Kathmandu. Global insurance company, Allianz SE has agreed to exit by selling its stake in Indian non-life and life insurance companies. It has transferred its stake in non-life and life insurance joint ventures – Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company – through a compulsory share sale with Bajaj Finserv Limited.
Allianz has transferred its stake to Indian investor Bajaj Group. Allianz owned 26 percent of both insurance companies. The agreement to sell to Bajaj Group for a total of 2.6 billion euros was reached on Tuesday. Alliance will receive the amount in different installments, not in a lump sum.
Along with the decision to buy the stake in the Alliance Group, the Bajaj Group has announced an investment of Rs 1 billion to build hospitals in various parts of the country. Bajaj plans to build a network of healthcare institutions to provide both affordable and high-end services. It believes that the hospital operation can be used as a complementary service to its health insurance services.
Alliance Group said after the sale that the decision to sell the shares is the result of constructive and friendly discussions with Bajaj Finserv Limited. India is one of Allianz’s growth markets, and Allianz has said it will explore new opportunities to strengthen its position in the market and expand its ability to serve not only as an investor but also as an operator.
The share purchase agreement is subject to regulatory approvals, which are expected to take several months. Following the share transfer and Allianz’s exit as promoter of the joint ventures, the joint venture agreements between Allianz SE and Bajaj Finserv Limited will also terminate.
