Prudential will acquire a 75% stake in Bharti Life Insurance as it repositions its India operations.
The insurer will buy the stake from Bharti Life Ventures and 360 ONE Asset Management for ₹3,500 crore, which Prudential placed at about US$389 million. The deal remains subject to regulatory approvals and other closing conditions.
The acquisition will give Prudential majority ownership of a life insurance business in India.
Bharti Life will also explore strategic distribution agreements with Bharti Airtel and 360 ONE as part of the transaction.
After completion, Prudential’s India operations will include Bharti Life Insurance, Prudential HCL Health Insurance, a 35% stake in ICICI Prudential Asset Management and a 22% stake in ICICI Prudential Life Insurance.
The approvals process is expected to require Prudential to reduce its stake in ICICI Prudential Life Insurance to below 10%.
The company is engaging with regulators on the process and possible timeline.
Prudential is also seeking approvals for its standalone majority-owned health insurance business in India, which is expected to begin operations in 2026 once approvals are received.
The insurer may pay up to another ₹700 crore, which Prudential placed at about US$78 million, if certain conditions are met.
Anil Wadhwani, Prudential plc’s CEO said,
“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.
Through this acquisition, we aim to contribute further to The Viksit Bharat Initiative and, by extending access to our products and services to customers in India, act as a catalyst for achieving ‘Insurance for All by 2047’.”
Prudential noted that the transaction will be funded from existing resources and will not affect its plan to return US$7 billion to shareholders between 2024 and 2027.
Featured image: Edited by Fintech News Singapore, based on image by escapejaja via Magnific
