Nippon to buy 23% stake in Reliance Life

Nippon Life Insurance (NLI) has signed definitive agreements to increase its stake in Reliance Life Insurance (RLIC) to 49 per cent from 26 per cent. The Japanese company will be investing an aggregate value of Rs 2,265 crore to acquire the additional 23 per cent stake in Reliance Life Insurance.

The boards of directors of both the companies have approved the increase in stake by the Japanese partner, subject to regulatory approvals. In line with the new shareholding structure, the name of the company will also be changed to Reliance Nippon Life Insurance Company.

NLI’s investment represents an implied embedded value (EV) multiple of over three times for Reliance Life Insurance, the highest for any private insurer in India till date.