Life Insurance Corporation of India (LIC), the country’s largest insurer, is in discussions to acquire a 50% stake in ManipalCigna Health Insurance, valued at Rs 4,000 crore, marking a significant move into the health insurance market. The deal is poised to diversify LIC’s portfolio and capitalize on the growing demand for medical coverage in India. ManipalCigna, a joint venture between the Manipal Education & Medical Group (51%) and US-based Cigna Corporation (49%), posted a gross written premium (GWP) of Rs 1,691 crore in the last fiscal year.
The negotiations are advancing, with a non-disclosure agreement already signed between the two parties. As part of the deal, both Manipal Group and Cigna Corporation are expected to reduce their stakes proportionately, enabling LIC to take a significant share in the venture. The value of the deal could range from Rs 1,750 crore to Rs 2,000 crore, depending on the final terms.
This move signals LIC’s strategy to expand beyond its traditional life insurance business and enter the fast-growing health insurance market. With other industry players like Niva Bupa and Star Health valued at 2-3 times their GWP, ManipalCigna’s valuation is estimated to be between Rs 3,500 crore and Rs 4,000 crore, making it an attractive investment opportunity for LIC as it seeks to capture a larger market share. Both LIC and ManipalCigna have declined to comment on the ongoing discussions.
