Bharti Group in Talks to Sell Up to 85% of Life Insurance Business to Prudential for ₹7,000-8,000 Crore

Mumbai: 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 ₹7,000-8,000 crore, multiple people familiar with the matter told ET.

The proposed valuation shows a sharp jump from last year, when a 15% stake sale to 360 One implied valuation of 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.

Due diligence is underway, though discussions remain ongoing and key terms including valuation and deal structure could still change. The transaction, if completed, would mark Bharti's exit from the life insurance segment, while giving Prudential a larger foothold in India's underpenetrated market.

Spokespersons at both Bharti and Prudential declined to comment. Valuations in the life insurance deal market are now around 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 businesses in computing the value of an existing revenue stream. "Life insurance deals are no longer priced on current volumes alone, but on the ability to scale distribution and improve margins," said one source, adding that controlling stakes typically command higher multiples.

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.

In 2021, ICICI Lombard's all-stock acquisition of Bharti AXA General Insurance, had given Bharti a 7.3% stake in the merged entity, leading to consolidation.

Prudential Plc reportedly has been exploring options to pare its 21.93% stake in ICICI Prudential Life Insurance, where ICICI Bank remains the majority shareholder with about 50%. Prudential's India push has gathered pace following the appointment of Naveen Tahilyani as regional CEO for India, Africa and Southeast Asia in 2025, with an added mandate for the health business.

Tahilyani, the former CEO of Tata AIA Life Insurance, is leading the next phase of investments, including plans to build a standalone health insurance platform. His experience in scaling distribution and improving profitability is seen supporting Prudential's strategy in India's growing insurance market. The company has formed a health insurance JV with a HCL's subsidiary.