The Life Insurance Corporation of India (LIC) is planning to acquire a stake in a standalone health insurance company by the end of the current financial year (FY25), according to its Managing Director and CEO, Siddhartha Mohanty. However, the name of the company has not been disclosed. The discussions are reportedly in the final stage, and Mohanty is hopeful that a decision will be made by the end of March 31. LIC is not planning to acquire a majority stake in the company.
This announcement comes as no surprise, as LIC has previously expressed its interest in the health insurance sector. The company is one of the largest life insurers in the country and is looking to diversify its portfolio by entering the health insurance market. The move is seen as a natural choice for the company, given the growing demand for health insurance in the country.
Currently, there are seven standalone health insurance companies in India, and LIC is looking to join this ranks by acquiring a stake in one of these companies. The acquisition is expected to strengthen LIC’s presence in the health insurance segment and provide an opportunity for the company to tap into the growing demand for health insurance in India.
In a related development, LIC has also sought permission from the Reserve Bank of India (RBI) to issue additional long-term bonds. The company has already been issued 40-year bonds, and now it is looking to issue 50-year and 100-year bonds. The move is aimed at managing LIC’s investment and asset-liability management, which is essential for long-term investors like the company. The RBI has already introduced 50-year bonds to meet the growing demand from insurance and pension funds.