MCHI Podcasts

Hear our podcasts at every step of the way to live a better life.

Manipal buys 51% stake in Cigna health insurance JV

Manipal buys 51% stake in Cigna health insurance JV

Billionaire Ranjan Pai-led Manipal Education & Medical Group (MEMG) is increasing its stake to 51% in the health insurance joint venture with American insurance giant Cigna. Pai is committing Rs 500 crore towards the additional share purchase and expansion plans at a time when several Indian business groups are retreating from the health insurance sector. The name of the joint venture is being changed to ManipalCigna Health Insurance from Cigna TTK as the Pai-led group is buying out the 35% stake held by conglomerate TTK.

The deal has got an approval from the insurance industry regulator IRDAI and comes after MEMG, which runs one of the largest private hospital chains in the country with 6,000 beds, initially picked up a 16% stake last year.“Cigna TTK has built a good base and we were lucky to get them. This combination of Cigna understanding the insurance space and Manipal understanding heathcare and the India market is very good,” MEMG chairman Pai told TOI.

Cigna, which had revenues of $49 billion in 2018, had entered the Indian market through the JV with TTK Group in 2014. Since then, it has relied on the bancassurance model of tying up with banks for distributing its product and reported a premium income of Rs 487 crore in the financial year 2017-18. Pai believes that a late entry into the space will be favourable, given a presence in both healthcare and insurance, and he will look to bridge the trust gap between the two.

Publication – The Times Of India

 

Blogs