Allianz SE has entered into binding share purchase agreements with Bajaj Finserv to sell its 26% stake in its Indian non-life and life insurance joint ventures - Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company - to the Bajaj Group for a total consideration of EUR2.6bn. Allianz may receive the proceeds in several tranches.
India continues to be one of Allianz’s growth markets, and Allianz will explore new opportunities that strengthen its position in the market and expand its potential to serve not only as an investor but also as an operator.
As the proceeds become available, Allianz will consider options for their deployment that support the company’s strategic ambitions, in particular the reinvestment of sale proceeds into potential new opportunities in India. The transaction is subject to obtaining necessary regulatory approvals, which are expected to take a number of months. Upon the transfer of shares and the cessation of Allianz being a promotor of the joint ventures, also the joint venture agreements between Allianz SE and Bajaj Finserv will be terminated.
The two companies had set up a joint venture in 2001, with Allianz holding a 26% stake — the maximum allowed to foreign investors at that time. The India government raised the FDI cap in the insurance sector to 74% in 2021. The Union Budget 2025 announced the further increase of FDI in the insurance sector from 74% to 100%.