Reliance Capital in talks to sell 26% stake in general insurance business

Shares in Reliance Capital jumped 2.5 per cent after chairman Anil Ambani said the company is in talks to sell 26 per cent stake to strategic partners in its general insurance business.

Mr Ambani also announced a special dividend for shareholders. The special dividend, to be considered by the company's board on September 10, is being given for completion of 25 years of his group's financial services arm Reliance Capital.

Addressing the shareholders at RCap's Annual General Meeting (AGM) in Mumbai, Mr Ambani said the company's life insurance unit will partner with banks for distribution of
products, while discussions are underway for Reliance Mutual Funds managing the funds of Japan's Nippon Life.

Nippon Life, which has assets of over Rs 30 lakh crore globally and is a strategic partner in Reliance Life and Reliance Asset Management Company, will also help distribute
Reliance MF products in Japan.

The Japanese financial services giant had acquired 26 per cent stake in Reliance Life for over Rs 3,000 crore in the largest FDI deal in the Indian financial services space. Nippon Life has also bought 26 per cent stake in Reliance Capital Asset Management for 1,450 crore.
     
Mr Ambani said RCap's total income rose 21 per cent to Rs 6,627 crore last fiscal, while net profit rose 57 per cent to Rs 458 crore. Its total assets rose 10 per cent to Rs 35,343 crore, while networth grew by 50 per cent to Rs 11,697 crore in 2011-12.