Abu Dhabi Investment Authority to invest Rs 665 crore in Aditya Birla Health Insurance

The boards of Aditya Birla Capital and Aditya Birla Health Insurance have approved a proposed investment of Rs 665 crore for a 9.99% stake in the latter from a subsidiary of Abu Dhabi Investment Authority (ADIA), the company said in a statement on August 12.

Aditya Birla Health Insurance is a 51:49 joint venture between Aditya Birla Capital Limited and Momentum Metropolitan Strategic Investments, a wholly-owned subsidiary of South African-based Momentum Metropolitan Holdings.

The transaction values Aditya Birla Health Insurance at approximately Rs. 6,650 crores. Upon the completion of the transaction, ADIA will own a
9.99% stake, ABCL will hold a 45.91% stake and MMH a 44.10% stake, respectively, in the company.

The company plans to use this capital to drive its growth in the health insurance market in India.

“In recent times health has become a key concern for all. With its differentiated Health-First model, ABHI is well positioned to address this concern, while also protecting health through insurance. An investment from ADIA underscores the strong and unique business model of ABHI and the franchise we have created,” said Vishakha Mulye, Chief Executive Officer of Aditya Birla Capital.

Hamad Shahwan Al Dhaheri, executive director of the Private Equities Department at ADIA, said, “We see significant potential in India’s health insurance sector as penetration levels increase, driven by higher awareness and broader economic growth. Aditya Birla Health Insurance has a strong management team, a wellness-first product offering and a differentiated distribution model. We look forward to partnering with Aditya Birla Capital and Momentum Metropolitan Holdings to support the next phase of ABHI’s growth.”

Aditya Birla Health Insurance has a nationwide distribution presence in over 4800 cities through branches and partner offices, 14 bancassurance partners, and over 68,000 direct selling agents.