Prudential plc said it has agreed to acquire a 75% stake in Bharti Life Insurance Company from Bharti Life Ventures and 360 ONE Asset Management as part of a strategic repositioning of its operations in India.
The transaction, which will give Prudential a controlling interest in the Indian life insurer, remains subject to regulatory approvals and other closing conditions.
“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’. Our 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,” Prudential plc’s CEO Anil Wadhwani said.
The deal involves an initial cash consideration of INR35bn (about $389m), which will be paid upon completion and funded through Prudential plc’s existing resources.
Prudential said the acquisition is expected to generate significant strategic and financial benefits over time, with further details to be disclosed after receiving regulatory approval.
The company added that part of the proceeds from any potential divestment of ICICI Prudential Life Insurance would be used to support future business growth, while the remaining capital would contribute to Prudential’s free surplus.
The agreement also includes potential additional consideration of up to INR7bn (about $78m), subject to the fulfilment of certain conditions.