Allianz SE is considering a withdrawal from its insurance joint ventures with Bajaj Finserv, as per a corporate filing by Bajaj Finserv on Tuesday

What Happened: Allianz is actively mulling over an exit from its life and general insurance joint ventures with Bajaj Finserv, the latter said in a press release on Tuesday. The Bajaj Group, holding a 74% equity stake through Bajaj Finserv, has developed these businesses over time, with Allianz owning the remaining 26% stake.

See Also: BEL, NTPC, Garden Reach, Tata Motors Among Prabhudas Lilladher’s Top Technical Picks For Diwali

Discussions are still in the early stages, and there is currently no proposal before the company’s board or its insurance subsidiaries regarding this matter, the statement added.

The clarification from Bajaj comes after Bloomberg reported that Allianz is planning to exit Bajaj Allianz Life Insurance Co. and Bajaj Allianz General Insurance Co. This is because its Indian partner isn't allowing the German insurer to raise its stakes at a discounted price, the report added.

Although tensions between the companies have been building for years, the recent deadlock has pushed their joint ventures to the verge of collapse after over two decades. Instead, Allianz is reportedly considering purchasing stakes in newly formed insurance firms to maintain its presence in the rapidly growing South Asian market.

Price Action: Shares of Bajaj Finserv fell 1.9% to ₹1,725 on Tuesday afternoon.

Read Next: NBCC Secures Work Orders Worth ₹1,322.48 Cr For Hospital Construction