Manipal to buy 16% in Cigna TTK Health Insurance

New Delhi: The Manipal Group, which runs a chain of multi-speciality hospitals, is buying a strategic stake in Cigna TTK Health Insurance Company from the TTK Group for an undisclosed sum.

According to the terms of the deal, the Manipal Group will hold a 16.04% stake, while the TTK Group will own 34.96%in the health insurance venture.

Cigna TTK had filed an application last September with the insurance regulator for a change in partnership from the TTK Group to the Manipal Group. It had proposed the Manipal Group would buy out the 51% stake of the TTK Group. However, the companies had to revise the proposal after the insurance regulator asked them to rework the shareholding structure.

Announcing the deal on Monday, Cigna TTK Health Insurance Company (Cigna TTK) said it had now received necessary regulatory approvals from the Insurance Regulatory and Development Authority of India (IRDAI) to partner with the Manipal Group.

“Cigna Corporation will continue to hold its 49% stake in the Indian health insurance venture, while the Manipal Group and the TTK Group will jointly hold 51% stake,” Cigna TTK Health Insurance Company said in a statement. “The new partnership will help Cigna TTK bridge the gap between healthcare delivery and healthcare financing, enabling the company to provide customers with a more comprehensive, innovative, personalized, and affordable suite of healthcare solutions,” the company said.

Cigna TTK Health Insurance, a joint venture between global health services firm Cigna and TTK, launched operations in India in February 2014. Cigna TTK has more than 19 branches and is present in more than 8,000 point-of-sale locations across India.