Life Insurance Corporation of India (LIC), the country’s largest life insurance company, is set to enter the health insurance business.
LIC Chief Executive Siddharth Mohanty announced on Tuesday that the company will acquire a stake in a health insurance firm within the next two weeks.
While he did not reveal the name of the company, he confirmed that LIC is in the final stages of discussions and expects the deal to be finalized before March 31
. According to media reports, LIC is considering investing in Manipal Cigna in a deal valued at around Rs 4,000 crore.
LIC has been exploring the health insurance sector for some time. Speaking at the GCA25 event, Mohanty said, “Entering the health insurance business is a natural step for LIC, and discussions are in the final stages.”
He also clarified that LIC will not acquire a controlling stake (51% or more) in the target company. The exact stake percentage will depend on factors such as board decisions and valuation.
LIC’s Financial Performance in Q3
LIC’s net profit rose by 17% in the third quarter of the financial year 2024-25, reaching Rs 11,056 crore, compared to Rs 9,444 crore in the same period last year.
However, total income declined to Rs 2,01,994 crore from Rs 2,12,447 crore in the previous year’s third quarter.
There was also a drop in net premium income, which stood at Rs 1,06,891 crore in Q3, down from Rs 1,17,017 crore in the same period last year.
Profit Growth Over Nine Months
In the first nine months of the financial year (April-December 2024), LIC reported a net profit of Rs 29,138 crore, marking an 8.27% increase compared to the same period last year.
During this period, the company’s total premium income grew by 5.51%, reaching Rs 3,40,563 crore, up from Rs 3,22,776 crore in the previous year.
