India's Bajaj Finserv says Allianz considering exiting insurance JVs (updated)

Bajaj Finserv

22/10/2024 10:35

(Adds details from Bloomberg News report in paragraphs 4-6,
background)
       BENGALURU, Oct 22 (Reuters) - India's Bajaj Finserv
 BJFS.NS  said on Tuesday that Allianz SE  ALVG.DE  is
considering exiting its life and general insurance joint
ventures with the Bajaj Group, potentially ending a decades-old
partnership.
    "Allianz has indicated to Bajaj that given its strategic
priorities, it is actively considering an exit from the life and
general insurance joint ventures," Bajaj Finserv said, adding
that talks were at an early stage.
    Bajaj Finserv holds a 74% stake each in two JVs, while
Allianz owns the remaining.
    Founded in 2001, Bajaj Allianz General Insurance is one of
the biggest private insurers in India, while Bajaj Allianz Life
Insurance is among the fastest-growing life insurers in India
with assets under management of over 1 trillion rupees ($11.89
billion).
    Earlier in the day, Bloomberg News reported that Allianz was
weighing the exit due to a dispute over the direction of the
partnership. 
    The report said Bajaj Group was not letting the German
insurer raise its stake in the JVs at a discounted price, and
Allianz was not given a say in strategic decisions.
    Bloomberg adde dthat Allianz is now looking to buy stakes in
newly established insurance firms to retain its presence in
India, where the insurance sector has grown rapidly in recent
years.
    Both Bajaj and Allianz did not immediately respond to
Reuters' requests for comments.


  

($1 = 84.0700 Indian rupees)

 (Reporting by Nishit Navin in Bengaluru; Editing by Rashmi Aich
and Sonia Cheema)
 ((Nishit.Navin@thomsonreuters.com;))