LIC Eyes Strategic Stake in Health Insurance Arena

LIC is close to acquiring a stake in a health insurer within two weeks, with the deal expected before March 31. Although not aiming for a controlling stake, the acquisition is part of LIC's strategy to delve into health insurance to address the low penetration in India.

LIC, the state-owned life insurance giant, is nearing the acquisition of a stake in a health insurance company, with expectations to finalize the deal in the coming two weeks, CEO Siddhartha Mohanty announced.

Although he refrained from naming the company, reports suggest ManipalCigna as the target in a deal worth Rs 4,000 crore. Mohanty clarified that LIC would not seek a controlling stake but remains strategically committed to expanding into health insurance.

Despite growth challenges in life insurance penetration, initiatives to enhance insurance facilitation principles continue. Actuaries will play a crucial role in addressing emerging risks and ensuring financial sustainability, aiming to improve the current low insurance penetration rate of 3.7% compared to the global average.

(With inputs from agencies.)