LIC Eyes Stake In Health Insurer; Board Decision Likely In 2–3 Months

Life Insurance Corp. of India is in the final stages of acquiring a stake in a standalone health insurance company, and its board is expected to decide on the proposal in the next two to three months, the management said on Tuesday.
According to media reports, LIC is looking to buy a 40–49% stake in ManipalCigna Health Insurance, with the acquisition valued at ₹35.00–₹37.50 billion.

“When you buy some stake or acquire a company, certain formalities are there. We are now one after another completing those formalities,” said Siddhartha Mohanty, CEO and managing director. “Once we get the nod of the board, then other formalities such as regulatory clearance will take time.”

The comments came after LIC reported a 38.2% rise in its March quarter net profit to ₹190.13 billion. Shares ended 0.1% higher at ₹871.25 on the National Stock Exchange.

For 2024-25, LIC’s value of new business rose 4.5% to ₹100.11 billion, while the net value of new business margin improved by 80 basis points to 17.6%. Total Annualised Premium Equivalent fell 0.3% to ₹568.28 billion.

LIC’s market share slipped to 59% in 2024-25 from over 63% in 2022-23. On the decline, the management said market share was not the main objective. “Our objective is profitable growth, which we are demonstrating year after year post listing. But we are certain we won’t allow ourselves to go below a certain market share,” the management added.

LIC’s investments in corporate bonds rose 13% to ₹800 billion in 2024-25.