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http://www.livemint.com/Companies/1FucZOG5iYA5uPpPpjtaeP/Nippon-Life-to-pay-Rs2265-crore-to-raise-stake-in-Reliance.html

“Nippon Life Insurance’s investment also represents an implied embedded value (EV) multiple of over three times for Reliance Life Insurance, the highest for any private insurer in India till date,” it said.

One of the reasons that Reliance Life has been able to get such a high valuation is because of its distribution channel, which is fully agency driven.

“Nippon is an agency driven insurer, so they understand Reliance Life business. Also, as an agency driven company, your strength is ownership of your distribution channel that is owning the agency franchise. Insurers who rely largely on banks for distribution will find it difficult to get a high valuation because the bank has the option to change partners regularly once the contract is up after three years,” said Sam Ghosh, executive director and group CEO, Reliance Capital.