You should read the discussion and analysis of our financial condition and results of operations set forth below in conjunction with our Restated Financial Information. See "Restated Financial Information" on page 354, which have been prepared in accordance with Indian GAAP applicable to life insurance companies in India, the Companies Act, 2013, and the IRDAI Regulations. Our financial statements differ significantly from those of non-insurance companies. See "Risk Factors — Internal Risks - Risks relating to the business of our Company - Our financial statements differ significantly from financial statements prepared by non-insurance companies. " on page 77.
Some of the information in the following discussion, including information with respect to our plans and strategies, contain forward-looking statements that involve risks and uncertainties. You should read "Forward-Looking Statements" on page 34 for a discussion of the risks and uncertainties related to those statements. Our actual results may differ from those expressed in or implied by these forward-looking statements.
We have, in this Red Herring Prospectus, included various operational and financial performance indicators, including certain non-GAAP financial measures, some of which may not be derived from our Restated Financial Information and may not have been subjected to an audit or review by our Joint Statutory Auditors or our Erstwhile Joint Statutory Auditors. The manner in which such operational and financial performance indicators are calculated and presented, and the assumptions and estimates used in such calculation, may vary from that used by other insurance companies in India and other jurisdictions. In addition, we have in this Red Herring Prospectus included the Embedded Value Report issued by the Independent Actuary which includes certain information relating to our Embedded Value as at March 31, 2025, March 31, 2024 and June 30, 2025 calculated in compliance with the Actuarial Practice Standard 10 ("APS 10") issued by the Institute of Actuaries of India, which may vary from that used by other life insurance companies in India and other jurisdictions. The Embedded Value as at March 31, 2025, March 31, 2024 and June 30, 2025 and the operational and financial performance indicators included in this Red Herring Prospectus may also vary from similar information we have calculated historically and presented publicly in compliance with applicable regulations in India. Investors are accordingly cautioned against placing undue reliance on such information in making an investment decision and should consult their own advisors and evaluate such information in the context of the Restated Financial Information and other information relating to our business and operations included in this Red Herring Prospectus.
Unless otherwise indicated, the financial information included herein is based on our Restated Financial Information for the three months ended June 30, 2025, June 30, 2024 and for Fiscals 2025, 2024 and 2023 included in this Red Herring Prospectus. For further information, see "Restated Financial Information" on page 354.
Unless otherwise indicated, industry and market data used in this section has been derived from the report titled, "Analysis of Life Insurance Industry in India" ("CRISIL Report") dated September 2025, prepared and issued by CRISIL Intelligence, which has been commissioned and paid for by us pursuant to a technical proposal letter dated January 13, 2025 and prepared exclusively in connection with the Offer. The CRISIL Report is available at the following web-link: www.canarahsbclife.com/investor-relations/offer-documents. Unless otherwise indicated, financial, operational, industry and other related information derived from the CRISIL Report and included herein with respect to any particular year refers to such information for the relevant calendar year. For further information, see "Risk Factors - Internal Risks - Risk relation to the business of our Company - This Red Herring Prospectus contains information from third parties, including an industry report prepared by an independent third-party research agency, CRISIL Intelligence (formerly known as CRISIL Market Intelligence & Analytics), division of CRISIL Limited, which we have commissioned and paid for to confirm our understanding of our industry exclusively in connection with the Offer and reliance on such information for making an investment decision in the Offer is subject to inherent risks" on page 78. Also see, "Certain Conventions, Presentation of Financial, Industry and Market Data - Industry and Market Data " on page 30.
For definitions of Technical and Industry Related Terms, see, "Definitions and Abbreviations - Industry/Business Related Terms" on page 11.
Overview
For details in relation to our business, see "Our Business" on page 248.
Key Factors Affecting our Results of Operations
The results of our operations and our financial condition are affected by a number of factors, many of which may be beyond our control, including the following:
Macroeconomic conditions in India
Our business and profitability are affected by general economic and demographic conditions in India. Indias economic growth trends, household savings rate, customer attitudes towards financial savings and demographic profile are some of the key factors affecting the performance of its life insurance industry. In the event of adverse macroeconomic conditions in India (whether due to conditions in India or as a result of deterioration of global macroeconomic conditions), characterized by higher unemployment, lower household income, lower corporate earnings, lower business investment and lower customer spending, the demand for insurance and savings products could be adversely affected. Changes in economic conditions can affect our financial results through their effect on market conditions and income from investments and through changes in customer confidence and demand for insurance products and services. Declining customer confidence tends to cause both a decrease in new policy sales and an increase in policy surrenders, thereby adversely affecting our results of operations.
Several recent global economic trends may influence the Indian economys growth trajectory. These include fluctuations in global interest rates, changes in the United States fiscal and monetary policies, ongoing global tariff wars, Chinas attempts to recalibrate its financial systems and geopolitical tensions involving Ukraine and Russia among others. If the economic or demographic conditions in India deteriorate or are not in line with our expectations, or the impact on our business is different from what we expect, our financial condition and results of operations may be materially and adversely affected.
Regulatory and fiscal environment
The life insurance industry in India is regulated and involves significant compliance efforts and related costs. Any changes in the business environment resulting from regulatory or fiscal changes or more stringent adoption or implementation of the existing regulatory regime applicable to the Indian life insurance industry could have an impact on the nature of our existing products, our ability to launch new products, our business practices, distribution arrangements, target customer segments, and the value of our assets or our existing business.
