LIC in 'advanced talks' to buy stake in a health insurer, deal expected by March 31

Life Insurance Corporation of India (LIC), the country's largest life insurer, expects to finalise the purchase of a stake in a health insurance company before the end of the fiscal year on March 31, Chief Executive Siddhartha Mohanty said on Tuesday.

Speaking to reporters on the sidelines of the GCA25 event in Mumbai, Mohanty declined to name the target company but confirmed that negotiations were in their final stages.

"It is a natural choice for LIC to be in health insurance, discussion is going on at final stage," he said.

Mohanty clarified that LIC would not seek a controlling stake of 51% or more and the exact size of the investment to be determined by factors including board approval and valuation considerations.

In a stock exchange filing on Tuesday, LIC said it is "still in advanced talks and no binding agreement has been entered into."

"The execution and ultimate consummation of the deal is subject to various factors, including approval of the Board of Directors of the Corporation, regulatory approvals and other approvals, if any, before executing any binding agreements. There can be no guarantee or assurance of the execution/ consummation of the potential deal," the company said.

In November 2024, multiple media reports suggested that LIC was eyeing a stake in ManipalCigna in a deal pegged at ₹4,000 crore.

At present, life insurance companies are not allowed to offer health covers which include covering up hospitalization and other expenses for the insured. There was a suggestion for a composite licence for insurers, but no announcement was made in this regard in the Union Budget.