The state-owned Life Insurance Corporation of India (LIC) is expected to announce the acquisition of a stake in a standalone health insurance company by the end of the current fiscal year (FY25), said Siddhartha Mohanty, LIC's managing director and CEO, on Tuesday.

However, he did not reveal the name of the company in which LIC intends to acquire a significant stake.

"We've got plans. Discussions are nearing completion. It is natural for LIC to enter health insurance. Since regulatory approvals take time, I am hopeful that a decision will be made this fiscal year, before March 31," Mohanty said on the sidelines of the Global Conference of Actuaries in Mumbai.

He also stated that LIC will not acquire a majority stake in the company under consideration.

In the first quarter of FY25, LIC stated that it intended to acquire a stake in a standalone health insurance company in order to enter the health insurance market.

Currently, there are seven separate health insurance companies: Star Health & Allied Insurance, Niva Bupa Health Insurance, Care Health Insurance, Aditya Birla Health Insurance, ManipalCigna Health Insurance, Narayana Health Insurance, and Galaxy Health Insurance.

LIC seeks long-term bonds from RBI

Furthermore, Mohanty stated that LIC has asked the Reserve Bank of India (RBI) to issue additional long-term bonds.

LIC previously requested a 40-year bond, which the RBI approved. LIC is currently in discussions with the RBI about 50- and 100-year bonds.

“We are long-term investors. We have contractual obligations to pay back as specified in the contract. I must effectively manage investments and liabilities. Western countries have long-term bonds," Mohanty explained.

Previously, the RBI issued 50-year bonds to meet increasing demand from insurance and pension funds.