Bajaj Finserv has entered into definitive agreements to purchase Allianz SE's 26 per cent holding in its insurance joint ventures, Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). The deal, worth Rs 24,180 crore, will raise Bajaj Group's holding in both ventures from 74 per cent to 100 per cent, cementing its presence in India's insurance industry.

Under the deal, Bajaj Finserv will acquire the interest in BALIC for Rs 10,400 crore and BAGIC for Rs 13,780 crore. The distribution of stakes will have Bajaj Finserv holding 75.01 per cent in the two companies, Bajaj Holdings & Investment taking 19.95 per cent, and Jamnalal Sons retaining 5.04 per cent.

Upon the completion of the transaction, Allianz will discontinue as a promoter and take on the role of an investor until the 24-year-old joint venture pact is closed. The deal continues to await approvals from the Insurance Regulatory and Development Authority of India (Irdai) and the Competition Commission of India (CCI).

Bajaj Finserv managing director and chairman Sanjiv Bajaj was optimistic about the acquisition, saying, "With Allianz, we have created two of India's best insurance firms with a combined premium over Rs 40,000 crore and top-class solvency margins. With single ownership, we look to propel further growth and generate long-term value for our stakeholders."

The company assured that the transition will be smooth, causing minimal disruption to policyholders, intermediaries, and employees. Bajaj Finserv and Allianz have also committed to retaining current reinsurance and other service arrangements during the transition period.

At 10:00 AM the stock of Bajaj Finserv fell, at Rs 1,843.20, 1.52 per cent lower. Although the transaction is likely to be value-accretive in the long run, short-term market sentiment is guarded.

The takeover is part of Bajaj Finserv's overall strategy of increasing the depth of its financial services portfolio. Complete control of BAGIC and BALIC will give increased strategic freedom in product development, customer interaction, and digital growth.

As India's insurance industry is set for explosive growth, Bajaj Finserv's consolidation push indicates a long-term bet on leveraging changing market opportunities.