Bajaj deal with Allianz values insurance arms at Rs 93000 crore

MUMBAI: Bajaj Group on Thursday completed the acquisition of a 23% stake in its insurance joint ventures from Allianz SE for Rs 21,390 crore, marking the largest transaction in India’s insurance sector and bringing the group closer to full ownership of Bajaj General Insurance and Bajaj Life Insurance.
The stake purchase involved Bajaj Finserv, Bajaj Holdings & Investment and Jamnalal Sons acquiring Allianz’s shares for Rs 12,190 crore in the general insurance arm and Rs 9,200 crore in the life insurance arm. The transaction raises the Bajaj Group’s ownership in both insurers to 97% from 74%, with Bajaj Finserv holding 75.01%, giving it management control.
Bajaj’s purchase values the general insurance venture at Rs 53000 crore and the life jv at Rs 40,000 crore. This is much lower than what analyst reports from Jefferies, Avendus and Kotak which have valued the non-life company between Rs 85700 crore and Rs 54600 crore while the life company has been valued between Rs 56,800 crore and 56,200 crore.
Allianz said it received a gross consideration of around 2.1 billion euros for the divestment of the first major tranche and expects to sell the remaining 3% stake by the second quarter of 2026. The German insurer said the decision followed constructive and amicable discussions, noting that its ability to operate in India had remained limited due to its minority position.
“This transaction is transformative for the Bajaj Group, enabling us to contribute even more strongly to the Govt’s vision of ‘Insurance for All’ that is Made in India, Made for India and Made by India,” Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, said. He said the acquisition provides strategic flexibility to expand markets, launch new products and build scale as insurance penetration is set to rise over the next two decades.
Bajaj Finserv said the transfer of Allianz’s remaining 3% stake is expected to be completed over the next few months through a proposed buyback, subject to approvals. If completed, Bajaj Finserv’s stake could rise to around 77.3%.
Allianz said India remains a market of high strategic priority and that it intends to stay invested in the country’s insurance growth. The company pointed to its recently announced plans with Jio Financial Services to form a 50:50 domestic reinsurance joint venture and explore new general and life insurance ventures.
Allianz said it expects to recognise a non-operating IFRS gain of around 1.1 billion euros from the transaction in its first-quarter 2026 results and anticipates a positive impact of around five percentage points on its group solvency ratio, with proceeds to be redeployed in line with its strategic priorities, including investments in new India ventures.