Allianz is reportedly considering ending its decades-long joint ventures with Bajaj Finserv Ltd. in India.
Anonymous sources told Bloomberg that the German insurer is considering the exit as Bajaj Finserv has refused to allow Allianz to raise its stakes in Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance at a discounted rate.
Allianz is also allegedly being excluded from key strategic decisions, the sources added.
Bajaj Allianz General Insurance ranks as the country’s third-largest general insurer by gross written premiums, while Bajaj Allianz Life Insurance is among the fastest-growing life insurers, managing over 1 trillion rupees (US$11.9bn) in assets as of 31 March 2023.
Bajaj Finserv holds a 74% stake in both ventures, while Allianz holds the remaining 26% stake.
Due to the tensions, Allianz is reportedly considering alternatives and is considering buying stakes in newly established local insurers to maintain its presence in India.
In a statement to Bloomberg, Bajaj Finserv said Allianz “is actively considering an exit from the life and general insurance joint ventures,” adding that “it remains committed to the Indian insurance market but will not speculate on alternatives.”
Bajaj Finserv said that Allianz is committed to a seamless transition should it proceed with the exit of the JV in India.
The reported development in India comes amid Allianz’s ambitions to strengthen its position in the Asia Pacific region. One key move was its proposed acquisition of a 51% in NTUC Income, which last week was halted by the Singapore government, a move that has been labelled a “total shock.”
Allianz says it will work closely with stakeholders to consider revisions to its Income acquisition, but it may use some of the firepower intended for the Income acquisition elsewhere.
