New Delhi, March 18 (IANS). Life Insurance Corporation of India (LIC) is planning to get a stake in a standalone health insurance company by the end of the current financial year (FY 25). Siddharth Mohanty, the managing director and chief executive officer of the company, gave information about this on Tuesday.
However, he did not name the company in which LIC wants to invest. Mohanty said that the discussion is in the final stages.
In his speech at the Global Conference of Actuals in Mumbai, Mohanty said, “We have a plan. The discussion is in the final stages. It is a natural option for LIC to enter the Health Insurance Sector.”
He said that regulatory approval takes time, so I hope that within this financial year, a decision will be taken before 31 March.
However, he also clarified that the maximum stake in the company would not be achieved by LIC.
The LIC had earlier indicated its interest in the Health Insurance Business and in the first quarter of FY 25, she wanted to invest in a standalone health insurance firm.
Currently, there are seven companies in India, including Star Health and Allied Insurance, Niva Bupa Health Insurance, Care Health Insurance, Aditya Birla Health Insurance, Manipal Signa Health Insurance, Narayana Health Insurance and Galaxy Health Insurance.
In addition, LIC has also requested the Reserve Bank of India (RBI) to issue additional long -term bonds. The insurance giant first asked for 40 -year bonds, which was approved by the RBI. Now, LIC is discussing for 50 years and 100 years bonds.
Mohanty said, “We are long-term investors. We have contractual obligations to pay according to the contract. Therefore, I have to manage investment and asset-affairs management properly.”
RBI has already introduced 50 years of bonds to meet the increasing demand for insurance and pension funds.
-IANS
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