Aditya Birla Nuvo inks pact for health insurance venture

Mumbai, June 05, 2015

The health insurance space could see the entry of a sixth standalone player in the next 12-15 months. Aditya Birla Nuvo Ltd (ABNL) has inked a joint venture agreement with South Africa-based MMI Holdings to foray into health insurance and wellness business in India.

ABNL will hold 51 per cent share in the joint venture, Aditya Birla Health Insurance Co Ltd (ABHICL), subject to regulatory approvals.

For setting up a standalone health insurance company, the minimum capital requirement, as per extant laws, is Rs.100 crore. Currently, there are five standalone health insurance companies in India — Star Health, Max Bupa, Apollo Munich, Religare Health Insurance and Cigna TTK.

ABHICL is in the process of making an application to the Insurance Regulatory and Development Authority of India for obtaining licence to start operations, said ABNL, in a notice to the BSE.

ABNL, which is a part of the $40-billion Aditya Birla Group, is present across financial services (through Aditya Birla Financial Services), telecom, fashion and lifestyle and manufacturing businesses.

Aditya Birla Financial Services (ABFS) has 10 lines of business including Birla Sun Life Insurance, Birla Sun Life Asset Management, Aditya Birla Finance, and Aditya Birla Housing Finance.

As on March-end 2015, ABFS had assets under management aggregating Rs.1,64,995 crore, generated revenue amounting to Rs.7,926 crore and reported earnings before tax of Rs.849 crore.