Reliance Nippon Life Insurance, the joint venture between Reliance Capital and Japan's Nippon Life Insurance, is eyeing tie ups with banks as part of its expansion plans, a top official said on July 8
Besides, the proposal of Yes Bank to hike foreign investment limit to 74 percent from existing 41.87 percent without any sub-limits has been referred to the Cabinet Committee on Economic Affairs (CCEA).
"Reliance Capital Asset Management (RCAM), a part of Reliance Capital, completed regulatory approval process for increasing the stake of Nippon Life Insurance, the Japan-based company, to 49 percent from 35 percent," the Anil Dhirubhai Ambani Group company says in its filing.
Post the transfer, Reliance Capital would be applying to the RBI for registering itself as a Core Investment Company (CIC) and this move would also facilitate the application of banking licence, as and when the apex bank's policy permits, it said in a statement.
Insurance Laws (amendment) Bill was passed by Parliament in March clearing decks for foreign entities to increase their stake in private sector insurance companies to 49 percent from earlier ceiling of 26 percent.
The company has already hired close to 15,000 insurance advisors in the recent months and the planned hiring activities would take the total recruitment of agents to 20,000 people in the current fiscal ending March 31, 2016
Reliance Capital said the Japanese company will be investing Rs 2,265 crore to acquire an additional 23 percent stake in Reliance Life Insurance and this transaction pegs Reliance Life Insurance‘s valuation at approximately Rs 10,000 crore (USD 1.5 billion).
Nippon's stake in the company, when the deal comes through, will increase to 49 percent - the upper limit for a foreign player in the private sector insurance firm.
"Nippon Life Insurance (NLI) today has signed definitive agreements to increase its stake in Reliance Capital Asset Management (RCAM) to 49 percent from existing 35 percent in tranches," the Anil Dhiribhai Ambani Group company said in its filing.
Reliance Capital plans to apply for bank licence in partnership with Japan's Sumitomo Mitsui Trust Bank and Nippon Life Insurance of Japan.
Shares of Reliance Capital Limited surged 3.4 perent on the back of its plans to spin off its consumer lending business into a new unit and sell minotiry stakes to Sumitomo Mitsui Trust Bank and Nippon Life Insurance.
Canada's Intact Insurance and German insurer HDI-Gerling International Holdings have emerged as top contenders to buy 26% stake in the non-life insurance business of Reliance Capital, the Mint reported on Friday.
Anil Ambani’s plans to rid his group companies of debt have taken one step forward. Japan's Nippon life insurance will pick up a 26% stake in Reliance Capital Asset Management for Rs 1,450 crore. CNBC-TV18’s Varinder Bansal and Ashmit Kumar analyse the details.
Reliance Capital is in advanced talks to sell stake in its asset management company to Japan's Nippon Life Insurance and will pursue a banking licence, its chairman said on Tuesday, sending its shares up nearly 6%.
Reliance Capital seems to have moved closer in selling stake in its life insurance business. The Anil Ambani group company has received in-principle approval from IRDA (Insurance Regulatory Development Authority) to sell 26% stake in Reliance Life Insurance to Japan’s Nippon Life Insurance.
Nippon Life Insurance company's likely investment of USD 720 million in Anil Ambani's Reliance Capital to buy about a 26% stake is witnessing regulatory roadblocks. Sam Ghosh CEO of Reliance Capital says that the in a worst case scenario the deal will have to wait till January 2012, when the company completes 10 years.
Recently, Nippon Life Insurance Co, Japan's largest life insurer by revenue had declared that it is likely to buy about a 26% stake in Reliance Life in a bid to boost overseas business. However, according to the latest updates, the Reliance Life- Nippon deal is witnessing regulatory roadblocks, reports CNBC-TV18 quoting sources.
Talking about Nippon Life, Japan's largest Insurer's plan to invest USD 720 million in its insurance arm Reliance Life, Sam Ghosh, CEO of Reliance Capital said the company will look at similar deals in different entities in a bid to add value to shareholders.