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Allianz gets Rs 56 crore dividend from Bajaj JVs

MUMBAI: Seventeen years after entering India, German insurer Allianz SE has got dividend from its two local businesses – Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance.

Allianz, which once considered pulling out of the joint venture with Bajaj, earned dividend of Rs 56.09 crore for the previous financial year from the two companies.

The two Bajaj group companies have built scale and are profitable businesses. Bajaj Allianz General Insurance paid a dividend of Rs 81.57 crore to Bajaj and Rs 28.66 crore to Allianz. Bajaj Allianz Life paid dividend of Rs 78 crore to Bajaj and Rs 27.43 crore to Allianz.

“We have paid a one-time special bonus to policyholders and for the first time paid dividend to our shareholders Bajaj and Allianz,” said Tarun Chugh, MD of Bajaj Allianz Life Insurance. “Our company has realised capital gains and we have decided to share this with our in-force policyholdeRs ”

The one-time special bonus has been declared only for FY2018 at 1% of the base sum assured that is payable at the time of claim.

As per the 2001 agreement between Bajaj Auto and Allianz, the German insurer had the call option to increase its stake in the life insurance joint venture from 26% to 74% at a pre-determined price and from 26% to 50% in the general insurance business.

However, Reserve Bank of India rules on fair value have led to differences between the two partners.

In 2010, the RBI and later the insurance regulator directed that all stake transactions are to be carried out at a fair value or at the prevailing market value.

Original Article

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