Reliance Life Insurance received sale proceeds of Rs 3,062 crore from the entire transaction, the company informed BSE. As per the statement, the transaction pegs the total valuation of Reliance Life Insurance at Rs 11,500 crore (US $2.6 billion).
Reliance Capital is the parent company of Reliance Life Insurance and Reliance Mutual Fund business.
Nippon Life has its presence from 122 years and is the seventh largest life insurer in the world, and the No. 1 private life Insurer in Asia and Japan.
On September 30, 2011, Reliance Capital received an approval from the Reserve Bank of India (RBI) to sell 26% stake in Reliance Life Insurance to Nippon Life Insurance, but the deal was subject to regulatory approvals, which got completed on Sunday.
“We are delighted to welcome Nippon Life Insurance as our valued strategic partner in Reliance Life Insurance. Nippon's vast experience of over 122 years will help strengthen Reliance Life Insurance's position as a leading and world class insurance company in India,”Mr. Sam Ghosh, CEO, Reliance Capital said.
Mr. Yoshinobu Tsutsui, President, Nippon Life Insurance said, “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 for both companies.”
Reliance Life Insurance posted an aggregate business premium of Rs 6,600 crore (US $1.46 billion) as on 31st March 2011. The company has sold over 7 million policies and manages assets approx Rs 18,000 crore (US $ 4 billion) as on March 31, 2011.