Shares of Bajaj Finserv declined by over a percent to ₹1,845 in morning trade on March 18, despite continuing their upward trend for the third consecutive session. The drop came after the company announced plans to acquire Allianz SE’s 26% stake in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance for ₹24,180 crore ($2.83 billion), securing full ownership of both ventures.
This acquisition marks the conclusion of a nearly 25-year partnership between Bajaj Finserv and Allianz, aligning with an earlier report by Moneycontrol in January.
By 9:30 AM, Bajaj Finserv share price were trading at ₹1,860, reflecting a 0.6% decline from the previous close on the NSE. However, despite the current market correction, the stock has surged nearly 20% year-to-date, outperforming many of its sectoral peers.
Invest in Indian Markets and Unlock Future Potential With 5paisa!Implications of the Deal
With this transaction, Bajaj Finserv’s stake in both insurance subsidiaries will increase from 74% to 100%. The company will invest ₹13,780 crore in the general insurance business and ₹10,400 crore in the life insurance segment. The acquisition is subject to regulatory approvals from bodies such as the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI).
Market analysts believe that complete control over the insurance businesses will allow Bajaj Finserv to streamline operations, accelerate digital transformation, and implement independent growth strategies without the need for joint decision-making. With India’s insurance penetration still relatively low, this move positions the company to capitalize on long-term sectoral growth.
Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, acknowledged Allianz’s contribution to strengthening solvency margins and surpassing ₹40,000 crore in premium collections. He emphasized that complete ownership will unlock greater growth potential, stating, “A single ownership structure in both companies will be a significant value driver for our stakeholders in the years ahead.”
Meanwhile, Allianz reaffirmed its commitment to the Indian market, announcing plans to reinvest the proceeds from this sale into new opportunities aligned with India’s “Insurance for All by 2047” vision. The German financial giant, which has global insurance and asset management operations, sees India as a key market and is likely to explore new investment avenues in health insurance, insurtech, and pension funds.
Financial Performance & Future Outlook
In Q3 FY25, Bajaj Finserv recorded a 3% increase in consolidated net profit, reaching ₹2,231 crore, compared to ₹2,158 crore in the same period last year. Revenue from operations also rose 10% to ₹32,042 crore, up from ₹29,038 crore in Q3 FY24.
Additionally, the company’s Assets Under Management (AUM) saw a 28% growth, rising from ₹3,10,968 crore on December 31, 2023, to ₹3,98,043 crore as of December 31, 2024.
Experts suggest that Bajaj Finserv’s increased focus on insurance, along with its strong track record in lending and wealth management, could make it a dominant player in India’s financial services sector. With full ownership, the firm may explore deeper market penetration, introduce new product lines, and leverage technology for improved customer experiences.
Investors will be closely watching regulatory approvals and how Bajaj Finserv integrates its expanded insurance businesses in the coming quarters. If the transition is executed smoothly, it could further bolster shareholder value in the long run.
