will become fully Indian-owned entities.

The transaction will also significantly alter the shareholding structure in these two companies. Under the share purchase agreement, Bajaj Finserv will acquire approximately 1% of Allianz’s stake, Bajaj Holdings and Investment will acquire nearly 20%, and Jamnalal Sons will take a 5% stake. As a result, Bajaj Finserv’s total stake in both insurance firms will rise to just over 75%.

The partnership between Bajaj and Allianz dates back to 2001, but differences in strategy and a long-standing disagreement over the planned increase of Allianz’s stake within 15 years have led to this major change.

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Despite India easing foreign direct investment (FDI) limits in recent years, Allianz chose not to increase its stake in the ventures, paving the way for Bajaj to take full control.

For Bajaj, this acquisition not only consolidates its position in the Indian insurance sector but also enables the group to execute its insurance strategy without external influence from Allianz.

As part of the deal, Bajaj will acquire at least 6.1% of Allianz’s stake, which will shift Allianz’s classification from promoter to an investor. The company has already filed the required disclosures with the stock exchange, and the completion of the transaction is expected to take place soon.

Bajaj Allianz Life Insurance currently holds an embedded value of approximately Rs 23,000 crore. As of February 2025, the life insurance arm has a 3% market share in terms of premiums.

Meanwhile, Bajaj Allianz General Insurance holds a 7% market share, further cementing its status as one of India’s top insurers.

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Following the buyout, Bajaj Finserv will have greater control over the strategic direction of these insurance companies.

 The firm, which emerged after Bajaj Auto’s demerger in 2007, primarily functions as an investment firm with stakes in Bajaj Auto, Bajaj Finserv, and Maharashtra Scooters.