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Nippon Life signs final agreements with Reliance Capital-news22032012


Nippon Life wilt invests an aggregate value of Rs1,450 crore to acquire 26% strategic stake in Reliance Capital Asset Management (RCAM). The transaction pegs the total valuation of RCAM at approximately Rs5,600 crore.


Nippon Life is a 122 year Global Fortune 100 company and manages over $600 billion (Rs30 lakh crore) in assets, amongst the largest total assets in the world for any life insurer. The company is the 7th largest life insurer in the world and the Number I private life insurer in Asia and Japan

Commenting on the development. Mr. Sam Ghosh said,' We are delighted to sign final agreements with Nippon and look forward to having them as our strategic partners in the Mutual Fund business. We will be filing our application with the regulators for approval and hope to conclude this transaction soon'.

Mr. Yoshinobu Tsutsui, President, Nippon Life said, 'I am very pleased that we have entered into the final agreements about investment in Reliance Capital Asset Management. I believe that this partnership in the field of asset management will strengthen our relationship with Reliance Group.'

RCAM is the largest and most profitable AMC in India, in terms of AUM, managing approximately Rs1,40,000 crore, across mutual funds, government sponsored public funds, managed accounts and hedge funds.

Nippon Life Insurance is already a strategic partner in Reliance Life Insurance. The Japanese company acquired 26% stake in Reliance Life Insurance at an aggregate value of Rs3,062 crore. The transaction pegged the total valuation of Reliance Life Insurance at approximately Rs11,500 crore.
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