MMI to invest ₹196 cr in JV with Aditya Birla Nuvo

South Africa's MMI holdings is planning to invest Rs 196 crore to raise its shareholding in health insurance joint venture with Aditya Birla Group to 49 per cent.

In June, Aditya Birla Nuvo announced that it has entered into a definitive joint venture agreement with South African financial services group MMI Holdings Ltd to set up a health insurance and wellness firm in India.

When contacted a spokesperson for MMI holdings said, “ All the necessary regulatory approvals are currently being sought to implement the joint venture, including approval from the Foreign Investment Promotions Board (FIPB) of India for MMI to commence the joint venture with a 49 percent stake. The FIPB has announced that it has granted approval to MMI.”

As per the agreement, Aditya Birla Nuvo will hold a 51 per cent stake in the health insurance joint venture, which will be named Aditya Birla Health Insurance Co. Ltd. The deal will need approval from the Insurance Regulatory and Development Authority of India (IRDAI). The company also has elevated Mayank Bathwal, Deputy CEO of Birla Sun Life Insurance, to head the health insurance company.

Following the regulatory approval, Aditya Birla Health Insurance will be the sixth standalone health insurance firm operating in the country. At present, there are five firms selling only health insurance products.

On Wednesday, Aditya Birla Nuvo announced that Canadian insurer Sun Life will invest Rs 1,664 crore to increase its life insurance joint venture Birla Sun Life Insurance to 49 per cent from 26 per cent.

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