IRDAI Regulations
The Insurance Regulatory and Development Authority of India (Registration of Corporate Agents) Regulations, 2015 read with the Press Note dated November 25, 2022 permit our bancassurance partners to tie up with up to nine life insurers in its capacity as corporate agents. Consequently, we may compete with other life insurers to promote our products through our bancassurance partners.
We are limited by IRDAI regulations in connection with inter alia (i) the investments we are permitted to make, including minimum investment requirements in central government securities, state government securities, other approved securities and housing and infrastructure sectors, (ii) issuance of capital, (iii) transfer restrictions on our Equity Shares, (iv) solvency ratios that we are required to maintain, (v) restrictions on place of business, (vi) expenses of management (including commission) regulations, (vii) obligations to rural and social sectors, (viii) requirements with respect to distribution arrangements and (ix) rules relating to the aggregate foreign investment that is permitted, among other regulations.
Further, the Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024 read with Master Circular on Actuarial, Finance and Investment Functions of Insurers dated May 17, 2024, as amended require insurance companies to prepare financial statements in a prescribed format. IRDAI is also endeavoring to implement Ind AS in the insurance sector from April 1, 2027.
Any new IRDAI policies relating to, among other matters, insurance products, insurance intermediaries, distribution or provisioning norms affecting our business, or the introduction of rural and other social welfare initiatives introduced at the initiative of other regulatory agencies that we are required to support, may result in increased operational expenses, including the cost of regulatory compliance, decreased profitability, or require us to modify our business strategy and focus on new markets and/or customer segments.
General Fiscal and Corporate Tax Laws
Any adverse development in fiscal or taxation laws applicable to insurance companies in India, discontinuance of tax exemptions in relation to pension income, change in applicability of minimum alternate tax rates and any discontinuance of tax benefits available to customers with respect to insurance products in India may materially and adversely affect our results of operations and financial condition.
Further, income earned on unit linked insurance policies ("ULIPs") where premium contributions is beyond ?0.25 million per annum are taxable and income earned on contributions with respect to any life insurance policy other than
a ULIP, issued on or after April 1, 2023, if the amount of premium payable per annum during the term of such policy exceeds ?0.50 million, is taxable and the income/return on maturity shall be treated as a capital gain and charged accordingly under Section 112A of the Income Tax Act, 1961. The cap of Rs.0.25 million on the annual premium of ULIP is applicable only for the policies taken on or after February 1, 2021. In the three months ended June 30, 2025 and June 30, 2024, Fiscals 2025, 2024 and 2023, our new business premium from ULIPs was ?2,110.82 million, ?2,020.95 million, ?12,289.36 million, ?6,677.68 million and ?6,755.18 million, respectively, which represented 25.32%, 28.36%, 39.37%, 23.02% and 18.18%, of our new business premium, respectively. One of our strategies is to ensure a balanced product mix and benefit from economic of scale, through a focus on higher margin products for greater financial returns while maintaining a balanced product mix to hedge our dependence on specific policy segments and customer demographics. Our execution of such strategies is subject to regulations, such as the aforementioned laws. See "Our Business - Our Strategies - Ensure profitable growth through balanced product portfolio" and "Key Regulations and Policies" on pages 262 and 297, respectively.
Furthermore, any adverse changes in goods and services tax applicable to insurance companies in India may materially and adversely affect our results of operations and financial condition.
Expansion and efficiency of our multi-channel distribution network
Our business relies on our multi-channel distribution network, particularly our bancassurance network. As such, the productivity of these channels directly influences our financial health and operational outcomes. We possess a vast distribution network, with bancassurance being the most significant avenue. For instance, bancassurance accounted for 92.33%, 91.71%, 87.07%, 78.71% and 57.20% of our new business premium during the three months ended June 30, 2025, June 30, 2024, and Fiscals 2025, 2024 and 2023, respectively. Specifically, contributions from Canara Bank were 73.16%, 74.85%, 70.58%, 61.33% and 43.87% during these times. In addition, HSBC India accounted for 9.01%, 8.85%, 9.79%, 11.11% and 9.22% of the new business premium. We have also partnered with seven regional rural banks to strengthen our bancassurance channel across India. Failure to secure new partnerships, preserve existing relationships amidst competition, or fully utilize these channels may negatively impact our product sales. Our arrangements with bancassurance partners, in accordance with the current regulations are non-exclusive, and sales depend on our products competitiveness. Furthermore, in addition to the bancassurance channel we have also expanded our distribution channel to include brokers and other corporate agents. The effectiveness of these partnerships, and our capacity to cultivate new distribution channels profoundly affect our business operations and financial state. We are also prioritizing our direct sales (including sales on our digital platform) channel. Competing in direct sales, especially online, hinges on retaining staff, utilizing data analytics and maintaining a customer-focused approach compared to competitors. We are also working towards launching an agency distribution channel, which will be crucial in enhancing our presence and increase our market penetration and consequently our results of operations will be dependent on how this channel performs. Additionally, any changes in the regulatory landscape could influence the expansion and efficiency of our distribution network.
