LIC Eyes Health Insurance Stake Amid Growth Slowdown Challenges

LIC, a major life insurance company, plans to acquire a stake in a health insurer within two weeks, as confirmed by CEO Siddhartha Mohanty. While not specifying the target company, LIC is finalizing the deal details, preparing for board approval and regulatory checks. Currently, life insurers can't directly offer health insurance.

Life Insurance Corporation of India (LIC), a prominent player in the insurance industry, is on the verge of acquiring a stake in a health insurance firm, according to its CEO, Siddhartha Mohanty. While the exact company remains unnamed, negotiations are reportedly in the final stages, with hopes for an announcement by the end of March.

Mohanty clarified that LIC would not pursue a controlling stake, with the extent of investment hinging on board decisions and valuations. Despite a proposal for a composite insurance license, life insurers are presently unable to cover health-related expenses.

LIC's move comes amid stagnant life insurance growth, prompting calls for a strategic review. This situation coincides with LIC's report of a decrease in net premium income, despite a rise in profits. Boosting insurance penetration, currently at 3.7 percent in India, remains a pressing issue.

(With inputs from agencies.)