Mumbai, Oct 9 (IANS): Reliance Capital Sunday said it had concluded a 26 percent stake sale in its life insurance arm to Japan's Nippon Life for $680 million (Rs.3,062 crore), making it one of the largest foreign direct investments in the Indian financial services sector and valuing the enterprise at $2.6 billion.

Reliance Capital, part of the Anil Ambani-led Reliance Group, had signed an agreement in March with Nippon Life Insurance to sell 26 percent stake in Reliance Life Insurance.

"The entire transaction proceeds of Rs.3,062 crore ($680 million) from Nippon Life Insurance have duly been received," the company said in a statement, after it got approvals from the Reserve Bank and the Insurance Development and Regulatory Authority of India.

"Nippon's valuable experience of over 122 years will now help strengthen Reliance Life Insurance's position as a leading and world-class insurance company in India," said Sam Ghosh, chief executive of Reliance Capital.

Reliance Life has sold over 7 million policies and manages assets of approximately Rs.18,000 crore ($4 billion) as of March 31.

Earlier this month, Reliance Capital had also signed a pact with Nippon Life Insurance to pursue partnerships beyond the insurance space to provide a host of financial services in India.

Nippon Life, a 122-year-old Global Fortune 100 company is the 7th largest life insurer in the world, and posted revenues of $80 billion and a profit of $3 billion for the fiscal ended March 31.

Nippon Life, company officials said, was now evaluating opportunities - including strategic partnership - across all Reliance Capital-promoted financial businesses including asset management.

"Nippon Life is keen to work with Reliance and establish a long-term partnership that is mutually beneficial for both companies", said Yoshinobu Tsutsui, president, Nippon Life Insurance.

Reliance Capital Asset Management is the largest asset management company in India and manages over Rs.104,136 crore ($23 billion) across mutual funds, pension funds, managed accounts and hedge funds and has over 7 million investors.

Reliance Capital is among the top four private financial services firm with interests in areas such as mutual funds, insurance, commercial finance, broking, investment banking, private equity, wealth management and financial products distribution.