Blitz Bureau
NEW DELHI: Prudential is exploring an exit from its life insurance joint venture with ICICI Bank, ICICI Prudential Life Insurance, according to people familiar with the matter, reports Business Standard.
Prudential Corporation Holdings Ltd, an indirect wholly owned unit of UK-based Prudential Plc, holds 21.93 per cent in the listed insurer, while ICICI Bank owns 50.95 per cent.
ICICI Prudential Life has a market capitalisation of Rs 85,393 crore.
Prudential, according to sources, is in discussions with Bharti Axa Life Insurance regarding a potential stake acquisition. Other foreign insurers are also in talks with the Bharti group-promoted company to buy into the business.
Prudential was among the early entrants into India’s insurance market after the sector was opened up for foreign players in the early 2000s.
ICICI Prudential Life is India’s third-largest private-sector life insurer by new business premium, behind SBI Life Insurance and HDFC Life Insurance.
Based on new business premium, the company reported a market share of 5.7 per cent in FY25, up from 4.8 per cent in FY24, and collected premiums of Rs 19,228.63 crore in the first 11 months of the current financial year, a 2.42 per cent year-on-year increase.
“The Government’s move to allow 100 per cent foreign direct investment in the insurance sector is expected to create multiple opportunities for global players. Prudential has also closely observed the Indian insurance market due to its presence for the past 25 years and is quite familiar with the landscape,” said a person aware of the development.
Prudential, according to sources, is looking to strengthen its India strategy under Regional Chief Executive Officer (CEO) Naveen Tahilyani, who assumed the role last year with oversight of markets including India, the Philippines, Cambodia, Laos, Myanmar, and Africa. Tahilyani, previously managing director and CEO of Tata AIA Life Insurance, is credited with expanding that business into one of the top six private-sector players. He also serves on the board of ICICI Prudential Life as Prudential’s nominee.
Prudential, according to sources, is in discussions with Bharti Axa Life Insurance regarding a potential stake acquisition. Other foreign insurers are also in talks with the Bharti group-promoted company to buy into the business.
“We do not comment on market rumours or speculations,” a Prudential spokesperson said. ICICI Bank, ICICI Prudential Life Insurance and Bharti Axa Life Insurance did not respond to queries until press time.
Bharti Axa Life Insurance, established in 2006 as a joint venture between the Bharti group and Axa SA, saw Bharti acquire Axa’s 49 per cent stake in 2023. Private equity firm 360 ONE Asset subsequently bought a 15 per cent stake through its funds.
Prudential may seek to pick up a significant stake in Bharti Axa, sources said.
Bharti Axa Life reported a 40.64 per cent increase in new business premium to Rs 849.50 crore in the first 11 months of the current financial year. The insurer’s market share in terms of new business premium was 0.18 per cent in FY25. The company’s total premium rose to Rs 2,931 crore in FY25 from Rs 2,852 crore in FY24.
It remains adequately capitalised, with a solvency margin of 167 per cent as on March 31, 2025, above the regulatory requirement of 150 per cent. Losses narrowed to Rs 37 crore in FY25 from Rs 146 crore a year earlier.
Last year, Allianz SE ended its 24-year joint venture with Bajaj Finserv, selling its stake in both life and general insurance businesses. It has now partnered with Mukesh Ambani’s Jio Financial Services for a reinsurance venture and signed a non-binding agreement to establish equally owned life and non-life insurance businesses.
In a recent transaction, Australia-based QBE increased its holding to 100 per cent in Raheja QBE General Insurance by acquiring Prism Johnson’s 51 per cent stake, subject to regulatory approvals.
