The Life Insurance Corporation of India (LIC) is in advanced discussions to acquire up to a 50 percent stake in ManipalCigna Health Insurance, according to a report by The Economic Times.
ManipalCigna is a joint venture between the Bengaluru-based Manipal Education & Medical Group, which holds 51 percent in it, and the US-based Cigna Corporation, which owns the remaining 49 percent, the report added.
Sources familiar with the matter told ET that the deal could value ManipalCigna Health Insurance at approximately Rs 4,000 crore. Preliminary discussions suggest that both the existing shareholders—Manipal Group and Cigna Corporation—would proportionally reduce their stakes to facilitate LIC’s entry.
This potential acquisition aligns with LIC’s plans to diversify beyond its life insurance portfolio. “Both parties have signed a non-disclosure agreement and are progressing with talks for LIC to acquire around 50 percent of the venture,” ET quoted a source as saying.
Moneycontrol could not independently verify the report.
When ET reached for comments, representatives from ManipalCigna declined to address what they described as "market speculation" while LIC officials did not respond to inquiries.
LIC’s interest in health insurance was hinted at earlier by Siddhartha Mohanty, the managing director and chief executive of the country's largest insurance company, during a November 8 earnings call. “Our groundwork is underway, and within this financial year, we expect to acquire a stake in an existing standalone health insurance provider,” he had said, without naming specific targets.
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