Manipal Group, which runs a number of multi-speciality hospitals across the country, is set to purchase a 16.04% stake in Cigna TTK Health Insurance Company. Manipal Group will be acquiring this stake from TTK Group, which will continue to hold a 34.96% stake in Cigna TTK Health Insurance. Thus, TTK Group and Manipal Group will together hold a 51% stake in the health insurance firm.
Cigna TTK Health Insurance had previously filed an application with the Insurance Regulatory and Development Authority of India (IRDAI) for a modification in the existing partnership from TTK Group to Manipal Group. TTK Group had made a proposal for Manipal Group to purchase the entire 51% stake from TTK Group. However, this proposal was revised since the insurance regulator had asked the two companies to rework their shareholding structure.
Cigna TTK Health Insurance Company, which made the announcement on Monday, said it has received regulatory approval from the IRDAI to partner with the Manipal Group. Thus, according to the new shareholding structure, Cigna Corporation will hold a 49% stake in the health insurance firm, whereas Manipal Group and TTK Group will hold a 16.04% and 34.96% stake in the company, respectively.
Cigna TTK, which commenced its operations in the year 2014, has a pan-India presence, with over 19 branches across the country. The health insurance provider also has a presence at over 8,000 points of sale locations throughout the country, by way of its distribution network.
Sources: The Times of India, The Hindu Business Line, United News of India