Shares of ICICI Prudential Life Insurance and its parent ICICI Bank fell sharply on Thursday after reports claimed that UK-based insurer Prudential plc is looking to sell its stake in the life insurance joint venture.
By 1:41 PM, ICICI Bank shares were down 1.65% at ₹1,268.65 per share, while ICICI Prudential Life shares dropped 3.81% to ₹566.8. The insurer's shares eventually closed 3.83% lower at ₹566.70, with its total market value standing at ₹85,393 crore.
According to a CNBC-TV18 report, Prudential is exploring an exit from ICICI Prudential Life Insurance, the joint venture it shares with ICICI Bank. Currently, Prudential Corporation Holdings, an indirect wholly-owned subsidiary of UK-based Prudential Plc, holds a 21.93% stake in the listed insurer, while ICICI Bank owns 50.95%.
2 March 2026
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Notably, Prudential is simultaneously in discussions with Bharti AXA Life Insurance regarding a potential stake acquisition, the report added. Other foreign insurers are also said to be in talks with the Bharti group-promoted company to buy into the business.
The development comes at a time when the government's recent decision to allow 100% foreign direct investment in the insurance sector is opening up new opportunities for global players, Business Standard reported citing sources.
Prudential, which has been present in the Indian market for 25 years, is reportedly looking to rethink its India strategy under its new Regional CEO Naveen Tahilyani, who took charge last year. Tahilyani, who previously served as Managing Director and CEO of Tata AIA Life Insurance, oversees markets including India, the Philippines, Cambodia, Laos, Myanmar, and Africa. He also serves on the board of ICICI Prudential Life as Prudential's nominee.
The possible exit is part of a broader trend of foreign insurers reshaping their India presence.
Last year, Germany's Allianz SE ended its 24-year joint venture with Bajaj Finserv, offloading its stakes in both the life and general insurance businesses. It has since partnered with Mukesh Ambani's Jio Financial Services for a reinsurance venture and signed a non-binding agreement to set up equally-owned life and non-life insurance companies.
More recently, Australia-based QBE moved to take full control of Raheja QBE General Insurance by acquiring Prism Johnson's 51% stake, subject to regulatory approvals.
