Shares of the state-owned insurer Life Insurance Corporation of India (LIC) jumped 2.4% to Rs 938.45 on the BSE as the company eyes an acquisition of as much as 50% stake in ManipalCigna Health Insurance, seeking an entry into the market for medical expenses coverage.ManipalCigna is a joint venture between Manipal Education & Medical Group and US-based Cigna Corporation.The Bengaluru-based group holds a 51% stake in the standalone health insurance company, while Cigna Corporation owns the remaining 49%.If a deal is finalised, it will allow state-run LIC to diversify from its life insurance portfolio and tap into the increasing demand for health insurance that constitutes 37% of the Rs 3 lakh crore general insurance industry.As reported by ET earlier, 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.The deal could value the health insurer around Rs 4,000 crore, suggest previous ET reports.Also read: Adani stocks surge over 9% as sentiment improves post group's clarificationLIC has been looking to enter the health insurance market. "Our groundwork is underway, and within this financial year, we expect to acquire a stake in an existing standalone health insurance provider," managing director and chief executive Siddhartha Mohanty said during the company's earnings call on November 8, without divulging further details.ManipalCigna's valuation is not publicly known. Listed standalone health insurers are valued at two-three times their gross written premium (GWP). Niva Bupa Health Insurance Co, which has a market cap of nearly Rs 13,740 crore based on Wednesday's closing stock price, reported GWP of Rs 5,600 crore for fiscal year 2024. Star Health & Allied Insurance, which posted GWP of Rs 15,251 crore, has a market value of Rs 26,843 crore.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)