ADIA eyeing minority stake in Aditya Birla’s medical health insurance arm: 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 medical health insurance arm as growth equity, the Economic Times reported on Monday.

The discussions for ADIA taking a minority stake in Aditya Birla Health Insurance Co Ltd (ABHICL) are ongoing and expected to achieve pace in the approaching weeks, people aware of the matter told ET.

The ultimate amount and quantum of stake will not be finalised yet, the report said.

ABHICL is a 51:49 per cent three way partnership between Aditya Birla Group and South Africa-based MMI Holdings. The firm was incorporated in 2015 as a standalone medical health insurance company and began operations in October 2016.

Based on IRDAI, ABHICL is certainly one of five lively standalone medical health insurance firms with a 14 per cent market share of the gross underwritten premium in Q1FY22, ET reported.

This comes as ADIA, certainly one of the key sovereign wealth funds (SWFs) on the earth, is trying to double down in India’s fast-growing financial services space, ET said. The Abu Dhabi firm last month bought a 20 per cent minority stake in IIFL’s home finance arm for Rs 2,200 crore.

ADIA has also taken bets on various leading listed banks and NBFCs, reminiscent of HDFC Bank, Reliance Capital, Kotak Mahindra Bank, and KKR India Financial Services.

Meanwhile, ABHICL’s total insurance premium collection in FY22 increased by 33 per cent to Rs 1,470 crore, out of which, 66 per cent was from retail segment.

The firm, present in over 2,800 cities through branches and partner offices, claims to cover 18 million lives, including 14 million through micro insurance products.

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