Nippon Life Insurance, a Japan-based life insurer, has signed a definitive agreement to acquire a 26% stake in Reliance Life Insurance, an India-based private life insurer, for $680m.
This transaction pegs the total valuation of Reliance Life Insurance at approximately $ 2.6bn.
Reliance Life Insurance, a part of Reliance Capital, commenced operations in 2005. The company has sold more than seven million policies through its network of nearly 1,250 offices and over 2,15,000 advisors.
Reliance Capital CEO Sam Ghosh said that as a strategic partner, Nippon Life will bring vast experience, expertise and global best practices – in areas of product development, underwriting, investment management, distribution, customer relationship management and risk management.
"This partnership will accelerate Reliance Life Insurance’s vision of becoming a world class insurance company in India," Ghosh said.
This transaction is subject to necessary regulatory approvals.