Life Insurance Corporation of India (LIC) is in the advanced stages of discussions to acquire a significant stake in a standalone health insurance company, aiming to strengthen its presence in the sector.
The insurer confirmed this development in a regulatory filing on Tuesday, stating that while negotiations are in their final phase, no binding agreement has been signed yet.
LIC’s Managing Director and CEO, Siddhartha Mohanty, revealed that the official announcement regarding the stake purchase is expected by March 31, the end of the current financial year. However, he clarified that LIC will not be acquiring a controlling stake in the company, as per news reports.
“Our discussions are in the final stage, and health insurance is a natural extension for LIC. While regulatory approvals take time, I am optimistic that a decision will be reached within this financial year,” Mohanty stated during the Global Conference of Actuaries in Mumbai.
Although the acquisition is in progress, LIC emphasised that multiple approvals are necessary before finalising the deal, including those from its Board of Directors and regulatory authorities. “There is no certainty regarding the execution or completion of this potential deal,” the insurer noted in its stock exchange filing.
Mohanty did not disclose the name of the health insurance firm LIC is in talks with but reaffirmed that the stake would remain below 51%, ensuring it does not take a majority position.
On March 18, 2025, LIC issued an official clarification regarding media reports about its potential entry into the health insurance business. In an exchange filing, the insurer confirmed that it is in advanced discussions to acquire a substantial stake in a standalone health insurance firm.
However, it emphasised that no binding agreement has been signed yet, and the deal’s execution remains subject to board and regulatory approvals. LIC also assured that appropriate disclosures will be made as required under applicable laws.
Currently, the country has 7 standalone health insurance providers, including:
With this potential acquisition, LIC aims to expand its footprint in the fast-growing health insurance market. The move aligns with its broader strategy to diversify offerings and strengthen its position in the insurance sector.
On March 19, 2025, LIC’s share price saw an upward movement, reaching a high of ₹766.20 during early trading hours. The previous closing price stood at ₹757.40, and the stock gained 0.87% with an increase of ₹6.60 at 9:30 AM on the NSE.
LIC’s decision to invest in a standalone health insurance firm reflects its strategic vision for growth in the health segment. Although negotiations are in their final phase, regulatory approvals remain a key factor in determining the outcome. As the March 31 deadline approaches, stakeholders are keenly awaiting further updates on this significant development.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Mar 19, 2025, 9:35 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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