The boards of directors of Aditya Birla Capital Ltd and Aditya Birla Health Insurance Co. Ltd (ABHI) on Friday approved a proposal for a primary capital infusion of approximately Rs 665 crore in ABHI, from a wholly owned subsidiary of the Abu Dhabi Investment Authority, the company said in a statement.
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 African based Momentum Metropolitan Holdings Ltd.
The transaction values ABHI at approximately Rs6,650 crore.
Completion is subject to receipt of statutory and regulatory approvals, including the approval of the Insurance Regulatory and Development Authority of India. Upon the completion of the transaction, ADIA will own a 9.99% stake, Aditya Birla Capital will hold a 45.91% stake and Momentum Metropolitan Holdings will hold a 44.10% stake, respectively.
Funds will be used to drive the company’s growth. “With its differentiated Health-First model, ABHI is the fastest growing health insurance company in the health insurance space, in India,” the statement said.
“In recent times health has become a key concern for all. With its differentiated Health - First model, ABHI is well positioned to address this concern, while also protecting health through insurance. An investment from ADIA underscores the strong and unique business model of ABHI and the franchise we have created,” said Vishakha Mulye, chief executive officer of Aditya Birla Capital.
ABHI commenced its operations in October 2016. The health insurer’s current product portfolio includes unique offerings including chronic care and incentivized wellness. It has a nation-wide distribution presence in over 4,800 cities through branches and partner offices, 14 bancassurance partners and over 68,000 direct selling agents.
“We see significant potential in India’s health insurance sector as penetration levels increase, driven by higher 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 ABHI’s growth,” said Hamad Shahwan Al Dhaheri, executive director of the private equities department at ADIA.
