ADIA may acquire stake in Aditya Birla Health Insurance

18 Jul 2022 , 10:04 AM

According to news reports, Abu Dhabi Investment Authority (ADIA) and Aditya Birla Group are discussing an investment of between Rs1,200 and Rs1,500 crore as growth equity in the Indian conglomerate’s health insurance division.

According to information from the Insurance Regulatory and Development Authority of India, Aditya Birla Health Insurance Co Ltd (ABHICL) is one of five active standalone health insurance companies with a 14 percent market share of the gross underwritten premium in the first three months of the current fiscal year (IRDAI).

The reports stated, that the negotiations for a minority share are anticipated to pick up steam in the upcoming weeks as ADIA, one of the top sovereign funds (SWFs) in the world, seeks to expand its presence in India’s financial services industry.

They continued by saying that the exact sum and stake amount had not yet been decided. ADIA purchased a 20 percent minority stake in IIFL’s home finance division last month for Rs2,200 crore.

Aditya Birla Group and MMI Holdings, both from South Africa, have a 51%:49% stake in ABHICL. The business was established as a stand-alone health insurance firm in 2015. Operations commenced in October 2016.