April 20, 2024 04:38 (IST)
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Nippon Life acquires 49 percent stake in Reliance Life
Mumbai/Tokyo, Mar 30 (IBNS): Reliance Capital, a part of Anil Ambani led Reliance Group, on Wednesday announced the completion of additional 23 percent stake sale in Reliance Life Insurance to Nippon Life Insurance.
The entire transaction proceeds of Rs 2,265 crore (US$ 348 million) for additional 23 per cent stake in Reliance Life Insurance have been duly received by Reliance Capital from Nippon Life Insurance.
The transaction pegs the valuation of Reliance Life Insurance at approximately Rs 10,000 crore (US$ 1.5 billion), amongst the highest in the industry till date.
Nippon Life Insurance now holds 49 percent stake in Reliance Life Insurance. In line with the new shareholding, Reliance Life Insurance will be renamed as Reliance Nippon Life Insurance Company.
“We would like to welcome Nippon Life Insurance as our equal partners in Life Insurance and Asset Management businesses. We have immensely benefitted from our relationship with Nippon Life over the last five years and look forward to further consolidate this partnership in India and abroad with their experience,” said Sam Ghosh, ED and Group CEO, Reliance Capital.
The Japanese company’s investment in Reliance Life Insurance represents implied Embedded Value multiple of over 3 times, the highest in the industry till date.
Nippon Life Insurance is investing a total of Rs 8,630 crore (US$ 1.5 billion) for acquiring 49 per cent stake each in Reliance Life Insurance and Reliance Capital Asset Management.
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