The Life Insurance Corporation of India (LIC) is close to acquiring a significant stake in a pure health insurance company, according to its Managing Director and CEO, Siddhartha Mohanty. Mohanty stated that the discussions are in the final stages and that he hopes a decision will be made by March 31. The acquisition will mark LIC’s entry into the health insurance market and will broaden its footprint in the sector. However, Mohanty declined to reveal the name of the company, saying that it would be made public when the deal is announced.
Currently, there are seven standalone health insurance companies in India, including Star Health & Allied Insurance, ManipalCigna Health Insurance, and others. The acquisition will be a strategic move for LIC, which is seeking to expand its presence in the health insurance market.
In a separate development, Mohanty also spoke about the need for India to issue long-term bonds with maturities of 50 years and 100 years. LIC, which offers whole life plans with a maturity period of 100 years, requires these long-term bonds to invest and manage its assets and liabilities effectively. Globally, many countries issue 100-year bonds, but India has yet to introduce them due to limited demand and low activity in the secondary market. Mohanty has requested the Reserve Bank of India to issue such bonds, which would align with LIC’s long-term investment strategy.
Overall, the developments indicate that LIC is poised to make a significant foray into the health insurance segment, while also seeking to shape the Indian bond market to better suit its investment needs.