Japan-based Nippon Life Insurance has entered into an agreement with India’s Reliance Capital to acquire another 23% stake in Reliance Life Insurance, for Rs22.7bn ($342m).
The deal will allow Japanese insurer to increase its interest in Reliance Life Insurance from the current 26% to 49%.
Under the deal, Reliance Life Insurance will also be renamed as Reliance Nippon Life Insurance, in addition to increasing the number of directors on the board.
In March 2011, Nippon Life purchased 26% stake in Reliance Life Insurance for around $680m.
In March this year, the Indian Government introduced a new law to allow foreign insurers to acquire up to 49% stake in local insurance ventures.
Following this, Nippon started discussions with Reliance Capital to increase its stake in Indian joint venture.
Reliance Life Insurance offers life insurance products for individuals and groups through four segments, including protection, children, retirement and investment plans. The private insurer has over 10 million policy holders in the country.
In October this year, Nippon Life agreed to acquire 80% stake in National Australia Bank’s (NAB) life insurance subsidiary, MLC, for around AUD2.4bn ($1.7bn).
Established in 1886, MLC distributes a wide range of products ranging from traditional life insurance such as term insurance to income protection insurance and group insurance.
Nippon Life Insurance provides a wide range of products, including individual and group life and annuity policies. It has around 21 million policies in Japan.
Image: Headquarters of Nippon Life Insurance Company in Chuo-ku, Osaka. Photo: courtesy of 663highland.