Japan-based Nippon Life Insurance has reportedly agreed to purchase another 23% stake in India’s Reliance Life Insurance for Rs25bn ($385m).
This deal will allow the firm to increase its interest in the joint venture with Reliance Capital to 49%.
In March 2011, Nippon Life acquired 26% stake in Reliance Life Insurance for around $680m.
Reliance Life Insurance provides life insurance products for individuals and groups through four segments, including protection, children, retirement and investment plans.
With around 800 branches and over 1,00,000 advisors, the private life insurer has over 10 million policy holders in the country.
Nippon Life also signed an agreement with Reliance capital to increase its stake in Reliance Capital Asset Management (RCAM) from the existing 35% to 49%, which is the maximum stake a foreign insurance investor can hold in any domestic firm in the country.
Nippon will spend $184m to acquire the additional 14% stake in RCAM, which is valued at $1.3bn. The entity will be renamed Reliance Nippon Life Asset Management.
It is also reportedly planning to acquire National Australia Bank’s insurance business by March 2016, for a consideration of $2.5bn.
With revenues of around $66bn, Nippon Life Insurance offers a wide range of products, including individual and group life and annuity policies. It has around 21 million policies in Japan.
The company provides insurance products and services in Japan, North America, Europe and Asia.
Image: Headquarters of Nippon Life Insurance Company in Chuo-ku, Osaka. Photo: courtesy of 663highland.