Mumbai, April 26, 2026, 03:38 IST
- Bharti Group is reportedly negotiating a sale of as much as 85% of its life insurance arm to Prudential plc.
- The unit might fetch between ₹70 billion and ₹80 billion, though negotiations are still underway.
- ICICI Prudential Life said it wasn’t aware of any such development tied to Prudential Corporation Holdings or any group entities.
Bharti Group is negotiating the sale of as much as 85% of its life insurance arm to Prudential plc, according to the Economic Times, which cited sources familiar with the situation. The unit might fetch somewhere between ₹70 billion and ₹80 billion, though both the valuation and terms remain in flux as due diligence continues, the report noted.
The discussions could hand Prudential a bigger, more hands-on presence in Indian insurance, just as the London- and Hong Kong-listed firm shifts its capital and growth focus toward Asia and Africa. If the deal goes through at the reported price, it would represent a meaningful jump from last year’s 15% stake sale to 360 One, which pegged the business at about ₹30 billion—roughly 1.1 times embedded value, a standard yardstick for life insurers based on the worth of active policies.
ICICI Prudential Life Insurance, in a filing to the exchange dated April 24, stated it was “unaware of any such developments” related to Prudential Corporation Holdings Limited—one of its promoters—or any of its group entities. Prudential Corporation Holdings, for its part, stuck to its stance: “We do not comment on market rumours or speculations.”
Moneycontrol reported separately that Bharti is weighing whether to exit the life insurance business following its purchase of AXA’s stake. Prudential was mentioned as a possible buyer, though discussions remain at an early stage and nothing concrete has emerged. Bharti’s holding now stands at roughly 85%, after 360 One WAM acquired 15% back in February 2025.
Prudential’s potential move would come on top of its current India interests—namely ICICI Prudential Life and ICICI Prudential Asset Management. Back in December, Reuters noted that Prudential had offloaded a 4.5% slice of ICICI Prudential Asset Management for 49 billion rupees, ahead of that fund manager’s IPO. The company said proceeds from both the share placement and the IPO would go back to shareholders if approvals come through.
This one’s clear-cut: A Bharti AXA Life acquisition gives Prudential a bigger stake in a crowded field, where HDFC Life, SBI Life, and ICICI Prudential Life already battle over banks, agents, and margins. The ET report pegs deal-market values at roughly 1.5 to 2 times embedded value, with premium pricing for controlling stakes.
Prudential confirmed a capital move Friday, announcing plans to issue 5,721,904 new ordinary shares. The shares, linked to the scrip dividend alternative for the company’s 2025 second interim dividend of 18.89 U.S. cents per share, will be issued solely on the Hong Kong line. Any minimal dilution, Prudential said, will be offset by buying back shares on the London Stock Exchange.
This lines up with the broader shareholder-return strategy Prudential rolled out in March. The company posted 2025 new business profit of $2.78 billion—a 12% jump at constant exchange rates—and noted it was kicking off another $1.2 billion buyback in 2026. Prudential also expects a $1.3 billion capital return in 2027.
Back in March, Chief Executive Anil Wadhwani called 2025 “a strong year of consistent delivery,” pointing to rising structural demand across Asia and Africa. Wadhwani said Prudential was taking that momentum into 2026, emphasizing a push for “high-quality, sustainable growth” and a disciplined approach to capital allocation.
There’s a risk the India deal falls through, or that the final terms look different. ET is reporting that 360 One probably won’t sell, meaning Prudential might miss out on acquiring the whole business. Moneycontrol points out the deal’s structure, timing, and valuation are all still up in the air. At Bharti AXA Life, new business premiums and investment income have both been squeezed, though total premium income climbed in FY26, per ET.
Prudential’s next formal gathering with shareholders isn’t far off. The 2026 annual general meeting lands on May 28 and will be hybrid—Hong Kong hosts the in-person portion. Investors could be looking for specifics on capital returns, and the India growth story may take center stage if Bharti conversations move forward.
