Nippon Life Insurance, Japan’s largest Life Insurance company, announced the integration of Reliance Mutual Fund, in which Nippon now owns 75% stake, into their global unified asset management fold, by becoming the single largest shareholder in the company. The company has also announced the change in the name of Reliance Nippon Life Asset Management (RNAM) as Nippon India Mutual Fund.
Nippon Life Insurance, a 130-year-old financial services conglomerate with significant global presence has over $700 billion in assets under management, which is more than the size of the Indian asset management industry. Nippon Life currently holds 75% shareholding in the company.
In a statement, 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 the 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.”
Shimizu further said Nippon Life will provide full support to expand international and alternate business by leveraging its global network.
“We remain committed for the success of the 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,” he said.
In Japan, about 1 out of 12 is a policyholder of Nippon Life Insurance and they have similar vision in India for their mutual fund business.
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 the next level of growth with the support of our investors and stakeholders. Nippon Life Insurance has been an extremely supportive shareholder for the last 7 years and this transaction would set the stage for the long-term growth of the company”.
Reliance Nippon Life Asset Management Limited is one of the largest asset managers in India, managing (directly & indirectly) assets across mutual funds, managed accounts, alternative investments and offshore funds. RNAM is the asset manager of Reliance Mutual Fund (RMF) schemes.
RNAM also acts as an advisor for India focused Equity and Fixed Income funds in Japan (launched by Nissay Asset Management), Korea (launched by Samsung Asset Management) and in Thailand (launched by BBL Asset Management). RNAM also manages offshore funds through its subsidiaries in Singapore and Mauritius and also has a representative office in Dubai thereby catering to investors across Asia, Middle East, UK, US, and Europe.