LIC shares climb over 5% after acquisition clarification; well-positioned for bancassurance regulatory shifts
Life Insurance Corporation of India surged as much as 5.1% on Friday to Rs 987.50 on BSE after the state-run life insurer clarified media reports suggesting it was in talks to acquire a significant stake in ManipalCigna Health Insurance. The clarification reinforced LIC's ongoing commitment to expanding its business, particularly in the health insurance sector.
The clarification also came amid a background of growing concerns in the insurance sector over potential regulatory changes in bancassurance, an area where LIC remains better positioned compared to its peers.
LIC’s stock rally was partly triggered by media reports from November 28, which claimed the insurance giant was negotiating to acquire nearly 50% of ManipalCigna Health Insurance. Such a move would allow LIC to tap into the rapidly growing health insurance market, especially in the wake of rising medical costs and increasing demand for health coverage.
ManipalCigna is a joint venture between the Manipal Group and Cigna Corporation. The Bengaluru-based group holds a 51% stake in the company, while Cigna Corporation owns the remaining 49%.
LIC addressed the buzz by issuing a statement to the stock exchanges, emphasizing that it regularly evaluates strategic opportunities across various sectors, including health insurance.
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