Prudential Eyes Major India Bet With Bharti’s 85% Insurance Stake Sale Talks

The Bharti Group is in talks to sell up to 85% of its life insurance business to Prudential Plc in a deal that could value the unit at around Rs 7,000-8000 crore, reported The Economic Times.

The valuation suggested by the proposed deal represents a sharp increase from last year when a sale of 15% to 360 One valued it at 3,000 crore, or about 1.1 times the embedded value (EV).Prudential may not be able to acquire 100% of the company, as existing investor 360 One is unlikely to exit.

Deal Structure, Stake Details

Due diligence is ongoing but discussions are still underway and key terms such as valuation and deal structure could change. If the deal goes through, it will be Bharti’s exit from the life insurance segment and a bigger footprint for Prudential in India’s under-penetrated market.

Valuations in the life insurance deal market are now 1.5-2 times EV, with recent transactions such as Canara HSBC Life Insurance listing and IndiaFirst Life Insurance deal negotiations setting that benchmark.

The embedded value mechanism is a conservative method of valuing life insurers and ignores the value of future business in computing the value of an existing revenue system.

Bharti AXA Life has seen improving fundamentals, including a capital infusion of ₹461 crore that lifted its solvency ratio to 2.41 times as of June 2025. Losses have narrowed and the company is targeting breakeven soon.

The company’s new business premiums and investment income have faced pressure.

Bharti Axa Life Insurance reported a 44% jump in total premium income in FY26 to ₹1,059 crore, compared with ₹741 crore a year earlier. While the base remains relatively small, the company is among the faster-growing players in the life insurance sector in terms of premium expansion, aided by improved distribution.

Insurance Valuations Gain Momentum

Recent deals indicate rising valuations in India’s life insurance sector, with transactions now ranging between 1.5-2 times embedded value, reported The Economic Times. According to India Brand Equity Foundation, India’s insurance industry is one of the fastest-growing sectors, driven by rising incomes, financial awareness and supportive regulations. It ranks as the fifth largest life insurance market among emerging economies, growing 32-34% annually. 

In FY24, insurance premium penetration was 3.7% of GDP, with life insurance at 2.8% and non-life at 0.9%. Per capita premium rose to Rs. 8,297 (US$ 95) in FY23. General insurance is expected to grow 8.7% in FY26, while life insurance is projected to grow 10.5% annually between 2025-2035, positioning India as the second-largest life insurance market in the region.

The report also said that India’s insurance sector is all set for sustained high growth fuelled by increasing awareness, regulatory support and digital adoption and is poised to become one of the world’s largest markets in the next decade.

Strengthening India Leadership

Prudential plc appointed Amit Dave as Chief Executive Officer and Managing Director, subject to regulatory approval, and Abhishek Saraf as Chief Operating Officer of Prudential Health India on April 13, 2026, according to its website, strengthening the leadership team as the business advances its health ambitions in India.

Both appointments indicate the company's long-term commitment to the Indian market and its expansion ambitions , with a focus on delivering innovative, accessible and high-quality health solutions to customers.