Product mix and new business growth
We develop and distribute a diverse array of individual and group insurance products, including participating, nonparticipating, unit-linked and annuity options. These offerings encompass protection, savings and retiral needs of customers. Different products have varying capital requirements, pricing assumptions, reserve levels, profitability metrics and profit period patterns, thus changes in the product mix impact our financial health and operational results. We have increasingly concentrated on non-participating policies, especially those concerning the savings and protection needs of policyholders, to enhance our margins. Despite this focus, unit-linked products still contribute a substantial portion of our revenue. Moreover, we are also strategically focusing on group protection products, particularly group credit life, which tends to yield higher margins compared to other group products.
Regulatory changes, market developments and customer preferences that influence sales of our unit-linked, participating or non-participating products can significantly impact our business and operational outcomes. The growth of our non-participating products and their mix are crucial to our Value of New Business ("VNB") and profitability. We aim to balance our product portfolio with an appropriate mix of non-participating, participating and unit-linked products along with a focus on relatively higher-margin products, maintaining overall growth while developing additional products. To proactively address market shifts, we strive to design innovative products to capitalize on emerging opportunities, positioning ourselves competitively against offerings from our rivals. Noteworthy changes in product categories, presently significant or likely to gain significance, could materially affect our business and financial performance. In addition, profits from life insurance contracts typically emerges over the life of the contract and we may incur losses in the initial period after a policy is written. Any significant growth in new business may also cause us to incur loss in the initial phases, thereby affecting our results of operations temporarily.
Variance between actual experience and actuarial assumptions
Our results from operations and financial condition are affected by our claims, persistency and surrender experience, which may vary from the assumptions made when we priced our products and calculated our insurance contract liabilities.
Our claims experience varies over time, differs across product types and distribution channels, and may be impacted by specific events and changes in macroeconomic conditions, population demographics, mortality, morbidity and other factors. Our business is exposed to the risk of catastrophic mortality and illness, such as an epidemic/pandemic or other events that may cause a large number of mortality and/or morbidity claims. In order to partly mitigate this risk, we enter into catastrophic reinsurance arrangements where catastrophic claims in excess of certain limits are covered by our reinsurers.
Our actual persistency and surrender experience may differ from our assumptions and expectations. Our persistency levels, which are measured by the proportion of customers who continue to maintain their policies with us over certain defined periods, is important to our results of operations. A higher persistency ratio has a favourable impact on our total revenues and long-term profitability, and vice-versa. Persistency and surrender experience vary over time because of various factors including type of product, change in customer behaviour, regulatory developments, macroeconomic and market conditions as well as our investment performance.
For details, see "Risk Factors — Internal Risks - Risk relation to the business of our Company - If actual claims experienced and other parameters such as including but not limited to expenses and commissions are different from the assumptions used by us in pricing and setting reserves for our products, it could have a material adverse effect on our business, financial condition and results of operations " on page 53.
Fluctuations in market interest rates
The profitability of certain of our products and our investment returns can be sensitive to interest rate fluctuations. Interest rates are highly sensitive to many factors, including monetary policies, domestic and international economic and political considerations, inflationary factors, fiscal deficits, trade surpluses or deficits, liquidity, regulatory requirements and other factors beyond our control.
Our interest rate sensitivity varies across the different product lines, based on the nature of the returns due to our policyholders. In general, the investment risk in respect of investments made for unit-linked contracts is borne by policyholders of such products, whereas the investment risk associated with investments backing participating products is shared between our policyholders and shareholders, and the investment risk associated with nonparticipating products and shareholders funds is completely borne by shareholders. In addition, movements in interest rates may affect the level and timing of recognition of gains and losses on debt securities and other investments held in our investment portfolio. A significant portion of our investment portfolio is held in debt securities, particularly fixed income government securities. Our debt portfolio represented 64.79%, 64.02%, 66.63%, 66.64% and 68.13% of our AUM as at June 30, 2025, June 30, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, respectively.
Some of our products have guaranteed returns. These contracts carry the risk that interest income from the financial assets backing such liabilities may be insufficient to fund the guaranteed benefits payable as interest rates fall. During periods of declining interest rates, we may not be able to fully meet the guaranteed liabilities of our non-participating contracts. Declining interest rates generally have the effect of increasing the proportion of policyholders who elect to continue with products that have guaranteed benefits. While this may improve our persistency, it also increases the overall cost of providing such guarantees and therefore affects our financial results and profitability. While we have hedging arrangements in place to mitigate this risk, it is possible that the impact may not be fully offset in a rapidly declining interest rate scenario, particularly where we experience a significant increase in the new business premium through products with guaranteed benefits. For participating contracts, a decline in interest rates may result in lower bonus rates for policyholders, which may lead to policyholder dissatisfaction and therefore increased surrenders and decreased new business sales.
In addition, our insurance contracts liabilities may have a longer duration than our investment assets, which may result in the re-investment returns of our maturing investments being lower than the average guaranteed pricing rate for our insurance policies in a declining interest rate environment
Rising interest rates could result in the reduction in the fair value of our investments and generate unrealized losses, which could adversely affect our results of operations. Rising interest rates could also lead to higher levels of surrenders and withdrawals of existing policies as policyholders seek to buy products with perceived higher returns, which may require us to sell our invested assets and make cash payments to policyholders at a time when the prices of those assets are declining, which may result in realized losses.
