The Life Insurance Corporation of India (LIC) is planning to acquire a stake in a health insurance company by the end of March. According to CEO Siddhartha Mohanty, the company is not aiming to acquire a majority stake, and all possibilities are being explored. This move would mark LIC’s entry into the health insurance market, where it would compete with private insurers such as Star Health Insurance, Aditya Birla Health Insurance, Niva Bupa Health Insurance, and Care Health Insurance.
LIC, India’s largest insurer, currently only offers life insurance policies, pension plans, and investment-linked insurance, but not health insurance. The company is leveraging the growing demand for health insurance in India to expand its services.
Additionally, LIC has been in talks with the Reserve Bank of India (RBI) regarding the issuance of longer-term bonds. While India issues bonds with maturities of 20 to 30 years and 40 years, LIC is eyeing longer-term instruments, such as 50-year or 100-year bonds. This would provide the corporation with a longer-term source of funding and diversify its investment portfolio.
Mohanty stated that the company’s people are discussing this proposal with the RBI, and the central bank is also considering it. The acquisition of a health insurance company and the issuance of longer-term bonds are important steps for LIC to expand its offerings and enhance its financial stability in a highly competitive market.