ADIA (Abu Dhabi Investment Authority), a globally diversified investment institution, is reportedly investing US$ 83 million for a stake of 10% in financial services company Aditya Birla Group’s health insurance arm.
For the uninitiated, Aditya Birla Health Insurance is a 51:49 joint venture between Aditya Birla Capital Ltd. and Momentum Metropolitan Strategic Investments, a subsidiary owned entirely by Momentum Metropolitan Holdings based in South Africa.
Following this transaction, Aditya Birla Health Insurance will value at US$ 834 million. After the completion of the transaction, ADIA will attain a 9.99% stake, ABCL will own a 45.91% stake, and MMH will own around 44.10% stake, respectively, in the company.
According to the company, this capital will be used to expand its growth in the health insurance market in India.
Speaking on the latest development, Vishakha Mulye, CEO (Chief Executive Officer), Aditya Birla Capital, said that recently, health has become a critical factor for all.
According to Mulye, given its distinguished Health-First model, ABHI holds a strong foothold for addressing this concern while safeguarding health through insurance. This investment of ADIA underlines ABHI and its recently built franchise’s strength and unique business model.
Commenting on the move, ADIA’s Executive director, Private Equities Department, Hamad Shahwan Al Dhaheri, mentioned that the Indian health insurance sector offers substantial growth prospects as penetration levels are on the rise given the increasing consciousness and more robust economic growth.
Additionally, Aditya Birla Health Insurance offers a solid management team, a differentiated distribution model, and a wellness-first product. According to Al Dhaheri, the firm is keen on collaborating with Aditya Birla Capital and Momentum Metropolitan Holdings to offer its support for ABHI’s next phase of growth.
For the record, Aditya Birla Health Insurance is available in 4800 cities nationwide via partner offices and branches, 14 bancassurance partners, and around 68,000 direct selling agents.