Prudential Financial Inc, on Wednesday, made it clear that it was not looking to exit DHFL Pramerica Life Insurance (DPLI), an existing joint venture with Dewan Housing Finance (DHFL).
Instead, Prudential Financial Inc will remain focussed on maintaining the strength of DPLI joint venture, on its long-term strategy for the Indian market and on serving the needs of customers and employees, a top official said.
Currently, DHFL, along with its promoter entity, holds majority 51 per cent stake in DPLI. The balance 49 per cent is held by US-based Prudential Financial Inc through its wholly-owned arm Prudential International Insurance Holdings.
“Working together with DHFL, we will seek a new majority locally-owned-and-controlled shareholder for DPLI to help facilitate the monetisation of DHFL’s equity stake,” said James Weakley, Senior Vice-President, International Businesses, Prudential Financial Inc.
“While DHFL may reduce or exit its equity stake in DPLI, Prudential Financial’s intention is to continue to play an active role in supporting the life insurance industry of India.”
Weakley also said that Prudential Financial Inc was proud of the business that has been built by the local team and is confident in its future.
Prudential Financial’s continued commitment to the Indian market and DPLI JV assumes significance as it comes in the backdrop of crisis-ridden DHFL’s reported intent to sell its 51 per cent holding in DPLI.