Global insurer Allianz has completed the sale of a 23% stake in the two joint ventures, Bajaj General Insurance Company and Bajaj Life Insurance Company, to the Bajaj Promotor Group (Bajaj) for a gross consideration of approximately €2.1 billion, an updated price from ~€2.6 billion due to current exchange rates.
This follows Allianz’s announcement on 17th March 2025 that it had agreed to sell its 26% stake in the non-life and life insurance joint ventures in tranches. Allianz expects to complete the sale of the remaining 3% stake by the second quarter of 2026.
Allianz’s partnership with Bajaj was initiated in 2001 and has contributed to shared growth and success. However, Allianz’s ability to operate in the Indian market has remained limited due to its minority position in the joint ventures.
The decision to divest followed constructive and amicable discussions with Bajaj, and Allianz expressed its gratitude for the smooth approval process with the relevant authorities since the transaction was announced.
Allianz expects to recognise a non-operating IFRS gain of approximately €1.1 billion from the transaction in its first-quarter 2026 results and anticipates a positive impact of around 5 percentage points on its Group Solvency II ratio.
During 2026, Allianz plans to deploy the IFRS gain towards strategic growth and productivity initiatives, as well as the realisation of losses to accelerate the reinvestment of fixed income instruments into higher yields. These actions are expected to support future profitability and create future options.
Allianz continues to view India as an important growth market and aims to remain active in serving the country’s dynamic and rapidly expanding insurance sector.
As announced on 18 July 2025, Allianz, through its wholly owned subsidiary Allianz Europe B.V., and Jio Financial Services Limited (JFSL) entered into a binding agreement to form a 50:50 domestic reinsurance joint venture and into a non-binding agreement for setting up equally owned joint ventures for both general and life insurance businesses in India.
