The US-based financial services major Prudential Financial Inc (PFI) has raised its ownership in its Indian life insurance joint venture DHFL Pramerica Life Insurance Company (DPLI).

Under a new agreement, Prudential International Insurance Holdings (PIIH), a wholly-owned subsidiary of PFI, has increased its stake in DPLI from the existing 26 per cent to 49 per cent, the maximum allowed level under the current foreign direct investment norms in insurance sector.

PIIH has acquired 12 per cent equity stake from Resources Realty Private Ltd and 11 per cent equity stake from Yardstick Developers Private Ltd. DHFL, along with one of its promoters’ entities, holds a 51 per cent stake in DPLI.

Prior to this transaction, Dewan Housing Finance Corporation (DHFL), a housing finance company, and its two promoter entities together held 74 per cent with PIIH having a 26 per cent stake.

When contacted, DPLI declined to comment on the size of the latest deal that has led to Prudential Financial raising its ownership in the Indian joint venture life insurance unit.

Kapil Wadhawan, Chairman and Managing Director, DHFL, said that DHFL and PFI will together strengthen the company’s ability to meet the life insurance needs of families across India. “We will continue to innovate and enhance product value, thereby transforming lives and driving financial inclusion in the country,” he said. Jan van den Berg, Regional President for Asia, International Insurance at PFI, said that the increased stake is a true indicator of PFI’s continued commitment to the Indian market.

“We are happy to expand our ownership in the Indian life insurance joint venture, DPLI. Over the last eight years, DPLI has developed into a strong and profitable company with a passion to protect Indian families with life insurance.”

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