Bharti Group is discussing the sale of as much as 85% of its life insurance arm to Prudential in a transaction that could value the business at around Rs70bn ($742.8m)–Rs80bn, reported the Economic Times, citing sources.
That marks a substantial increase from last year, when the sale of a 15% holding to 360 One implied a valuation of Rs30bn, or roughly 1.1 times embedded value.
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Prudential is unlikely to secure full ownership because 360 One, an existing investor, is not expected to sell its stake.
The companies are carrying out due diligence, although negotiations are still in progress and the valuation as well as the structure of any agreement may yet be revised.
Should the deal go through, Bharti would leave the life insurance business, while Prudential would deepen its presence in India’s relatively underpenetrated market.
Representatives of both Bharti and Prudential declined to comment.
Bharti AXA Life’s financial position has improved, supported by a capital injection of Rs4.61bn that raised its solvency ratio to 2.41 times in June 2025.
Its losses have reduced, and it is aiming to reach breakeven in the near term.
At the same time, pressure has persisted in new business premiums and investment income.
Bharti Axa Life Insurance posted a 44% increase in total premium income in fiscal year 2026 to Rs10.59bn, up from Rs7.41bn a year earlier.
Although the base remains small, the insurer ranks among the faster-growing companies in the life insurance industry by premium growth, helped by stronger distribution.
In 2021, ICICI Lombard acquired Bharti AXA General Insurance through an all-share deal, leaving Bharti with a 7.3% interest in the combined entity, and contributing to consolidation.
Prudential has also reportedly been examining ways to reduce its 21.93% holding in ICICI Prudential Life Insurance, where ICICI Bank continues to be the majority owner with around 50%.
Prudential’s efforts in India have accelerated since Naveen Tahilyani was appointed regional chief executive for India, Africa and South East Asia in 2025, along with responsibility for the health business.
Tahilyani, previously CEO of Tata AIA Life Insurance, is overseeing the next stage of investment plans, including work on a stand-alone health insurance platform.
His background in expanding distribution and lifting profitability is seen as aligned with Prudential’s approach in India’s insurance sector.
Last year, Prudential announced a health insurance joint venture with Vama Sundari Investments (Delhi), a promoter entity of the HCL Group.
