India’s insurance industry witnessed significant dealmaking in 2025, marked by strategic acquisitions, stake sales and new joint ventures that reflected both domestic consolidation and growing foreign investor interest.
These transactions not only signal an ongoing wave of domestic consolidation among established players but also highlight the increasing global investor appetite to tap into India’s under-penetrated insurance market.
From marquee exits by foreign insurers to private equity investments in distribution and broking firms, the sector is rapidly evolving.
Here's a comprehensive list of all major insurance sector deals in 2025:
Prudential-HCL
On March 20, UK-based Prudential Plc announced a health insurance joint venture with India's HCL Group. Prudential's UK subsidiary, Prudential Group Holdings Limited, will hold a 70 percent stake, while HCL's Vama Sundari Investments will own the remaining 30 percent.
Bajaj-Allianz
One of the biggest deals of the year was the culmination of Bajaj Finserv’s acquisition of Allianz SE’s stake in its joint insurance ventures.
In March, Allianz agreed to sell its entire 26 percent interest in both Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance to Bajaj Finserv in a transaction valued at approximately €2.6 billion (about Rs 24,000 crore).
The move ended a 24-year partnership between the German insurer and the Indian financial services group, giving Bajaj full ownership of the life and general insurance businesses and marking one of the largest-ever exits by a global insurer from a JV in the Indian market.
Following this transaction, Allianz announced a strategic partnership with Reliance’s Jio Financial Services, marking the German insurer’s re-entry into the Indian insurance market through a fresh alliance, which is likely to be completed in February 2026.
Piramal-Shriram Life
Another notable M&A development involved Piramal Finance’s exit from Shriram Life Insurance Company.
On December 2, Piramal announced that it would divest its entire 14.72 percent stake in Shriram Life to South Africa-based Sanlam Emerging Markets (Mauritius) for about Rs 600 crore. The sale is part of Piramal’s broader strategy to monetise non-core assets and is subject to regulatory approval.
This transaction further consolidates Sanlam’s position within the Shriram insurance ecosystem, where it is already a key investor. However, the company earlier indicated that a divestment in the general insurance business would also take place, though this transaction has not yet been completed.
Blackstone-Ace Insurance
In the insurance distribution and broking space, smaller but strategic deals also gained traction.
Global private equity major Blackstone reportedly acquired a significant stake (around 70 percent) in Ace Insurance Brokers for approximately Rs 1,700 crore on October 25.
Beyond outright buyouts, new partnerships and joint ventures also shaped the year.
M&M-Manulife
Mahindra & Mahindra signed a 50:50 joint venture agreement with Canada’s Manulife Financial to create a life insurance business in India with a combined commitments of up to Rs 3,600 crore over the next decade. The collaboration aims to leverage Mahindra’s extensive rural reach and Manulife’s global expertise to tap India’s under-penetrated insurance market.
In December, Parliament passed amendments allowing 100 percent foreign direct investment (FDI) in insurance companies, a landmark step expected to attract greater global capital and trigger a fresh wave of cross-border M&A and greenfield entries.
The reforms also create flexibility for insurers to merge with non-insurance businesses, broadening consolidation pathways.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
