Reimagining Growth with Resilience

Sensitivity analysis - FY22 Actuarial Financial ESG Analysis based on key metrics Scenario Change in Reference rate Equity Market movement Change in VNB Margin 1 % Change in EV Increase by 1% -1.4% -2.0% Decrease by 1% 0.8% 1.6% Decrease by 10% -0.1% -1.4% Increase by 10% -0.6% -0.6% Persistency (Lapse rates) Decrease by 10% 0.7% 0.6% Increase by 10% -0.5% -0.8% Maintenance expenses Decrease by 10% 0.5% 0.8% Acquisition Expenses Increase by 10% -3.4% ΝΑ Decrease by 10% 3.4% ΝΑ Increase by 5% -1.2% -1.0% Mortality/Morbidity Tax rate² Decrease by 5% 1.2% 1.0% Increased to 25% -4.8% -9.1% 54 54 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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