Allianz to sell 26% stake in Bajaj insurance units for $3b

The stake will be acquired by the Bajaj Group.

Allianz SE has signed binding agreements with Bajaj Finserv Ltd. to sell its 26% stake in Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company for approximately $2.84b (€2.6b). 

The stake will be acquired by the Bajaj Group, with Allianz potentially receiving the proceeds in multiple tranches.

Despite the divestment, Allianz reaffirmed its commitment to India as a growth market and plans to explore new investment and operational opportunities in the country.

Allianz intends to reinvest the proceeds in line with its strategic goals, considering potential opportunities in India.

The company will follow its capital management policy, ensuring a balance between earnings distribution and disciplined reinvestment.

The transaction is subject to regulatory approvals, which are expected to take several months. 

Once completed, Allianz will cease to be a promoter of the joint ventures, and its agreements with Bajaj Finserv Ltd. will be terminated.