Nippon Life Insurance and Reliance Capital have agreed to collaborate beyond the life insurance space.
Both the companies have signed a memorandum of understanding (MoU) that would pave the way for Nippon Life to evaluate collaboration opportunities, including strategic partnership, across all Reliance Capital promoted financial services businesses.
The MoU was signed by Mr Anil D. Ambani, Chairman, Reliance Capital, and Mr Yoshinobu Tsutsui, President, Nippon Life, in Tokyo.
Both parties have agreed to discuss and exchange views and ideas on collaborating with each other in possible business operations, including asset management, according to a release issued here.
Nippon Life had earlier this year signed a definitive agreement to acquire 26 per cent stake in Reliance Life Insurance at an aggregate value of Rs 3,062 crore ($680 million). This deal is awaiting regulatory approvals.
“Nippon Life has already agreed to be our partner in the life insurance business, and we see great potential to work together across our other financial services businesses,” Mr Anil Ambani said.
Besides collaboration in business operations, this MoU could throw up opportunities for Reliance Capital to shed equity stake in its other financial services businesses such as asset management and mutual funds, exchanges and commodities, commercial finance, and equity broking, industry sources said.
“We have signed the MoU. We are delighted to have an opportunity to expand our relationship with Reliance,” said Nippon Life's Mr Yoshinobu Tsutsui.