Bajaj Finserv the financial services arm of the Bajaj Group has announced the end of its 24-year-old insurance joint venture with Germanys Allianz SE. In a transaction valued at Rs 24180 crore Bajaj Finserv will acquire Allianz’s 26% stake in its life and general insurance businesses Bajaj Allianz General Insurance (BAGIC) and Bajaj Allianz Life Insurance (BALIC). Bajaj Allianz Breakup According to a regulatory filing Bajaj Finserv will pay Rs 13780 crore for Allianz’s stake in BAGIC and Rs 10400 crore for BALIC. Additionally Bajaj will acquire Allianz’s 50% stake in Bajaj Allianz Financial Distributors for Rs 12.5 crore. The deal is subject to approvals from regulatory bodies such as the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI). Under the agreement Bajaj Finserv will purchase 1.01% of the stake. Bajaj Holdings and Investment Ltd. will acquire 19.95% and Jamnalal Sons will purchase 5.04%. These acquisitions will consolidate Bajaj Finserv’s ownership to a 75.01% stake in both BAGIC and BALIC reclassifying Allianz SE as an investor instead of a promoter. Background Behind Breakup The breakup comes after India’s government approved 100% foreign direct investment (FDI) in the insurance sector allowing global players greater flexibility. Allianz’s exit followed years of attempts to increase its stake in the joint venture including a reported effort to raise its holding to 49% since 2013. However regulatory barriers and Bajajs reluctance to ;eave control prevented this. Sanjiv Bajaj Chairman and Managing Director of Bajaj Finserv expressed confidence in the future stating With single ownership we are poised to deliver significant value to our stakeholders in the coming years. Mukesh Ambani Jio Connection While Allianz exits the joint venture with Bajaj it is not leaving India’s insurance market entirely. Reports suggest Allianz is exploring new partnerships including discussions with Mukesh Ambani’s Jio Financial Services to potentially establish new general and life insurance ventures. Jio Financial spun off from Reliance Industries already offers a range of insurance products including car bike health and life insurance.