Nippon buys 23% stake in Reliance Life for Rs2,265 cr

New Delhi, November 24

Japan's Nippon Life Insurance today announced the acquisition of another 23% stake in Reliance Life Insurance for about Rs 2,265 crore.

Nippon's stake in the company, when the deal comes through, will increase to 49% — the upper limit for a foreign player in the private sector insurance firm.

Reliance Life has got the Embedded Value (EV) multiple of over 3, highest in the industry to date. Despite the overall slowdown in the insurance sector, it has managed a strong valuation of about Rs 10,000 crore and highest EV multiple across Life insurance companies.

In line with the new shareholding structure, the name of the company will also be changed to Reliance Nippon Life Insurance Company Limited.

Nippon Life increased stake in Reliance Life to 49% for Rs 2,265 crore. With this its total investment has reached Rs 8,630 crore for 49% stake each in life insurance and asset management business. PTI