Aditya Birla Financial Services Group signs MoU with MMI Holdings Limited to enter the Health Insurance sector
Pune (Oct 21, 2014): Aditya Birla Financial Services Group (ABFSG), the Financial Services arm of Aditya Birla Group, has signed a Memorandum of Understanding (MoU) with MMI Holdings Limited (MMI), one of the largest insurance-based financial services groups listed on the South Africa Stock Exchange,to enter the Health Insurance market of India. ABFSG and MMI will enter into a formal Joint Venture in which the foreign partner will hold a 26 per cent stake – the maximum allowed as per the existing foreign direct investment norms in the sector.
“Health Insurance as a category has extremely low penetration levels in India. Given our group’s focus on building our retail presence across products, we foresee a huge potential to target the requirements of untapped customers and their families. Our partnership with MMI Holdings Limited will give us the competitive edge given their strong proficiency in the health insurance sector.” said Ajay Srinivasan, Chief Executive - Financial Services, Aditya Birla Group.
ABFSG,has constantly looked at expanding their horizons across the spectrum of the Indian financial services industry. “We start with what the customer needs—not with what we want to sell them.Having 10 successful lines of businesses today, we, at ABFSG, intend to cater all the basic financial needs of our customers. Our entry in the health insurance sector will further help us in giving timely solutions to our customers.” added Mr. Srinivasan.
Nicolaas Kruger, Group CEO of MMI Holdings Limited (MMI)said, “MMI considers India as an important strategic market.ABG is a respected and trusted business group and we are extremely pleased to enter into a partnership with them. We are confident that this relationship between MMI and ABG will lead to the establishment of a successful health insurance business in India”