Bajaj Finserv, a leading financial services conglomerate, has announced that it will acquire a 26% stake in its joint ventures with Allianz, Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited. The acquisition is expected to enhance the company’s control and influence over the joint ventures, enabling it to further accelerate growth and expansion plans.
The joint ventures with Allianz have been in operation since 2001 and have been a significant success, with Bajaj Finserv holding a majority stake in the companies. The 26% stake acquisition will bring the company’s total stake in the joint ventures to 51%, giving it a significant majority control and enabling it to make strategic decisions for the businesses.
The acquisition is expected to benefit both Bajaj Finserv and its joint ventures with Allianz, enabling the companies to increase their footprint in the Indian and international markets. The joint ventures have been a key growth driver for Bajaj Finserv, with a gross written premium of over Rs. 40,000 crores in the last fiscal year.
The acquisition is also expected to enhance the operational efficiency and integration of the joint ventures, enabling the companies to better leverage resources and expertise. Bajaj Finserv has a strong track record of operations and management, and its acquisition of the additional stake is likely to bring in more operational efficiency and synergies.
The deal is subject to regulatory approvals and other customary conditions, and Bajaj Finserv has secured necessary approvals from the Reserve Bank of India (RBI) and other regulatory authorities. The acquisition is expected to be completed by the second quarter of the next fiscal year.
In a statement, Sanjib Datta, Managing Director and Chief Executive Officer, Bajaj Finserv Limited, said, “The acquisition is a strategic move to further consolidate our presence in the insurance sector and leverage the opportunities in the growing Indian insurance market. We believe that our expertise and presence will enable the joint ventures to grow faster and more effectively in the market.”
Overall, the acquisition of the 26% stake in Bajaj Allianz Life & General Insurance by Bajaj Finserv is a significant move to strengthen its presence in the insurance sector and leverage the opportunities in the growing Indian market.