Group news releases

29 Sep 2016

Prudential plc announces the successful domestic listing of ICICI Prudential Life Insurance Company Limited ("ICICI Pru Life")


  • Initial public offering (“IPO”) priced at top of the pricing range at Rs. 334 per share, valuing ICICI Pru Life at £5.6 billion and Prudential’s stake at £1.4 billion1.
  • The price is equivalent to a multiple of 3.4 times embedded value2.

Prudential plc (“Prudential”) today announces the domestic public listing of equity shares of ICICI Pru Life, its joint venture with ICICI Bank Limited. The shares are trading as “ICICIPRULI” on the Bombay Stock Exchange and the National Stock Exchange of India.

The IPO was priced at Rs. 334 per share, at the top of the pricing range. This represents a market value of £5.6 billion for ICICI Pru Life, equivalent to a multiple of 3.4 times embedded value as at 31 March 2016. This values Prudential’s share of 25.83 per cent of ICICI Pru Life at £1.4 billion. Prudential did not sell any shares or receive any proceeds from the IPO.

ICICI Pru Life is a leading private sector owned life insurer in India3, with a market share of 11.3 per cent4. Prudential’s share in ICICI Pru Life generated £22 million of IFRS operating profit during the first half of 2016, equivalent to 3.2 per cent of the Group’s total Asia life contribution of £682 million. Prudential’s share in ICICI Pru Life also equates to 2.4 per cent of Prudential’s 30 June 2016 Asian life embedded value of £16.6 billion5.

Over the first half of 2016, our Asian life and asset management businesses contributed IFRS operating profit of £743 million, equivalent to 32 per cent of total Group segment profit, and 65 per cent of Group new business profit. Our Asian businesses remain on track to meet our 2017 objectives of growing Asia life and asset management pre-tax operating profit at a compound annual rate of at least 15 per cent over the period 2012-2017, and delivering underlying free surplus generation of £0.9-£1.1 billion in 20176.

Enquiries:

Media   Investors/Analysts  
Jonathan Oliver +44 (0)20 7548 3537 Raghu Hariharan +44 (0)20 7548 2871
Tom Willetts +44 (0)20 7548 2776 Richard Gradidge +44 (0)20 7548 3860
William Elderkin +44 (0)20 3480 5590

 

1 INR/GBP exchange rate of 86.36 at 28 September 2016 used (Source: Bloomberg).
2 Embedded value multiple calculated referencing ICICI Prudential Life’s Indian embedded value (IEV) of INR 139,390 million at 31 March 2016.
3 ICICI Pru Life was the largest private sector owned life insurer in India by total premium in fiscal 2016 and assets under management at 31 March 2016.
4 Market share calculated as at 31 March 2016, based on a retail weighted received premium basis across all insurance companies in India (in both the public and private sectors). For the three months ended 30 June 2016, the market share, on the same basis, was 11.2 per cent.
5 Embedded value share referencing ICICI Prudential Life’s Indian embedded value (IEV) of INR 139,390 million at 31 March 2016, and INR/GBP exchange rate of 90.23 at 30 June 2016.
6 The objectives assume exchange rate at December 2013 and economic assumptions made by Prudential in calculating the EEV basis supplementary information for the half year ended 30 June 2013, and are based on regulatory and solvency regimes applicable across the Group at the time the objectives were set. The objectives assume the existing EEV, IFRS and Free Surplus methodology at December 2013 will be applicable over the period.

Notes to Editors:

About Prudential plc
Prudential plc and its affiliated companies constitute one of the world’s leading financial services groups, serving around 24 million insurance customers, with £562 billion of assets under management (as at 30 June 2016). Prudential plc is incorporated in England and Wales and is listed on the stock exchanges in London, Hong Kong, Singapore and New York. Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.

About ICICI Bank Ltd
ICICI Bank Ltd (NYSE:IBN) is India's largest private sector bank with consolidated total assets of US$ 139 billion at June 30, 2016. ICICI Bank's subsidiaries include India's leading private sector insurance companies, securities brokerage firms, mutual funds and private equity firms. Its presence currently spans 17 countries, including India.

This announcement is not an offer of securities for sale in the United States
This announcement is not an offer of securities for sale in the United States. Any securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended, (“U.S. Securities Act”) or any state securities laws in the United States and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable United States state securities laws. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States.

Forward-Looking Statements
This document may contain ‘forward-looking statements’ with respect to certain of Prudential's plans and its goals and expectations relating to its future financial condition, performance, results, strategy and objectives. Statements that are not historical facts, including statements about Prudential’s beliefs and expectations and including, without limitation, statements containing the words ‘may’, ‘will’, ‘should’, ‘continue’, ‘aims’, ‘estimates’, ‘projects’, ‘believes’, ‘intends’, ‘expects’, ‘plans’, ‘seeks’ and ‘anticipates’, and words of similar meaning, are forward-looking statements. These statements are based on plans, estimates and projections as at the time they are made, and therefore undue reliance should not be placed on them. By their nature, all forward-looking statements involve risk and uncertainty. A number of important factors could cause Prudential's actual future financial condition or performance or other indicated results to differ materially from those indicated in any forward-looking statement. Such factors include, but are not limited to, future market conditions, including fluctuations in interest rates and exchange rates, the potential for a sustained low-interest rate environment, and the performance of financial markets generally; the policies and actions of regulatory authorities, including, for example, new government initiatives; the political, legal and economic effects of the UK’s vote to leave the European Union; the impact of continuing designation as a Global Systemically Important Insurer or ‘G-SII’; the impact of competition, economic uncertainty, inflation and deflation; the effect on Prudential’s business and results from, in particular, mortality and morbidity trends, lapse rates and policy renewal rates; the timing, impact and other uncertainties of future acquisitions or combinations within relevant industries; the impact of changes in capital, solvency standards, accounting standards or relevant regulatory frameworks, and tax and other legislation and regulations in the jurisdictions in which Prudential and its affiliates operate; and the impact of legal actions and disputes. These and other important factors may, for example, result in changes to assumptions used for determining results of operations or re-estimations of reserves for future policy benefits. Further discussion of these and other important factors that could cause Prudential's actual future financial condition or performance or other indicated results to differ, possibly materially, from those anticipated in Prudential's forward-looking statements can be found under the ‘Risk Factors’ heading in this document.

Any forward-looking statements contained in this document speak only as of the date on which they are made. Prudential expressly disclaims any obligation to update any of the forward-looking statements contained in this document or any other forward-looking statements it may make, whether as a result of future events, new information or otherwise except as required pursuant to the UK Prospectus Rules, the UK Listing Rules, the UK Disclosure and Transparency Rules, the Hong Kong Listing Rules, the SGX-ST listing rules or other applicable laws and regulations.