Allianz to sell its 26% stake in its Indian Non-Life and Life Insurance Joint Ventures to Bajaj Group for a total consideration of EUR ~2.6bn
Allianz SE entered into binding share purchase agreements with Bajaj Finserv Ltd. to sell its 26% stake in its successful non-life and life insurance joint ventures – Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company – to the Bajaj Group for a total consideration of EUR ~2.6bn1. Allianz may receive the proceeds in several tranches.
The decision to sell is the result of constructive and amicable talks with Bajaj Finserv Ltd. India continues to be one of Allianz’s growth markets, and Allianz will explore new opportunities that strengthen its position in the market and expand its potential to serve not only as an investor but also as an operator.
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. Allianz will adhere to its capital management policy as updated at the December 2024 Capital Markets Day, which includes a minimum level of distribution of earnings2 alongside the flexibility to fund disciplined deployment.
The transaction is subject to obtaining necessary regulatory approvals, which are expected to take a number of months. Upon the transfer of shares and the cessation of Allianz being a promotor of the joint ventures, also the joint venture agreements between Allianz SE and Bajaj Finserv Ltd. will be terminated.
Ageas completes the acquisition of majority stake in the Indian Life insurance joint venture Ageas Federal Life
Ageas announced that it has completed the acquisition of the remaining 25% stake of IDBI Bank in the Indian Life insurance joint venture Ageas Federal Life Insurance Company Ltd. (AFLIC).
With this transaction, Ageas increases its interest in the joint venture, that it has operated to date together with IDBI Bank and Federal Bank, to 74%. Federal Bank maintains its 26% stake in AFLIC. IDBI exits as a shareholder but remains a distribution partner.
Ageas acquires the additional 25% stake for a total cash consideration of INR 5.8 billion (EUR 73 million) *. As from Q4 2022, AFLIC will enter into the consolidation scope for both IFRS and Solvency II. Under IFRS, this transaction is considered a step acquisition, hence the previously held interest of 49% is treated as if it had been disposed of and generates a non-cash capital gain of EUR 50 million. The impact of the transaction on the Group’s solvency position is neutral.
Ageas, IDBI Bank and Federal Bank established the Life insurance joint venture IDBI Federal Life Insurance Company Ltd at the end of 2006, and since that time its gross inflows have grown consistently to reach EUR 247 million** in 2021. Within six years the company was profitable and has continued to be, generating a net profit of EUR 9 million** in 2021.
* Based on: 1 EUR = 79.43 INR as per 19/09/2022** FX FY 2021
Ageas is a listed international insurance Group with a heritage spanning almost 200 years, offering Retail and Business customers Life and Non-Life insurance. As one of Europe’s larger insurance companies, Ageas concentrates its activities in Europe and Asia through a combination of wholly owned subsidiaries and long-term partnerships with strong financial institutions and key distributors. Ageas ranks among the market leaders in the countries in which it operates. It represents a staff force of about 40,000 people and reported annual inflows close to EUR 40 billion in 2021 (all figures at 100%).