LIC Share Price: Shares of Life Insurance Corporation of India (LIC) jumped 4 percent to Rs 952.50 per share on November 28. LIC is reportedly in discussions to acquire a substantial stake in ManipalCigna Health Insurance.
Shares of Life Insurance Corporation of India (LIC) jumped 4 per cent to Rs 952.50 per share on November 28. According to media reports, LIC is exploring the possibility of making a significant move in the health insurance sector. LIC is reportedly in discussions to acquire a substantial stake in ManipalCigna Health Insurance. According to sources, it may target a 50 per cent stake in the company.
ManipalCigna Health Insurance is a joint venture between Bengaluru-based Manipal Education and Medical Group, which holds a 51 percent stake, and US-based Cigna Corporation, which holds the remaining 49 percent. The company is not publicly listed, making it a strategic partnership rather than a market acquisition.
According to Moneycontrol, the move is in line with LIC’s earlier indications of expanding its foot steps in the health insurance sector. During the second quarter analysts’ call, Siddhartha Mohanty, MD and CEO of LIC, said, “The groundwork is underway to find a suitable health insurance company and we will finalise the stake within this financial year.”
The acquisition could potentially strengthen LIC’s portfolio by diversifying its offerings and entering India’s fast-growing health insurance market.
LIC’s financial health
LIC’s net profit declined nearly 4 per cent year-on-year to Rs 7,621 crore, while net income grew 12 per cent to Rs 1.2 lakh crore. On the operating front, LIC’s annual premium equivalent (APE) grew 26 per cent year-on-year to Rs 16,465 crore, while value of new business (VNB) grew 47 per cent year-on-year to Rs 2,941 crore.
Buy, sell or hold LIC shares
Out of 18 analysts tracking the stock, 13 have given it a “Buy” rating, 4 have advised “Hold” it, and only 1 has given it a “Sell” rating. So far this year, LIC shares have gained over 10 per cent, but the stock has been under pressure in the last three months, falling over 15 per cent.