Life Insurance Corporation of India (LIC), the country’s largest life insurance provider, is preparing to step into the health insurance business.
LIC’s Chief Executive, Siddharth Mohanty, announced on Tuesday that the company will acquire a stake in a health insurance firm within the next two weeks.
Although he did not disclose the name of the company, he confirmed that discussions are in the final stages, and the deal is expected to be completed before March 31.
According to media reports, LIC is considering investing in Manipal Cigna, with the deal estimated to be worth around Rs 4,000 crore.
Speaking at the GCA25 event, Mohanty stated, “Entering the health insurance business is a natural step for LIC, and discussions are in the final stages.”
However, he clarified that LIC will not acquire a controlling stake (51% or more). The exact percentage of the stake will be decided based on board discussions and valuation.
LIC’s Financial Performance in Q3
In the third quarter of the financial year 2024-25, LIC’s net profit increased by 17%, reaching Rs 11,056 crore, compared to Rs 9,444 crore in the same period last year.
However, the total income dropped to Rs 2,01,994 crore from Rs 2,12,447 crore in the previous year’s third quarter.
Additionally, net premium income declined to Rs 1,06,891 crore, down from Rs 1,17,017 crore in the same period last year.
Steady Profit Growth Over Nine Months
During the first nine months of the financial year (April-December 2024), LIC recorded a net profit of Rs 29,138 crore, reflecting an 8.27% increase compared to the previous year.
Meanwhile, 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 corresponding period last year.
