MUMBAI: The Bajaj Group has completed the buyback of the 23% stake held by Allianz in its insurance companies for Rs 21,390 crore, formally ending a 24-year joint venture. German insurance major still owns 3% each in these two insurance companies, which will be bought back over the next few months.
In an exchange filing Thursday Bajaj Finserv, the group’s holding company for its financial services businesses which include a life and a general insurance venture, and credit business under Bajal Capital which is the largest non-banking company in the country, said it has completed the acquisition of 23% stake held by Allianz in Bajaj Life Insurance for Rs 21,390 crore. This takes its ownership in the insurance firms to 97% from 74%.
On the value of the transaction, the company said it has paid for Rs 12,190 crore to Allianz for its stake in Bajaj General Insurance and Rs 9,200 crore for the stake in Bajaj Life Insurance. "The acquisition takes the ownership of the Bajaj Group in both insurance companies to 97% from 74%, giving Bajaj Finserv complete control of the insurance companies with 75.01% stake.
This acquisition marks the end of a very successful 24-year joint venture between Bajaj Finserv and Allianz SE," it said.The transaction is the largest ever in domestic insurance sector, and marks one of the most significant acquisitions of a global JV partner by a domestic business group, the statement added. The statement further said the buyback is done through Bajaj Finserv along with Bajaj Holdings & Investment and Jamnalal Sons.
The transfer of Allianz’s remaining 3% stake is expected to be completed over the next few months through a proposed buyback of shares by these insurance companies, it said, adding if the buyback is completed, the stake of Bajaj Finserv is expected to go up to 77.3% with Bajaj Holdings & Investment holding around 18.1% stake with the balance being held by Jamnalal Sons.
The acquisition has no impact on the operations of the insurance companies or the interests of policyholders and business partners, Bajaj Finserv said.
“The transaction is transformative for the Bajaj Group. We are very excited about the insurance businesses which are at this stage poised for a long period of growth. The acquisition provides us strategic flexibility to access new markets, introduce new products, build scale and advance growth as insurance penetration in India is set to grow exponentially over the next two decades,” said Sanjiv Bajaj, chairman & managing director of Bajaj Finserv.
S Sreenivasan, president of insurance & special projects at Bajaj Finserv, said, this deal demonstrates the strength of domestic capital and that of the Bajaj Group, being funded fully by the Bajaj Group with no leverage. The fair trade watchdog CCI and regulator Insurance Regulatory and Development Authority of India (IRDAI) approved buyback of Allianz’s 26% stake four months ago.
The Bajaj Group had on March 17, 2025 said it was ending its insurance joint ventures with Allianz by buying back the latter's 26% stake through a share purchase agreement.