ADIA eyes minority stake in health insurance arm of Aditya Birla: report

Abu Dhabi Investment Authority (ADIA) is in talks with Aditya Birla Group for an investment of nearly Rs 1,200-1,500 crore in its health insurance arm as growth capital, the Economic Times reported on Monday. .

Talks for ADIA to take a minority stake in Aditya Birla Health Insurance Co Ltd (ABHICL) are ongoing and are expected to accelerate in the coming weeks, people familiar with the matter have told ET.

The final amount and stake amount are yet to be finalized, according to the report.

Based in South Africa, ABHICL is a 51:49% joint venture between Aditya Birla Group and MMI Holdings. The company was incorporated in 2015 as a stand-alone health insurance company and began operations in October 2016.

According to IRDAI, ABHICL is one of five active stand-alone health insurance companies with a market share of 14% of gross written premium in the first quarter of FY22, ET reported.

This comes as ADIA, one of the world’s leading sovereign wealth funds (SWFs), seeks to double down on India’s fast-growing financial services space, ET said. The Abu Dhabi-based company last month bought a 20% minority stake in IIFL’s domestic finance arm for Rs 2,200 crore.

ADIA also took bets on various publicly listed banks and NBFCs, such as HDFC Bank, Reliance Capital, Kotak Mahindra Bank and KKR India Financial Services.

Meanwhile, ABHICL’s total insurance premium collection in FY22 increased by 33% to Rs 1,470 crore, of which 66% came from the retail segment.

The firm, present in more than 2,800 cities through branches and partner offices, claims to cover 18 million lives, including 14 million through microinsurance products.

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