"We have shortlisted some of the companies. The due diligence process is on," LIC chairman A K Shukla told PTI but declined to name the companies.
Indications are that LIC is likely to tie up with New India Assurance and a local partner. LIC has decided to foray into overseas markets where New India Assurance has operations.
The government has provided Rs 280 crore (Rs 2.8 billion) to LIC in the budget for seed capital required for its overseas ventures.
If the deal in Australia materialises, it would be one of the third mature markets where LIC will have a toehold. The state-owned insurer
is present in US through a broking arm and also in UK. LIC has greater presence in some of the Gulf nations through its arm LIC International (Bahrain).
The insurer is slated to start operations in Saudi Arabia, where it will have a joint venture with NIA and a local partner Al Hoiker group.
LIC, LIC International (Bahrain) and New India Assurance will hold 31 per cent stake while Al Hoiker group will have 29 per cent interest in the Indo-Saudi Insurance company being floated with an initial capital of about Rs 114 crore (Rs 1.14 billion).
The remaining 40 per cent would be offered to the public through an IPO. LIC is also focusing on its Mauritius operations and eyeing other African markets like Botswana.
