Shares of Life Insurance Corporation of India (LIC) rose by 1% to Rs 927 per share on November 28. This increase followed reports that LIC is planning to expand into the health insurance sector.
The company is said to be in talks to acquire a large stake in ManipalCigna Health Insurance, with sources suggesting that LIC may aim for a 50% stake in the company.
ManipalCigna Health Insurance is a joint venture between Manipal Education & Medical Group from Bengaluru, which owns 51%, and Cigna Corporation from the US, which holds the remaining 49%.
Since the company is not publicly listed, this deal would be a strategic partnership rather than a market acquisition.
This potential acquisition aligns with LIC’s earlier plans to grow in the health insurance industry.
During a recent analyst call, LIC’s Managing Director and CEO, Siddhartha Mohanty, mentioned that the company is actively looking for a suitable health insurance partner and expects to finalize a deal within this fiscal year.
Acquiring a stake in ManipalCigna would allow LIC to diversify its business and tap into the growing health insurance market in India.
This development comes after LIC’s mixed financial performance for the September quarter.
The company’s net profit fell nearly 4% year-on-year to Rs 7,621 crore, although its net income grew by 12%, reaching Rs 1.2 lakh crore.
LIC also saw growth in key operational areas. Its Annualized Premium Equivalent (APE) increased by 26% year-on-year to Rs 16,465 crore.
The Value of New Business (VNB) surged by 47% year-on-year to Rs 2,941 crore, and VNB margins improved by 257 basis points to 18%.
These results show strong profitability in LIC’s core insurance business despite the overall decline in net profit.
