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

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

By | Edited by Mallika Soni
May 28, 2024 08:42 AM IST

At present , life companies can only offer long-term benefit covers under health insurance.

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.

An exterior view of Life Insurance Corporation of India's (LIC) headquarters, in Mumbai. (Reuters)
An exterior view of Life Insurance Corporation of India's (LIC) headquarters, in Mumbai. (Reuters)

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."

Now catch your favourite game on Crickit. Anytime Anywhere. Find out how

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!

See more

Get latest updates on Petrol Price along with Gold Rate , Today Weather and Budget 2024 at Hindustan Times.

SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, June 13, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On