LIC trends on Google Search as it mulls ₹20000000000 purchase of…
The deal, if concluded, could see LIC acquire a 50% stake for an estimated cost between ₹1,750 crore and ₹2,000 crore.
Life Insurance Corporation of India (LIC) is the country's largest insurer and it is currently trending on Google Search as it is reportedly in advanced discussions to acquire up to 50% of the stake in ManipalCigna Health Insurance. This move would mark a significant step for LIC as it seeks to expand its presence in the health insurance sector, which is currently experiencing robust growth and remains underserved. According to The Economic Times, the deal, if finalised, could help LIC tap into the growing demand for medical expense coverage in India.
Also read: Mohammed Zubair, Alt News co-founder, tops Google Search trend today because …
ManipalCigna Health Insurance Overview
ManipalCigna Health Insurance is a joint venture between the Bengaluru-based Manipal Education & Medical Group and the US-based Cigna Corporation. Currently, the Manipal Group holds a 51 % majority stake in the company, with the remaining 49% owned by Cigna. If the negotiations proceed as planned, both the Manipal Group and Cigna are expected to reduce their stakes in the venture proportionally to accommodate LIC's entry into the partnership.
Also read: Spotify cracks down on piracy, bans these app users ahead of Wrapped 2024 release
Valuation and Financial Details
Although the discussions are still in the early stages, industry sources have estimated that ManipalCigna could be valued at around ₹4,000 crore. This valuation is based on the company's gross written premium (GWP) of ₹1,691 crore reported last fiscal year. The deal, if concluded, could see LIC acquire a 50% stake for an estimated cost between ₹1,750 crore and ₹2,000 crore.
LIC's entry into health insurance would align with its earlier statements regarding diversification. During the company's earnings call in November, LIC's managing director and CEO, Siddhartha Mohanty, confirmed that the insurer was actively exploring the acquisition of a stake in a standalone health insurer within the current financial year.
One more thing! We are now on WhatsApp Channels! Follow us there so you never miss any updates from the world of technology. To follow the HT Tech channel on WhatsApp, click here to join now!
Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.