Nippon Life is to raise its stake in Reliance Capital Asset Management (RCAM) to 35% and is planning to develop its global asset management business.
Japan's largest private life insurer took a 26% stake in Mumbai-based RCAM in 2012 with an option to raise its ownership to 49%. Nippon Life announced that it had purchased a further 9% of Reliance for 12.5bn yen ($106m) and will consider going to the full 49% within two years. This week's deal values RCAM at $1.2bn.
"Taking advantage of the strengthened capital relationship, we are also aiming to further develop our asset management business globally, with an eye to realising group synergies, including with our other business partners from around the world," said Nippon Life.
Nippon's other asset management subsidiaries and affiliates include NLI International, Nissay Schroders and PanAgora.
RCAM manages assets worth approximately $34bn, via mutual funds and portfolio management, and has an 11.5% share of the Indian mutual fund industry.
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