Germany financial services giant Allianz SE has agreed to sell its entire stakes in two insurance joint ventures with Bajaj Finserv Ltd and will explore new new opportunities to grow its business in India.
Allianz will sell its 26% stake each in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance to the Bajaj group for €2.6 billion (around Rs 24,180 crore or $2.8 billion), the company said in a statement. The move brings an end to the 24-year-old joint ventures between Allianz and Bajaj Finserv.
The German company said it may receive the proceeds in several tranches. It added that Allianz will consider options for the deployment of proceeds from the sale. Particularly, the company will consider the reinvestment of sale proceeds into potential new opportunities in India.
“India continues to be one of Allianz’s growth markets. The financial services company will explore new opportunities that strengthen its position in the market and expand its potential to serve not only as an investor but also as an operator,” the company said.
Allianz didn’t disclose any details of its India plans but Bloomberg reported in October last year that billionaire Mukesh Ambani-led Jio Financial Services Ltd was in talks with the German firm to form insurance JVs.
Sanjiv Bajaj, chairman and managing director of Bajaj Finserv said, said the acquisition will become “a big driver of value” for its stakeholders in the coming years. “Together with Allianz, we have built two of the strongest insurance companies in India with a combined premium exceeding Rs 40,000 crore, while maintaining industry-best solvency margins,” he said.