ADIA Eyes Minority Stake In Aditya Birla's Health Insurance Arm: Report

Aditya Birla Health Insurance Company, which is based out of Based in South Africa, is a 51:49 per cent joint venture between Aditya Birla Group and MMI Holdings

Abu Dhabi Investment Authority, which is one of the major sovereign wealth funds in the world, is eyeing to double down in India’s fast-growing financial services space.

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Abu Dhabi Investment Authority (ADIA) is discussing with Aditya Birla Group for an investment of Rs 1,200-1,500 crore in its health insurance subsidiary as growth equity, according a report by the Economic Times.

The talks for taking a minority stake in Aditya Birla Health Insurance Co Ltd (ABHICL) by ADIA are full swing and expected to gain pace in the coming weeks, sources privy to the development told ET.

However, according to the report, the final amount and quantum of stake are not yet finalised.

ABHICL, which is based out of South Africa, is a 51:49 per cent joint venture between Aditya Birla Group and MMI Holdings.

The company, which was set up in 2015 as a standalone health insurance firm, began operations in October 2016. ABHICL’s total insurance premium collections in FY22 increased by 33 per cent to Rs 1,470 crore, of which, 66 per cent was from retail segment.

ABHICL has presence in over 2,800 cities through branches and partner offices and it claims to cover 1.8 crore lives, including 1.4 crore through micro insurance products.

The ET report mentioned that according to IRDAI, ABHICL is one of five active standalone health insurance companies with a 14 per cent market share of the gross underwritten premium in Q1FY22.

ADIA, which is one of the major sovereign wealth funds in the world, is eyeing to double down in India’s fast-growing financial services space.

The ADIA bought a 20 per cent minority stake in IIFL’s home finance arm for Rs 2,200 crore last month.

It has also taken bets on various leading listed banks and NBFCs, such as HDFC Bank, Reliance Capital, Kotak Mahindra Bank, and KKR India Financial Services.