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India's largest insurer, Life Insurance Corporation of India (LIC), is in discussions to acquire up to a 50% stake in ManipalCigna Health Insurance, marking its potential entry into the growing health insurance sector, according to The Economic Times report. The move comes as LIC aims to diversify beyond life insurance into the underserved medical coverage market, according to sources familiar with the matter.ManipalCigna is a joint venture between Manipal Education & Medical Group (51%), and US-based Cigna Corporation (49%).The report added that the non-disclosure agreement has been signed, and talks are progressing, sources revealed. The deal could value ManipalCigna at Rs 4,000 crore, implying LIC may invest Rs 1,750 - 2,000 crore for its share."Both parties have signed a non-disclosure agreement and are moving forward with discussions for LIC to acquire approximately a 50% stake in the venture," said a person familiar with the matter.The person added, "As per preliminary talks, both Manipal Group and Cigna Corporation will reduce their stakes proportionately."Both ManipalCigna and LIC have declined to comment on the continuing discussions.If the deal is completed, it will allow LIC to leverage on rising demand for health insurance, allowing it to compete in a growing market.ManipalCigna has a gross written premium (GWP) of Rs 1,691 crore in the preceding fiscal year. Industry counterparts, such as Niva Bupa and Star Health, have been valued between two and three times their GWP. According to this assessment criteria, ManipalCigna is worth between Rs 3,500 crore and Rs 4,000 crore.