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A wholly-owned subsidiary of Abu Dhabi Investment Authority will invest Rs 665 crore in Aditya Birla Health Insurance. The health insurer announced that the Board of Directors of Aditya Birla Capital Limited has approved the proposed initial capital injection. The deal valued Aditya Birla Health Insurance at Rs 6,650 crore.
Completion of the transaction is subject to statutory and regulatory approvals, including the Insurance Regulatory and Development Authority of India (IRDAI).
Aditya Birla Health Insurance is a 51:49 joint venture between Aditya Birla Capital and Momentum Metropolitan Strategic Investments (Pty) Ltd, a wholly owned subsidiary of South Africa-based Momentum Metropolitan Holdings Limited.
Upon completion of the transaction, ADIA will own 9.99% of Aditya Birla Health Insurance, 45.91% of Aditya Birla Capital Limited and 44.10% of Momentum Metropolitan Holdings.
The health insurer plans to use the funds to fuel its growth in the Indian health insurance market.
ABCL chief executive Vishakha Mulye said health had become a major concern for all in recent years. “With its differentiated Health-First model, ABHI is well positioned to address this, while also protecting health through insurance,” he said.
Mayank Bathwal, Chief Executive Officer of Aditya Birla Health Insurance, said: “This partnership with ADIA strengthens our determination to further expand the company’s ‘health first’ proposition as we enable our customers to lead healthy lives. We will continue to deliver on this commitment , and has accordingly reimagined our business model and customer engagement by creating differentiated products, a digital health ecosystem and a vast distribution network across the country.”
Hamad Shahwan Al Dhaheri, executive director of ADIA’s private equity division, said the country’s health insurance sector has huge potential as penetration levels increase, driven by greater awareness and broader economic growth.
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