Anil Ambani-owned Reliance Capital has signed a memorandum of understanding (MoU) with Japan-based Nippon Life Insurance for collaboration opportunities, including strategic partnership, across all Reliance Capital promoted financial services businesses.
The MoU was signed by Reliance Capital Chairman Anil Ambani and Nippon Life President Yoshinobu Tsutsui in Tokyo on Friday. Under the MoU, both parties have decided to explore various opportunities and exchange views on collaborating in possible business operations, an official statement issued here said.
Nippon Life had earlier this year signed a definitive agreement to acquire 26 per cent stake in Reliance Life Insurance at an aggregate value of Rs.3,062 crore ($680 million). “Nippon Life Insurance has already agreed to be our partner in the Life Insurance business, and we see great potential to work together across our other financial services businesses,” said Mr. Ambani, Besides collaboration in business operations, this MoU could throw up opportunities for Reliance Capital to shed equity stake in its other financial services businesses, industry sources said. “We have signed the MoU. We are delighted to have an opportunity to expand our relationship with Reliance,” Mr. Yoshinobu Tsutsui said.
Nippon Life Insurance posted revenues of Rs.3,49,834 crore ($80 billion) and a profit of Rs.12,199 crore ($3 billion) for the fiscal year ended March 31, 2011. The company sold around 1.2 million policies taking the total number of policies in force to over 14.5 million as on March 2011. In addition, Nippon Life offers products, including defined contribution pension plans and medical coverage plans.
