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Life Insurance Corporation of India (LIC), the country’s largest insurer, is in advanced discussions to acquire up to 50 per cent of the stake in ManipalCigna Health Insurance, marking its strategic entry into the health insurance sector, reported sources.
This move is seen as a significant step for LIC as it seeks to expand its footprint into the market for medical expense coverage, which is currently underserved.
ManipalCigna Health Insurance is a joint venture between the Manipal Education & Medical Group and the US-based Cigna Corporation.
The Bengaluru-based Manipal Group currently holds a 51 per cent majority stake in the health insurer, with the remaining 49 per cent owned by Cigna.
The discussions, still in their preliminary stages, are aimed at allowing LIC to diversify its portfolio beyond life insurance and tap into the growing demand for health insurance, which accounts for 37 per cent of the Rs 3 trillion general insurance industry.
According to initial discussions, both the Manipal Group and Cigna will proportionally reduce their stakes in the company.
The deal, if finalised, could value ManipalCigna Health Insurance at approximately Rs 4,000 crore, the source noted.
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