Manipal to buy TTK's stake in Cigna Health

The billionaire Ranjan Pai-spearheaded Manipal Education and Medical Group ( MEMG) is in advanced stages of a deal to replace TTK group in Cigna TTK Health Insurance, people with direct knowledge of the matter said.

Manipal will be the fourth healthcare group to get into health insurance. Apollo, Max and Religare were among the early promoters of stand-alone health insurance companies. Star Health and Aditya Birla Health are the only companies that do not have a healthcare business among the stand-alone health insurance companies.

Manipal has been eyeing a health insurance for a while, and the deal to pick up TTK promoters' majority stake fits in with stated plans to build an integrated healthcare services portfolio. Manipal Health Enterprises runs a chain of hospitals with about 5,000 beds to be among the top-five in the sector.

When contacted, MEMG declined to comment.

Bloomfield-based Cigna holds 26 per cent in the joint venture, while the rest is with the Indian promoter TTK group. Although Cigna is a minority shareholder, the joint venture was hitherto run by the US insurer. The CEO Sandeep Patel is from Cigna.

Cigna's business is relatively small, but it is among the fastest growing and has recorded 54 per cent growth in premium in FY17. The health insurer has been working on developing a series of bancassurance partnerships and has already tied up with Bank of Maharashtra and Andhra Bank for distribution. Cigna TTK recorded a loss of Rs 109 crore for the nine months which ended on December 31st.