LIC refutes claims that it wants to acquire private health insurer 

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State-owned insurance giant Life Insurance Corporation (LIC) on Friday said it is not looking to enter the health insurance market by acquiring an entity. The company said that no formal proposal has been initiated in this regard. It further said that it would evaluate and explore various strategic opportunities in the ordinary course.

“In this regard, pursuant to Regulation 30(11) of the Listing Regulations, we hereby clarify that at present, no such formal proposal has been initiated. However, the Life Insurance Corporation of India evaluates and explores various strategic opportunities in the ordinary course and also inorganic options for growth and expansion of its business, including strategic partnerships and investment opportunities,” LIC said in a regulatory filing.

Earlier, a report in Mint said that LIC is looking to acquire one of India’s five private health insurers in a bid to enter the health insurance sector in India.

On Friday, LIC shares closed at Rs 1,067 apiece.

The development followed days after LIC Chairman Siddhartha Mohanty had spoken about exploring “inorganic” options for the company’s new initiative. Mohanty had earlier shared: “We intend to focus our strategic interventions to maximise our market share across categories. At the same time, our sharp focus on various parameters which create superior value for all stakeholders shall continue, as demonstrated.”

LIC holds a dominant position in the Indian life insurance sector, commanding a significant market share of 58.87% in first-year premium income as of March 2024. The company’s assets under management (AUM) amounted to Rs 51.21 lakh crore by the close of the March quarter.

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