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Financial risk management framework Natural hedges ◉ Protection and longevity businesses ■ Unit linked and non par savings products Quantum of guaranteed return products: 14% of AUM ALM approach Target cash flow matching for non par savings plus group protection portfolio to manage non parallel shifts and convexity Immunise overall portfolio to manage parallel shifts in yield curve (duration matching) Managing Risk Product design & mix monitoring ■ Prudent assumptions and pricing approach Return of premium annuity products (>95% of annuity); Average age at entry ~60 years ■ Deferred as % of total annuity business < 30%, with limited deferment period (<4 yrs) Regular monitoring of interest rates and business mix Residual strategy External hedging instruments such as FRAS, IRFS, Swaps amongst others Reinsurance 20 20 HDFC Life FY20 H1 FY21 I Sensitivity Overall Scenario EV EV Non par 1 VNB Margin Overall EV VNB Margin EV Interest Rate +1% Interest Rate -1% Non par 1 VNB VNB Margin Margin (1.2%) (0.7%) (1.3%) (2.0%) (1.5%) (0.9%) (1.4%) (2.4%) 0.6% 0.2% 0.0% 1.7% 0.7% 0.2% 0.2% 1.3% Calibrated risk management has resulted in low EV and VNB sensitivity in the Non Par segment 1. Comprise of Non par savings (incl Annuity) plus Group protection

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