Life Insurance Corporation of India (LIC) is preparing to enter the health insurance market, with discussions for the acquisition of a health insurer in their final stages. CEO Siddhartha Mohanty confirmed the development in an interview with CNBC-TV18 on Tuesday, March 18.
LIC intends to finalize and announce the acquisition before March 31. This marks a significant strategic move into the expanding health insurance sector.
Mohanty clarified that LIC does not plan to acquire a majority stake in the target company.
The move is designed to solidify LIC’s position within the insurance industry by leveraging its widespread customer base and extensive distribution network.
LIC Chairman Siddhartha Mohanty had previously highlighted the potential within the health insurance segment.
In a previous interview, Mohanty noted that while LIC does not possess the expertise typically found in general insurance areas such as property and fire, the company has experience in health insurance through its fixed-benefit health product offerings.
“We have some expertise in this field, though our products are fixed benefit rather than indemnity like mediclaim. We are exploring both organic and inorganic opportunities, including potential acquisitions to establish a presence in the health insurance market,” Mohanty had stated.
As of the time of this report, LIC shares were trading 0.83% higher at ₹751.20 apiece on the BSE.
