Dewan Housing Finance (DHFL) and its American partner Prudential Financial are reportedly planning to offload their respective shareholdings in the Indian life insurance joint venture (JV) DHFL Pramerica Life Insurance Company.

DHFL’s planned sale of share in life insurance JV is part of its promoter Wadhawan Global Capital’s attempts to exit non-core businesses and focus on lending operations, reported The Economic Times.

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In the life insurance JV, DHFL owns a 51% stake while the remaining is held by Prudential. Both the companies are expected to divest their stakes to a domestic firm; however, it is not clear if they would make a joint exit.

A Prudential Financial spokesperson told the publication: “Along with DHFL, we are evaluating strategic options for the joint venture.”

Foreign direct investment rules prohibits Prudential to increase its stake beyond the existing 49%, which might have pressed Prudential to offload its stake and exit the JV, a person familiar with the matter told the news agency.

DHFL Pramerica Life Insurance operates its business through more than 100 branch offices across the country and manages assets worth INR43.1bn ($602m).

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“The valuation of the insurance arm is yet to be finalised. There is a meeting on Tuesday to determine a figure,” the source told the ET.

DHFL Pramerica Life is likely to be valued 2.5 to 3.5 times the embedded value of (EV) the firm. The (EV) of a life insurance company sums up the present value of future profits added with adjusted net asset value.