Cigna is set to hike its stake in Cigna TTK from 26% to 49%. Cigna TTK has filed an application with the insurance regulator (IRDA) to increase Cigna’s stake with an additional investment of Rs 113 crore.
Cigna TTK, a private health insurance provider in India, filed their application with IRDAI to increase Cigna’s stake in the firm. Cigna TTK Health Insurance Company Limited is a joint venture between Cigna Corporation, a leading US-based health services provider and TTK group of India.
As on date, Cigna holds 26% and is looking to raise it to 49% in the company with an additional investment of Rs.113 crore. Post-transaction, TTK will own 51% stake and it currently has a share capital of Rs 250 crore, which will expand to Rs 350 crore.
While it was necessary to get permission from Foreign Investment Promotion Board (FIPB) for the foreign Joint Venture partner to increase their stake to 49 percent (permitted shareholding as per Insurance Laws Act, 2015) earlier, now this has been made automatic.
“Cigna TTK will continue to strengthen its market position in India by further growing our distribution network through expansion and new alliances, focusing on product and service innovation and enhancing our digital and technological capabilities while keeping the customer at the center of everything we do,” says Sandeep Patel, Managing Director of Cigna TTK Health Insurance.
Cigna TTK started their operations in Feb 2014. Currently, Cigna TTK holds a market share of 0.17% in India in the health insurance sector. Cigna TTK, being a standalone health insurance company still has more than 300,000 customers in India, with a network of 15 branches and presence in 6,000 locations through its point-of-sale network. With the increased shared of Cigna in company’s stake, Cigna TTK plans to continue their growth and strengthen their market position.