New Delhi, 1 April (IANS). A latest report by JP Morgan said on Tuesday that a 40-49 percent stake in Manipal Signa Health Insurance by Life Insurance Corporation of India (LIC) would be important in giving a new shape to the health insurance market.
According to brokerage, possible acquisition is expected to be a strategic move for LIC. Under which LIC will take advantage of its agency distribution network of 1.4 million individual agents to increase its new health enterprise.
Brokerage said, “Despite the smaller size of Manipal Signa compared to LIC, the acquisition is expected to get sufficient value in the next few years.”
According to reports, LIC India is in the final stages of getting a stake in Manipal Sign Health Insurance, a standalone health insurer.
In this deal of Rs 3,500-3,700 crore, LIC will have a 40-49 percent stake of Manipal Signna, which is currently owned by Manipal Education and Medical Group and 49 percent stake with Sign Holding Overseas with 51 percent stake.
Analysts of JP Morgan believe that LIC’s entry into the health insurance market will prove to be a big step, as it aims to achieve market share.
However, the main challenge for LIC will be to manage the Health Los Ratio, which is an important factor in ensuring the success of this enterprise.
Manipal Signa has shown promising growth with a market share of 1.4 percent in the total health insurance industry and a market share of 4.7 percent in the standalone health insurance sector.
LIC has continued to expand its coverage despite industry debates. The insurer recorded an increase of 28.29 percent in Group Renewable Premium during the first 11 months of FY 2025 and 7.9 percent in individual premium.
LIC’s total premium collection reached Rs 1.90 lakh crore by February 2025, which is 1.90 percent more than the previous year.
Only in February, LIC issued 12.02 lakh policy in the individual segment, while 1,430 policy and schemes were filed in the Group Eyelli Renewable category. In all categories, the total number of LIC policies was 12.04 lakhs this month.
-IANS
SKT/ABM
