Manipal Group To Hike Stake In Cigna TTK Health Insurance To 51%
Cigna will continue to hold 49 percent stake. TTK Group will exit the firm by selling its 31.48 percent stake to Manipal Group.
Manipal Group, which operates in India’s education and healthcare sectors, will raise its shareholding in joint venture Cigna TTK Health Insurance Co. Ltd to 51 percent by buying out the stake of TTK Group, a joint statement said on Tuesday.
The Cigna Corporation of the U.S. will continue to hold 49 percent stake, while TTK Group will exit the health insurance business by selling its 31.48 percent stake to Manipal Group, which currently holds 19.52 percent.
The deal is subject to approval of insurance regulator Insurance Regulatory and Development Authority of India. The company has been renamed as ManipalCigna Health Insurance Co. Ltd, and has a new logo and website. There changes are effective immediately and all future business activities will be under the new company name.
“India's insurance sector has tremendous growth potential, it is evolving rapidly and is an important market for Cigna. Our new JV with Manipal Group will now allow us to further expand our existing relationships, explore new markets and drive innovative solutions and capabilities,” said Jason Sadler, president of Cigna International Markets.
The rebranding and name change will not impact the company's existing business model, agents, bancassurance partnerships or customers' existing health insurance policies. The company's management and staff remain the same, the statement said.
“The combination of Manipal Group's integrated healthcare expertise with multi-specialty hospital networks and Cigna's global expertise in health and wellness, positions ManipalCigna Health Insurance Company as a differentiated healthcare provider for people across India,” said Ranjan Pai, chairman of Manipal Education and Medical Group.
Drawing on the strengths of both companies, the new joint venture can provide easy and lifetime access to quality healthcare to millions of people in India and create a strong path for future growth, Pai said.
Cigna Corp. operates in 30 countries and jurisdictions and has more than 160 million customer relationships worldwide.