The transaction, which is subject to regulatory approvals, will grant Bajaj Group full ownership of both insurance businesses.
Allianz said the exit represents a shift in its India strategy. While the company is selling its joint venture stake, it has signalled interest in pursuing new opportunities in the market.
“As the proceeds become available, Allianz will consider options for their deployment that support the company’s strategic ambitions, in particular the reinvestment of sale proceeds into potential new opportunities in India,” the company said.
The sale comes at a time of significant shifts in India’s insurance and healthcare industries. Bajaj Group is investing heavily in healthcare infrastructure, while the Indian government has announced a major policy change allowing 100% foreign direct investment (FDI) in insurance. These developments are expected to reshape the competitive landscape for insurers and investors.
Following its acquisition of Allianz’s stake, Bajaj Group has announced plans to invest ₹100 billion (about US$1.1 billion) in a nationwide hospital network. The initiative will establish both affordable and premium healthcare facilities, with operations expected to roll out in phases.
The expansion is being led by Nirav Bajaj, son of Bajaj Auto chairman Niraj Bajaj, and is expected to complement the group’s existing insurance and digital health businesses.
Bajaj Allianz General Insurance already provides health coverage, while Bajaj Finserv Health Ltd offers telemedicine and digital healthcare services.
Allianz’s decision to exit its joint ventures aligns with India’s new FDI policy, which increased the foreign ownership limit in insurance from 74% to 100%.
Announced as part of the Union Budget 2025-26, the policy allows foreign insurers full control of their Indian operations, provided all premium revenue is retained within the country.
Finance Minister Nirmala Sitharaman explained the rationale behind the policy change, stating: “This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified.”
The change is expected to attract international insurers seeking direct market access, eliminating the need for joint ventures with Indian firms.
