ALM Strategy and Insurance Market Opportunities

Sensitivity analysis - H1FY24 Analysis based on key metrics Scenario Change in Reference rate Equity Market movement Change in VNB Margin 1 % Change in EV Increase by 1% -1.5% -2.8% Decrease by 1% 0.7% 2.7% Decrease by 10% -0.2% -1.4% Increase by 10% -0.5% -0.1% Persistency (Lapse rates) Decrease by 10% 0.5% 0.2% Increase by 10% -0.5% -0.8% Maintenance expenses Decrease by 10% 0.5% 0.8% Acquisition Expenses Increase by 10% -3.7% NA Decrease by 10% 3.7% ΝΑ Increase by 5% -1.6% -1.1% Mortality/Morbidity Tax rate² Decrease by 5% 1.6% 1.1% Increased to 25% -4.9% -9.0% 26 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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