The Indian company LIFE Insurance Corporation (LIC) is ready to make a significant entry into the health insurance sector, as the discussion of obtaining a share in health insurance near completion. CEO of LIC, Siddhartha Mohanta, confirmed the CNBC-TV18 that the decision on the acquisition is expected before March 31.
This strategic step is aimed at expanding the LIC trail to the increasingly competitive health insurance market, using its extensive customer base and distribution network.
LIC, traditionally focused on life insurance, pension plans and investment insurance products, seeks to diversify its portfolio for the first time by entering the health insurance sector.
In particular, LIC will not seek a majority stake in the healthcare insurer, as the Mohants explained: “LIC will not have a 51% share. This approach without the majority allows you to test water in the new market segment without exaggerating its resources.
The decision comes at a time when the health insurance market witnesses the harsh competition of private insurance companies who desire to earn a growing demand. “We have some expertise in this area, although our products are more of a solid benefit than compensation, such as Mediclaim.
Mohanta remains optimistic about the completion of the acquisition in the current financial year and states: “I am very hopeful that during this financial year, 31 March, some decisions can be taken.”
In addition to health insurance ambitions, LIC is also in discussions with the Indian Reserve Bank (RBI) to issue longer -term bonds, initiative confused with its strategy as a long -term investor. The transition to explore bonds with maturity up to 50 or 100 years reflects the need for LIC need to effectively manage its frame with assets. “Our people discuss it from time to time with RBI and they are also considering it,” Mohants said, proposing ongoing RBI dialogues.
LIC shares reflected the positive sentiment of investors and traded by 0.83% higher to 751.20 GBP per BSE in the middle of this development.
Potential entry into the health insurance market and the issue of long -term bonds is expected to strengthen the market position and financial resistance.
