Prudential (LSE:PRU) edged higher, rising 1.1% to 1,148p, after agreeing to acquire a 75% stake in Bharti Life Insurance, the company said.
The deal carries an initial cash payment of ₹3,500 crore payable on completion, potential additional consideration of up to ₹700 crore dependent on certain conditions, will be funded from Prudential's existing resources, and remains subject to regulatory approvals and other customary conditions.
"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," Anil Wadhwani, CEO of Prudential, said.
Bharti Life reported new business premium of ₹1,069 crore for the year ended 31 March, up 44% year-on-year, and an embedded value of ₹3,102 crore as at 30 September 2025, and will explore strategic distribution agreements with Bharti Airtel and 360 ONE.
Following completion Prudential's India operations will comprise majority-owned Bharti Life and Prudential HCL Health Insurance together with minority stakes of 35% in ICICI Prudential Asset Management Company and 22% in ICICI Prudential Life, and Prudential expects regulators to require it to reduce the ICICIPru Life holding to below 10% and is engaging on an appropriate divestment timeframe.
Prudential said the transaction sits within a strong balance-sheet position, with holding company cash and short-term investments of $4.3 billion, a Group leverage ratio of 13% and a free surplus ratio of 211%, and that the deal does not affect its previously communicated intention to return $7 billion to shareholders between 2024-2027.
