Reliance Capital on Sunday announced that it had completed the 26 per cent stake sale in its subsidiary Reliance Life to Japan’s Nippon Life Insurance.
The company said that it had received the entire transaction proceeds of Rs 3,062 crore ($680 million) from Nippon Life Insurance.
Expressing his delight at the strategic partnership, Mr Sam Ghosh, Chief Executive Officer of Reliance Capital said, "Nippon's vast experience will help strengthen Reliance Life Insurance's position as a leading insurance company in India.”
Reliance Life Insurance started operations in 2005, after the acquisition of a life insurance company.
Reliance Capital had in March 2011 signed a definitive agreement with Nippon Life Insurance to sell a 26 percent stake in Reliance Life Insurance, subject to regulatory approvals. The regulatory approvals have since been received. .
"We are very happy to complete the transaction. Nippon Life is keen to work with Reliance and establish a long-term partnership that is mutually beneficial to both the companies", Mr Yoshinobu Tsutsui, President of Nippon Life said.