German global insurer Allianz SE has indicated to Bajaj Group that given its strategic priorities, it is actively considering an exit from the life and general insurance joint ventures with the latter, listed company Bajaj Finserv stated.
In a stock exchange statement lodged yesterday, Bajaj Finserv said, “This is with reference to a news article in the mainstream media published today, i.e., on 22 October 2024 regarding, inter alia, the intention of Allianz to exit its existing insurance joint ventures with Bajaj and to pursue alternative options in the Indian insurance market.
“Over the last several years, the Bajaj Group, through the 74% equity stakes held by the Company (Bajaj Finserv) has built two solid businesses in life and general insurance, as joint ventures with Allianz SE which holds the balance 26% stake.”
The statement also said, “It has indicated that it remains committed to the Indian insurance market but will not speculate on alternatives. Discussions are at a preliminary stage and there is no proposal before the board of the Company or its insurance subsidiaries in this regard. Allianz, in case it exits the joint venture, has committed full support to Bajaj in ensuring a smooth transition keeping in mind the interests of policyholders, business partners, employees, and other stakeholders of the insurance companies.”
Bloomberg reported that Allianz is planning to quit the joint ventures because its Indian partner isn’t allowing the German insurer to raise its stakes at a discounted price. It also isn’t given a say in strategic decisions, added Bloomberg quoting people familiar with the development. Allianz is instead looking to now buy stakes in newly established insurance firms to retain a presence in India.
Founded in 2001, Bajaj Allianz General Insurance is one of the biggest private insurers in India, while Bajaj Allianz Life Insurance is among the fastest-growing life insurers in the country.