LIC shares rise over 5% : Issues clarification on a acquisition buzz : Better place amidst IRDAI Bancassurance concerns
- Stock Market Today: Life Insurance Corporation of India share price gained over 5% in the morning trades on Friday. The company issued clarification on an acquisition buzz. It also remain better placed among bancassurance concerns raised by IRDAI
Stock Market Today: Life Insurance Corporation of India share price gained over 5% in the morning trades on Friday. The company issued clarification on an acquisition buzz . LIC also remain better placed among bancassurance concerns raised by IRDAI.
Life Insurance Corporation of India share price opened at ₹946.30 on the BSE on Friday, slightly higher than previous closing price of ₹939.55. The LIC share price thereafter gained further to ₹987.50 during the intraday trades which market gains of more than 5%
Clarification on the acquisition buzz
Life Insurance Corporation of India issued clarification clarification that was sought from it by the stock exchanges with respect to the news item appearing in the mainstream media on November 28, 2024. Certain news reports had appeared that Life Insurance Corporation of India is in talks to purchase a nearly 50% share in ManipalCigna Health Insurance as it looks to enter the rapidly expanding medical expense coverage market,
LIC nevertheless in its statement on the exchanges said that "Life Insurance Corporation of India evaluates and explores various strategic opportunities on an ongoing basis in various sectors including health insurance segment, for growth, diversification of its business and investment opportunities. At this stage, there is no material information / event that require disclosure.
Bancassurance concerns by IRDAI
The insurance companies however have seen their stock prices plummet on Thursday as news reports pertaining to regulatory concerns around the level of insurance business being channeled through bancassurance arrangements appeared.
News reports had suggested that the insurance regulator has reportedly asked insurers to reduce their business by up to 50 per cent through bank tie-ups
SBI Life Insurance Company Ltd, HDFC Life Insurance Company Ltd, ICICI Prudential Life Insurance Company Ltd share prices have declined up to 7% in two trading sessions.
SBI Life clarified on the concerns stating that "At the outset, we would like to mention that IRDAI adopts a consultative process and seek feedback from all stakeholders which then is used to prepare the regulatory guidelines /articulate any concerns that the IRDAI may have with the industry.
SBI Life said that we would like to put on record, that as part of our regular interactions and consultations with the IRDAI, we have not been made aware of any such regulatory discussions around the level of insurance business being channeled through bancassurance arrangements.
Since Life Insurance Corporations has its own channel for selling insurance and sells majority of its policies through its own agents and channel, the risk of any regulatory action by regulator on policies being sold through Banking tie ups is minimal
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