MUMBAI/TOKYO: Reliance Capital has completed the sale of a 26 per cent stake in its life insurance venture Reliance Life to Japan's Nippon Life for over 3,000 crore, the Anil Ambani-led firm said today.
The entire transaction proceeds of Rs 3,062 crore (USD 680 million) from the Japanese financial services major have been duly received by the company, Reliance Capital said in a statement.
The transaction, which was announced in March, pegs the total valuation of Reliance Life Insurance at approximately Rs 11,500 crore (USD 2.6 billion). Following the deal, Reliance Capital will hold a 74 per cent stake in Reliance Life.
The deal has received all regulatory approvals required for its completion, said Reliance Capital, the financial services arm of Anil Ambani-led Reliance Group, which has interests in telecom, power, entertainment and infrastructure businesses, among others.
Commenting on the development, Reliance Capital CEO Sam Ghosh said that Nippon was coming on board as a valued strategic partner in Reliance Life Insurance.
"Nippon's vast experience of over 122 years will help strengthen Reliance Life Insurance's position as a leading and world-class insurance company in India," Ghosh said.
Nippon Life Insurance President Yoshinobu Tsutsui also said the Japanese firm was keen to work with Reliance and establish a long-term partnership that is mutually beneficial for both companies.
Nippon Life, also known as Nissay, is the seventh-largest life insurer in the world and the largest private life insurer in Asia and Japan.
It posted revenues of Rs 3,49,834 crore (USD 80 billion) and a profit of Rs 12,199 crore (USD 3 billion) for the fiscal year ended March 31, 2011.
Reliance Life started operations in 2005 after the acquisition of a life insurance company by Reliance Group.
Currently, it is one of the largest insurers in terms of the number of individual policies sold by any of the 23 private life insurers in India. The company has sold over 7 million policies and managed assets of about Rs 18,000 crore (USD 4 billion) as of March 31, 2011.
While addressing shareholders last month, Reliance Capital Chairman Anil Ambani had said the company was at an advanced stage of talks for a stake sale in its asset management and mutual fund businesses to Nippon Life as well.
Aiming for the leadership position in the group's various financial businesses, the billionaire industrialist also announced that Reliance Capital would pursue a banking foray and the entity could be named 'Reliance Bank'.
The company has also received feelers from potential investors interested in acquiring a stake in its general insurance venture, he said.
Name-Deeepak kumar jha
Pgdm (2010-12) 3rd sem
The entire transaction proceeds of Rs 3,062 crore (USD 680 million) from the Japanese financial services major have been duly received by the company, Reliance Capital said in a statement.
The transaction, which was announced in March, pegs the total valuation of Reliance Life Insurance at approximately Rs 11,500 crore (USD 2.6 billion). Following the deal, Reliance Capital will hold a 74 per cent stake in Reliance Life.
The deal has received all regulatory approvals required for its completion, said Reliance Capital, the financial services arm of Anil Ambani-led Reliance Group, which has interests in telecom, power, entertainment and infrastructure businesses, among others.
Commenting on the development, Reliance Capital CEO Sam Ghosh said that Nippon was coming on board as a valued strategic partner in Reliance Life Insurance.
"Nippon's vast experience of over 122 years will help strengthen Reliance Life Insurance's position as a leading and world-class insurance company in India," Ghosh said.
Nippon Life Insurance President Yoshinobu Tsutsui also said the Japanese firm was keen to work with Reliance and establish a long-term partnership that is mutually beneficial for both companies.
Nippon Life, also known as Nissay, is the seventh-largest life insurer in the world and the largest private life insurer in Asia and Japan.
It posted revenues of Rs 3,49,834 crore (USD 80 billion) and a profit of Rs 12,199 crore (USD 3 billion) for the fiscal year ended March 31, 2011.
Reliance Life started operations in 2005 after the acquisition of a life insurance company by Reliance Group.
Currently, it is one of the largest insurers in terms of the number of individual policies sold by any of the 23 private life insurers in India. The company has sold over 7 million policies and managed assets of about Rs 18,000 crore (USD 4 billion) as of March 31, 2011.
While addressing shareholders last month, Reliance Capital Chairman Anil Ambani had said the company was at an advanced stage of talks for a stake sale in its asset management and mutual fund businesses to Nippon Life as well.
Aiming for the leadership position in the group's various financial businesses, the billionaire industrialist also announced that Reliance Capital would pursue a banking foray and the entity could be named 'Reliance Bank'.
The company has also received feelers from potential investors interested in acquiring a stake in its general insurance venture, he said.
Name-Deeepak kumar jha
Pgdm (2010-12) 3rd sem
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