LIC in Talks to Acquire Stake in ManipalCigna Health Insurance: Report

Sources cited in the report indicate that both parties have signed a non-disclosure agreement and are in advanced discussions.

Life Insurance Corporation of India (LIC), the country’s largest state-owned insurer, is reportedly in talks to acquire a 50% stake in ManipalCigna Health Insurance, signaling its entry into the health insurance market.

According to a report by The Economic Times, the move is part of LIC’s strategy to diversify its portfolio and capitalize on the rapidly growing health insurance sector.

ManipalCigna is a joint venture between the Manipal Education & Medical Group, which holds 51% of the company, and Cigna Corporation, owning the remaining 49%. Sources cited in the report indicate that both parties have signed a non-disclosure agreement and are in advanced discussions.

"Both parties have signed a non-disclosure agreement and are moving forward with discussions for LIC to acquire approximately a 50% stake in the venture," a person familiar with the matter stated.

"As per preliminary talks, both Manipal Group and Cigna Corporation will reduce their stakes proportionately," the person added.

When approached for comments, a ManipalCigna spokesperson termed the news "market speculation" and declined to respond. LIC also did not reply to requests for comments, the report stated.

Earlier this month, LIC MD and CEO Siddhartha Mohanty had indicated the insurer’s plans to enter the standalone health insurance market during a media briefing on the company’s Q2 FY2025 results.

He stated, "The groundwork is going on...search for a suitable health insurance company is going on...we will finalize the stake within this financial year."

LIC’s potential investment is seen as a strategic move to diversify its portfolio and capitalize on the growth of India’s health insurance sector, which has become one of the fastest-expanding segments in the country’s insurance market.