On Tuesday, Siddhartha Mohanty, the Chief Executive Officer of Life Insurance Corporation of India (LIC), stated that the company is hoping to finalize a decision regarding the acquisition of a stake in a health insurance firm by the end of March. “I am very much hopeful that within this financial year, before 31st March, some decision can be taken,” Mohanty said.
Following the CEO’s statement, the company issued a statement to exchanges, clarifying that it is still involved in advanced discussions and has not yet entered into any binding agreement. The statement also noted, “There can be no guarantee or assurance of the execution or consummation of the potential deal.”
Mohanty also indicated that LIC is not seeking to acquire a majority stake in the health insurance company, though he did not provide specific details about the potential deal. He stated, “LIC will not have a 51% stake. We are exploring all possibilities.”
In recent years, the insurance market in India has seen increased competition, driven by the growing presence of private insurers who are capitalizing on rising consumer demand for health insurance products. LIC currently offers life insurance policies, pension plans, and investment-linked insurance, but does not offer health insurance products.
If LIC enters the health insurance sector through this investment, it will compete with other major players, including Star Health Insurance, Aditya Birla Health Insurance, Niva Bupa Health Insurance, and Care Health Insurance.
In a separate development, Mohanty also mentioned that LIC is in discussions with the Reserve Bank of India regarding the issuance of longer-term bonds. While India currently offers bonds with maturities ranging from 20 to 40 years, LIC is exploring the possibility of issuing longer-term instruments, such as 50-year or 100-year bonds. “Our people are discussing this from time to time with RBI, and they are also considering this,” the CEO said.
