Bajaj Finserv shares fall on deal to buy Allianz's 26% stake in insurance arms for Rs 24,180 crore

Despite the market correction, Bajaj Finserv shares have gained almost 20 percent year-to-date.

Shares of Bajaj Finserv fell over a percent to Rs 1,845 in morning trade on March 18, extending gains for a third session in a row, after the company announced it is set to take full control of its insurance ventures by acquiring Allianz SE’s 26 percent stake in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance for Rs 24,180 crore ($2.83 billion).

The deal marks the end of a nearly 25-year partnership between the two firms, confirming Moneycontrol’s earlier report from January.

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With this transaction, Bajaj’s ownership in both insurers will rise to 100 percent from 74 percent. The company will spend Rs 13,780 crore on the general insurance business and Rs 10,400 crore on the life insurance arm. The acquisition is subject to regulatory clearances, including from the Competition Commission of India and the Insurance Regulatory and Development Authority of India.

Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, said the long-standing collaboration with the Munich-based insurer helped maintain strong solvency margins and cross Rs 40,000 crore in premium collections. He believes full ownership will unlock further growth. “A single ownership structure in both companies will be a significant value driver for our stakeholders in the years ahead,” Bajaj said.

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Allianz, meanwhile, reiterated its commitment to India, stating that it plans to reinvest the sale proceeds into new opportunities aligned with the country’s "Insurance for All by 2047" vision. The German insurer said it will assess its next moves as the funds become available.

In Q3, Baja Finserv reported a 3 percent increase in consolidated net profit at Rs 2,231 crore against a net profit of Rs 2,158 crore in the year-ago period. The firm's revenue from operations rose 10 percent to Rs 32,042 crore in Q3FY25 as against Rs 29,038 crore in Q3FY24.

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Assets Under Management (AUM) as of December 31, 2024, were Rs 3,98043 crore versus Rs 3,10968 crore as of December 31, 2023 - an increase of 28 percent.

At about 9:30 am, shares of the company were trading at Rs 1,860, lower by 0.6 percent from the last close on the NSE. Despite the market correction, Bajaj Finserv shares have gained almost 20 percent year-to-date.