LIC to enter health insurance? ‘Done some internal groundwork’, exploring acquisition opportunities

State-run Life Insurance Corporation may enter the health insurance segment and is reportedly exploring acquisition opportunities. This comes amid a proposal to allow composite insurance companies in the sector, Times of India reported. Earlier this year, a parliamentary panel suggested introducing composite insurance licenses to reduce costs and compliance burden for insurers. At present , life companies can only offer long-term benefit covers under health insurance and for them to provide hospitalisation and indemnity cover, an amendment to the Insurance Act would be needed.

What LIC chairman said on the move?

Read more: Motilal Oswal’s chief predicts these stocks will gain if PM Narendra Modi re-elected

LIC chairman Siddhartha Mohanty said, “There is an expectation that composite licences may be permitted by the new govt, and we have done some internal groundwork. While we lack expertise in general insurance, we are interested in health insurance and are also considering opportunities for inorganic growth.”

Unlock exclusive access to the latest news on India’s general elections, only on the HT App. Download Now! Download Now!

LIC quarterly results

Read more: US markets shift: Wall Street returns to T+1 stock trading after a century

The public sector insurer posted a net profit of ₹13,781.59 crore for the quarter ending on March 31, 2024- up by 4.5 per cent from ₹13,190.79 crore reported in the same period of the previous fiscal year.

“The Board of Directors has recommended a final dividend of Rs. 6 per equity share of Rs.10 each for the financial year 2023-24, subject to approval of shareholders in the ensuing Annual General Meeting of the Corporation,” it said. 

Read more: Edelweiss CEO Radhika Gupta learned this ‘strange lesson in branding’ from her 2-year-old son

LIC’s net income from investments increased by 24.43 per cent year-over-year to ₹84,425.45 crore in Q4FY24 and net profit for FY24 was ₹40,676 crore, compared to ₹36,397 crore in FY23.

Additional pension liability due to wage revision for employees stood at ₹6,306.29 crore of which ₹829.19 crore has been recognized in FY24 across respective segments.

Elevate your career with VIT’s MBA programme that has been designed by its acclaimed faculty & stands out as a beacon for working professionals. Explore now!

Discover the complete story of India’s general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!
Get latest news on Education along with Board Exam, Competitive Exam and Exam Result at Hindustan Times. Also get latest Job updates on Employment News

• ABOUT THE AUTHOR

  

  Follow the latest breaking news and developments from India and around the world with Hindustan Times’ newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we’ve got you covered.