Nippon Life to acquire 26% stake in Reliance Life for $680 mn

NEW DELHI: Japanese insurance firm Nippon Life Insurance Company will acquire a 26 per cent stake in Reliance Life Insurance for $680 million.

"Nippon Life Insurance will invest an aggregate value of Rs 3,062 crore ($680 million) to acquire a 26 per cent strategic stake in Reliance Life Insurance," the Anil Ambani Group firm said in a statement today.

The transaction pegs the total valuation of Reliance Life Insurance at approximately Rs 11,500 crore ($2.6 billion), the statement said, adding that the transaction is subject to necessary regulatory approvals.

Nippon is the 6th largest life insurer in the world and the No. 1 private life insurer in Asia and Japan.

Commenting on the development, Reliance Capital Chairman Anil Ambani said, "At this time, our thoughts are with the people of Japan, bravely facing an unprecedented natural catastrophe. We pray for strength to the country, its people and our new partners in the entire Nippon Life family, to overcome the trauma of the tragic loss of life and devastation caused by this calamity."

Reliance Capital currently holds a 100 per cent stake in Reliance Life.

"We both share the same passion and philosophy and, together, we believe we can develop a strategic partnership to help Reliance Life Insurance become a world-class insurance company in India," said Nippon Life Insurance President Kunie Okamoto.

Shares of Reliance Capital were up 5.46 per cent at Rs 538.75 on the BSE at 1116 hours.