The Allianz Group has expressed interest in raising its shareholding in the two insurance joint ventures with the Bajaj Group. Bajaj Finserv, which is the holding company for the two insurance businesses, has a 74% stake in the ventures, while Allianz has 26%.
Rahul Bajaj, chairman, Bajaj Finserv, said Allianz has indicated its intention to increase the holding to 49%. The two JVs have been running for the last 15 years. Bajaj Finserv, meanwhile, announced its Q1FY16 results on Wednesday, reporting a 25% rise in gross revenues to R4,827 crore and a 46% rise in profit after tax to R467 crore.
The financing business, Bajaj Finance, continues to drive growth, with PAT up 31% at R276 crore during Q1FY16. The PAT for the general insurance business stood at R147 crore, a rise of 13%. The life insurance shareholders’ profit after tax was R241 crore. Sanjiv Bajaj, MD, Bajaj Finserv, said the company would welcome the partner’s move to take its stake up to 49%. The two sides will soon discuss valuations. As per an earlier agreement between the partners, there was a bottom-side protection at 16%, but the new Insurance Act overrides all agreements and states that valuations have to be done at a fair value. Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company, which are not listed, had their board meetings last week.
There are no plans to
list either of the businesses, Bajaj said at the company AGM in Pune on Wednesday.