Nippon Life Insurance, Japan's largest Life Insurance company and a global financial services conglomerate today announced the integration of Nippon India Mutual Fund (erstwhile Reliance Mutual Fund) into their global unified Asset management fold, by becoming the single largest shareholder in the company. Change in Reliance Nippon Life Asset Management (RNAM) name will follow soon.
Nippon Life Insurance, a 130-year-old financial services conglomerate with significant global presence has over USD 700 Bn in AUM, which is more than the size of the Indian Asset management Industry and currently holds 75% shareholding in the company.
Mr. Hiroshi Shimizu, President, Nippon Life Insurance Company said "We had initially invested in Indian life insurance business in 2011 and Indian asset management business in 2012. We had entered India at right time in both asset management and life insurance businesses with long term vision and the completion of this transaction echoes our commitment for India. Indian Asset Management space is quite attractive and has a long-term growth potential which is in line with our goals. We believe that the core management team and the entire team at Nippon India Mutual Fund will be key driver in the growth story."
He further added saying, "We will provide full support to expand International and Alternate business by leveraging our Global network. We remain committed for the success of India business both in domestic and international markets. We are also very keen to incorporate more of global expertise into the mix and further improve upon processes in a steady manner wherever it helps - especially areas such as risk management and governance practices."
In Japan, about 1 out of 12 is a policy holder of Nippon Life Insurance and they have similar vision in India for their mutual fund business.
Speaking on the occasion, Mr. Sundeep Sikka, ED and CEO, Nippon India Mutual Fund said "I am extremely privileged to be part of the global conglomerate and while the company starts its journey with its new identity, the management team remains committed to take it to next level of growth with the support of our investors and stakeholders. It has always been a great opportunity to work with Nippon Life, who have always held the investors interests in mind. Nippon Life Insurance has been an extremely supportive shareholder for last 7 years and this transaction would set the stage for the long-term growth of the company". He also added saying, "Company will continue its focus to increase market share and increase in profitability".
Shares of Reliance Nippon Life Asset Management Ltd was last trading in BSE at Rs.271.1 as compared to the previous close of Rs. 272.8. The total number of shares traded during the day was 86725 in over 1763 trades.
The stock hit an intraday high of Rs. 278.5 and intraday low of 269.1. The net turnover during the day was Rs. 23749086.