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.
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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.
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