US-based insurance major Prudential Financial Inc (PFI) is “fairly close” to acquiring additional stake in DHFL Pramerica Life Insurance (DPLI) to hike its shareholding in the Indian life insurer to 49 per cent, a top company official said.

Currently, Prudential International Insurance Holdings, a wholly-owned subsidiary of PFI, has 26 per cent stake in DPLI, while Dewan Housing Finance Corporation (DHFL) and its two promoter entities together hold 74 per cent.

“There has been substantial progress in the talks. Prudential’s intent of moving from 26 to 49 per cent or even 50 per cent (if the law permits) was always strong. They are fairly close to it (completing the transaction),” Anoop Pabby, Managing Director and Chief Executive Officer, DPLI, told BusinessLine .

An external consultant has already been appointed to help arrive at the valuation of DPLI and the report is awaited.

Pabby was responding to a query on the status of talks between the two principal shareholders — PFI and DHFL — after the new insurance law allowed foreign investment up to 49 per cent in Indian insurance companies.

Both the shareholders have been in talks for over six months now.

He also highlighted the recent visit of Charles F Lowrey, Chief Operating Officer of Prudential’s international businesses, to the Indian office and spending a couple of days in the company.

“This tells you the kind of disproportionate attention we attract among US shareholders,” he added.

DPLI is actively looking at collaborating with the 10 small finance banks that have received in-principle approval from the Reserve Bank of India.

Meanwhile, DPLI recorded a net profit of ₹19.3 crore for the first half ended September 30, 2015, a 70.7 per cent rise over the net profit recorded in the same period last year.

New business premium income grew 44 per cent to ₹322 crore, Pabby said.

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