For details, see "Risk Factors — Internal Risks - Risk relation to the business of our Company - Fluctuations in interest rates could significantly and negatively impact our profitability. Furthermore, the Indian capital markets offer a limited variety and quantity of long-term fixed income products. Legal and regulatory restrictions on the types and amounts of investments allowed for insurance entities may constrain our ability to closely align the tenure of our assets with our liabilities" and the Embedded Value Report on pages 51 and 609, respectively.
Fluctuations in Indian equity markets
Fluctuations in the Indian equity markets hold the potential to impact our investment returns, and subsequently, our financial condition and operational results. For unit-linked products, policyholders bear the fluctuations associated with the underlying investments, whereas investment risks tied to other products or shareholders funds are either split between policyholders and us or solely borne by us.
During extended or sharp declines in equity markets, the sale of unit-linked products may decrease, while periods of rising markets may tend to increase sales. When market uncertainty or volatility prevails, customers might hesitate to engage in new unit-linked policies. Moreover, lower investment returns from unit-linked assets may impact the assets under management and related fees earned. Declines in equity markets can trigger increased surrenders and withdrawals as customers look to alternative products, although some may continue to hold investments aiming for future gains. Conversely, rising markets might lead customers to exit their policies to capitalize on gains. A fall in equity markets not only reduces our investment income but also reduces the fair value of investments linked to non- linked policyholder funds and shareholders funds.
Competition
We face competition in the Indian life insurance market from both public and private sector competitors. According to the CRISIL Report, amongst bank led insurers, we face competition from life insurers such as SBI Life Insurance Company Ltd., HDFC Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited, Axis Max Life Insurance Company Limited, Kotak Mahindra Life Insurance Limited, PNB Metlife India Insurance Company Limited, IndiaFirst Life Insurance Company Limited and Star Union Dai-Ichi Life Insurance Company. We also face competition from non-bank led insurance providers such as Life Insurance Corporation of India, TATA AIA Life Insurance Company Ltd., Bajaj Allianz Life Insurance Company Ltd., Aditya Birla Sunlife Insurance Company Limited and Reliance Nippon Life Insurance Company Limited.
We also face competition from smaller life insurance companies that have been seeking to expand market share in recent years and may develop strong positions in certain customer segments. Our Companys other competitors include non-life insurance companies (to the extent such companies offer health insurance products), standalone health insurance companies, pension funds, mutual funds companies, and other financial services providers offering a variety of financial investment products.
We compete for business on the basis of various factors, including product features, price, coverage offered, quality of customer service, distribution network, relationships with bancassurance partners/agents/other intermediaries, brand recognition, size of operations, operating efficiency and financial strength. In addition, life insurance products also compete with certain other financial services products. For example, in the area of savings-oriented insurance products, we compete with mutual fund companies, bank fixed deposits and Government small saving schemes. Some of our competitors may offer higher commissions or more attractive rewards to agents and other distribution intermediaries or offer similar insurance products at lower pricing. We may also experience increase in consolidation in the life insurance sector in India, which could lead to our competitors attaining increased financial strength, management capabilities, resources, operational experience, market share, distribution channels and capabilities in pricing, underwriting and claims settlement.
Financial institutions in India have increasingly concentrated on creating innovative investment products to cater to the growing public interest in diverse financial options. This shift has resulted in a broad array of financial investment offerings. These products might appeal to customers due to factors such as tax advantages, investment returns, liquidity or other characteristics, posing potential competition to our products that share similar investment features.
Expense management
Our growth in new business and ability to control costs directly influence our profitability. Financial results reported are significantly affected by expenses, which may not align with the assumptions made during product pricing and calculation of insurance contract liabilities. Various factors, including specific events and changes in macroeconomic conditions such as inflation, regulations, competition, distribution costs, and employee costs, can impact these expenses. Due to the cap on charges for unit-linked products, the ability to absorb expenses varies across unit-linked
different products. Our expense ratios and consequently, financial condition and operational results may be affected by shifts in product mix and expansion of distribution channels such as direct and agency channels. Additionally, a reduction in new business premiums and renewals may influence our expense ratios. Our efforts to manage operating expenses involve enhancing operational efficiencies, investing in information technology, and collaborating with distribution partners and employees to increase productivity levels.
Non-GAAP Financial Measures
We have included certain non-GAAP financial measures relating to our operations and financial performance (collectively, "Non-GAAP Financial Measures" and each, a "Non-GAAP Financial Measure"). The presentation of these Non-GAAP Financial Measures provides additional useful information to potential investors regarding our performance and trends related to our financial condition and results of operations. Accordingly, when Non-GAAP Financial Measures are viewed together with Indian GAAP financial information, as applicable, potential investors are provided with a more meaningful understanding of our financial condition and results of operations.
