Nippon Life raises stake to 49% in Reliance Life
Nippon Life Insurance (NLI) on Wednesday signed definitive agreements to increase its stake in Reliance LifeInsurance (RLIC), a part of Reliance Capital, from existing 26% to 49%.
“We are delighted that the outstanding relationship between our two companies has now grown into an equal partnership, with NLI increasing its stake – first, in our asset management business, and now, in our life insurance business – to 49%. Life insurance is one of Reliance Capital’s major businesses, and we believe Nippon Life’s experience of over 125 years will accelerate our growth in this space,” Anil D Ambani, chairman of the Reliance Group, said.
“This additional investment represents not only the past efforts and initiatives, but also the good relationship between both companies going forward, and we are pleased to be able to further strengthen this partnership in various fields. We believe our past and future ties will become a great role model for India – Japan business partnerships”, Yoshinobu Tsutsui, president of Nippon Life Insurance, said.
The Japanese company will be investing an aggregate value of Rs 2,265 crore to acquire an additional 23% stake in Reliance Life Insurance to reach a 49% stake.
Nippon Life Insurance would have invested an aggregate of Rs 5,327 crore for acquiring 49% stake in Reliance Life Insurance with this transaction. NLI has also committed an investment of Rs 3,303 crore for acquiring 49% stake in Reliance Capital Asset Management, thereby taking its total investment to Rs 8,630 crore.
In line with the new shareholding structure, the name of the company will also be changed to Reliance Nippon Life Insurance Company Limited.