Allianz considering an exit from Bajaj insurance JVs

Bajaj Finserv on Tuesday said that German company Allianz SE is actively considering to exit from the life and general insurance joint ventures (JV) with Bajaj Group, ending a partnership of over two decades.

Bajaj Finserv holds a 74 per cent stake in the JV. It's shares were trading at Rs 1744.05 apiece on the BSE, down 0.85 per cent.

Allianz, which holds the remaining 26%, has indicated its strategic priorities have shifted, prompting the potential exit.

As per a report by Bloomberg, the latest move is in the wake of a dispute over the direction of the partnership.

Allianz plans to exit Bajaj Allianz Life Insurance Co. and Bajaj Allianz General Insurance Co. because its Indian partner isn’t allowing the German insurer to raise its stakes at a discounted price, the report said citing sources.

It also isn’t given a say in strategic decisions, they said.

The company also informed the exchanges that discussions are still in the early stages, and no formal proposal has been presented to Bajaj Finserv or its insurance subsidiaries.

Allianz has committed to supporting a smooth transition under the Bajaj brand, ensuring minimal disruption to stakeholders including policyholders and employees, it said.

Allianz, as per Bloomberg report, is instead looking to now buy stakes in newly established insurance firms to retain a presence in the fast-growing South Asian country.