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Informist, Tuesday, May 27, 2025

 

--LIC: Talks to acquire stake in health insurance company at advanced stage 

--CONTEXT: Comments by LIC's management in post-earnings media concall 

--LIC: Board to take call on stake buy in health insurer in 2-3 months 

--LIC: Objective is profitable growth, not market share growth

 

NEW DELHI – Life Insurance Corp. of India is in the final stages to acquire a stake in a standalone health insurance company, and the board is likely to take a call in the next two to three months, the company's management said Tuesday at a press conference.

 

According to media reports, LIC is looking to buy 40-49% stake in ManipalCigna Health Insurance, with the acquisition valued at INR 35.00-INR 37.50 billion.

 

"When you buy some stake or acquire some company, certain formalities are there. We are now one after another completing those formalities," Siddhartha Mohanty, chief executive officer and managing director of LIC said. "So those are over, we will go to the board. Once we get the nod of the board, then other formalities such as regulatory clearance will take time."

 

The company Tuesday reported a net profit of INR 190.13 billion for the quarter ended March, up 38.2% on year. Shares of the company Tuesday closed 0.1% higher at INR 871.25 on the National Stock Exchange.

 

LIC's value of new business rose 4.5% on year to INR 100.11 billion in 2024-25 (Apr-Mar), while the net value of new business margin increased by 80 bps to 17.6%. Total Annualised Premium Equivalent fell 0.3% on year to INR 568.28 billion in FY25.

 

LIC's market share has declined to 59% in FY25 from over 63% in FY23. When asked about the insurer's falling market share, the management said market share is not an objective, but the company will also not allow it to fall below a certain market share. "Market share is not our objective, the management said. "Our objective is profitable growth, which we are demonstrating year after year post listing. We are certain at some level we will not allow ourselves to go below certain market share, that is also our objective."

 

On a question on LIC's investment into corporate bonds, the management said that such investment rose 13% in FY25 to INR 800 billion.  End

 

Reported by Shubham Rana and Sachi Pandey

Edited by Deepshikha Bhardwaj

 

 

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