Bajaj Finserv to 'evaluate' IPOs for life, general insurance arms after Allianz exit: Sanjiv Bajaj

Bajaj Allianz

Bajaj Finserv chairman and managing director Sanjiv Bajaj said the company’s board will "seriously evaluate" launching separate initial public offerings (IPOs) for its life and general insurance businesses, adding the decision will be taken in a suitable time.

"Both of our companies are very well capitalised. Our solvency positions are the highest in the industry. The businesses have not needed any external capital now for over 10 years. So, we have truly built two businesses that are balancing top line and bottom line, and is focused on customers as best as possible in this country without being immodest about it. Hence, we have no hurry," Bajaj told CNBC-TV18 on March 18.

On March 17, Bajaj Finserv announced signing share purchase agreements with Allianz SE to acquire 26 percent stake in insurance joint ventures Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC) for Rs 24,180 crore.

The move will take Bajaj group's ownership in BAGIC and BALIC to 100 percent from 74 percent, the statement said.

Bajaj dismissed the suggestion that IPOs could be launched in FY27, saying the management would be busy with the regulatory formalities associated with the termination of merger with Allianz SE.

Speaking about the acquisition, Bajaj said the firm is not looking for another partner to run the two businesses. "See no change at all at any operational level. No leadership change or operational changes at either business," he said.

"A great win-win deal for both partners. We don't need another partner, both companies are perfectly capable of going solo. The companies are well capitalised and have built strong capabilities."

Bajaj also said Alliance SE will be relieved from the “non-compete” clause. This would pave the way for the Munich-headquartered company to be linked with any other insurer in the Indian market.