Reliance Life to divest 26 per cent stake to Swiss Re: report
29 Mar 2010
Reliance Life Insurance Co. Ltd., a subsidiary of Reliance Capital Ltd., is likely to sell its 26-per cent stake to the world's second biggest reinsurer Swiss Reinsurance Co. Ltd to raise about Rs700 crore ($155 million), say media reoprts.
Talks on the stake sale by the Anil Dhirubhai Ambani Group company have reached the final stage and an announcement is likely in April, the Mint newspaper reported today.
On January 18, Swiss Re divested a part of its US business to the investment vehicle of billionaire Warren Buffett, Berkshire Hathaway, for 1.3 billion Swiss francs ($1.27 billion).
At that time, Christian Mumenthaler, who heads the company's life and health department said that the sale frees up capital that it can redeploy elsewhere at more attractive returns (See: Buffett acquires part of of Swiss Re's US business).
Indian laws allow a foreign entity to own up to 26 per cent in an Indian insurance firm.
Reliance Life is the only private sector insurer in India that does not have an overseas stakeholder.