LIC targets acquisition route to venture into health insurance market: Report

In February, a parliamentary panel proposed amendments to the Insurance Act to introduce composite licensing, aimed at enhancing insurance penetration across the country.

Life Insurance Corporation of India (LIC) actively pursues the acquisition of one of India’s five private health insurers as part of its strategy to gain a foothold in the expanding health cover sector, Mint cited LIC executives in a report.

LIC Chairman Siddhartha Mohanty previously indicated the PSU insurer’s intent to venture into health cover space, noting the possibility of exploring inorganic growth opportunities if favourable conditions arise, as highlighted by news agency PTI. Regulations under the Insurance Act and IRDAI do not permit insurers to hold composite licences for life, general, and health insurance within a single entity. Mohanty acknowledged LIC's strength in life insurance, while suggesting readiness to enter health insurance.

In February, a parliamentary panel proposed amendments to the Insurance Act to introduce composite licensing, aimed at enhancing insurance penetration across the country.

During a recent post-earnings call, the LIC management expressed confidence in achieving double-digit growth in Annual Premium Equivalent (APE) for the fiscal year 2024-25. APE serves as a key metric measuring new business sales in the life insurance sector, calculated as annualised regular premiums plus 10 percent of single premiums.

Mohanty highlighted the strategic focus on product diversification and channel expansion for sustained growth in FY25, noting successful launches in the non-par (non-participating) segment during the previous fiscal year.