Prudential to snap up controlling stake in Indian life insurer

(Sharecast News) - Prudential is to acquire a majority stake in India's Bharti Life Insurance, the blue chip confirmed on Monday.

The insurer and asset manager has agreed to pay Bharti Life Ventures and 360 One Asset Management around $389m in cash for a 75% stake in the life insurer. A further $78m is payable dependent on various conditions being met.

London-listed Prudential, which is focused on Asia and Africa, said the deal was part of a "strategic repositioning" of its Indian operations.

Chief executive Anil Wadhwani continued: "India is a strategically important and exciting market for Prudential. By acquiring a controlling stake in Bharti Life, we are bringing together Prudential's near 180 years of global insurance expertise and Bharti's strong and growing local presence to serve the savings and protection needs of Indian consumers."

In particular, the insurer noted that India currently has a "large, unmet demand for savings and protection, with a low penetration of life insurance".

Once the deal completes, Prudential's Indian operations will consist of the majority-owned Bharti Life and Prudential HCL Health Insurance alongside minority holdings in two listed firms, ICIC Prudential Asset Management and ICICI Prudential Life Insurance.

To secure regulatory approval for the Bharti Life deal, Prudential is expected to reduce its 22% holding in ICICIPru Life to under 10%.

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