Shares of Life Insurance Corporation of India (LIC) surged nearly 2% on November 28 after reports surfaced about the insurer’s plans to acquire a 50% stake in ManipalCigna Health Insurance. This potential acquisition aligns with LIC’s strategy to diversify its portfolio and enter the fast-growing health insurance market.
Strategic Expansion
According to a report by The Economic Times, LIC is in advanced discussions to acquire approximately half of the stake in ManipalCigna Health Insurance. This move would mark a significant step for LIC, which has primarily focused on life insurance. Health insurance, currently accounting for 37% of India’s ₹3 trillion general insurance industry, represents a lucrative opportunity for expansion.
ManipalCigna Health Insurance is a joint venture between the Manipal Education & Medical Group, which holds a 51% stake, and US-based Cigna Corporation, which owns 49%. The potential deal is expected to value ManipalCigna at approximately ₹4,000 crore.
LIC’s Official Clarification
LIC responded to the media reports with a statement on November 28, confirming its ongoing exploration of strategic opportunities, including in the health insurance sector. However, the company clarified that no concrete information had emerged that warranted regulatory disclosure. LIC reassured stakeholders that it would comply with listing regulations and announce any material developments as required.
Market Reaction
As of 10:30 am, LIC shares were trading 1.86% higher at ₹933.35 on the NSE, reflecting investor optimism about the insurer’s diversification and growth prospects.
The acquisition, if finalized, would bolster LIC’s presence in the health insurance segment, allowing it to tap into rising demand for medical coverage in India. Analysts view this as a natural progression for LIC as it seeks to expand its footprint in the broader insurance ecosystem.