We use a variety of financial and operational performance indicators to measure and analyze our operational performance from period to period, and to manage our business. We also use other information that may not be entirely financial in nature, including statistical and other comparative information commonly used within the life insurance sector to evaluate our financial and operating performance. For these reasons, we have included certain Non-GAAP Financial Measures in this Red Herring Prospectus, including Individual WPI, APE, Embedded Value and Value of New Business, as well as certain other metrics based on or derived from those Non-GAAP measures. For further details, see "Other Financial Information" on page 462. These Non-GAAP Financial Measures have limitations as analytical tools. As a result, Non-GAAP Financial Measures should not be considered in isolation from, or as a substitute for, analysis of our historical financial performance, as reported under Indian GAAP and presented in our Restated Financial Information. Furthermore, these Non-GAAP Financial Measures are not defined under Indian GAAP and therefore should not be viewed as substitutes for performance or profitability measures under Indian GAAP. While these Non-GAAP Financial Measures may be used by other companies operating in the Indian life insurance sector, they may not be comparable to similar financial or performance indicators used by other companies due to potential inconsistences in the method of calculation and differences due to items subject to interpretation. Therefore, these metrics should not be considered in isolation or construed as an alternative to profit before tax, premiums earned - net, gross earned premiums or any other measure of performance or as an indicator of our operating performance, liquidity, profitability or results of operations. Also see, "Risk Factors - Internal Risks - Risk relation to the business of our Company - We have in this Red Herring Prospectus included certain non-generally accepted accounting measures ("GAAP") and certain other industry measures related to our operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the industry in which we operate, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies on page 79.
Basis of Preparation
Our Restated Financial Information (as defined below) has been prepared and presented under the historical cost convention unless otherwise stated, on the accrual basis of accounting, in accordance with the IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024, the provisions of the Insurance Act, 1938 and Insurance Regulatory and Development Authority (IRDA) Act, 1999 as amended by the Insurance Laws (Amendment) Act, 2015 and Insurance (Amendment) Act, 2021, various circulars/guidelines issued by IRDAI and accounting standards referred to under the Companies Act, 2013 (section 133 read with Rule 7 of the Companies (Accounts) Rules, 2014 and Companies (Accounting Standards) Amendment Rules, 2021) to the extent applicable, as amended from time to time and in the manner so required as per the generally accepted accounting principles in Indian GAAP and the practices prevailing within the insurance industry in India.
The Restated Financial Information comprises of the Restated Statement of Assets and Liabilities of the Company as at June 30, 2025, June 30, 2024, March 31, 2025, 2024 and 2023 and the Restated Statement of Revenue Account (Policyholders Account/ Technical Account), Restated Statement of Profit and Loss Account (Shareholders Account/ Non-Technical Account) and the Restated Statement of Receipts and Payments Account for the period/ years ended June 30, 2025, June 30, 2024, March 31, 2025, 2024 and 2023 (together referred as "Restated Financial Information") and other financial information.
Material Accounting Policies
There have been no material changes to our accounting policies in the three preceding Fiscals and the three months ended June 30, 2025.
Critical Accounting Policies and Estimates
The preparation of our restated financial information requires selecting accounting policies and making estimates and assumptions that affect items reported in the restated statement of assets and liabilities, the restated statement of revenue account, restated statement of profit and loss account, the restated receipts and payments and the notes attached thereto. The determination of these accounting policies is fundamental to our results of operations and financial condition and requires management to make subjective and complex judgments about matters that are inherently uncertain based on information and data that may change in future periods. As a result, determinations regarding these items necessarily involve the use of assumptions and subjective judgments as to future events and are subject to change, and the use of different assumptions or data could produce materially different results. In addition, actual results could differ from estimates and may have a material adverse effect on our business, financial condition, results of operations or cash flows. For more information regarding our significant accounting policies, see "Restated Financial Information - Annexure to Restated Financial Information - Notes to Financial Statements - Annexure .XXIV Summary of significant accounting policies" on page 380.
Certain accounting estimates are particularly sensitive because of their significance to the restated financial information and because of the possibility that future events affecting the estimates may differ significantly from managements current judgments.
Our critical accounting policies and estimates are as follows:
Revenue recognition
Premium Income
Premium of non-linked business is recognized as income (net of Goods and Services Tax ("GST")) when due from policyholders, where the grace period (as per the product terms and conditions, as approved by IRDAI) has not expired. For unit linked business, premium is recognized as income when the associated units are created/ allocated. In case of variable insurance products and other fund-based group products, premium is recognized as income on the date of receipt of funds.
Premium on lapsed policies is recognized as income when such policies are reinstated.
Products having regular premium paying plans with limited premium payment term and/or pre-determined policy term are treated as regular business with due classification of premium into first year and renewal. Premium income on products other than aforesaid is classified as single premium.
Top-up premium paid by the unit linked policyholders is considered as single premium and recognized as income when the associated units are created / allocated.
Income from Linked Business
Fund management charges, administrative charges, mortality charges and other charges as per the product features are recovered from linked funds in accordance with the terms and conditions of policies and are recognized when due and recoverable. Allocation charges are recovered when associated units are created / allocated in accordance with the terms and conditions of policies.
GST recovered on above Unit Linked charges are shown under "GST recovered on ULIP charges" in the revenue account as required by IRDAI guidelines.
Income from Investments
Interest income on investments is recognized on accrual basis. Dividend income is recognized on ‘ex-dividend date in case of listed equity shares and when the right to receive dividend is established in case of unlisted equity shares, if any.
Accretion of discount and amortisation of premium to the face value in respect of debt securities, for other than linked assets, is recognized over the holding/maturity period on a straight-line basis.
In case of discounted instruments, the difference between the face value and book value is accreted over the life of the instrument on a straight-line basis.
The realized gain or loss on sale of linked assets is the difference between the sales consideration and weighted average book cost.
