ADIA to invest Rs665 billion for a 9.99% stake in Aditya Birla Health Insurance

12 Aug 2022 , 07:51 AM

Aditya Birla Capital and Aditya Birla Health Insurance’s boards have accepted a proposal for a capital injection of Rs665 crore from an affiliate of the Abu Dhabi Investment Authority (ADIA), the firm announced in a late-night statement.

ADIA will hold 9.99 % of Aditya Birla Health Insurance after the transaction closes, while Aditya Birla Capital and MMH will own 45.91 % and 44.10 % of the company, respectively, subject to receiving all necessary legal and regulatory approvals, including those from the Insurance Regulatory and Development Authority of India (Irdai).

The independent health insurer is valued at Rs 6,650 crore as of the deal. The investment’s earnings will be used by the firm to fuel expansion into India’s underserved health insurance industry, which offers a big opportunity for expansion.

One of the five independent health insurers in the non-life insurance sector is Aditya Birla. The other four are Manipal Cigna Health Insurance, Niva Bupa Health Insurance, Star Health & Allied Insurance, and Care Health Insurance.

In the first four months of the current fiscal year (FY23), Aditya Birla Health Insurance collected premiums worth Rs847.28 crore, a rise of 71.86% from the corresponding period in 2012. The firm received Rs1,740.62 crore in health premium revenue in FY22.