Nippon Life set to buy 26 per cent in Reliance Life for $724 million

11 Mar 2011

1

Nippon Life Insurance Co, Japan's largest life insurance company, is in advanced talks with Reliance Life Insurance Company Ltd to acquire a 26 per cent stake in the Indian insurer for about 60 billion yen ($724 million).

The move by Nippon Life Insurance (also known as Nissay) to acquire the maximum stake allowed by the Indian government in a domestic insurance company is the latest by a Japanese insurer to expand overseas.

Anil Ambani-controlled Reliance Capital, which runs the life insurance business, has been looking for a strategic partner to expand its insurance business. Post stake sale, Reliance Life is expected to come out with an initial public offer, Japanese newspaper reports said.

With a comparatively low insurance penetration level, India is still a luring market for insurance companies across the world. Compared with life insurance penetration level of 13.5 per cent of gross domestic product in Britain, life insurance penetration in India is only about 4 per cent, and a still lower 2.4 per cent in China.

With expected average economic growth rate of over 9 per cent, India is seen by insurance firms the world over as the most potential market other than China.

With domestic market narrowing and with slugglish economic growth and dwindling population, insurance companies in Japan have increasingly been looking overseas for growth - both organic and inorganic.

Nippon Life Insurance, which has some 12 million policyholders in Japan, uses a door-to-door sales corps to peddle its traditional insurance products, including individual and group life and annuity policies. Nippon Life also sells through agencies and partnerships with financial institutions such as banks.

Nippon Life Insurance Company, together with its subsidiaries, provides various life and non life insurance products and services

In addition, Nippon Life Insurance Company acts as a proxy for other insurance companies and financial institutions; and credit guarantee, as well as involves in the sale of investment trust beneficiary securities. The company operates in North America, Europe, Oceania, Asia, Central and South America, and the Middle East.

Latest articles

RIL to invest Rs65,000 cr in 500 biogas plants in Andhra Pradesh

RIL to invest Rs65,000 cr in 500 biogas plants in Andhra Pradesh

DRDO lab develops silicone carbide wafers, gallium nitride transistors for MMICs

DRDO lab develops silicone carbide wafers, gallium nitride transistors for MMICs

Senior bankers in PSBs are in firing line: AIBEA

IIT Madras – ISRO to set up Centre of Excellence for research in Fluid and Thermal Sciences

IIT Madras – ISRO to set up Centre of Excellence for research in Fluid and Thermal Sciences

LPG as automobile fuel a solution for Delhi NCR air pollution: IAC

LPG as automobile fuel a solution for Delhi NCR air pollution: IAC

Entry of Starlink and Kuiper could churn India’s telecom sector

Entry of Starlink and Kuiper could churn India’s telecom sector

India building Rs820-cr railway test track in Rajasthan

India building Rs820-cr railway test track in Rajasthan

Rupee falls to 84.37 a dollar as foreign funds withdraw over $2.37 bn from Indian stocks in five days

Rupee falls to 84.37 a dollar as foreign funds withdraw over $2.37 bn from Indian stocks in five days

New central scheme to facilitate guarantee-free loans for higher education

New central scheme to facilitate guarantee-free loans for higher education

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers