Promoters to infuse Rs 600 cr in Cigna TTK Health Insurance in 5 years

Cigna Corporation to increase stake to 49% in the JV

To propel growth, Cigna TTK Health Insurance, a joint venture between American insurer Cigna and Chennai-based TTK Group, will raise around Rs 600 crore from its promoters in the next five years. 

Sandeep Patel, chief executive officer and managing director, Cigna TTK Health Insurance Company said that Rs 200 crore will be infused in the next two years.

Meanwhile, its American partner Cigna Corporation is planning to raise its stake in the JV to 49% from the current 26%. TTK Group currently holds 74% in the JV.

The health insurance firm, which launched its services in February 2014, said that it is eyeing Rs 150-160 crore gross written premium (GWP) during the current fiscal as against Rs 180 crore currently. 

The company also set a target of around 85-90% growth year-on-year. “Our target is to break-even in the next five years,” said Patel.

The health insurer has set a target to operate in 40 new locations by this year-end. 

“We see a huge opportunity in tier II and III cities without setting up branches. The company will leverage technology in a big way to cater to these markets,” said Patel.

The company also plans to increase the number of agents from 4,000 to 16,000 by December 2015 and increase the percentage of active agents from 20% to 40%.

Patel said while the company was focused on retail now, it plans to launch products for the SME segment during the current fiscal.