MUMBAI: UK-based Prudential plc on Sunday said it plans to acquire a 75% stake in Bharti Life Insurance and subsequently cut its holding in ICICI Prudential Life Insurance to 10%, marking a major realignment of its India strategy.
The investment is part of Prudential’s “strategic repositioning of its India operations,” the company said in a statement. It 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.
“India is a strategically important and exciting market for Prudential,” Anil Wadhwani, chief executive officer of Prudential Plc was quoted as saying in the company statement.
Bharti Life Insurance is currently majority owned by Bharti Enterprises through its arm Bharti Life Ventures, which holds an 85% stake, while the remaining 15% is held by four funds managed by 360 ONE Asset Management. Under the proposed transaction, Bharti Enterprises’ holding will fall to 25%, while will fully exit the business.
Earlier known as Bharti AXA Life Insurance, the company saw France’s AXA Group exit in October 2023 after Bharti Enterprises acquired its 49% stake. AXA’s withdrawal from the life insurance venture followed its earlier exit from Bharti AXA General Insurance in 2021. The general insurance business was subsequently merged with ICICI Lombard General Insurance.
In FY26, the insurer reported a 44% year-on-year rise in new business premium to ₹1,069 crore, with an embedded value of ₹3,102 crore.
“We are delighted to welcome Prudential Plc as the controlling shareholder of Bharti Life, further accelerating its growth trajectory,” said Sunil Bharti Mittal, founder and chairman, Bharti Enterprises, adding that this partnership opens new opportunities for Bharti Life’s employees and further reinforces the strategic relationship between India and the UK.
ICICI Prudential Life impact
Under regulatory requirements, 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.
Queries sent by Mint to ICICI Prudential Life Insurance and Prudential plc remained unanswered at the time of going to print.
“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,” the company said. Proceeds from any stake sale in ICICI Prudential Life would be used to support future growth, with any residual capital contributing to Prudential’s free surplus.
Prudential currently holds about 21.9% in ICICI Prudential Life Insurance, while holds a 50.9% majority stake. It also owns 35% in ICICI Prudential Asset Management Company.
Wadhwani said the long-standing partnership with the ICICI group has delivered high-quality financial services in India, adding, “We deeply appreciate this partnership and value our relationship with them.”
India strategy
The move comes after the government earlier this month 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.
The shift has triggered renewed deal activity.
Germany’s exited its joint ventures with Bajaj Group, selling 23% stakes in both life and general insurance arms in January for ₹21,390 crore, with the remaining 3% to be transferred by June. Following the exit, Bajaj Group now holds a 97% stake in both entities. Allianz has since announced a 50:50 general and life insurance joint venture with Jio Financial Services.
Other foreign players such as 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. Chubb and Old Mutual previously had partnerships with HDFC Bank and Kotak Mahindra Bank, respectively, before they existed the country.
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 investment would give Prudential management and operational control across products and distribution channels, combining its global insurance experience with Bharti’s local presence.
As part of the deal, Bharti Life is also expected to explore strategic distribution agreements with Bharti Airtel and 360 ONE, the company said.
In a separate statement, 360 ONE founder, managing director and chief executive Karan Bhagat said he welcomed Prudential’s controlling investment and looked forward to continuing distribution of the insurer’s products through its network.
Prudential’s India operations also include Prudential HCL Health Insurance, a 70:30 joint venture with HCL Group’s Vama Sundari Investments, which is awaiting regulatory approval.
The company said it continues to progress toward approvals for its standalone, majority-owned health insurance business in India, with operations expected to begin in 2026.
On 13 April, Prudential said it had strengthened the management of Prudential Health India as it advances its health ambitions, appointing Amit Dave as chief executive officer and managing director, and Abhishek Saraf as chief operating officer. Dave succeeded Amar Joshi.
Prudential 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.