RELIANCE CAPITAL AND RELIANCE LIFE INSURANCE RECEIVE SALE PROCEEDS OF RS 3,062 CRORE (US$ 680 MILLION)

TRANSACTION PEGS RELIANCE LIFE INSURANCE VALUATION AT RS 11,500 CRORE (US$ 2.6 BILLION)

LARGEST FDI IN INDIAN FINANCIAL SERVICES SECTOR BY FAR THE LARGEST FDI IN INSURANCE SECTOR IN INDIA
NIPPON LIFE INSURANCE IS A 122 YEAR OLD GLOBAL FORTUNE 100 COMPANY
NIPPON LIFE INSURANCE IS THE 7TH LARGEST LIFE INSURER IN THE WORLD
NIPPON IS THE NO. 1 PRIVATE LIFE INSURER IN ASIA AND JAPAN

October 09, 2011, Mumbai/Tokyo: Reliance Capital today announced completion of the transaction for sale of a 26% stake in Reliance Life Insurance to Nippon Life Insurance.

The entire transaction proceeds of Rs 3,062 crore (USD 680 million) from Nippon Life Insurance have duly been received.
The transaction pegs the total valuation of Reliance Life Insurance at approximately Rs 11,500 crore (US$ 2.6 billion).

Reliance Capital had signed a definitive agreement in March 2011 with Nippon Life Insurance to sell the 26 per cent stake in Reliance Life Insurance, subject to regulatory approvals, which have since been received.
Nippon Life is a 122-year-old Global Fortune 100 company, the 7th largest life insurer in the world, and the No.1 private life insurer in Asia and Japan.

Commenting on the development, Mr. Sam Ghosh, CEO, Reliance Capital said, ”We are delighted to welcome Nippon Life Insurance as our valued strategic partner in Reliance Life Insurance. Nippon’s vast experience of over 122 years will help strengthen Reliance Life Insurance’s position as a leading and world class insurance company in India.”

“We are very happy to complete the transaction. Nippon Life is keen to work with Reliance and establish a long-term partnership that is mutually beneficial for both companies”, said Mr. Yoshinobu Tsutsui, President, Nippon Life Insurance.

Nippon Life Insurance posted revenues of Rs 3,49,834 crore (US$ 80 billion) and a profit of Rs 12,199 crore (US$ 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 of March 2011. In addition to selling life insurance products, Nippon Life Insurance offers various products, including defined contribution pension plans and medical coverage plans. The company celebrated its 120th anniversary in July 2009.

Reliance Life Insurance, a part of Reliance Capital, started operations in 2005, after the acquisition of a life insurance company by Reliance Group. Reliance Life today is one of the largest insurers in number of individual policies sold amongst the 23 private life insurers in India. The company has sold over 7 million policies through its network of over 1,250 offices and 1,80,000 advisors. Reliance Life manages assets of approx Rs 18,000 crore (US$ 4 billion) as of March 31, 2011.

About Nippon Life Insurance
www.nissay.co.jp/english
Nippon Life Insurance, also called Nissay, is Japan's largest private life insurer with revenues of Rs 3,49,834 crore (US$ 80 billion) and profits of over Rs 12,199 crore (US$ 3 billion). The company, which has over 14 million policies in Japan, offers a wide range of products, including individual and group life and annuity policies through various distribution channels and mainly uses a face-to-face sales channel for its traditional insurance products. company primarily operates in Japan, North America, Europe and Asia and is headquartered in Osaka, Japan.

About Reliance Life Insurance Company Limited
www.reliancelife.com
Reliance Life Insurance Company Limited, a part of Reliance Capital, is one of India’s top private sector life insurance companies with an aggregate business premium of Rs 6,600 crore (US$ 1.46 billion) as on 31st March 2011.

The company has sold over 7 million policies and manages assets of approx Rs 18,000 crore (US$ 4 billion) as of March 31, 2011. Reliance Life has an extensive distribution network of over 1,250 offices and 1,80,000 advisors.

Reliance Life Insurance offers a comprehensive range of innovative and need-based products, including protection, investment and retirement, targeted at individuals and groups.

About Reliance Capital
www.reliancecapital.co.in
Reliance Capital Ltd is a part of the Reliance Group and is one of India’s leading private sector financial services companies, and ranks among the top 4 private sector financial services and banking groups, in terms of net worth.

Reliance group is amongst India’s leading business houses with over 230 million customers. It has a strong presence across a wide array of high growth commercial-facing businesses of financial services, telecom, energy, power, infrastructure and media and entertainment.

Reliance Capital has interests in asset management and mutual funds; life and general insurance; commercial finance; equities and commodities broking; investment banking; wealth management services; distribution of financial products; exchanges; private equity; asset reconstruction; proprietary investments and other activities in financial services.

Corporate Office : 570, Rectifier House, Naigaum Cross Road, Wadala (W), Mumbai 400 031, India
For Media Queries
Nippon Life Insurance

Akira Tsuzuki tsuzuki26439@nissay.co.jp +81-355331032
Deputy General Manager,
Public & Investors Relations Dept
Reliance Capital

Sharad Goel sharad.goel@relianceada.com +91-9324984296
Senior Vice President +91-22-30479217
Corporate Communications
Reliance Capital

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