Journey Simplification and Business Resilience

Sensitivity analysis 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% 1.1% 1.6% Decrease by 10% -0.1% -1.7% Increase by 10% -0.3% -0.6% Persistency (Lapse rates) Decrease by 10% 0.3% 0.7% Increase by 10% -0.5% -0.8% Maintenance expenses Decrease by 10% 0.5% 0.8% Acquisition Increase by 10% -3.2% ΝΑ Expenses Decrease by 10% 3.2% ΝΑ Increase by 5% -1.1% -0.8% Mortality / Morbidity Decrease by 5% 1.1% 0.8% Tax rate² Increased to 25% -4.4% -8.5% Actuarial Financial ESG 38 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

View entire presentation