LIC eyes stake in health insurer, seeks long-term bonds from RBI: Report

However, he did not disclose the name of the company in which LIC plans to acquire a significant but non-majority stake.

“We have plans, and discussions are in the final stage. It is a natural choice for LIC to enter health insurance… Since regulatory approvals take time, I am hopeful that a decision will be finalised within this financial year, before March 31,” Mohanty stated on the sidelines of the Global Conference of Actuaries in Mumbai, according to the Businees Standard report.

In the first quarter of FY25, LIC had indicated its intention to enter the health insurance sector through a stake acquisition.

At present, India has seven standalone health insurers Star Health & Allied Insurance, Niva Bupa Health Insurance, Care Health Insurance, Aditya Birla Health Insurance, ManipalCigna Health Insurance, Narayana Health Insurance and Galaxy Health Insurance

LIC requests long-term bonds from RBI

Mohanty also revealed that LIC has urged the Reserve Bank of India (RBI) to issue additional long-term bonds.

Previously, the RBI approved LIC’s request for a 40-year bond, and the insurer is now in talks for 50-year and 100-year bonds.

“As long-term investors, we have contractual obligations to honour payouts. Managing investments and asset-liability management efficiently is crucial… Western nations already have long-term bonds,” Mohanty was further quoted as saying by Business Standard.

Earlier, the RBI introduced 50-year bonds to address the growing demand from insurance and pension funds.