The Life Insurance Corporation from India (Litz) is ready to make a significant entry into the Health Insurance Department as discussions to acquire a stake in a health insurance company close to completion. Litz’s CEO, Siddhartha Mohanti, confirmed to CNBC-TV18 that the acquisition decision was scheduled before March 31.
This strategic move is aimed at expanding LIC’s foot in the increasingly competitive health insurance market, exploiting its wide customer base and distribution network.
LIC, traditionally focused on life insurance, pension plans and investment insurance products, is trying to diversify its portfolio by entering the Health Insurance Sector for the first time.
Namely, Litz will not require a majority stake in the health insurer, as it is clarified by Mohanti: “I will not have a 51%share. This non-municipal approach allows the person to test the waters in a new market segment without exceeding its resources.
The decision comes at a time when the health insurance market witnesses a solid competition from private insurance companies that want to profit from increased demand. “We have a certain expertise in this area, although our products are a fixed benefit rather than compensation as a” medicine “. We are investigating organic and inorganic opportunities, including potential acquisitions to establish a health insurance market, “Mohanti said last year, highlighting the company’s proactive approach to expanding its services services.
Mohanti remains optimistic about finalizing the acquisition in the current financial year, stating: “I am very promising that within this financial year, before March 31, a decision can be made.”
In addition to his health insurance ambitions, he is also in discussions with the Reserve Bank of India (RBI) for the issuance of long -term bonds, an initiative in line with its strategy as a long -term investor. The move to explore the bonds with maturity up to 50 or 100 years reflects Litz’s need for efficient management of its framework for responsibility of funds. “Our people talk about this from time to time with the RBI and they also look at this,” Mohanti said, suggesting current dialogues with the RBI.
LIC’s shares reflected a positive sense of investors, trading 0.83% higher at 751.20 pounds of the BBC amid these developments.
Potential entry into the health insurance market and the issuance of long -term bonds are expected to boost the position of the Litz market and financial elasticity.
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