Prudential plc on Sunday said it would acquire a 75 per cent stake in Bharti Life Insurance—promoted by billionaire Sunil Mittal’s Bharti Enterprises—for ₹3,500 crore, subject to regulatory approvals. Subsequently, Prudential will reduce its holding in ICICI Prudential Life Insurance to below 10 per cent from its nearly 22 per cent in the venture.
Prudential also said an additional consideration of up to ₹700 crore could be payable, subject to the fulfilment of certain conditions. Part of the proceeds from any divestment in ICICI Prudential Life Insurance would be used to support future growth in Bharti Life, while the remaining capital would contribute to Prudential’s free surplus, it added.
This is the second instance in recent times where a global insurance major has exited a long-standing partnership to join hands with another. Last year, Allianz ended its partnership with Bajaj Finserv and decided to go with Mukesh Ambani’s Jio Financial.
“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,” said Anil Wadhwani, CEO, Prudential plc.
“Our joint partnership with the ICICI group of companies, has, for many decades, provided high-quality financial services solutions in India. We deeply appreciate this partnership and value our relationship with them,” he said.
Prudential provides life and health insurance and asset management in Greater China, ASEAN, India and Africa.
Sunil Bharti Mittal, founder and 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. This partnership opens new opportunities for Bharti Life’s employees and further reinforces the strategic relationship between India and the United Kingdom.”
At present, Sunil Mittal’s Bharti Enterprises holds 85 per cent in Bharti Life through Bharti Life Ventures, while 360 ONE Asset Management owns the remaining 15 per cent. Following Prudential’s acquisition of a 75 per cent stake, 360 ONE will exit entirely and Bharti’s holding will reduce to 25 per cent.
Prudential said India represented a highly attractive market and described the transaction as a strategic move to secure majority ownership of a life insurance business in the country. “This will help strengthen Prudential’s ability to meet Indian customers’ insurance needs, with management and operational control over the offering of a broad suite of products and across multiple distribution channels,” it said, adding that India has large, unmet demand for savings and protection with low life insurance penetration.
Separately, Prudential has announced plans to set up a standalone health insurance company, Prudential HCL Health Insurance, in a joint venture with the HCL Group promoter. The company said it continued to make progress toward securing regulatory approvals and expected operations to commence in 2026, subject to those approvals.
“Following completion, Prudential’s Indian operations will consist of majority-owned Bharti Life Insurance Company, and Prudential HCL Health Insurance, and minority shareholdings in two listed entities, namely 35 per cent of ICICI Prudential Asset Management Company and 22 per cent in ICICI Prudential Life Insurance. Regulatory approvals for the transaction are expected to require Prudential to reduce its shareholding in ICICI Prudential Life to under 10 per cent,” the company said, adding that 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.
Bharti’s local reach, combined with Prudential’s long-established insurance expertise, will help expand access to life and health protection solutions for Indian consumers. Prudential expects to work closely with the other businesses of the Bharti Enterprises and related entities. As part of the transaction, Bharti Life will also look into securing strategic distribution agreements with Bharti Airtel and 360 ONE, it said.
At Friday’s closing price of ₹535.25, Prudential’s 22 per cent stake (317.52 million shares) in ICICI Prudential Life Insurance Company is valued at around ₹16,995 crore, based on the latter’s market capitalisation of ₹77,620.71 crore on the BSE.