Prudential buys 75% of Bharti Life Insurance, eyes Airtel partnership

Mon, 18th May 2026 09:04

(Alliance News) - Prudential PLC on Monday said it is buying 75% of Bharti Life Insurance Co Ltd, in an effort to reposition its Indian operations.

The London-based insurer focused on Asia is acquiring the stake from Bharti Life Ventures Pvt Ltd and 360 ONE Asset Management.

Prudential will owe an initial cash consideration of approximately USD389 million upon completion, to be funded from existing resources, plus a conditional payment of up to USD78 million.

The deal does not alter Prudential's plan to return USD7 billion to shareholders between 2024 and 2027, it said. As of December 31, Prudential's holding company cash and short-term investments totalled USD4.3 billion and its leverage ratio was 13%.

"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," Prudential explained, noting the country's "positive demographic trends and structural growth opportunities".

"It has large, unmet demand for savings and protection with a low penetration of life insurance," the company added.

Once the new deal closes, Prudential's Indian business will comprise majority-owned Bharti Life Insurance and Prudential HCL Health Insurance Ltd, alongside stakes of 35% and 22% respectively in ICICI Prudential Asset Management Co Ltd and ICICI Prudential Life Insurance Co Ltd.

In order for the new acquisition to meet regulatory criteria, Prudential expects to reduce its stake in ICICI Prudential Life to under 10%. The company is working with authorities on a divestment timeline "in the interests of its shareholders".

Prudential expects to use part of the divestment proceeds to fund future business growth, with residual capital boosting free surplus, which stood at a ratio of 211% at the end of December.

Chief Executive Anil Wadhwani commented: "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.

The CEO continued: "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."

In conjunction with acquiring Bharti Life Insurance, Prudential expects to collaborate with the other businesses connected to Bharti Enterprises Ltd. It is eyeing "strategic distribution agreements with Bharti Airtel and 360 ONE."

Bharti Enterprises owns Bharti Airtel Ltd, which is itself the majority shareholder of FTSE 100-listed telecommunications operator Airtel Africa PLC.

Back in 2006, Bharti Enterprises launched Bharti AXA Life Insurance Co Ltd, a joint offering with Paris-based AXA SA.

Separately, Prudential is working towards regulatory clearance for a standalone, majority-owned health insurance business in India, which is expected to become operational in 2026.

Prudential shares fell 0.8% to 1,125.50 pence on Monday morning in London.

By Holly Munks, Alliance News reporter

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