German financial services giant Allianz SE is looking to exit its insurance joint ventures with Bajaj Finserv. According to an exchange notification by Bajaj Finserv Ltd., Allianz has indicated that it wants to exit the India businesses.
"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 in its exchange notice.
While the German firm remains committed to the Indian insurance market, it will not speculate on any alternative arrangements.
Allianz, in case it exits the joint venture, has committed full support to Bajaj in ensuring a smooth transition to the Bajaj brand, keeping in mind the interest of policyholders, business partners, employees and other stakeholders of the insurance companies, the filing said.
Over two decades old, the ventures between Allianz and Bajaj Finserv are two large players in the life and non-life insurance markets. Currently, Bajaj Finserv controls 74% stake each in the two companies. According to a report by Bloomberg, the German financial services giant is looking to exit the ventures as the Indian partner is not letting it raise stake.
Discussions are at preliminary stage and there is no proposal before the board of the company or its insurance subsidiaries in this regard, Bajaj Finserv said.
In the quarter ended June 30, Bajaj Allianz General Insurance reported a net profit of Rs 576 crore, while Bajaj Allianz Life Insurance saw a profit after tax of Rs 104 crore.
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