Reliance Life Insurance Co. Ltd, the fully-owned insurance firm of Reliance Capital Ltd. on March 14, 2011 signed an agreement to bring in the world’s sixth biggest life insurance firm Nippon Life Insurance Co. as its 26% equity partner for Rs. 3,062 crores. This is the largest foreign direct investment (FDI) in the Indian insurance space. Our compliments to both Nippon as well as Reliance Group.
We got queries from some of the members of IFI wishing to know how they will benefit from this deal.
What I feel is that benefit to the customer will be improvement in service level as Nippon is large Japanese Company and Japanese are known for efficient service to their customers.
As far as selling of shares at premium of 62 to 80% is concerned the benefit goes to Reliance Capital as for every 100 Rs invested by them in last 10 years in Reliance Life they are getting Rs 180 so the parent / holding company of Reliance Life Insurance i.e. Reliance capital is the beneficiary as they are improving their balance sheet and this is the reason that share price of this company has gone up.
It will not affect / improve bonus calculation of the company, which is passed on to policy holders.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment