Mumbai: Private health insurer Cigna TTK filed an application with the Insurance Regulatory and Development Authority of India (IRDAI) to increase Cigna’s stake in the firm from 26 per cent to 49 per cent.
Cigna TTK Health Insurance is a joint venture between US-based Cigna Corporation and TTK Group.
ET reports that following the transaction, TTK will own 51% stake. TTK is in the process of selling its stake partially or completely in the business. The company has a share capital of Rs 250 crore, which will expand to Rs 350 crore after this round.
Sandeep Patel, managing director, Cigna TTK Health Insurance said, “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 centre of everything we do.”
“We look forward to continuing our journey to improve the health, well-being, and sense of security of the people we serve.” The standalone health insurance company 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.
Sandeep Patel told TOI that the US partner did not view the new legislation, which mandated that insurance companies should be Indian-owned and Indian-managed, as a deal-breaker. Cigna had taken a decision to deepen its ownership as India was a strategic market for Cigna’s international operations.
Patel said that the fresh investment would be used to invest in digital technology, reduce costs and improve customer experience. “At present 50% of our premium comes in without any paperwork. Our objective is to take this to 80%,” said Patel.