The realized gain or loss on sale of debt securities in case of non-linked assets is the difference between the sales consideration and the weighted average accreted /amortised cost.
The realized gain or loss on sale / redemption of equity shares / mutual funds / Infrastructure Investment Trusts (InvITs) / Real estate Investment Trust (REIT) / Additional Tier I Bonds in case of non-linked assets is the difference between sales consideration and weighted average book cost. In respect of non-linked assets, the profit or loss includes the accumulated changes in the fair value previously recognized under "Fair Value Change Account".
Sales consideration for the purpose of realized gain or loss is net of brokerage and taxes, if any.
Lending Fee, net of brokerage, on Equity shares lent under Security Lending and Borrowing (" SLB") transactions is recognized on accrual basis under the straight-line method on the entire tenure of the contract in the respective funds. In case if the securities are re-called prior to the end of the contract term or if the SLB position is closed out in the exchange due to a corporate action, the unamortized lending fee, net of the fees to be paid on recall, is transferred to the funds revenue account.
Others
Policy reinstatement fee is recognized on receipt basis, in accordance with the terms and conditions of policies. Interest on loans against policies is recognized on an accrual basis.
Reinsurance premium
Reinsurance premium ceded is accounted on due basis in accordance with the treaty or in-principle arrangement with the re-insurer.
Benefits paid (including claims)
Claims costs consist of the policy benefit amount and claim settlement costs, where applicable. Death claims and rider claims are accounted for on receipt of intimation up to the balance sheet date.
Survival benefit claims, annuity claims, and maturity claims are accounted when these become due.
Surrenders and withdrawals (net of charges) under unit linked policies are accounted for when associated units are cancelled. Under non linked policies, these are accounted for when the intimation for the surrender is received and accepted up to the balance sheet date.
In case of unit-linked insurance products having the feature of waiver of the balance future premiums on the death of the life proposer, the entire future premiums waived are recognized as liability under the benefits paid on the occurrence of death of the life proposer. When the subsequent modal premium becomes due, the said premiums are funded by reducing the aforesaid liability and the premium income is recognized for the same.
Repudiated claims disputed before judicial authorities are provided for/ disclosed as contingent liability, based on management prudence, considering the facts and evidence available in respect of such claims.
Re-insurance recoveries on claims are accounted for, in the same accounting period as the related claims.
Acquisition costs
Acquisition costs (such as commission, medical examination fees etc.) are costs which vary with and are primarily related to acquisition of insurance contracts and are expensed off in the period in which they are incurred. Recovery on account of claw back of the commission paid, if any, in future is accounted in the year in which its recovery is due.
Investments
Investments are made and accounted for in accordance with the Insurance Act, 1938, as amended by the Insurance Laws (Amendment) Act, 2015, Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024, Investment Policy of the Company and various circulars and notifications issued by the IRDAI in this context, as amended from time to time.
Investments are recorded on trade date at cost, which includes brokerage and related taxes, if any and excludes preacquisition interest accrued, if any.
Broken period interest paid/received is debited/ credited to interest receivable account.
Bonus entitlements are recognized as investments on the ‘ex-bonus date. Rights entitlements are recognized as investments on the ‘ex-rights date.
Classification
Investments maturing within twelve months from the balance sheet date and investments made with the specific intention to dispose off within twelve months from the balance sheet date are classified as short-term investments. All other investments are classified as long-term investments.
Investments are specifically made for policyholders and shareholders and held in separately maintained accounts. The income relating to these investments is recognized in the respective policyholder and shareholder account.
Valuation - linked funds
Listed equity shares
Our Company has selected NSE as the primary exchange and BSE as secondary exchange in line with the IRDAI guidelines for equity valuation.
Listed equity shares are valued at market value based on the closing price of the primary stock exchange, NSE. In case the equity shares are not listed/ traded on the NSE, they are valued on the closing price of the secondary stock exchange, BSE. Unrealized gains and losses are recognized in the respective funds revenue account.
Mutual funds
Mutual fund units are valued at the previous day net asset value. Unrealized gains and losses are recognized in the respective funds revenue account.
Additional Tier 1 (Basel III compliant) Perpetual Bonds (ATI bonds)
AT1 bonds are valued at prices arrived basis applicable market yield rates published by a SEBI registered rating agency (Credit Rating Information Services of India Limited, CRISIL) using bond valuer at yield to call basis.
Exchange traded funds ("ETFs")
Units of ETFs are valued in line with the equity shares and are valued at the closing price of the particular scheme on NSE. In case the scheme is not listed/ traded on the NSE, it is valued on the closing price of the secondary stock exchange, BSE. In case the ETF is not traded on any day, real time NAV as published by the asset management company (AMC) is considered for valuation. Unrealized gains and losses are recognized in the respective funds revenue account.
Infrastructure Investment Trust ("InvIT") /Real estate Investment Trust ("REIT")
InvITs/REITs are valued in line with equity shares and valued at the closing price of primary stock exchange (NSE) and if it is not available on primary stock exchange, then secondary stock exchange (BSE). In case the InvITs/REIT is not traded either on the primary or the secondary stock exchange on any given day, then latest quoted price on exchange shall be considered however the last quoted price should not be later than 30 days. Where market quote is not available for last 30 days, the units shall be valued at the latest NAV (not more than 6 months old) as published by the InvIT/REIT. Unrealized gains and losses are recognized in the respective funds revenue account.
