Life Insurance Corporation of India (LIC) is in talks to purchase a 40–49% stake in ManipalCigna Health Insurance, the Economic Times has reported.
The move could value the health insurer at approximately Rs35bn–37.5bn ($408m–437m), the report said.
ManipalCigna is a joint venture between India-based Manipal Education & Medical Group and US-based Cigna Corporation.
The Manipal Group increased its stake to 51% in 2019, with the remaining 49% held by Cigna.
If finalised, the deal would mark LIC’s foray into the health insurance space.
The acquisition discussions have made headlines recently, but no binding agreement has been signed yet.
The completion of the deal hinges on approvals from LIC’s board and regulatory authorities as per a previous stock exchange filing by the company.
Earlier this month, LIC’s managing director and CEO, Siddhartha Mohanty, hinted at a deal announcement by the end of 31 March.
However, he did not disclose the identity of the target company.
The size of the stake is subject to various factors such as valuations and a board decision, he stated, indicating that LIC may not seek a controlling interest in the health insurer.
On the sidelines of the Global Conference of Actuaries event in Mumbai, Mohanty said: “It is a natural choice for LIC to be in health insurance, discussion is going on at final stage.”
