Allianz Agrees on Initial JV Deal With Ambani's Jio After Split With Bajaj

Just days after announcing the end of its 24-year-old joint venture with Bajaj, German financial services firm Allianz SE has reportedly reached an agreement with Mukesh Ambani’s Jio Financial Services Ltd.

According to a Bloomberg report, Allianz and Jio Financial Services have reached a preliminary agreement for a joint venture, covering both health and general insurance businesses.

The move comes just days after Bajaj Finserv and Germany’s Allianz SE announced the end of the Bajaj Allianz JV in a Rs 24,180 crore deal.

Bajaj Finserv would buy out Allianz’s 26% stake in its life and general insurance businesses. The transition will begin once Bajaj acquires at least 6.1% and Allianz SE is reclassified from a promoter to an investor.

Allianz Wants Majority Stake

According to the Bloomberg report, unlike in Bajaj Allianz, Allianz is aiming for a majority stake in its venture with Jio. However, if that is not feasible, it is open to securing governance rights that may eventually lead to taking control.

For years, Allianz unsuccessfully tried to increase its stake in Bajaj Allianz. Since 2013, the company had reportedly sought to raise its holding to 49%. However, regulatory hurdles and Bajaj’s reluctance to cede control frustrated Allianz’s efforts.

But after Budget 2025 allowed 100% FDI in the insurance sector, Allianz’s path to an independent venture in India opened up.

Insurance Sector Attracting Investments

India’s insurance sector has been attracting significant investment from major players. LIC is reportedly in talks to acquire a health insurer. Meanwhile, Patanjali Ayurved, led by Yoga Guru Ramdev, and the Dharampal Satyapal Group (DS Group) are acquiring Magma General Insurance from Sanoti Properties for Rs 4,500 crore, marking their entry into the general insurance sector.

Listed last year, Jio Financial, helmed by veteran banker K.V. Kamath, runs a shadow bank and has also partnered with BlackRock Inc.

Since Covid-19, insurance penetration in India has grown rapidly, driving increased demand for quality healthcare services. Data from a Bajaj Finserv study shows that while India remains significantly underinsured compared to developed economies, the gap is beginning to narrow. Between FY20 and FY24, health insurance premium collections rose from $7.04 billion to $13.07 billion.