M&A

M&A

Prudential to seek 18-mth window for stake dilution in ICICI Prudential Life

Economic Times  

Prudential is expected to request the insurance regulator for a 12- to 18-month window to reduce its stake in ICICI Prudential Life Insurance . This move follows the UK-based insurer’s agreement to acquire a 75% controlling stake in Bharti Life Insurance for Rs 3,500-Cr.Under existing regulations, a foreign insurer is restricted from holding promoter stakes in two separate life insurance companies in India. Consequently, Prudential is required to lower its holding in ICICI Prudential Life Insurance to below 10% from its current 21.91% level and relinquish its status as a promoter of the entity.ICICI Bank, which currently holds 51% of the joint venture, will continue to retain majority ownership and remains committed to the business for the long term.

In Nov 2015, ICICI Prudential Life had attracted about $295 M from PremjiInvest and Temasek.For FY25, ICICI Prudential Life had reported about INR 1789 Cr in Operating Income and about INR 1189 Cr in PAT.