After acquisition, Anthem expertise to rub off on Cigna

Anthem, Inc and Cigna Corporation have entered into a definitive agreement where Anthem will acquire all outstanding shares of Cigna in a cash-and-stock transaction. With this, its Indian venture, CignaTTK Health Insurance, will be able to use Anthem's expertise to expand into the non-metro segments with their health insurance products.

Sandeep Patel, MD & CEO, CignaTTK Health Insurance said, "In this deal, Cigna brings its global footprint in about 30 countries to the table. Since Anthem does not have any major presence outside the US, this will help them expand their network globally."

Anthem is a strong player in schemes such as Obamacare in the US. Patel explained that their knowledge and expertise in dealing with certain segments in health insurance and also with the non-metro population will be taken.

CignaTTK Health Insurance began commercial operations in February 2014 and is a joint venture with India's TTK Group. It was the 53rd insurance company and a standa-lone health insurer.

He said that they would meet the insurance regulator (Insurance Regulatory and Development Authority of India, IRDAI) to apprise them of the deal and its contours.

"If IRDAI requires any additional details or documents, we will provide those. Also, it has been decided that Anthem would retain the Cigna brand name in the latter's insurance venture outside of the US. So, the venture's name in India will continue to be CignaTTK Health," Patel added. The transaction is expected to close in the second half of 2016, pending the receipt of customary approvals, including certain state regulatory approvals and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The combined company will cover 53 million medical members with well positioned commercial, government, consumer, specialty businesses along with a market-leading leading international franchise.

The transaction is subject to customary closing conditions, including the approval of Cigna's shareholders of the merger agreement and Anthem's shareholders of the issuance of shares in the transaction.

Anthem is confident in its ability to obtain all necessary regulatory and other approvals.

The combined company will be an industry leader with enhanced diversification and capabilities to advance the transformation of health care delivery for consumers.

Upon the close of the transaction, Joseph Swedish will serve as Chairman and Chief Executive Officer of the combined company and David Cordani will be President and Chief Operating Officer.

"The Cigna team has built capabilities that complement our own offerings and the combined company will have a competitive presence across commercial, government, international and speciality segments. These expanded capabilities will enable us to better serve our customers as their health care needs evolve," said Joseph Swedish, president and chief executive, Anthem.