Allianz Sells 26% Stake in Bajaj Insurance Ventures for $2.8 Billion

Allianz has agreed to sell its 26% stake in Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company to Bajaj Finserv in a deal worth approximately $2.8 billion. This transaction follows positive discussions between the two entities and marks a strategic shift for Allianz in India, a key growth market for the company. Allianz aims to explore new opportunities in India after the sale, reinforcing its operational role in the insurance sector.

The financial terms will be settled in multiple tranches, and Allianz plans to utilize the proceeds to align with its strategic ambitions, particularly focusing on investment reinvestment in India. The completion of this deal hinges on obtaining necessary regulatory approvals, which may take several months, and will also lead to the termination of joint venture agreements between Allianz and Bajaj Finserv upon share transfer.

In addition, Allianz's strategy includes enhancing productivity and resilience through smart growth measures. The company will continue managing all general insurance products, excluding travel, under the RAA brand post-transaction, reflecting their ongoing commitment to the market despite the divestment.