LIC Shares Surge 5% Post Purchase Clarification

29 Nov 2024 , 02:59 PM

Following the state-run life insurer’s clarification of media claims that it was in negotiations to purchase a sizable stake in ManipalCigna Health Insurance, shares of Life Insurance Corporation of India rose as high as 5.1% on Friday to Rs 987.50 on the BSE. The explanation reaffirmed LIC’s continued dedication to growing its company, especially in the health insurance industry.

Additionally, the clarification was made against a backdrop of mounting insurance industry concerns about possible regulatory changes in bancassurance, an area in which LIC continues to be in a stronger position than its competitors.

Media reports dated November 28 claiming that the insurance behemoth was negotiating to buy nearly 50% of ManipalCigna Health Insurance contributed to LIC’s stock surge. With rising medical costs and a growing need for health coverage, such a move would enable LIC to take advantage of the quickly expanding health insurance market.

The Manipal Group and Cigna Corporation have partnered to become ManipalCigna. Cigna Corporation controls the remaining 49% of the business, while the Bengaluru-based group owns 51%.

In response to the commotion, LIC sent a statement to the stock markets highlighting the fact that it routinely assesses strategic prospects in a number of industries, including health insurance.

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