Prudential Signals Possible Exit from ICICI Bank JV in Insurance Business

The ICICI Prudential Life Insurance joint venture between Prudential and ICICI Bank is looking to be wound down. The listed insurer is majority-owned by ICICI Bank (50.95% stake) and has a 21.93% stake from Prudential Corporation Holdings Ltd, an indirect wholly owned subsidiary of Prudential Plc of the United Kingdom. A current market valuation of INR 85,393 crore is held by ICICI Prudential Life.

In addition, news outlets have reported that Prudential and Bharti Axa Life Insurance are discussing the possibility of a stake acquisition. The company that the Bharti group is promoting is in talks to be acquired by other international insurers as well. When the Indian insurance industry opened to international companies in the early 2000s, Prudential was one of the first to join.

Prudential’s New Market Strategy for India

After SBI Life Insurance and HDFC Life Insurance, ICICI Prudential Life ranks third in India's private life insurance sector in terms of new business premium. With an increase from 4.8% in FY24 to 5.7% in FY25, the company's market share was based on new business premiums. With a growth of 2.42% year-on-year, it has received premiums of INR 19,228.63 crore thus far in the current fiscal year. Under the leadership of Regional Chief Executive Officer (CEO) Naveen Tahilyani, who took over the responsibilities of overseeing markets such as India, the Philippines, Cambodia, Laos, Myanmar, and Africa last year, Prudential is aiming to fortify its India strategy.

Former Tata AIA Life Insurance MD and CEO Tahilyani is widely believed to have been instrumental in the company's rise to prominence as one of the leading private sector insurers. As the nominee from Prudential, he is also a member of the board of directors of ICICI Prudential Life. According to a representative from Prudential, the company does not want to address market speculation or rumours.

Recent Performance of Bharati Axa

In 2023, Bharti acquired Axa's 49% interest in Bharti Axa Life Insurance, a partnership that had been formed in 2006 by the Bharti group and Axa SA. Then, private equity firm 360 ONE Asset used its capital to acquire a 15% share. A large investment in Bharti Axa might be in Prudential's sights. The new business premium for Bharti Axa Life reached INR 849.50 crore in the first eleven months of the current fiscal year, a growth of 40.64%. In fiscal year 25 (FY25), the insurer had a market share of 0.18% in new business premium.

From FY24 to FY25, the overall premium for the company increased from 2,852 crore to 2,931 crore. As of March 31, 2025, its solvency margin was 167%, which is more than the regulation requirement of 150%, indicating that business is well funded. From INR 146 crore in FY24, losses shrank to INR 37 crore in FY25. After 24 years of working together, Allianz SE and Bajaj Finserv sold off their shares in the life and general insurance companies last year.

It has just formed a reinsurance partnership with Jio Financial Services, owned by Mukesh Ambani. It has recently inked a non-binding agreement to launch life and non-life insurance companies with equal ownership. With the acquisition of Prism Johnson's 51% investment in Raheja QBE General Insurance, the Australian firm QBE raised its ownership in the company to 100%, pending regulatory clearances.