ADIA acquires 10% of Aditya Birla Health Insurance for 665 Cr

The boards of directors of Aditya Birla Capital Ltd and Aditya Birla Health Insurance Co. Ltd entity on Friday approved an investment by 665 crore into the Abu Dhabi Investment Authority (ADIA) health insurer.

Aditya Birla Health Insurance valued the transaction at around 6,650 crore, according to a company statement.

Aditya Birla Health Insurance is a 51:49 joint venture between Aditya Birla Capital and Momentum Metropolitan Strategic Investments (Pty) Ltd, a unit of South Africa’s Momentum Metropolitan Holdings Ltd. The transaction is subject to legal and regulatory approvals including the Insurance Regulatory and Development Authority of India. Upon completion, ADIA will own 9.99%, Aditya Birla Capital 45.91% and Momentum Metropolitan Holdings 44.1%.

The funds are intended to drive the growth of the health insurer.

“Health has recently become a key concern for everyone. With its differentiated health-first model, Aditya Birla Health Insurance is well positioned to address this issue while protecting health through insurance. An investment by ADIA underscores the strong and unique business model of Aditya Birla Health Insurance and the franchise we have created,” said Vishakha Mulye, CEO of Aditya Birla Capital.

Aditya Birla Health Insurance started operations in October 2016. The insurer’s product portfolio includes chronic care and wellness with incentives. It is present in over 4,800 cities through branches, partner offices, 14 bancassurance partners and over 68,000 direct selling agents.

“We see significant potential in the Indian health insurance sector as market penetration increases driven by greater awareness and broader economic growth. Aditya Birla Health Insurance has a strong management team, a wellness-first product offering and a differentiated distribution model. We look forward to partnering with Aditya Birla Capital and Momentum Metropolitan Holdings to support the next phase of Aditya Birla Health Insurance’s growth,” said Hamad Shahwan Al Dhaheri, executive director of private equity at ADIA.

The Indian insurance sector has made several private equity investments over the years, attracted by the potential for growth as insurance coverage is among the lowest in the world.

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