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.

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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.

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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.