(Reuters) -Life Insurance Corporation of India (LIC) hopes to decide on acquiring stake in a health insurance company by the end of March, its chief executive said on Tuesday.
“I am very much hopeful that within this financial year, before 31st March, some decision can be taken,” Siddhartha Mohanty, the chief executive officer of India’s largest insurer, said.
The company later said in a statement to exchanges that it is still in advanced talks and has not entered into any binding agreement.
“There can be no guarantee or assurance of the execution or consummation of the potential deal,” it said.
LIC is not looking to acquire a majority stake, the CEO said, without sharing further details on the potential deal.
“LIC will not have a 51% stake. We are exploring all possibilities,” Mohanty said.
Competition in India’s insurance business has risen in recent years as private insurers have ramped up their presence in the health insurance market to tap into growing consumer demand.
LIC sells life insurance policies as well as pension plans, investment-linked insurance, but no health insurance.
If it enters the health space through a stake purchase, LIC will compete with the likes of Star Health Insurance, Aditya Birla Health Insurance, Niva Bupa Health Insurance and Care Health Insurance.
Separately, LIC has been in discussions with the Reserve Bank of India on the issuance of longer-term bonds, the CEO said.
While India issues bonds with maturities of 20 to 30 years, and 40 years, LIC said it eyes longer-term instruments, such as 50-year or 100-year bonds.
“Our people are discussing this from time to time with RBI, and they are also considering this,” CEO Mohanty said.
(Reporting by Siddhi Nayak, writing by Ashna Teresa Britto; Editing by Mrigank Dhaniwala)
