Reliance Capital has announced that Japan's Nippon Life Insurance has increased its stake in Reliance Life Insurance by 23 per cent, taking its total holding to 49 per cent.

Reliance Capital, the holding company of Reliance Life, has received Rs 2,265 crore for the deal.

Nippon Life's total investment has reached Rs 8,630 crore for acquiring 49 per cent stake each in Reliance Life Insurance and Reliance Capital Asset Management.

The transaction pegs the valuation of Reliance Life Insurance at approximately Rs 10,000 crore.

In line with the new shareholding structure, the name of the company will also be changed to Reliance Nippon Life Insurance Company Ltd.

"We would like to welcome Nippon Life Insurance as our equal partners in life insurance and asset management businesses. We have immensely benefited from our relationship with Nippon Life over the last five years and look forward to further consolidate this partnership in India and abroad with their experience," Reliance Capital ED and Group CEO Sam Ghosh said in a statement.

In March 2011, Nippon Life had picked up 26 per cent stake in the life insurance venture under Reliance Capital for Rs 3,062 crore.

The company recorded a new business premium of Rs. 285 crore ($43 million), renewal premium of Rs. 706 crore ($107 million), total premium (net of reinsurance) of Rs. 986 crore ($149 million) and total funds under management of Rs. 16,038 crore ($2.4 billion) for the quarter ended December 31, 2015.

Nippon Life Insurance is an over 125-year-old insurer and a Global Fortune 500 company that manages over $520 billion (Rs 33.8 lakh crore) in assets - among the largest total assets in the world for any life insurer. The company is one of the largest life insurers in the world.

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