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Manipal makes first move to buy out TTK from Cigna TTK Health

Manipal Group, which runs a chain of hospitals and educational institutions, has picked up 16.04 per cent stake in Cigna TTK Health Insurance Company for an undisclosed amount.

With TTK Healthcare holding 34.96 per cent, both Manipal and TTK together will now have 51 per cent stake in the insurance joint venture. The remaining 49 per cent stake will remain with Cigna.

Last year, Cigna had filed an application seeking Irdai’s permission to replace TTK with Manipal as a joint venture partner. However as per the Irdai norms, a joint venture partner cannot be fully replaced within a five-year lock-in period. Cigna had entered into the partnership with TTK in 2014 and had not completed the lock-in period. Hence Irdai had asked it to reconsider the proposal. Having picked up 16.04 per cent stake, Manipal can take a call on buying TTK’s remaining stake once the lock-in period ends.

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, personalised, and affordable healthcare solutions, the company said.

“Manipal’s local knowledge and presence in the healthcare delivery space will give us the knowledge and understanding to come up with comprehensive suite of products,” said Prasun Sikdar, MD & CEO, Cigna TTK Health Insurance Company.

India is one among the four global markets where the US-based insurance provider operates under a joint venture partnership. Partnering with a hospital chain is new for Cigna. In Turkey and China it has partnered with financial institutions, while the joint venture in Saudi Arabia is with an insurance provider.

Since its inception in 2014, as a standalone health insurance company Cigna TTK has built a multi-distribution network with more than 10 lakh customers in India.

“The two organisations are a good cultural fit,” said Ranjan Pai, chairman, Manipal Education & Medical Group.

https://www.mydigitalfc.com/companies-and-markets/manipal-makes-first-move-buy-out-ttk-cigna-ttk-health

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