LIC evaluating stake in health insurer, deal unlikely in FY25: CEO

Life Insurance Corporation of India (LIC) is evaluating a potential acquisition in the standalone health insurance space but does not expect the deal to materialise within FY25 due to regulatory and valuation processes, Managing Director and CEO Siddhartha Mohanty said on Friday.

“The groundwork is ongoing, and we are in the process of identifying a suitable health insurance company. However, factors such as regulatory approvals and valuation will take time, so expanding LIC’s health insurance portfolio through an acquisition is not feasible in the current fiscal year,” Siddhartha Mohanty stated during a post-results media call.

Currently, life insurance companies are only permitted to offer extended health benefits. Entering the health insurance market with hospitalization and indemnity coverage would require an amendment to the Insurance Act - introduction of composite licenses, a move that was not included in the Union Budget 2025.

Life Insurance Corporation reported a 9 percent decline in its net premium income on February 7 which moderated to Rs 1,06,891 crore in the third quarter of the current fiscal from Rs 1,17,017 crore in the same period a year ago.