 "AB Capital infuse Rs 23 crore into health insurance arm via rights issue")
Aditya Birla Capital, a non-banking financial company (NBFC), has invested close to Rs 23 crore into its health insurance arm Aditya Birla Health Insurance (ABHI) through rights issue, the former said in its exchange filing on Tuesday.
The investment is aimed at supporting the solvency margin of the insurer.
“Aditya Birla Capital Limited… has made an investment of Rs 22,94,35,335 on rights basis, in the equity shares of Aditya Birla Health Insurance Co. Limited,” according to the exchange filing.
ABHI has allotted the equity shares on December 24. The standalone health insurance company is an associate of Aditya Birla Capital and with this acquisition the company continues to own 45.89 per cent in the insurer.
The NBFC also said that the funds are being invested in ABHI to meet its solvency margin.
The insurance regulator mandates minimum solvency ratio, a measure of capital adequacy to be 150 per cent as high solvency ratio indicates a higher ability of the company to pay claims, meet future contingencies and business growth plans.
In the second quarter of the financial year 2025 (FY25), the net losses of the health insurer dropped to Rs 65 crore from Rs 79 crore in the year ago period. Aditya Birla Capital becomes first firm to offer three core financial services on ONDC Aditya Birla Capital announced on Tuesday that it has gone live on the Open Network for Digital Commerce (ONDC) platform, offering three core financial services—lending, insurance, and mutual funds. This makes it the first BFSI (banking, financial services, and insurance) company to be live on all three core financial services available on the platform. Through the ONDC network, various live buyer apps will be able to offer Aditya Birla Capital’s personal loans, health insurance, and mutual funds to their customers.