New Delhi, March 18 : Life Insurance Corporation of India (LIC) is planning to acquire a stake in a standalone health insurance company by the end of the current financial year (FY25), its Managing Director and Chief Executive Officer Siddhartha Mohanty said on Tuesday.

However, he did not disclose the name of the company in which LIC is looking to invest. Mohanty said that the discussions are in the final stage.

"We have plans. Discussions are at the final stage. It is a natural choice for LIC to enter the health insurance sector," Mohanty said in his speech at the Global Conference of Actuaries in Mumbai.

He added that "since regulatory approvals take time, I am hopeful that a decision will be taken within this financial year, before March 31".

However, he also clarified that LIC will not be acquiring a majority stake in the company. "Entering the health insurance sector is a natural choice for the company," he mentioned.

LIC had earlier indicated its interest in the health insurance business and had stated in the first quarter of FY25 that it was looking to invest in a standalone health insurance firm.

Currently, there are seven such companies in India, including 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.

Apart from this, LIC has also requested the Reserve Bank of India (RBI) to issue additional long-term bonds.

The insurance giant had earlier sought 40-year bonds, which the RBI approved. Now, LIC is in discussions for 50-year and 100-year bonds.

"We are long-term investors. We have contractual obligations to pay back as per the contract. So, I have to manage investments and asset-liability management properly' Western countries have long-term bonds," Mohanty said.

The RBI has already introduced 50-year bonds to meet the growing demand from insurance and pension funds.

/IANS