Money & Banking

‘It will be a primary and a secondary sale'

| Updated on: Mar 14, 2011
image caption

Reliance Life Insurance Company, the country's fifth biggest player in the life insurance segment, is the last player to bring in a foreign partner. The company has been scouting for a strategic partner for some time now, and it has finally zeroed in on Nippon Life Insurance to offload a 26 per cent stake.

In an e-mail interview to Business Line , Mr Sam Ghosh, CEO, Reliance Capital, the holding company of Reliance Life, shared his views on the deal, the business prospects and the strategy of the company.

Excerpts:

Will this be a sale of promoter's stake?

This will be a primary and a secondary sale. The primary issue will be of a small amount.

What is the end use of the sale proceeds?

Business expansion, and for meeting existing fund and solvency requirements.

If Reliance Capital were to pump in fresh capital from the sale proceeds, will Nippon Life also bring in the proportionate capital?

No comment at this moment.

With the expertise of Nippon, will you be launching more of traditional plans?

Will announce in due course.

Since Reliance Life has not tied up with any bancassurance partner, will you follow the traditional method (agency) to expand your market share?

Yes, that will form an important strategy for growth.

In the past few years capital inflows into life insurance has been low. With ULIPs being the most sold product, will you be aggressively marketing them with fresh capital?

We have changed our product mix and today we have an equal weight of traditional and ULIP products in our basket.

Will the cash inflows delay your IPO?

No. we will take a call on the IPO once the guidelines are out.

Published on March 14, 2011

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

COMMENTS
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you