Life Insurance Corporation of India (LIC), one of India’s largest and most reliable insurance providers, may soon announce a significant acquisition in the health insurance sector. LIC Managing Director and CEO, Siddharth Mohanty on Tuesday confirmed that LIC is in advanced talks to get a stake in a standalone health insurance company, with the expected announcement of the current financial year (ie, 31 March, 2025).
LIC’s Plans to Enter Health Insurance
Siddharth Mohanty revealed that the discussion of the acquisition is at an advanced level, although he avoided the naming of the specific company. During the global conference of actuaries in Mumbai, Mohanty said, “We have plans, and the discussion with the company is in the final stages.” He further stated that entering the health insurance market is a natural progress for LIC. However, regulator approval takes time, and a decision is expected before the financial year ends.
LIC’s Stake in Health Insurance
Mohanty clarified that LIC has not planned to get a majority stake in the health insurance company. The announcement aligns with LIC’s previous statement from the first quarter of FY2025, where the company expressed its interest in getting a standalone health insurance business.
Currently, seven standalone health insurance companies operate in India, including:
- Star Health and Allied Insurance
- Niva Bupa Health Insurance
- Care Health Insurance
- Aditya Birla Health Insurance
- ManipalCigna Health Insurance
- Narayana Health Insurance
- Galaxy Health Insurance
LIC Requests Long-Term Bonds from RBI
In addition to its health insurance expansion, LIC is also under discussion with the Reserve Bank of India (RBI) about releasing long -term bonds. While LIC first requested the 40-year bond, it is now interacting with RBI for 50-year and 100 years bonds.
According to Mohanty, LIC is a long-term investor, and the company’s contractual obligations require careful investment and asset-affinity management. “Western countries have long -term bonds,” Mohanty said, emphasized the importance of such bonds in fulfilling the increasing demands of insurance and pension funds in India.
A Brief History of LIC
Life Insurance Corporation of India (LIC) was established in 1956, including 154 Indian insurance companies, 16 foreign firms and 75 future companies after nationalization of 245 companies. Initially, LIC 5 was operated with zonal offices, 33 divisional offices and 212 branch offices. By its first year of the operation, the company produced Rs 200 crore in business, a milestone supported by the government guarantee.
Over the years, LIC has become a household name, offering a wide range of life insurance products to cater to diverse customer needs
