 "Aditya Birla Nuvo signs JV for health insurance foray")
Aditya Birla Nuvo today has informed exchanges that it has entered into definitive joint venture agreement with MMI Holdings, a leading South African Insurance based financial services group, to enter into the health insurance and wellness business in India.
As per the agreements, ABNL will hold 51% share in the joint venture company named Aditya Birla Health Insurance subject to the regulatory approvals. The company ( Aditya Birla Health Insurance) is in the process of making an application to the Insurance Regulatory and Development Authority of India (IRDAI) for obtaining license to start health insurance and wellness business operations. The company expects to commence operations in next 12-15 months.
In October 2014, Aditya Birla Financial Services Group (part of Aditya Birla Nuvo) had signed a memorandum of understanding (MoU) with MMI Holdings, to enter India's health insurance market.
Here, MMI had a right to increase its stake to a maximum of 49% should the Indian regulatory environment be amended in the future. Aditya Birla Group already has a life insurance company Birla Sun Life Insurance.
Formed in December 2010 through merger of Metropolitan Holdings and the Momentum Group, MMI is one of the largest insurers in South Africa, doing business in 12 African countries outside South Africa and the United Kingdom.