The Memorandum of Understanding (MoU) between the two company in Tokyo between Reliance Capital (R-Cap) Chairman Anil Ambani and Nippon Life President Yoshinobu Tsutsui. They both plan to strengthen the business relationship between the two companies.
Earlier in 2011, Nippon Life had acquired 26% stake in Reliance Life Insurance at a value of Rs 3,062 crore. The deal is pending before the regulatory clearance and other approvals.
On the occasion Anil Ambani said, "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."
Meanwhile Yoshinobu Tsutsui of Nippon Life's said, "We are delighted to have an opportunity to expand our relationship with Reliance, one of the most respected business groups in India."
Nippon Life has been in existence for nearly 122-years. The company is also a part fo the Fortune 100 list. Nippo Life is the seventh largest life insurance company in the world. It is the single-largest private life insurance company in Asia and Japan.
Nippon Life's deal with Reliance Life pegged the total valuation of the Indian insurer at about Rs 11,500 crore ($ 2.6 billion).
The parent Reliance group is amongst India's leading business houses with presence across a wide array of consumer-facing businesses of financial services, telecom, energy, power, infrastructure and media and entertainment.
Osaka-based Nippon Life Insurance, also called Nissay, is Japan's largest private life insurer with revenues of $ 80 billion and profits of over $ 3 billion.