Reliance Capital has said that it has received in-principle approval from the Insurance Regulatory and Development Authority (IRDA) for its proposed stake sale in Reliance Life Insurance.
Earlier this year, Reliance Capital had signed a definitive agreement with Nippon Life Insurance to shed 26 per cent stake in Reliance Life Insurance, subject to regulatory approvals. IRDA would be granting final approval for the proposed sale on receipt of RBI’s approval.
“We are delighted to receive the IRDA approval, and expect to conclude this transaction within the next few weeks. As strategic partners, we look forward to working closely with Nippon Life to further strengthen Reliance Life Insurance’s position as a leading and world class insurance company in India,” Mr Sam Ghosh, CEO, Reliance Capital, said in a statement.
As per the agreement, Nippon Life Insurance will invest an aggregate value of Rs 3,062 crore ($680 million) to acquire a 26 per cent strategic stake in Reliance Life Insurance.
“This is great news for both of us. We hope we will be able to close the transaction in near future. Nippon Life is keen to work with Reliance and establish a long-term relationship that is mutually beneficial for both companies”, said Mr Yoshinobu Tsutsui, President, Nippon Life Insurance.