Reliance Cap, Nippon Life ink pact for further tie-ups

Seeking to take their relationship further, Reliance Capital and Japan's Nippon Life Insurance on Thursday signed a memorandum agreeing to explore more collaboration opportunities across the financial sector, including a possible stake sale in R-Cap's asset management (mutual fund) business to Nippon.

The memorandum of understanding to this effect was signed in Tokyo by R-Cap Chairman Anil Ambani and Nippon Life president Yoshinobu Tsutsui.

Nippon had agreed to buy a 26-per cent stake in Reliance Life Insurance earlier this year for Rs3,062. The deal is awaiting regulatory and other approvals.

The MoU would entail Nippon Life evaluating various collaboration opportunities, including strategic partnerships, across all Reliance Capital-promoted financial businesses, including mutual funds, R-Cap said in a statement.

After signing the MoU, Anil Ambani said, "Nippon Life 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."

Osaka-based Nippon Life, also called Nissay, is a 122-year-old company ranked the seventh largest life insurer in the world and the single-largest private life insurer in Asia and Japan.