New Delhi: Japan's Nippon Life Insurance on Wednesday increased stake in Reliance Life Insurance by another 23 per cent, taking its total holding to 49 per cent.
Reliance Capital, the holding company of Reliance Life, received Rs 2,265 crore for the deal.
Nippon Life's total investment has reached Rs 8,630 crore for acquiring 49 per cent each in Reliance Life Insurance and Reliance Capital Asset Management.
Reliance Life has managed a strong valuation of about Rs 10,000 crore and highest embedded value 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.
"We would like to welcome Nippon Life Insurance as our equal partners in life insurance and asset management businesses. We have immensely benefited from our relationship with Nippon Life over the last five years and look forward to further consolidate this partnership in India and abroad with their experience," Reliance Capital ED and group CEO Sam Ghosh said in a statement.
In March 2011, Nippon Life had picked up a 26 per cent stake in the life insurance venture under Reliance Capital for Rs 3,062 crore.