India-based Aditya Birla Group is in discussions over a possible joint venture (JV) agreement with South Africa-based insurer Momentum Group, in a bid to foray into the country's health insurance segment.
Aditya Birla Group financial services chief executive Ajay Srinivasan was quoted by The Economic Times as saying: "We are in discussions with them (Momentum Group)."
A person familiar with the development told the publication that Aditya Birla is also planning to file an application with the Insurance Regulatory and Development Authority (Irda) for an R1 licence.
As part of the proposed deal, Aditya Birla may own around 74% interest in the newly formed JV, while the remaining 26% by the Momentum.
Currently, Birla Group is operating in the country’s life insurance segment through a JV with Canada-based Sun Life.
Birla Sun Life provides different life insurance products, comprising unit-linked and traditional products.
In addition, South Africa-based Discovery and US-based Aetna and Humana are also looking out for local partners to enter into the health insurance market of India, which is expected to report 25% growth rate in the coming five years.
Cigna TTK, a new JV of US-based Cigna and India-based TTK Group has entered into the country’s health insurance market and has commenced operations in this month.
Image: Aditya Birla and Momentum to establish new JV for health insurance segment. Photo: courtesy of Stuart Miles/FreeDigitalPhotos.net.