Stock market today: Life Insurance Corporation of India share price rose over 5% in morning trade on Friday. The company issued a clarification on takeover talks. LIC is in a better position even amid bancassurance concerns raised by IRDAI.
Life Insurance Corporation of India share price opened at ₹946.30 on the BSE on Friday, slightly higher than the previous close price of ₹939.55. Subsequently, during intraday trade, LIC share price touched ₹987.50, leading the market by over 5%. Clarification on takeover talks Life Insurance Corporation of India issued a clarification sought by the stock exchanges in connection with news appearing in the mainstream media on November 28, 2024.
Some news reports had said that Life Insurance Corporation of India is in talks to buy about 50% stake in ManipalCigna Health Insurance, as it looks to enter the fast-growing medical expense coverage market.
LIC nevertheless said in its statement to the exchanges that “Life Insurance Corporation of India evaluates and explores various strategic opportunities on a continuous basis across various sectors including the health insurance segment for growth, diversification and investment opportunities of its business.
At this stage, there are no significant information/events that require disclosure. Bancassurance concerns by IRDAI However, share prices of insurance companies witnessed a decline on Thursday as news reports related to regulatory concerns about the level of insurance business through bancassurance arrangements surfaced.
News reports had suggested that the insurance regulator has asked insurers to reduce their business through bank tie-ups by up to 50 per cent.
Share prices of SBI Life Insurance Company Ltd, HDFC Life Insurance Company Ltd, ICICI Prudential Life Insurance Company Ltd declined up to 7% in two trading sessions.
SBI Life, while clarifying on the concerns, said that “First of all, we would like to mention that IRDAI follows a consultative process and seeks feedback from all stakeholders, which is used by the regulator to make informed decisions.” This is done to formulate guidelines/ clarify any concerns of IRDAI with the industry.
We would like to place on record that as part of our regular interactions and consultations with IRDAI, we have not been made aware of any such regulatory discussions about the level of insurance business through bancassurance arrangements, SBI Life said.
Since life insurance corporations have their own channel to sell insurance and they sell most of their policies through their own agents and channel, the risk of any regulatory action by the regulator on policies being sold through banking tie-ups is minimal.
