Life Insurance Corporation of India’s (LIC) chief executive officer Siddhartha Mohanty said that India’s largest insurer may acquire a stake in a health insurance company by the end of March. “I am very much hopeful that within this financial year, before 31st March, some decision can be taken,” said Mohanty.
However, the CEO hinted that the LIC is not looking to acquire a majority stake. He didn’t share any further details on the potential deal. “LIC will not have a 51% stake. We are exploring all possibilities,” remarked Mohanty.
India’s insurance sector has become more and more competitive in recent years. This is driven by private insurers expanding their offerings in the health insurance space to capitalize on rising consumer demand. Currently, LIC offers life insurance policies, pension plans, investment-linked insurance. The company currently doesn’t have any health insurance plans.
What Else For LIC?
As soon as LIC enters the health insurance business, the company will be in competition with major health insurers, including: Star Health Insurance, Aditya Birla Health Insurance, Niva Bupa Health Insurance and Care Health Insurance.
However, it’s likely that once LIC starts offering health insurance plans, people will excitedly look for that. This is all because of the reputation of state insurer, that the company holds.
Furthermore, the CEO said that the company has been in discussions with the Reserve Bank of India (RBI) on the issuance of longer-term bonds.
Currently, India offers bonds with maturity periods ranging from 20 to 40 years. However, LIC is looking to invest in even longer-term instruments, specifically bonds with maturity periods of 50 years or even 100 years.
“Our people are discussing this from time to time with RBI, and they are also considering this,” said CEO Mohanty.
ALSO READ: US Dollar To Retain Dominance, Says NSE CEO Ashish Chauhan – How It’s Performing Against The INR?
