Manipal Group Likely to Raise Stakes in Cigna to 51%
Updated On Aug 22, 2019
Manipal Education & Medical Group (MEMG) is likely to increase its shareholding to 51% in the joint venture standalone CignaTTK Health Insurance. The company has got all regulatory approvals from IRDAI. The Cigna Corporation of the USA will continue to hold a 49% stake. The TTK will sell its 31.48% stake to Manipal Group and exit the health insurance venture.
Since the deal has been signed, the name of the joint venture has been changed from CignaTTK to ManipalCigna. The name has been changed because MEMG is buying the remaining stake, which is held by conglomerate TTK. All future business activities are going to be performed under the new company’s name because the changes have been made for an immediate effect.
CignaTTK has managed to establish a strong foundation in the Indian health insurance industry. The combination of Cigna (which understands the global insurance industry), and Manipal (which has expertise in the healthcare industry), can lead to speedy business growth. Since Cigna came to the Indian soil through JV with TTK group in 2014, it relies on the Bancassurance Model to distribute its products.