Debt securities
Central and state government securities are market valued as per CRISIL Gilt prices and other debt securities are market valued at prices arrived from the CRISIL Bond Valuer. Unrealized gains and losses are recognized in the respective funds revenue account.
Discounted money market instruments (treasury bills, certificate of deposits, commercial paper and Tri-Party Repo (TREPS)) are valued at accreted cost. The difference between the face value and book value is accreted over the life of the asset, on a straight-line basis.
Fixed deposits and reverse repo are valued at cost till maturity.
Valuation - non-linkedpolicyholders funds and shareholders fund Equity shares
Our Company has selected NSE as the primary exchange and BSE as secondary exchange in line with the IRDAI guidelines for equity valuation.
Listed equity shares are valued at market value based on the closing price at the primary stock exchange, NSE. In case the equity shares are not listed/ traded on the NSE, they are valued on the closing price of the secondary stock exchange, BSE. Unlisted equity shares are stated at historical cost.
Mutual funds
Mutual fund units are valued at the previous day net asset value.
Additional Tier 1 (Basel III compliant) Perpetual Bonds (ATI bonds)
AT1 bonds are valued at prices arrived basis applicable market yield rates published by a SEBI registered rating agency (Credit Rating Information Services of India Limited, CRISIL) using bond valuer at yield to call basis.
Exchange Traded Funds (ETFs)
Units of ETFs are valued in line with the equity shares and are valued at the closing price of the particular scheme on NSE. In case the scheme is not listed/ traded on the National Stock Exchange, it is valued on the closing price of the secondary stock exchange (Bombay Stock Exchange, BSE). In case the ETF is not traded on any day, real time NAV as published by the Asset Management Company (AMC) is considered for valuation.
Infrastructure Investment Trust ("InvIT") /Real estate Investment Trust ("REIT")
InvITs/REITs are valued in line with equity shares and valued at the closing price of primary stock exchange (NSE) and if it is not available on primary stock exchange, then secondary stock exchange (BSE). In case the InvITs/REIT is not traded either on the primary or the secondary stock exchange on any given day, then latest quoted price on exchange shall be considered however the last quoted price should not be later than 30 days. Where market quote is not available for last 30 days, the units shall be valued at the latest NAV (not more than 6 months old) as published by the InvIT/REIT.
Unrealized gains and losses on equity shares, mutual funds, AT1 bonds, ETFs, InvITs and REITs are taken to the "fair value change account" and carried forward in the balance sheet.
Debt securities
All debt securities, including government securities are considered as ‘held to maturity and accordingly stated at cost, subject to accretion/ amortisation of the discount/premium on a straight line basis over the period of maturity holding.
Discounted money market instruments (treasury bills, certificate of deposits, commercial paper, Tri-Party Repo (TREPS)) are valued at accreted cost. The difference between the face value and book value is accreted over the life of the asset, on a straight-line basis.
Fixed deposits and Reverse repo are valued at cost till maturity.
Derivative instrument
Certain guaranteed products offered by us assure the policy holders a fixed rate of return for premiums to be received in the future and we are exposed to interest rate risk on account of re-investment of interest and principal maturities at future date and guarantee risk on premiums from already written policies. Interest rate derivative contracts are used for hedging of highly probable forecasted transactions on insurance contracts and investment cash flows.
A forward rate agreement ("FRA") is a forward contract to hedge the risk of movements in interest rates. We are using FRA instruments to hedge interest rate risk arising out of premiums from already written policies and reinvestment risk of interest and principal maturities at future date.
We follow hedge accounting in accordance with the ‘Guidance Note on Accounting for Derivative Contracts issued by the Institute of Chartered Accountants of India (ICAI) and IRDAI Investment Master Circular, as amended from time to time
We have a well-defined Board approved Derivative Policy and Process document setting out the strategic objectives, risk measures and functioning of the derivative transactions as per the hedging strategy. At the inception of the hedge, we designate and document the relationship between the hedging instrument and the hedged item, the risk management objective, strategy for undertaking the hedge and the methods used to assess the hedge effectiveness.
For cash flow hedges, hedge effectiveness is ascertained at the time of inception of the hedge and periodically thereafter.
• The portion of fair value gain / loss on the interest rate derivative that is determined to be an effective hedge is recognized directly in appropriate equity account i.e. ‘Hedge Fluctuation Reserve.
• The ineffective portion of the change in fair value of such instruments is recognized in the Revenue Account in the period in which they arise.
• If the hedging relationship ceases to be effective or it becomes probable that the expected forecasted transaction will no longer occur, hedge accounting is discontinued and the cumulative gains or losses that were recognized earlier in Hedge Fluctuation Reserve shall be reclassified to the Revenue Account.
• The accumulated gains or losses that were recognized in the Hedge Fluctuation Reserve are reclassified into Revenue Account or profit and loss account, in the same period during which the income from investments acquired from underlying forecasted cash flow is recognized in the Revenue Account.
Recognition of derivates in balance sheet
• Initial recognition: All derivatives are initially recognized in the balance sheet at their fair value, which usually represents their cost. Any fair value gain or loss on the date of inception of the transaction is recognized in Revenue account with a corresponding adjustment in the value of derivative asset or liability.
