UK-based insurance giant Prudential will pick up a 75% stake in Bharti Life Insurance, marking the first major foreign investment in the life insurance sector after the government raised the FDI limit to 100% from 74%. The transaction, to be funded through existing resources, involves an initial cash consideration of ₹3,500 crore, and implies a valuation of around ₹4,670 crore.
The deal also involves a potential contingent consideration of up to ₹700 crore linked to the fulfilment of certain conditions. Including the contingent payout, Bharti Life Insurance could be valued at a higher ₹5,600 crore.
Reshaping the Footprint
Reports had suggested the Bhartia Group was looking to raise ₹7,000-8,000 crore through the dilution of an 85% stake in the life insurance business.
Currently, Bharti Life Ventures holds an 85% stake in the company while Indian asset management firm 360 ONE Asset holds a 15% stake through its funds. As part of the transaction, Bharti Life will also explore strategic distribution partnerships with Bharti Airtel and 360 ONE.
Prudential’s acquisition of a majority stake in Bharti Life Insurance highlights the company’s increasing focus on the Indian insurance market. Prudential has already entered into a 70:30 joint venture with Sundari Investments, owned by the HCL Group promoters, to set up Prudential HCL Health Insurance, a standalone health insurer. The health insurance business is expected to commence operations in 2026, subject to regulatory approvals. The company also holds a 35% stake in ICICI Prudential Asset Management Company and a 22% stake in ICICI Prudential Life Insurance Company.
Sunil Bharti Mittal, founder and chairman, Bharti Enterprises, said in a statement that Prudential’s experience and global scale, combined with Bharti’s strong track record, would create a formidable alliance to tap into the immense potential of India’s life insurance sector.
Prudential CEO Anil Wadhwani said the deal will also strengthen the UK-based insurer’s presence across India’s life, health and asset management businesses. “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,” Wadhwani said.
The deal comes days after Germany’s Allianz Group and Jio Financial Services signed a binding agreement to form a 50:50 joint venture to offer general and health insurance solutions in India. The two companies had also signed a non-binding term sheet to explore equally owned joint ventures in the life insurance business.
Regulatory Trade-Off
Prudential plc said regulatory approvals for the Bharti Life transaction are expected to require it to reduce its shareholding in ICICI Prudential Life to below 10%. “Prudential is engaging with the relevant regulatory authorities on this process and will seek an appropriate timeframe for the divestment that may be required, in the interests of its shareholders.”
Part of the proceeds from any divestment in ICICI Prudential Life will be used to support future growth in the business, while the remaining capital will contribute to Prudential’s free surplus.
Bharti Group had initially partnered with AXA in 2006, holding 74% stakes each in Bharti AXA Life Insurance and Bharti AXA General Insurance. In 2020, Bharti Group and AXA exited the general insurance business by selling Bharti AXA General Insurance to ICICI Lombard. In October 2023, Bharti Group acquired AXA’s 49% stake in Bharti AXA Life Insurance, taking full control of the company. In February 2025, 360 ONE Asset, through its funds, acquired a 15% stake in Bharti AXA Life Insurance.
Bharti AXA Life Insurance reported a new business premium of ₹1,069 crore in the previous fiscal, accounting for around 0.23% of the industry’s ₹4.59 lakh crore premium collections.