Allianz Mulling Exit From India Joint Venture

Allianz India (joint venture partner Bajaj Finserv) is said to consider exiting from their life and general insurance businesses. Allianz holds a 26% stake in both Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance, while Bajaj Finserv controls the remaining 74%.

The discussions, however, are in the early stages, and no formal proposal has been put forward to the boards of either company.

Allianz has indicated that, in line with its strategic priorities, it is actively considering an exit from the joint ventures, Bajaj Finserv disclosed in a regulatory filing. Despite the potential exit, Allianz has committed to ensuring a smooth transition should it proceed, with a focus on minimizing disruptions to policyholders, business partners, and employees.

Bajaj Finserv emphasized its role in building two strong insurance businesses alongside Allianz, with Bajaj Allianz General Insurance being the third-largest insurer in India by gross written premiums, and Bajaj Allianz Life Insurance emerging as a fast-growing player with assets under management reaching Rs 1 lakh crore as of March 31.

The potential exit would mean a shift in brand ownership, with Allianz offering full support to Bajaj for a seamless transition to the Bajaj brand. This move aims to protect the interests of all stakeholders involved, including policyholders and employees.