ICICI Bank sells 6 per cent stake in ICICI Prudential Life Insurance

Private sector lender ICICI Bank announced yesterday, 17th Nov 2015  that its board of directors has approved the sale of 6 per cent stake in its life insurance joint venture (JV) ICICI Prudential Life Insurance.

Out of this, 4 per cent stake will be sold to PremjiInvest and its affiliates, and the remaining 2 per cent stake will go to Compassvale Investments Pte Ltd. which is a wholly owned subsidiary of Singapore-based investment company Temasek Holding. The proposed transaction values the company at Rs.32,500 crore. This is the second investment by Premji Invest in life insurance. In December, it bought 0.95 per cent in HDFC Life from HDFC for Rs 200 crore. 

After completion of the transaction, ICICI Bank will hold approximately 68 per cent share of the company, while Prudential Plc, ICICI Bank’s partner in the life insurance business, will maintain its current share of approximately 26 per cent. The transaction is based on government and regulatory approvals.

ICICI Bank announced the sale of 9 per cent stake in its general insurance subsidiary ICICI Lombard General Insurance Co. to Fairfax Financial Holdings for Rs 1,550 crore on last month 31st of October 2015. The proposed transaction valued the general insurance company at Rs 17,225 crore.

In FY15, the company earned a premium of Rs 15,307 crore and has assets under management of Rs 1,00,183 crore as on March 2015. Today, ICICI bank is trading at Rs 266.55 on BSE, around 0.24 per cent lower.