Prudential plc is likely to seek 12-18 months from the insurance regulator to reduce its stake in ICICI Prudential Life Insurance after announcing the acquisition of a majority stake in Bharti Life Insurance Company, as per news reports.
Prudential recently agreed to acquire a 75% stake in Bharti Life for ₹3,500 crore. The transaction will be carried out through the purchase of shares from Bharti Life Ventures Pvt Ltd and funds managed by 360 ONE Asset Management.
The deal is subject to approvals and other conditions.
Under existing insurance regulations, a foreign insurer cannot remain a promoter in 2 life insurance companies in India at the same time. Prudential currently holds 21.91% in ICICI Prudential Life and is classified as a promoter in the company.
Industry reports suggest that the insurer may need to reduce its holding to below 10% after the Bharti Life acquisition is completed. Also, the Insurance Regulatory and Development Authority of India (IRDAI) is to allow time for an orderly dilution process because of the size of the stake and the listed status of ICICI Prudential Life.
ICICI Bank said it will continue to retain majority ownership in ICICI Prudential Life and remains committed to the insurance business over the long term.
Earlier this year, the bank had approved a proposal to increase its holding in the insurer by up to 2% to offset dilution from employee stock issuances.
Market participants expect Prudential to reduce its holding gradually through block deals, institutional placements or an offer-for-sale route. There has been no indication of a full exit from ICICI Prudential Life at this stage.
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As of May 20, 2026, 2:46 pm, ICICI Prudential Life Insurance Company Ltd share price was trading at ₹508.10, a 2.69% decrease from the previous closing price.
ICICI Bank is expected to continue as the majority shareholder in ICICI Prudential Life, while Prudential may gradually lower its stake through market transactions.
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Published on: May 20, 2026, 2:53 PM IST
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