‘Will not have majority stake’: LIC to announce acquisition in health insurance firm by March 31, says CEO Mohanty

Life Insurance Corporation in India (LIC) is preparing to enter a large entry into the health insurance sector, as discussions to obtain a stake in the health insurance company near the completion. LIC CEO, Siddhartha Mohanty, told CNBC-TV18 that there is a decision regarding the acquisition expected before March 31.

This strategic step aims to expand LIC emissions in the increasing health insurance market, as it takes advantage of its wide customer base and the distribution network.

LIC, which is traditionally focused on life insurance, pension plans, and investment -related insurance products, seeks to diversify its portfolio by entering the health insurance sector for the first time.

It is worth noting that LIC will not seek to obtain a majority share in the health insurance company, as Mohante explained: “LIC will not have a 51 % stake. We explore all the possibilities.” This non -majority approach allows water test in the new market sector without exceeding its resources.

The decision comes at a time when the health insurance market is witnessing intense competition from private insurance companies that yearn to benefit from the increasing demand. “We have some experience in this field, although our products are a fixed benefit rather than compenslaint. We explore both organic and inorganic opportunities, including potential acquisitions to create a presence in the health insurance market,” Mohante said last year, highlighting the proactive approach of the company.

Mohante is still optimistic about the completion of the acquisition during the current fiscal year, saying: “I am very optimistic that during this fiscal year, before March 31, some decisions can be made.”

In addition to health insurance ambitions, LIC also hold discussions with the Indian Reserve Bank (RBI) to issue long -term bonds, an initiative that is in line with its strategy as a long -term investor. The step to explore the bonds with an entitlement to up to 50 or 100 years is an effective need to manage its musical assets. “Our people discuss this from time to time with RBI, and they are also thinking about it,” Mohante pointed out, indicating the ongoing dialogues with RBI.

LIC shares reflected positive investors, trading 0.83 % at $ 751.20 on BSE amid these developments.

It is expected that the potential entry to the health insurance market and the issuance of long -term bonds will enhance the LIC market and financial flexibility.