Bajaj Group completes acquisition of 23% stake in insurance firms from Allianz SE for Rs 21,390 crore

Bajaj Group completes acquisition of 23% stake in insurance companies from Allianz SE for Rs 21,390 crore

• Bajaj Group bought 23% stake in insurance firms from Allianz SE for Rs 21,390 crore.
• Bajaj Group's ownership in Bajaj insurance firms rises to 97% from 74%
• 24-year Bajaj Finserv-Allianz SE joint venture ends with new deal

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Bajaj Group has completed the acquisition of Allianz SE’s 23 percent stake in its insurance companies for Rs 21,390 crore, Bajaj Finserv said in a stock exchange filing on January 8.

Bajaj Finserv, one of India’s largest and most diversified financial services companies, on January 8 announced the successful completion of the acquisition, together with Bajaj Holdings & Investment Limited and Jamnalal Sons Private Limited, of 23 percent stake in its insurance subsidiaries, Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance, from Allianz SE, for Rs 12,190 crore and Rs 9,200 crore respectively.

“The acquisition takes the ownership of the Bajaj Group in both insurance companies to 97 percent from 74 percent, giving Bajaj Finserv complete control of the insurance companies with 75.01 percent stake. This acquisition marks the end of a very successful 24-year joint venture between Bajaj Finserv and Allianz SE,” the company said in a stock exchange filing.

The transfer of Allianz’s remaining 3 percent stake is expected to be completed over the next few months through a proposed buyback of shares by the insurance companies, subject to applicable law and necessary approvals. If the buyback is completed, the stake of Bajaj Finserv is expected to go up to approximately 77.3 percent, with Bajaj Holdings & Investment Limited holding approximately 18.1 percent stake and the balance being held by Jamnalal Sons Private Limited.

The transaction, the largest ever in the Indian insurance sector, also marks one of the most significant acquisitions of a global joint venture partner by an Indian business group. The acquisition has no impact on the operations of the insurance companies or the interests of policyholders and business partners, Bajaj Finserv said.

Deal context and comparison

To provide a broader context for where the Bajaj-Allianz transaction stands, a comparison with recent deals in the financial services sector shows that the Rs 21,390-crore buyout is distinct from recent foreign capital exits from India’s stock markets.

While 2025 has seen a record withdrawal of foreign portfolio investments from Indian equities, with more than Rs 1.6 lakh crore pulled out by foreign portfolio investors, the Bajaj-Allianz transaction is a strategic buyout rather than a secondary market sale. Unlike stock market exits, which typically involve fragmented selling by multiple investors, this transaction represents a concentrated transfer of ownership from a global insurer to an Indian promoter group.

Insurance sector benchmark

Within the insurance sector, the Bajaj-Allianz transaction stands out as the largest deal to date. Most recent insurance-related transactions have involved partial stake sales or gradual dilutions rather than outright buyouts.

In 2023, Abrdn (formerly Standard Life) exited HDFC Life by selling its remaining stake for around Rs 6,000 crore, making the Bajaj deal nearly four times larger in value. Similarly, Max Financial Services has been buying back stakes in Max Life Insurance from Mitsui Sumitomo Insurance between 2020 and 2024, but these transactions were executed in smaller tranches over multiple years rather than as a single large buyout.

Banking sector exits

In the banking sector, foreign exits in recent years have largely taken place through block deals on stock exchanges rather than through strategic buyouts by Indian groups.

In 2025, foreign institutional investors reduced their holdings in HDFC Bank through a series of market transactions. While the cumulative value of these sales exceeded the size of the Bajaj-Allianz deal, they were spread across thousands of investors and did not involve a single acquiring Indian entity.

In 2024, private equity firm Warburg Pincus exited IDFC First Bank in a transaction valued at roughly Rs 7,900 crore, a significant exit but still less than one-third of the value paid by Bajaj to Allianz.

Comparison with outbound strategic deals

When compared with outbound strategic investments by Indian companies, where Indian groups acquire foreign entities or stakes overseas, the Bajaj-Allianz transaction remains among the largest cash payments made to a foreign partner.

Bharti Enterprises’ purchase of a stake in BT Group in 2024 was valued at approximately Rs 33,520 crore (USD 4 billion), while Tata Steel’s acquisition of Tata Steel Global in the same year was valued at around Rs 17,340 crore (USD 2.1 billion).

Why the deal is unique

Unlike typical stock market exits, where foreign investors sell shares to the general public, the Bajaj-Allianz transaction involved a direct and concentrated transfer of ownership.

It represents one of the largest instances of an Indian promoter group using its own balance sheet to reclaim full control of a major financial services business from a global partner, underscoring the growing role of domestic capital in India’s financial sector.

Management commentary

“The transaction is transformative for the Bajaj Group, enabling us to contribute even more strongly to the government’s vision of ‘Insurance for All’ that is Made in India, Made for India and Made by India,” said Sanjiv Bajaj, Chairman and Managing Director, Bajaj Finserv.

“We are very excited about the insurance businesses, which are at this stage poised for a long period of growth. The acquisition provides us strategic flexibility to access new markets, introduce new products, build scale and advance growth as insurance penetration in India is set to grow exponentially over the next two decades,” he added.

S Sreenivasan, President – Insurance & Special Projects, Bajaj Finserv, who led the transaction, said the deal demonstrates the strength of domestic capital, noting that it was funded fully by the Bajaj Group without leverage.

He added that approvals from the Competition Commission of India and the Insurance Regulatory and Development Authority of India were received within four months. He also pointed to recent regulatory developments, including the passage of the Sabka Bima Sabki Raksha Act, 2025, and the imminent rollout of Ind-AS and risk-based capital norms for insurers, as supportive of long-term sector growth.

The Bajaj Group had announced its agreement to expand ownership in both insurance companies from 74 percent to 100 percent through a share purchase agreement on March 17, 2025. The corporate headquarters of Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance will continue to be based in Pune.