India-based banking and financial services firm ICICI Bank has agreed to sell 6% stake in ICICI Prudential Life Insurance, for around Rs325bn ($4.9bn).


As part of the deal, Premji Invest & its affiliates will acquire 4% stake in the life insurance firm, while Singapore-based investment firm Temasek’s indirectly wholly-owned subsidiary Compassvale Investments will purchase another 2% interest.

Once the deal concludes, ICICI Bank will own 68% interest in the life insurance company, and its joint venture partner UK’s Prudential will have 26% stake in the business.

ICICI Prudential Life is claimed to be one of the first private sector life insurance firms in India, which commenced operations in 2000.

As of March 2015, the firm had Rs1001bn ($15.1bn) worth assets under management. It earned a total premium of Rs153bn ($2.31bn) for the financial year 2015.

Earlier this month, Toronto-based Fairfax Financial Holdings agreed to acquire an additional 9% of the issued and outstanding shares of ICICI Lombard General Insurance Co, the largest private sector general insurance company in India.

The transaction, which was agreed with its joint venture partner, ICICI Bank, values the company at Rs172.25bn ($2.6bn).

Following the completion of transaction, ICICI Bank and Fairfax will own approximately 64% and 35%, respectively, in ICICI Lombard.

Image: Premji Invest and Compassvale Investments to acquire 6% stake in ICICI Prudential Life Insurance. Photo: courtesy of fantasista /