LIC shares surge over 2% on discussions to acquire 50% stake in ManipalCigna Health
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Shares of the state-owned insurer Life Insurance Corporation of India (LIC) jumped 2.4% to Rs 938.45 on the BSE as the company eyes an acquisition of as much as 50% stake in ManipalCigna Health Insurance, seeking an entry into the market for medical expenses coverage. ManipalCigna is a joint venture between Manipal Education & Medical Group and US-based Cigna Corporation. The Bengaluru-based group holds a 51% stake in the standalone health insurance company, while Cigna Corporation owns the remaining 49%. If a deal is finalised, it will allow state-run LIC to diversify from its life insurance portfolio and tap into the increasing demand for health insurance that constitutes 37% of the Rs 3 lakh crore general insurance industry. As reported by ET earlier, both parties have signed a non-disclosure agreement and are moving forward with discussions for LIC to acquire approximately a 50% stake in the venture. The deal could value the healt...