ICICI Pru Life Insurance shares experienced a dramatic decline, tumbling nearly 9% to hit a 52-week low following the announcement of a major acquisition in the insurance sector. According to reports from Upstox Securities, the stock price movement reflects investor concerns about the competitive implications of the transaction. Following the announcement, shares of ICICI Prudential Life Insurance fell nearly 9% to hit a 52-week low before recovering partially to trade 5.64% lower to ₹505 on the BSE in afternoon trade. The latest trading data shows shares of ICICI Prudential Life Insurance Co. fell nearly 9% to an over two-year low of ₹488.60 as reported by Informist Media. Over 3 million shares of the company changed hands on the NSE, nearly 19 times the number of shares traded till the same time Friday, indicating heightened investor activity.
The decline was triggered by UK-based Prudential plc's announcement on Sunday of acquiring a majority 75% stake in Bharti Life Insurance for ₹3,500 crore. As reported by Upstox Securities, the acquisition involves purchasing the stake from Bharti Life Ventures Pvt Ltd and funds managed by 360 ONE Asset Management, marking a significant consolidation move in the Indian insurance market. The transaction is subject to regulatory approvals and other conditions. Prudential entered into a share purchase agreement with Bharti Life Ventures Pvt. Ltd. and 360 ONE Asset Management to acquire stake in Bharti Life for a cash consideration of ₹35 billion with a potential addition of ₹7 billion, as reported by Informist Media.
ICICI Bank will maintain its majority stake in ICICI Prudential Life Insurance following its partner Prudential's acquisition of a controlling stake in Bharti Life. According to The Economic Times, ICICI Bank currently holds around 51% in ICICI Prudential Life Insurance, while Prudential owns 21.91% in the life insurer. As part of the proposed acquisition, Prudential will be required by regulators to reduce its holding in ICICI Prudential Life Insurance to below 10% and cease to be classified as a promoter of the insurer. As on March 31, Prudential held 21.91% stake in ICICI Prudential Life Insurance Co. and the promoter is engaging with authorities concerned to seek a timeframe for the divestment that may be required, as reported by Informist Media. ICICI Bank has clarified that it remains committed to retaining majority ownership in ICICI Prudential Life Insurance for the long term.
Despite market concerns, ICICI Prudential Life Insurance has demonstrated robust financial performance. For FY26, the company reported a 10.5% rise in embedded value (EV) to ₹52,989 crore from ₹47,951 crore a year earlier, while profit after tax rose 34.6% year-on-year to ₹1,600 crore. The value of new business (VNB) stood at ₹2,629 crore in FY26, up 10.9% year-on-year, with VNB margin at 24.7%. In the March quarter alone, VNB stood at ₹965 crore, as reported by The Economic Times.
