Allianz SE to Exit Indian Insurance Market, Sells Stakes to Bajaj Finserv

Munich – German insurance major Allianz SE has announced its decision to exit from its Indian insurance joint ventures with the Bajaj group, following the Indian government’s decision to allow 100% foreign direct investment (FDI) in insurance ventures. Allianz will sell its 26% stakes in both life and non-life joint ventures with Bajaj group for approximately €2.6 billion.

Allianz has entered into binding share purchase agreements (SPAs) with Bajaj Finserv Ltd to sell its stakes in Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). The proceeds may be received in several tranches, Allianz stated.

Following its acquisition of Allianz’s stake, Bajaj Group has announced plans to invest ₹100 billion (about US$1.1 billion) in a nationwide hospital network The initiative will establish both affordable and premium healthcare facilities, with operations expected to roll out in phases.

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.