The transaction is for an initial cash consideration of Rs 3,500 crore payable on completion. The transaction will be funded from existing resources, the company said in a statement.
There is potential additional consideration payable of up to Rs 700 crore dependent on the fulfilment of certain conditions, it added.
Prudential said its Indian operations will consist of majority-owned Bharti Life Insurance Company Ltd and Prudential HCL Health Insurance Ltd and minority shareholdings in two listed entities, namely 35 per cent of ICICI Prudential Asset Management Company Ltd and 22 per cent in ICICI Prudential Life Insurance Company Ltd.
Regulatory approvals for the transaction are expected to require Prudential to reduce its shareholding in ICICIPru Life to below 10 per cent.
Prudential said it is engaging with the relevant regulatory authorities on the process and will seek an appropriate timeframe for the divestment that may be required.
Separately, the company continues to progress toward regulatory approvals for its standalone, majority-owned health insurance business in India.
Health insurance operations are expected to commence during 2026 on receipt of these approvals, Prudential 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,” Anil Wadhwani, CEO, Prudential plc, said.
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.
India is a highly attractive market for Prudential, and this transaction is a strategic move to secure majority ownership of a life insurance business in the country, the company said.
India is a vibrant market with positive demographic trends and structural growth opportunities. It has large, unmet demand for savings and protection with a low penetration of life insurance, it said.
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.
Meanwhile in a stock exchange filing, ICICI Bank which owns 50.89 per cent in ICICIPru Life said it intends to retain its majority shareholding in the company.
The insurance sector is seeing a lot of 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.
Prism Johnson Ltd agreed to sell its 51 per cent stake in Raheja QBE General Insurance Company Ltd to QBE for Rs 324 crore, after 18 year partnership.
Piramal Finance Ltd has agreed to sell its entire 14.72 per cent stake in Shriram Life Insurance Company Ltd to Sanlam Emerging Markets (Mauritius) Ltd. for Rs. 600 crore.
India has allowed 100 per cent Foreign Direct Investment (FDI) in the insurance sector.
