ADIA to invest in Aditya Birla Group’s health insurance venture

By Tejaswita Tiwari  | Date: 2022-07-18

ADIA to invest in Aditya Birla Group’s health insurance venture

Abu Dhabi Investment Authority (ADIA) is reportedly in discussions with Aditya Birla Group for investing nearly USD 150Mn to 187.5 Mn (Rs.1200 to Rs.1500 crore) as a growth equity in the Indian organization’s health insurance arm.

As per the Insurance Regulatory & Development Authority of India, Aditya Birla Health Insurance Co Ltd (ABHICL) is one of the 5 functioning standalone health insurance firms with a 14 per cent market share of the gross underwritten premium within the first 3 months of the present fiscal year.

Reportedly, the talks for a minority stake are anticipated to gather momentum in the upcoming weeks as ADIA, which is a sovereign funds (SWFs) frontrunner across the globe, is aiming to double down in India’s financial services space.

The quantum of stake and final amount are yet to be finalized.

Notably, ADIA recently acquired IIFL’s home finance arm with a 20 per cent minority stake for USD 275.1 Mn (Rs.2200 crore).

For the initiated, Aditya Birla Health Insurance Co Ltd. is a 51:49 per cent ratio joint business venture between the Aditya Birla Group and MMI Holdings located in South Africa.

Upon conclusion, the investment will underscore the growing ties between Kumar Mangalam Birla and the Abu Dhabi sovereign fund.

Not to mention, there were reports of collaboration between Birla and Hamed bin Zayed Al Nahyan, Managing Director, ADIA, of making an investment in UAE’s first ever digital independent bank, Zand.

The plan was to deploy $50 to $100 million as a private investment of Birla group, but the quantum might scale in the future as the business gains momentum.

As per reports, Sushil Agarwal, Chief Financial Officer, Aditya Birla Group joined the high-powered board of the bank that was created prior to the imminent launch.

For the record, the fast-evolving services of India have generally proven to be a strong area of focus for ADIA as well as the infrastructure.

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Tejaswita Tiwari

Tejaswita Tiwari

Being born in a family of readers, Tejaswita has always had a natural flair for writing, using that enthusiasm to become a full-fledged writer after earning her MBA in Marketing. Her insatiable curiosity to learn about various verticals has made her a popular research...

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