LIC Set to Enter Health Insurance Sector with Strategic Acquisition

19 Mar 2025 , 12:50 AM

Life Insurance Corporation of India (LIC) is ready to enter the health insurance sector by acquiring a company. LIC CEO Siddhartha Mohanty has said the public sector insurer is close to buying a health insurance company.

The company expects to close and announce the acquisition no later than March 31. LIC’s stake in the acquired health insurance company will not be majority. Later, LIC issued a clarification that it was in advanced negotiations with a standalone health insurer. The acquisition is in line with LIC’s plan to increase its presence in the expanding health insurance sector. Though discussions are in progress, LIC has not signed any binding agreement so far.

Completion of the deal is subject to various conditions, including Board approval, regulatory approvals, and other customary consents. LIC has clarified that nothing has been concluded about the execution or conclsuion of the deal. The corporation has said it will make all disclosures required by law.

The move will strengthen LIC’s market position by drawing upon its vast customer base and distribution network. LIC Chairman Siddhartha Mohanty had earlier indicated interest in the health insurance space.

He said LIC did not have expertise in general insurance sectors such as property and fire, but it had expertise in health insurance as it had a fixed-benefit health products. Mohanty had earlier said LIC is open to going in for both organic and inorganic growth strategies, including acquisitions, to gain business in the health space.