Indian non-banking financial service (NBFC) Bajaj Finserv has signed a definitive agreements to acquire the 26% stake held by Allianz SE in its insurance businesses—Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC)—for a total amount of ₹24,180 crore.

The acquisition will raise Bajaj Group’s ownership in both companies to 100% from the current 74%, subject to regulatory approvals from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI).

According to the statement released by Bajaj, this deal marks the conclusion of a 24-year-old joint venture between Bajaj and Allianz in the insurance sector.

“The 24-year-old joint venture agreements between the Bajaj Group and Allianz SE in respect of insurance businesses will stand terminated upon the completion of the first tranche of acquisition of at least 6.1% and reclassification of Allianz from being a Promoter to Investor. The stock exchange filing is attached to this press release,” the statement said.

As part of the transaction, Bajaj Finserv will acquire approximately 1.01% of the stake, Bajaj Holdings and Investment Ltd. will pick up 19.95%, and Jamnalal Sons Pvt. Ltd. will purchase 5.04%, adding up to 26% in both BAGIC and BALIC. Following the acquisition, Bajaj Finserv’s stake in the two companies will rise to 75.01%.

Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, highlighted the significance of the acquisition.

“Together with Allianz, we have built two of the strongest insurance companies in India with a combined premium exceeding ₹40,000 crore, while maintaining industry-best solvency margins,” Bajaj said. “Given the advantage of single ownership in both companies, we are confident that the acquisition will become a big driver of value for our stakeholders in the years to come,” he said.

The acquisition positions Bajaj Group to independently chart its course in the insurance sector, with greater strategic flexibility to introduce next-generation insurance solutions tailored to the Indian market.

”The acquisition marks a significant milestone in the Bajaj Group’s journey to advance next-gen insurance solutions, driven by new technologies, to serve Indian consumers in multiple geographies,” the company stated.

Bajaj and Allianz have committed to ensuring a seamless transition, with minimal disruption to policyholders, intermediaries, and other stakeholders. Agreements have also been signed to ensure continuity of reinsurance and other services during the transition period, the statement added further.

According to Bajaj, this transaction would give the NBFC company both competitive as well as strategic edge in the insurance sector, positioning it as major player in India’s financial services landscape.