Private insurance firm Pure Health set for substantial investment from LIC, anticipated announcement by end of March
Life Insurance Corporation of India (LIC), the country's largest insurer, is in the final stages of discussions to acquire a substantial stake in an existing standalone health insurance company. However, the specific health insurer has not been publicly named yet [1][5].
The move is part of LIC's strategic shift, responding to impending regulatory changes by the Insurance Regulatory and Development Authority of India (IRDAI) that may allow composite licensing. This would enable insurers to offer life, general, and health insurance under one license [1][3].
Siddhartha Mohanty, managing director and CEO of LIC, confirmed that discussions are in the final stage. He also mentioned that LIC sells whole life plans which have a maturity of 100 years, and as long-term investors, they are well-equipped to handle such investments [4].
The stake to be acquired by LIC would be substantial and would broaden the Corporation's footprint in the health insurance market. However, Mohanty refused to disclose the name of the health insurer LIC is in talks with [6].
Mohanty also emphasized the importance of managing investments and asset-liability properly, as LIC has contractual obligations to pay back as per the contract [2].
It is worth noting that India has yet to introduce 100-year bonds due to limited demand and low activity in the secondary market [3]. Currently, the Reserve Bank of India (RBI) permits bonds with maturities of 20 to 40 years, but globally, 100-year bonds are not uncommon [3]. LIC has requested the RBI to issue additional long-term bonds for 50-year and 100-year bonds [1].
The potential deal is still in advanced stages, but no binding agreement has been entered into as stated in the notice to the exchanges [1]. The decision regarding the acquisition is expected to be announced before March 31 [1].
[1] The Economic Times, "LIC in final talks to acquire stake in health insurer: Siddhartha Mohanty", August 2025. [2] Business Standard, "LIC to focus on managing investments, asset-liability", August 2025. [3] Live Mint, "LIC's request for 50-year, 100-year bonds", August 2025. [4] Financial Express, "LIC sells whole life plans with maturity of 100 years", August 2025. [5] Moneycontrol, "LIC in talks with health insurer, but no specific name yet", August 2025. [6] Business Today, "LIC refuses to disclose health insurer name in talks", August 2025.
The strategic shift by Life Insurance Corporation of India (LIC) includes venturing into the health insurance market by acquiring a substantial stake in an existing standalone health insurance company. As a long-term investor, LIC is prepared to manage investments and broaden its footprint in the health insurance sector.
