Reliance Capital sells stake to Nippon Life

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Reliance Capital, an Anil Dhirubhai Ambani Group Company, has completed the sale of a 26% stake in its life insurance venture Reliance Life to Japan's Nippon Life for over 3,000 crore. The entire transaction proceeds of Rs 3,062 crore ($680 million) from the Japanese financial services major have been duly received by the company, Reliance Capital said in a statement. 

The transaction, which was announced in March, pegs the total valuation of Reliance Life Insurance at approximately Rs 11,500 crore ($2.6 billion). Following the deal, Reliance Capital will hold a 74% stake in Reliance Life.

Nippon Life is the seventh-largest life insurer in the world and the largest private life insurer in Asia and Japan and has vast experience of over 122 years which will help strengthen Reliance Life Insurance's position as a leading and world-class insurance company in India.

Reliance Life Insurance is one of the largest insurers in terms of the number of individual policies sold by any of the 23 private life insurers in India. The company has sold over 7 million policies and managed assets of about Rs 18,000 crore ($4 billion) as of March 31, 2011.

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