According to a recent report, Life Insurance Corporation of India (LIC) is considering a foray into the health insurance market by acquiring a stake in ManipalCigna Health Insurance Company. This move is seen as a strategic expansion of LIC’s business portfolio, which currently dominates the life insurance market in India.
ManipalCigna Health Insurance is a joint venture between Manipal Group and Cigna Corporation, a global health insurance company. The company offers a range of health insurance products and services in India, including individual and group health insurance plans, critical illness coverage, and top-up plans.
If the deal goes through, LIC’s acquisition of a stake in ManipalCigna Health Insurance would mark its entry into the health insurance market, which is currently dominated by private players such as Max Bupa, Apollo Munich, and Star Health. The move would also enable LIC to leverage its vast distribution network and customer base to sell health insurance products.
The report suggests that LIC is looking to acquire a significant stake in ManipalCigna Health Insurance, which could range from 20% to 40%. The deal is expected to be valued at around Rs 1,000-1,500 crore (approximately $137-$204 million USD).
LIC’s foray into the health insurance market is seen as a natural extension of its business, given the growing demand for health insurance products in India. The company’s vast distribution network, which includes over 2,000 branches and a large network of agents, would provide a significant advantage in selling health insurance products.
The acquisition would also enable LIC to diversify its revenue streams and reducing its dependence on the life insurance business. The health insurance market in India is expected to grow rapidly in the coming years, driven by increasing healthcare costs, rising awareness about health insurance, and government initiatives to promote health insurance.
Overall, LIC’s potential acquisition of a stake in ManipalCigna Health Insurance is seen as a strategic move to expand its business portfolio and tap into the growing demand for health insurance products in India. The deal would also provide a significant boost to the health insurance market in India, which is expected to witness rapid growth in the coming years.