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, according to its Managing Director and Chief Executive Officer, Siddhartha Mohanty. However, he did not disclose the name of the company in which LIC is looking to invest. The discussions are reportedly in the final stage, and Mohanty is hopeful that a decision will be taken within this financial year, before March 31.
LIC has a long-term interest in the health insurance business and had stated earlier that it was looking to invest in a standalone health insurance firm. The company will not be acquiring a majority stake in the company, according to Mohanty.
In addition to its plans to enter the health insurance sector, LIC is also requesting the Reserve Bank of India (RBI) to issue additional long-term bonds. The insurance giant had earlier sought 40-year bonds, which the RBI approved. Now, LIC is in discussions for 50-year and 100-year bonds, which are already available in Western countries to meet the growing demand from insurance and pension funds.
Mohanty emphasized that as a long-term investor, LIC has contractual obligations to pay back as per the contract and requires proper asset-liability management. The RBI has already introduced 50-year bonds to meet the growing demand from insurance and pension funds.