Prudential Plc Acquires 75% Stake in Bharti Life Insurance for ₹3,500 Crore, Reduces ICICI Pru Life Holdings to 10%

Prudential Plc Announces Major Realignment of India Strategy with Acquisition of Bharti Life Insurance

Mumbai: UK-based Prudential plc has announced plans to acquire a 75% stake in Bharti Life Insurance, marking a significant shift in its India strategy. The investment is part of Prudential's "strategic repositioning of its India operations," the company said in a statement.

As part of the deal, Prudential will buy the stake from Bharti Life Ventures Pvt. Ltd and 360 ONE Asset Management for ₹3,500 crore. The deal also includes a potential additional consideration of ₹700 crore, subject to the fulfilment of certain conditions. Completion of the transaction is subject to regulatory approvals.

Under the proposed transaction, Bharti Enterprises' holding in Bharti Life Insurance will fall to 25%, while 360 ONE will fully exit the business. Bharti Enterprises is the majority owner of Bharti Life Insurance, currently holding an 85% stake, while the remaining 15% is held by four funds managed by 360 ONE Asset Management.

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Comparison of Stake Holdings in Bharti Life Insurance

The investment in Bharti Life Insurance is part of Prudential's strategy to secure majority ownership of a life insurance business in India and expand access to life and health protection products. The deal is expected to give Prudential management and operational control across products and distribution channels, combining its global insurance experience with Bharti's local presence.

As a result of the acquisition, Prudential will need to reduce its stake in ICICI Prudential Life Insurance to 10% before increasing its holding in Bharti Life Insurance. It is unclear whether ICICI Bank will pick up Prudential's excess 12% stake or whether the insurer will seek a new partner.

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Prudential currently holds about 21.9% in ICICI Prudential Life Insurance, while ICICI Bank holds a 50.9% majority stake. The company said it 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.

The move comes after the government raised the foreign direct investment (FDI) limit in the insurance sector from 74% to 100%, while allowing foreign investors to take management and board control, subject to certain conditions including the appointment of at least one senior resident Indian official.

Other foreign players such as Germany's Allianz Group, American-Swiss insurer Chubb, South Africa's Old Mutual, and US investment firms Tiger Global Management and Bain Capital are also reportedly assessing opportunities in the Indian insurance market.

Prudential said India remains a "highly attractive" market, and the transaction is aimed at securing majority ownership of a life insurance business in the country and expanding access to life and health protection products. The company provides life and health insurance and asset management services across Greater China, ASEAN, India and Africa. It is listed on the Hong Kong Stock Exchange and the London Stock Exchange.