Mumbai-based Cigna TTK Health Insurance Company Ltd has filed an application with the Insurance Regulatory and Development Authority to increase Cigna’s stake in the joint venture from 26% to 49%, it said in a release.
A joint venture between US-based global health service provider Cigna Corporation and Indian conglomerate TTK Group, Cigna TTK Health Insurance launched its operations in February 2014.
“The increase of Cigna's stake in Cigna TTK is a significant step demonstrating Cigna’s commitment to the Indian health insurance market,” said Sandeep Patel, chief executive officer of Cigna TTK Health Insurance.
The stake increase will be through a fresh issue of shares, which will be subscribed by the US insurer for Rs 113 crore, says a report in The Times of India. The fresh investment values the company around Rs 491 crore, the report adds.
According to IRDAI figures, Cigna TTK’s gross direct premium stood at Rs 86.16 crore as on July 2017.
Cigna TTK is among the six standalone private health insurers in the country. Star Health and Allied Insurance is the largest, with gross direct premium of Rs 947.25 crore. Aditya Birla Health, which started its operations in October 2016, is the latest entrant.
Cigna TTK has over three lakh customers in India and is present in 6,000 locations through its point-of-sales network, according to the release.
Earlier, Religare Enterprises had entered into a definitive agreement to sell its health insurance subsidiary Religare Health Insurance Company Ltd to a consortium of investors led by private equity firm True North.