Bajaj Finserv has successfully completed the acquisition of Allianz SE's 23% stake in its insurance subsidiaries, marking the end of a 24-year joint venture partnership. The transaction, valued at ₹21,390 crores, represents the largest deal ever executed in India's insurance sector and ranks among the most significant global joint venture buyouts by an Indian corporate group.

Transaction Details

The acquisition was executed jointly by Bajaj Finserv, Bajaj Holdings & Investment Limited, and Jamnalal Sons Private Limited. The deal structure involved separate purchases for each insurance entity:

Ownership Structure Changes

With this acquisition, the Bajaj Group's ownership in both insurance companies has increased significantly from 74% to 97%. Bajaj Finserv now holds complete control with a 75.01% stake in the insurance operations. The remaining 3% stake held by Allianz is expected to be transferred in the coming months through a proposed share buyback by the insurance companies, subject to regulatory and statutory approvals.

Post-buyback, the ownership structure will be restructured as follows:

Market Valuation and Analysis

The acquisition implies aggregate valuations that are notably lower than earlier analyst estimates. Investment firms including Jefferies, Avendus, and Kotak had previously estimated higher valuations:

• General Insurance: Analyst estimates ranged from ₹54,600 crores to ₹85,700 crores
• Life Insurance: Analyst estimates were between ₹56,200 crores to ₹56,800 crores

The actual transaction valuations represent a more conservative assessment of the insurance businesses' worth.

Financial Performance

Bajaj Finserv has demonstrated strong financial performance in recent quarters. The company reported significant growth in Q2 FY26 compared to Q2 FY25:

Strategic Implications

The company has clarified that this acquisition will not impact day-to-day operations or affect the interests of policyholders, distributors, or business partners. The transaction stems from a Share Purchase Agreement signed on March 17, 2025, where the Bajaj Group announced its intent to raise ownership in both insurers to 100%.

Following Allianz Group's exit from the Bajaj partnership, Allianz entered into a new strategic alliance. On July 18, 2025, Jio Financial Services Limited and Allianz Group, through its subsidiary Allianz Europe B.V., formed a binding agreement for a 50:50 domestic reinsurance joint venture.

Company Profile

Bajaj Finserv operates as an unregistered Core Investment Company and stands as one of India's leading promoters of financial services businesses. The company's comprehensive suite of financial solutions encompasses consumer and commercial loans, mortgages, auto financing, fixed deposit products, payments, securities brokerage services, general and life insurance, and investment products, with significant emphasis on digital platform distribution.

Bajaj Finserv and its promoter group companies have successfully completed the acquisition of a combined 97% stake in their insurance joint ventures from German insurer Allianz SE, effectively ending a two-decade partnership between the companies. The transaction marks a significant consolidation move in the Indian insurance sector.

Transaction Details and Structure

The acquisitions were executed under share purchase agreements that were originally signed on March 17, 2025, and subsequently amended. The transaction involved multiple entities within the Bajaj group acquiring stakes in both Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance.

Promoter Group Participation

Beyond Bajaj Finserv's direct acquisition, other promoter group entities participated significantly in the transaction. Bajaj Holdings & Investment Ltd. separately acquired a 17.56% stake in each insurer, while Jamnalal Sons Pvt. Ltd. purchased an additional 4.43% stake in both companies. This coordinated acquisition strategy resulted in the promoter entities collectively holding 97% of both insurance companies.

Joint Venture Termination and Future Plans

Following the completion of the shareholding changes, the joint venture agreements between Bajaj Finserv and Allianz were formally terminated with effect from Thursday. However, Allianz continues to hold the remaining 3% stake in both insurance companies, which is expected to be acquired through a planned share buyback process.

The boards of both Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance have approved proposals to buy back the remaining shares at the same prices paid in the earlier transactions. This buyback process is subject to regulatory approvals and is expected to be completed by July 31, 2026.

Buyback Mechanism and Contingency

The share buyback structure includes contingency provisions to ensure complete acquisition of Allianz's remaining stake:

• Buyback price will match the transaction prices (₹4,808.24 for general insurance, ₹2,654.12 for life insurance)
• Process requires regulatory approvals
• If buyback is not completed or only partially executed, the promoter group retains the option to acquire the balance stake
• Timeline for completion extends to July 31, 2026

Industry Context and Significance

This transaction stands out within the Indian insurance industry due to its scale and structure. Recent foreign exits in the sector have typically involved partial stake sales rather than comprehensive buyouts. The deal's magnitude distinguishes it from other recent transactions, such as Abrdn's exit from HDFC Life in 2023, which was valued at approximately ₹6,000 crore, and Max Financial's gradual buyback of Mitsui Sumitomo's stake over multiple years.

The completion of this acquisition represents a strategic consolidation for Bajaj Finserv, providing greater control over its insurance operations and ending the joint venture structure that had been in place for two decades.