Life Insurance Corporation of India (LIC) has entered “advanced talks” to acquire a “substantial stake” in a stand-alone health insurance firm.
The deal, if finalised, would mark the company’s entry into the health insurance market.
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No binding deal has been signed, and the finalisation of the deal is contingent on approval from the LIC board and regulatory clearances, the company stated in a filing with the stock exchange.
The company also emphasised that there is no guarantee of a deal being materialised.
Meanwhile, LIC managing director and CEO Siddhartha Mohanty is optimistic about a deal being announced by the end of 31 March, although he did not reveal the name of the target company.
“It is a natural choice for LIC to be in health insurance, discussion is going on at final stage,” he said on the sidelines of the Global Conference of Actuaries (GCA) event in Mumbai on 18–19 March 2025.
The size of the stake would be subject to multiple factors such as valuations and a board decision, he said, adding that the insurer may not own a controlling stake.
LIC has also been in talks with the Reserve Bank of India regarding the issuance of long-term bonds, reported Reuters.
Mohanty said: “Our people are discussing this from time to time with RBI, and they are also considering this.”
While India typically issues bonds with maturities ranging from 20 to 40 years, LIC has expressed interest in exploring longer-term instruments such as 50-year or even 100-year bonds, stated Reuters.
LIC reported profit after tax of Rs291bn ($3.37bn) for the nine months ending 31 December 2024, an increase of 8.27% from the prior year.
