Nippon Life to invest $724m in Reliance Life: Source
Nippon Life Insurance Co plans to buy a 26% stake in Reliance Life Insurance for about 60 billion yen (USD 724 million), a source with knowledge of the matter said, the latest move by a Japanese insurer to expand overseas.
March 11, 2011 / 11:47 IST
Nippon Life Insurance Co plans to buy a 26% stake in Reliance Life Insurance for about 60 billion yen (USD 724 million), a source with knowledge of the matter said, the latest move by a Japanese insurer to expand overseas.
Nippon Life, Japan's largest life-insurer, is in talks with Reliance Capital, the parent of the Indian insurer, to acquire the 26% stake, the maximum allowed for a foreign company in India, the source said.The source was not authorised to talk about the matter publicly.Both Nippon Life and Reliance Capital declined to comment on the news, which was first reported by the Asahi newspaper.Reliance Capital has said in the past that it was looking to bring in a strategic investor for its life insurance unit ahead of a possible initial public offering.Faced with weak growth prospects at home due to the sluggish economy and an ageing population, Japanese insurers have been stepping up efforts to expand overseas, often through acquiring stakes in and buying out local players.Late last year, Japan's No. 2 life insurer, Dai-ichi Life said it would buy out Tower Australia Group for USD 1.2 billion. (USD 1 = 82.900 Japanese Yen) Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
