Rel Cap to invest Rs 2,000-cr in insurance, enter PE, ARC biz

MUMBAI: Anil Dhirubhai Ambani Group company, Reliance Capital, plans to enter the asset reconstruction, institutional broking, housing finance and PE businesses and would besides invest Rs 2,000-crore in its insurance businesses, the company's Chairman, Anil Ambani, said here today.

"Reliance Capital would enter the banking sector as and when regulations permit. The company would also enter the asset reconstruction, institutional broking and PE business. We may set up a housing finance subsidiary and a non-banking finance company," Ambani told shareholders at the company's annual general meeting (AGM) here.

"We plan to invest Rs 2,000 crore in our insurance business, taking our cumulative investment to over Rs 4,000- crore, or nearly USD 1-billion," Ambani said, adding that the company has identified areas where it has experienced higher expenses and claims and is in the process of re-pricing the risk.

"We are also looking at getting into newer segments of liability insurance as well as marine and hull insurance," he added.

Going forward, the company plans to set up a separate housing finance subsidiary and non-banking finance company (NBFC) for the consumer finance business.

"We have already filed applications with the concerned regulators in this respect and are awaiting their approvals," he said.