Friday, September 30 2005 13:55 Hrs (IST) - World Time -

Mumbai: Anil Ambani-controlled Reliance Capital Ltd (RCL) today (Sept 30, 2005) said it has received Insurance Regulatory and Development Authority's (IRDA) approval for acquisition of Chennai-based life insurance company AMP Sanmar.

"The Insurance Regulatory and Development Authority has accorded its approval for 100 per cent investment in the equity of AMP Sanmar Life Insurance Company Ltd, by the company," RCL informed the stock exchanges today.

The company has also sought the Reserve Bank of India's approval in this regard.

Reliance had approached the insurance regulator on August 17 for clearance of its acquisition of AMP Sanmar.

RCL is believed to have shelled out about Rs 1 bn for a direct entry into life insurance business through acquisition of AMP Sanmar, which has a ready-made customer base and a cash reserve of Rs 800 mn.

AMP Sanmar, which has a capital base of Rs 2.17 bn, had demonstrated the highest growth among all the players at over 170 per cent with premium income of Rs 150 mn from new businesses in April-May this year despite uncertainties over the change in guard after its Australian partner AMP decided to quit Indian operations.

AMP Sanmar had cash balance of Rs 800 mn according to books of accounts, but also has about 9,000 agents and about 900 employees besides 90 offices across the country.

RCL clinched the AMP Sanmar deal among many new and existing players. Companies like Aviva, ICICI Prudential, HSBC and Birla Sunlife had evinced interest in picking up the stake in AMP Sanmar.