Nippon Life Global President Hiroshi Shimizu along with Managing Executive Officer and Head of Global Business Minoru Kimura said, sources with knowledge of the matter said. nippon life Insurance, and Tomohiro Yao, Regional CEO, Nippon Life Asia Pacific and Director, RNLIC, are expected to visit Mumbai on Monday.
Shimizu and his team can meet senior officials of the reserve Bank of India (reserve Bank of India) and other stakeholders, and inform them of their position with regard to their investment in RNLIC and their long-term commitment to the Indian Insurance region.
The visit coincides with the deadline for submission of final binding bids for Reliance Capital and its subsidiaries including RNLIC. Sources said Nippon Life has already made it clear to Reliance Capital’s insolvency administrator Y Nageswara Rao that the company opposes the entry of Aditya Birla Sun Life in the bidding process for RNLIC.
Sources said it does not want to merge with Birla Sun Life or sell its 49 per cent stake in the Indian conglomerate, with Nippon insisting that they are a long-term player in the Indian life insurance business, and hence merging with another Huh. Life insurance company is not an option for them.
Nippon Life has also clarified its position to the top management of Aditya Birla Sun Life and its overseas partner Sun Life Financial Inc.
To counter the Aditya Birla bid, Nippon Life is also preparing to bid for Reliance Capital’s 51 per cent stake in RNLIC in partnership with an Indian company, as Indian regulations limit the holding of foreign companies to 74 per cent in the insurance sector. limit to.
Sources said Nippon is in talks with Torrent, Cosmia and Hinduja For this bid to form a strategic partnership.
Aditya Birla is keen to bid for RNLIC. No bids were received in the first round for Reliance Capital’s 51 per cent stake. The rest is being sold to Reliance Capital to recover bank dues.
Nippon Life, which already holds 49 per cent stake in RNLIC, is keen to acquire this 51 per cent stake in partnership with a strategic investor. Nippon held several meetings with the administrators of Reliance Capital and briefed them about its plans.
But the sudden entry of Aditya Birla Sun Life Insurance has played havoc with the company and its plans.
If Birla Sun Life succeeds in acquiring 51 per cent stake in RNLIC, it will have to merge RNLIC with its existing insurance company – Birla Sun Life Insurance – due to IRDA guidelines on any cross-holding between the two insurance companies. Not allowed. companies.
The merger will reduce Nippon Life’s stake in the merged entity to less than 10 per cent. It will also lose all shareholder and governance rights that exist in the case of nominating a CEO, equal representation on the board, and a board member. audit Committee, and veto power on matters reserved in RNLIC.