LIC Eye To Acquire 50% Stake In ManipalCigna Health Insurance
The discussion, in its early stages, aims to help life insurance diversify its ground and tap into the growing health insurance sector.
LIC Eye To Acquire 50% Stake In ManipalCigna Health Insurance
The Life Insurance Corporation of India (LIC), the largest insurer in the country, is currently engaged in advanced discussions to acquire a 50% stake in ManipalCigna Health Insurance. This venture is a collaboration between the Manipal Education & Medical Group and Cigna Corporation.
Sources indicate that both Cigna and the Manipal Group are likely to reduce their ownership stakes in the company in a proportional manner. If the deal goes through, ManipalCigna Health Insurance may be valued at approximately Rs 4,000 crore.
During a results call on November 8, Siddhartha Mohanty, the Managing Director and CEO of LIC, revealed the insurer's plans to invest in an established standalone health insurer within this fiscal year. While he did not divulge further details, he mentioned, “Our groundwork is underway, and within this financial year, we expect to acquire a stake in an existing standalone health insurance provider."
An important participant in the Indian health insurance market is ManipalCigna Health Insurance, which is still unlisted. In the most recent fiscal year, the company generated a gross written premium (GWP) of Rs 1,691 crore. For comparison, in fiscal year 2024, listed standalone health insurers such as Niva Bupa Health Insurance and Star Health & Allied Insurance recorded GWPs of Rs 5,600 crore and Rs 15,251 crore, respectively.
In the last fiscal year, ManipalCigna reported a gross written premium (GWP) of Rs 1,691 crore and is estimated to be valued between Rs 3,500 crore and Rs 4,000 crore based on industry standards. If LIC proceeds with acquiring a 50% stake, the investment could range from Rs 1,750 crore to Rs 2,000 crore at current market valuations.
