"We have short-listed some companies. The due diligence process is on," A K Shukla, chairman of LIC, said.
Indications are that LIC is likely to tie up with New India Assurance (NIA) and a local partner for the ventures.
If the deal in Australia materialises, it would be the third market in mature economies for LIC after its presence in the US (through a broking arm) and the UK.
LIC also has good presence in some Gulf nations through its arm LIC International (Bahrain).
The government has provided Rs 280 crore to LIC as seed capital for its overseas ventures.
