Bajaj Finserv witnessed a dip in its stock price, trading at Rs 1,845 in morning deals on March 18.
The movement follows the company’s landmark decision to acquire Allianz SE’s 26 percent stake in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance for a whopping Rs 24,180 crore ($2.83 billion), paving the way for complete ownership of its insurance arms.
The strategic buyout marks the conclusion of a 25-year collaboration between Bajaj Finserv and the German insurance giant, Allianz SE. This move, which aligns with reports from January, will bolster Bajaj’s stake in both insurance ventures from 74 percent to 100 percent. The financial breakdown of the transaction reveals that Rs 13,780 crore is earmarked for the general insurance division, while Rs 10,400 crore will be invested in the life insurance segment. However, the deal is subject to regulatory approvals, including those from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI).
Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, underscored the significance of this move, highlighting how the enduring partnership with Allianz played a pivotal role in driving the company’s premium collections beyond Rs 40,000 crore while maintaining robust solvency margins. He emphasized that complete ownership would open new doors for innovation, agility, and strategic expansion. “Having a singularly-owned structure in both businesses will unlock immense value for our investors and policyholders in the long run,” he remarked.
On the flip side, Allianz SE reaffirmed its commitment to the Indian market despite its exit from the joint venture. The German insurance giant has expressed interest in channeling the proceeds from this divestment into fresh opportunities, aligning with India’s ambitious “Insurance for All by 2047” vision. Allianz stated that it would carefully evaluate its next strategic steps as funds become available for reinvestment.
In terms of financial performance, Bajaj Finserv has demonstrated steady growth. In Q3FY25, the company posted a consolidated net profit of Rs 2,231 crore, reflecting a 3 percent rise from Rs 2,158 crore in the same quarter of the previous fiscal year. Revenue from operations surged 10 percent year-on-year, reaching Rs 32,042 crore, up from Rs 29,038 crore in Q3FY24. Moreover, its Assets Under Management (AUM) witnessed a remarkable 28 percent jump, growing from Rs 3,10,968 crore in December 2023 to Rs 3,98,043 crore by December 2024.
In the opening bell, the stock was trading at Rs 1,860 on the NSE, down by a marginal 0.6 percent from its previous close. Nonetheless, the counter has recorded an impressive 20 percent gain on a year-to-date basis, signaling investor confidence in its long-term growth prospects.
This strategic shift by Bajaj Finserv reaffirms its aggressive expansion approach in India’s evolving insurance landscape. With regulatory nods in the pipeline and a well-laid-out roadmap, the company is poised to redefine its market position. The transition could serve as a crucial inflection point, unlocking new growth avenues and reinforcing its standing as a dominant player in India’s financial ecosystem.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
