New Delhi: UK-based Prudential plc on Sunday announced to acquire a majority 75 per cent stake in Bharti Life Insurance for Rs 3,500 crore from Bharti Life Ventures Pvt Ltd and 360 ONE Asset Management. Currently, Prudential is a partner with ICICI Bank with around 22 per cent stake in the life insurance venture.
With the announcement of a majority stake in Bharti Life Insurance, Prudential has to pare back its stake in the existing venture to comply with regulatory requirements. This is the second exit from a long-standing foreign insurance venture partner, following Allianz’s exit from Bajaj Finserve last year.
Prudential Plc said in a statement that the transaction is for an initial cash consideration of Rs 3,500 crore (about $389 million) payable on completion. “The transaction will be funded from existing resources. The transaction is expected to deliver compelling strategic and financial benefits for Prudential over time,” it said.
“Further details will be provided when regulatory consent has been received for the transaction. It is expected that part of the proceeds from any divestment of ICICIPru Life will be used to support future growth in the business,” it added.
The residual capital would contribute to Prudential’s free surplus, it said, adding that there is potential additional consideration payable of up to Rs 700 crore ($78 million), dependent on the fulfilment of certain conditions.
Sunil Bharti Mittal, chairman, Bharti Enterprises, said, “Prudential’s experience and global scale, combined with Bharti’s strong track record, create a formidable alliance to tap into the immense potential of India’s life insurance sector.”
However, this partnership opens new opportunities for Bharti Life’s employees and further reinforces the strategic relationship between India and the United Kingdom.
Following completion, Prudential’s Indian operations will consist of majority-owned Bharti Life Insurance Company Limited and Prudential HCL Health Insurance Limited, and minority shareholdings in two listed entities, namely 35 per cent of ICICI Prudential Asset Management Company Limited and 22 per cent in ICICI Prudential Life Insurance Company.
The statement further said that regulatory approvals for the transaction are expected to require Prudential to reduce its shareholding in ICICI Pru Life to under 10 per cent. “Prudential is engaging with the relevant regulatory authorities on this process and will seek an appropriate timeframe for the divestment that may be required, in the interests of its shareholders,” it said.
Separately, it said, Prudential continues to progress toward regulatory approvals for its standalone, majority-owned health insurance business in India. Health insurance operations are expected to commence during 2026 on receipt of these approvals.
“India is a strategically important and exciting market for Prudential. By acquiring a controlling stake in Bharti Life, we are bringing together Prudential’s nearly 180 years of global insurance expertise and Bharti’s strong and growing local presence to serve the savings and protection needs of Indian consumers,” Prudential plc’s CEO Anil Wadhwani said.
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