Mumbai: Bajaj Finserv has signed a binding agreement to acquire Allianz SE’s 26% stake in its life and general insurance ventures for ₹24,180 crore, ending a 24-year-old partnership.The buyout, priced at ₹13,780 crore for Bajaj Allianz General Insurance Company and ₹10,400 crore for Bajaj Allianz Life Insurance Company, will take the Bajaj Group’s holding from 74% to full ownership, the company said in a stock exchange filing on Monday.Allianz said it will explore “reinvestment of sale proceeds into potential new opportunities in India.” The deal, subject to approvals from Competition Commission of India and insurance regulator IRDA, may see Allianz receiving proceeds in multiple tranches.Under the structure, Bajaj Finserv will acquire 1.01% in each company, while promoter entities Bajaj Holdings & Investment and Jamnalal Sons will acquire the remaining.Both Cos to Independently Pursue Insurance Strategies Bajaj Finserv will purchase 1,113,295 general insurance shares at ₹4,808.24 per share and 1,522,161 life insurance shares at ₹2,654.12 per share.Following the acquisition, Bajaj Finserv will hold 75.01% of the total equity in both the insurance ventures. Bajaj Holdings & Investment and Jamnalal Sons will acquire 19.95% and 5.04%, respectively, bringing their collective stake to 24.99%, resulting in full ownership of both insurance companies by Bajaj Finserv and its promoter entities.After the termination of the joint ventures under the share purchase agreement, the Bajaj Group and Allianz plan to independently pursue their insurance strategies in India. “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,” the company said in a release.Once the first tranche of at least 6.1% stake sale is completed, Allianz will shift from promoter to investor, marking the end of a long-standing partnership.“Together with Allianz, we have built two of the strongest insurance companies in India, with a combined premium exceeding ₹40,000 crore, while maintaining industry-best solvency margins,” said Sanjiv Bajaj, chairman and managing director of Bajaj Finserv. “Given the advantage of a single ownership in both companies, we are confident the acquisition will become a big driver of value for our stakeholders in the years to come.”In addition to Allianz’s stake in the insurance JVs, Bajaj will acquire the former’s entire 50% stake in Bajaj Allianz Financial Distributors for up to ₹12.5 crore.In FY24, Bajaj Allianz General Insurance reported a 33% growth in gross written premium to ₹20,630 crore, increasing its market share to 7.3%, from 6.4% in FY23. Despite a NATCAT (natural catastrophe) loss of ₹118 crore (before tax), profit after tax grew 15% to ₹1,550 crore and it maintained a combined ratio of 99.9. The insurer had a solvency ratio of 349%.At the same time, Bajaj Allianz Life Insurance’s individual rated new business premium rose 21% to Rs 6,326 crore, increasing its market share to 5.8%, from 5.0% in FY23. With an AUM of ₹1,09,829 crore, the firm recorded a solvency ratio of 432%.