ICICI Bank owns 50.84 per cent, while Prudential Corporation owns 21.89 per cent in ICICI Prudential Life Insurance Company.
As per the agreement, the company said it would be applying to the Insurance Regulatory and Development Authority of India (IRDAI) for reclassification of Prudential from ‘promoter’ to ‘investor’, as per a stock exchange filing.
Also read: Towards Operational Control
In the event the company decides to change its name to remove the word “Prudential” in view of the reclassification, Prudential will undertake necessary steps to support the company, it added.
Prudential will also coordinate with company on matters including the transition and/or limited usage of the “Prudential” brand name and the iciciprulife.com domain name.
Prudential will abstain from voting on any matters of ICICI Prudential Life Insurance requiring special resolution, so long as such matters requiring special resolution do not adversely impact any right or interest of Prudential in the Company.
Prudential shall arrange for the resignation of its nominee director on board of the Company, post approval for reclassification.
ICICI Bank shall vote in favour of the appointment / replacement of one director to be nominated by Prudential on the board of the Company, subject to Prudential holding 10 per cent shareholding in the Company; and not holding promoter status or more than 10 per cent shareholding in another life insurance company in India.
In May, Prudential plc has agreed to buy 75 per cent stake in Bharti Life Insurance Company Ltd, a life insurer promoted by Bharti Life Ventures Pvt Ltd and 360 ONE Asset Management for Rs 4,200 crore. Regulatory approvals for the transaction are expected to require Prudential to reduce its shareholding in ICICIPru Life to below 10 per cent, it had said.
India has allowed 100 per cent Foreign Direct Investment (FDI) in the insurance sector. Following the move, the sector is witnessing a lot of ownership churn.
Earlier this year, Bajaj Finserv completed acquisition of 23 per cent stake in its general and life insurance subsidiaries from Germany’s Allianz SE for a total consideration of Rs. 21,390 crore, marking the end of 24-year joint venture.
Allianz, through its wholly-owned subsidiary Allianz Europe B.V., have entered into a binding agreement with Jio Financial Services Limited (JFSL) to form a 50:50 domestic reinsurance joint venture and also entered into a non-binding agreement for setting up equally owned joint ventures for both general and life insurance businesses in India.
