Mumbai, Mar 21 (IANS): The Foreign Investment Promotion Board has granted approval to Japan's Nippon Life Insurance to increase its stake in Anil Ambani-led Reliance Life Insurance (RLI) to 49 percent, which will peg the valuation of the Indian company at $1.5 billion.

Nippon Life will be investing an aggregate value of Rs.2,265 crore ($348 million) to acquire an additional 23 percent stake in Reliance Life to reach a 49 percent stake, a statement by the companies said.

"In line with the new shareholding structure, the name of the company will also be changed to Reliance Nippon Life Insurance Company, post increase in stake," the statement added.

"The transaction pegs Reliance Life Insurance's valuation at approximately Rs.10,000 crore ($1.5 billion), amongst the highest valuation for any Life Insurance company in the country."

Once the transaction goes through, Nippon Life would have invested a total of Rs.8,630 crore ($1.3 billion) for acquiring the 49 percent each in Reliance Life Insurance and Reliance Capital Asset Management.

Nippon Life is an over-125 years old insurer and a Global Fortune 500 company that manages over $520 billion in assets -- amongst the largest total assets in the world for any life insurer.