Multi-Pronged Risk Management and Protection Philosophy

Sensitivity analysis FY21 - Analysis based on key metrics Scenario Change in Change in VNB Margin 1 % Change in EV Increase by 1% -1.5% -2.2% Reference rate Decrease by 1% 0.9% 1.6% Equity Market movement Decrease by 10% -0.1% -1.5% Increase by 10% -0.3% -0.6% Persistency (Lapse rates) Decrease by 10% 0.3% 0.5% Increase by 10% -0.5% -0.8% Maintenance expenses Decrease by 10% 0.5% 0.7% Acquisition Expenses Increase by 10% -3.1% ΝΑ Decrease by 10% 3.1% ΝΑ Increase by 5% -1.0% -0.8% Mortality/Morbidity Tax rate² Decrease by 5% 1.0% 0.8% Increased to 25% -4.8% -8.3% Actuarial Financial ESG |32 1. Post overrun total VNB for Individual and Group business 2. The tax rate is assumed to increase from 14.56% to 25% and hence all the currently taxed profits in policyholder/shareholder segments are taxed at a higher rate. It does not allow for the benefit of policyholder surplus being tax-exempt as was envisaged in the DTC Bill. HDFC Life

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