Prudential To Acquire 75% Stake in Bharti Life for Rs 3,500 Crore; Will Reduce Shareholding in ICICI Pru
New Delhi: UK-based Prudential plc on Sunday announced that it will acquire a 75 percent majority stake in Bharti Life Insurance from Bharti Life Ventures Pvt Ltd and 360 ONE Asset Management for Rs 3,500 crore. Currently, Prudential is a partner with ICICI Bank, holding around 22 per cent stake in the life insurance venture.
Following the announcement of a majority stake in Bharti Life Insurance, Prudential had to reduce its stake in the existing venture to comply with regulatory requirements. This is the second exit of a long-standing foreign insurance venture partner, following Allianz’s exit from Bajaj Finserve last year.
The transaction includes an initial cash consideration of ₹3,500 crore (about $389 million) to be paid upon completion, Prudential Plc said in a statement. “The transaction will be financed from existing resources. The transaction is expected to deliver impressive strategic and financial benefits to Prudential over time,” the statement said.
“Further details will be provided once regulatory approval is received for the transaction. A portion of the proceeds from any disposal of ICICIPru Life is expected to be used to support future growth of the business,” he added.
While it was stated that the remaining capital would contribute to Prudential’s free surplus, it was also stated that there was a potential additional fee that could be paid up to 700 crore ($78 million) depending on the fulfillment of certain conditions.
Sunil Bharti Mittal, Chairman, Bharti Enterprises, said: “Prudential’s experience and global scale, combined with Bharti’s strong track record, creates a formidable alliance to leverage the immense potential of India’s life insurance industry.”
However, this partnership opens up new opportunities for Bharti Life employees and further strengthens the strategic relationship between India and the UK.
Upon completion, Prudential’s India operations will consist of majority-owned Bharti Life Insurance Company Limited and Prudential HCL Health Insurance Limited and minority stakes in two listed entities (35 per cent of ICICI Prudential Asset Management Company Limited and 22 per cent of ICICI Prudential Life Insurance Company).
The statement also said that regulatory approvals for the transaction are expected to require Prudential to reduce its stake in ICICI Pru Life to less than 10 percent. “Prudential is in contact with the relevant regulatory authorities regarding this process and will seek an appropriate time frame for any liquidation that may be necessary in the interests of its shareholders,” he said.
Separately, Prudential continues to move towards regulatory approvals for its majority-owned independent health insurance business in India, it said. With these approvals, health insurance procedures are expected to start in 2026.
“India is a strategically important and exciting market for Prudential. By acquiring a majority stake in Bharti Life, we bring 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,” said Anil Wadhwani, CEO of Prudential plc.
