Allianz ‘actively’ considering exit from JV with Bajaj insurance cos

Global insurance major Allianz SE is “actively considering” an exit from its life insurance and general insurance joint ventures (JVs) in India with the Bajaj Group, after a period of over two decades.

“Allianz has indicated to Bajaj that given its strategic priorities, it is actively considering an exit from the life and general insurance joint ventures. It has indicated that it remains committed to the Indian insurance market but will not speculate on alternatives,” Bajaj Finserv said in an exchange notice.

German insurer Allianz holds 26 per cent stake in Bajaj Life Insurance and Bajaj General Insurance each, while Bajaj Finserv holds the remaining stake.

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According to reports, the global insurer had a dispute with the majority shareholder over the direction that the partnership was taking. The company was not being allowed to raise stake in the joint ventures at a discounted rate, and wasn’t having major say in strategic decisions, Bloomberg reported.

While discussions to sell stake in the insurance companies are at a preliminary stage, Bajaj Finserv said there is no proposal yet before its board or its insurance subsidiaries in this regard.

Smooth transition

“Allianz, in case it exits the joint venture, has committed full support to Bajaj in ensuring a smooth transition to the Bajaj brand keeping in mind the interest of policyholders, business partners, employees and other stakeholders of the insurance companies,” said Bajaj Finserv.

In Q1FY25, Bajaj Allianz General Insurance posted a revenue of ₹4,761 crore, and reported a net profit of ₹576 crore. Its combined ratio stood at 103.7 per cent, and solvency ratio was at 311 per cent for the period.

Bajaj Life Insurance, meanwhile, had over ₹1.21 lakh crore of assets under management as on August 31, and claims settlement ratio of 99.23 per cent. According to analysts, apart from partnerships, Allianz may spend a premium to acquire other India based general and life insurers after existing its stake in Bajaj’s insurance arms.