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August 15, 2022

Abu Dhabi Investment Authority to buy 10% stake in Indian health insurer

Abu Dhabi Investment Authority (ADIA), through a wholly-owned arm, is set to make an INR6.65bn ($83.45m) investment in India’s Aditya Birla Health Insurance (ABHI).

The deal, which will give ADIA a 9.99% stake in the health insurer, values ABHI at around INR66.5bn.

In a statement, Aditya Birla Capital said that the capital infusion has secured approval from the boards of directors.

The insurance firm is a 51:49 joint venture between Aditya Birla Capital and South Africa-based Momentum Metropolitan Holdings’ wholly-owned subsidiary Momentum Metropolitan Strategic Investments.

Upon completion, Aditya Birla Capital’s shareholding will come down to 45.91% and the South African investor will control a 44.10% stake in the JV.

ABHI will use the proceeds to bolster its presence in the Indian health insurance space.

ADIA executive director of the private equities department Hamad Shahwan Al Dhaheri 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.”

The investment is pending statutory and regulatory approvals.

Aditya Birla Health Insurance CEO Mayank Bathwal said: “This partnership with ADIA strengthens our resolve to further expand the company’s ‘Health-First’ proposition, as we empower our customers to lead a healthy life.

“We remain committed to this promise and have reimagined our business model and customer engagement accordingly, by creating differentiated products, a digital health ecosystem and a large distribution presence across the country.”

In December 2021, media reports emerged that ADIA and the Hinduja Group are in talks to buy AXA’s 49% stake in Bharti AXA Life Insurance.

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