Japan’s Nippon Life Insurance will increase its stake in Anil Ambani’s Reliance Life Insurance from 26 per cent, to 49 per cent for ₹2,265 crore.
The transaction pegs Reliance Life Insurance’s valuation at about ₹10,000 crore.
Nippon Life Insurance has so far invested an aggregate of ₹5,327 crore for acquiring 49 per cent of Reliance Life Insurance. In addition, the Japanese company has also committed an investment of ₹3,303 crore for acquiring 49 per cent stake in Reliance Capital Asset Management, taking its total investment to ₹8,630 crore.
Reliance Life Insurance recorded a new business premium of ₹601 crore and renewal premium of ₹673 crore for the quarter ended September 30, 2015. Funds under management totalled ₹15,524 crore.
In line with the new shareholding structure, the name of the company will also be changed to Reliance Nippon Life Insurance Company Limited.