LIC Nears Major Health Insurance Deal, Set to Transform Agent Network

Mumbai/New Delhi: The Life Insurance Corporation of India (LIC) is in the final stages of entering the standalone health insurance sector, marking a major strategic expansion aimed at diversifying its insurance portfolio and boosting long-term profitability. As part of this plan, LIC is preparing to acquire a 40–42% stake in a standalone health insurance company, with the process expected to conclude within the next two months.

This move will also involve mobilising LIC’s vast agent base—nearly 14 lakh strong—by training and converting them into health insurance agents, significantly strengthening its presence in a rapidly growing market segment.

Sources familiar with the development confirmed that the internal approval process is nearly complete, with a formal board-level decision expected soon. Notably, LIC has opted to determine the stake and structure of the acquisition through internal deliberations rather than the typical committee-led approach used in such deals.

“There is no change in our stance,” said an LIC official, reaffirming the organisation’s intent to enter the health insurance domain.

In parallel, LIC has invested ₹80,000 crore in corporate bonds in the current fiscal year and is targeting higher exposure in AAA-rated instruments, demonstrating a strong focus on capital safety and quality. The company also indicated it is working toward operationalising Forward Rate Agreements (FRAs), which would enhance its risk management tools in the debt market.