SYNOPSIS: Bajaj Finserv completed the largest-ever Indian insurance deal, acquiring Allianz’s 23 percent stake in its insurance arms, raising group ownership to 97 percent and ending a 24-year joint venture.
Shares of one of India’s largest and most diversified financial services companies, and the holding company for multiple financial services businesses under the Bajaj group, are in focus on Friday, after Bajaj Finserv ended its 24-year joint venture with Allianz. So, what exactly is happening between the Bajaj Group and Allianz? Let’s break it down.
At 11:39 a.m., shares of Bajaj Finserv Limited were trading at Rs. 1,995 on BSE, compared to its previous closing price of Rs. 2,008.75, with a market cap of Rs. 3.18 lakh crores. The stock has delivered positive returns of over 18 percent in one year, while delivering negative returns of nearly 4 percent in the last one month.
What’s the News:
As per the latest disclosures, Bajaj Finserv, along with Bajaj Holdings & Investment Limited and Jamnalal Sons Private Limited, has completed the acquisition of a 23 percent stake in its insurance subsidiaries – Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance – from Allianz SE. The acquisition was executed for Rs. 12,190 crore and Rs. 9,200 crore, respectively.
This transaction stands out as the largest deal ever in India’s insurance sector and also ranks among the most significant buyouts of a global joint venture partner by an Indian corporate group. With this acquisition, the Bajaj Group’s ownership in both insurance companies rises to 97 percent from 74 percent, granting Bajaj Finserv complete control of the insurance companies with a 75.01 percent stake. This deal also marks the end of a very successful 24-year joint venture between Bajaj and Allianz.
The remaining 3 percent stake held by Allianz is expected to be transferred over the coming months via a proposed share buyback by the insurance companies, subject to regulatory and statutory approvals. Post-buyback, Bajaj Finserv’s stake is expected to increase to around 77.3 percent, while Bajaj Holdings & Investment Limited would hold nearly 18.1 percent stake, with the balance retained by Jamnalal Sons Private Limited.
The company clarified that the acquisition does not impact its day-to-day operations, nor does it affect the interests of policyholders, distributors, or business partners. Notably, the Bajaj Group had earlier announced its intent to raise ownership in both insurers to 100 percent through a Share Purchase Agreement signed on 17th March 2025.
According to reports, Bajaj’s acquisition implies a valuation of around Rs. 53,000 crore for the general insurance business and Rs. 40,000 crore for the life insurance joint venture (aggregating to around Rs. 93,000 crores). These figures are significantly lower than earlier analyst estimates from firms such as Jefferies, Avendus, and Kotak, which had pegged the non-life insurer’s value in the range of Rs. 54,600 crore to Rs. 85,700 crore, while the life insurer was estimated at Rs. 56,200-56,800 crore.
Following the SPA signed on 17th March 2025 by Bajaj Group, which led to the exit of Allianz Group, on 18th July 2025, Jio Financial Services Limited (JFSL) and Allianz Group (Allianz), through its wholly-owned subsidiary Allianz Europe B.V., entered into a binding agreement to form a 50:50 domestic reinsurance joint venture.
Financials & More:
Bajaj Finserv reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 11 percent, from Rs. 33,704 crores in Q2 FY25 to Rs. 37,403 crores in Q2 FY26. Likewise, its net profit jumped during the same period from Rs. 4,180 crores to Rs. 4,746 crores, representing a rise of more than 13 percent YoY.
Bajaj Finserv Limited is primarily engaged in the business of promoting a broad range of financial services such as financing, insurance, investments, healthcare, technology services, digital healthcare platforms, stockbroking, etc. and includes distribution using digital platforms.
The company is an unregistered Core Investment Company (Unregistered CIC) and is one of India’s leading promoters of financial services businesses. Its suite of financial solutions includes consumer and commercial loans, mortgages, auto financing, fixed deposit products, payments, securities brokerage services, general and life insurance, and investments.
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