LIC to acquire stake in a health insurer before March end, says CEO

Mumbai: Life insurance behemoth LIC is confident of buying a stake in a health insurer in the next two weeks, its chief executive Siddhartha Mohanty said on Tuesday. Without identifying the company it will be buying a stake in, Mohanty said the state-owned company is in final stage of talks and hoped that a deal gets announced before March 31.

“It is a natural choice for LIC to be in health insurance, discussion is going on at final stage,” he told reporters on the sidelines of the GCA25 event here.

Mohanty said LIC will not buy a controlling stake of 51 per cent or more in the target company and the exact quantum of the stake buy depends on factors like the decision of LIC board and valuations.

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. As per some media reports, LIC is said to be eyeing a stake in ManipalCigna in a deal pegged at Rs 4,000 crore.