• Subsequent recognition: All derivatives are subsequently re-measured at their fair value, with the method of recognizing movements in this value depending on whether they are designated as hedging instruments and, if so, the nature of the item being hedged. In case the Hedging Instrument is found effective, then the movement in fair value gain or loss is directly adjusted in to Hedge Fluctuation Reserve with a corresponding adjustment in the value of derivative asset or liability. In case the Hedging Instrument is found ineffective, the ineffective portion of the change in fair value of such instruments is recognized in the Revenue Account in the period in which they arise. All derivatives are carried as assets when the fair values are positive and as liabilities when the fair values are negative.
Loans against policies
Loans against policies are valued at the aggregate of book values (net of repayments) plus capitalized interest and are subject to impairment, if any.
Impairment of investments
We assess on each balance sheet date, whether impairment other than temporary has occurred in its investments based on its investment policy.
An impairment loss shall be recognized as an expense in revenue/profit and loss account to the extent of the difference between the re-measured fair value of the investment and its acquisition cost as reduced by any previous impairment loss recognized as expense in revenue / profit and loss account.
However, at the balance sheet date if there is any indication that a previously recognized impairment loss no longer exists, then such loss is reversed in revenue / profit and loss account and the investment is reinstated to that extent.
Provision for non-performing assets
All assets where the interest and/or installment of principal repayment remains overdue for more than 90 days at the balance sheet date are classified as non-performing assets in the manner required by the IRDAI regulations on this behalf and adequate provisions are made.
Transfer of investments
Transfer of debt securities from Shareholders to Non-Linked Policyholders fund is transacted at the lower of net amortized cost or prevailing market value. Inter fund transfer of securities within the unit-linked funds are carried at prevailing market value.
Segment Information
In accordance with the IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulation, 2024 and various circulars and notifications issued by the IRDAI in this context as amended from time to time read with Accounting Standard 17 on Segmental Reporting" notified under section 133 of the Companies Act 2013 and rules there under, the Company has classified and disclosed segmental information separately for Shareholders and Policyholders. Within the Policyholders, following primary business segments have been classified and disclosed:
• Linked Non-Participating - Life
• Linked Non-Participating - Pension
• Linked Non-Participating - Health
• Linked Non-Participating - Others
• Non-Linked Participating - Life
• Non-Linked Participating - Pension
• Non-Linked Participating - Health
• Non-Linked Participating - Others
• Non-Linked Non-Participating - Life
• Non-Linked Non-Participating - Pension
• Non-Linked Non-Participating - Health
• Non-Linked Non-Participating - Others
Results of Operations
The following table shows a breakdown of our results of operations from our Restated Statement of Revenue Account (Policyholders Account) and our Restated Statement of Profit and Loss Account (Shareholders Account) for the periods indicated:
| Three months ended June 30, | Fiscal | ||||
| Revenue Account (Policyholders | 2025 | 2024 | 2025 | 2024 | 2023 |
| Account/Technical Account) | in million) |
||||
| Income | |||||
| Premiums earned - net | |||||
| Premium | 17,472.31 | 13,883.22 | 80,274.62 | 71,287.01 | 71,973.83 |
| Reinsurance ceded | (937.98 | (761.50) | (1,772.21) | (1,960.62) | (1,676.61) |
| Reinsurance accepted | - | - |
- |
- | |
| Sub-total | 16,534.33 | 13,121.72 | 78,502.41 | 69,326.39 | 70,297.22 |
| Income from Investments | |||||
| (a) Interest, Dividend and Rent - Gross | 4,941.83 | 4,481.28 | 17,246.30 | 15,360.25 | 12,147.25 |
| (b) Profit on sale/ redemption of investments | 1,895.88 | 3,676.37 | 14,106.95 | 8,922.48 | 7,141.82 |
| (c) (Loss on sale/ redemption of investments) | (276.14) | (356.52) | (1,106.05) | (950.20) | (1,910.54) |
| (d) Transfer/ Gain on revaluation/ change in fair value | 12,330.75 | 9,167.94 | (4,934.25) | 22,776.43 | (5,782.46) |
| (e) Amortization of premium/ discount on investments | 630.64 | 531.89 | 2,260.73 | 2,015.19 | 1,538.32 |
| Income from Investments | 19,522.96 | 17,500.96 | 27,573.68 | 48,124.15 | 13,134.39 |
| Other Income | |||||
| Miscellaneous Income | 52.98 | 33.47 | 163.73 | 106.61 | 49.30 |
| Contribution from Shareholders Account... (a) Towards excess expenses of management | - | - | - | 64.03 | |
| (b) Towards remuneration of MD/ CEO/ WTD/ Other KMPs | 17.80 | 10.44 | 24.19 | - | - |
| (c) Others | - | - | - | - | |
| Total (A) | 36,128.07 | 30,666.59 | 106,264.01 | 117,557.15 | 83,544.94 |
| Expenses | |||||
| Commissions | 961.65 | 716.22 | 5,071.24 | 4,111.22 | 4,135.48 |
| Operating expenses relating to insurance business | 2,461.75 | 2,263.96 | 9,942.20 | 9,354.06 | 8,362.29 |
| Provision for doubtful debts | - |
- |
10.35 | 3.26 | |
| Bad debts written off | - |
- |
- |
0.38 | |
| Provision for Tax | - | - | - | - | |
| Provisions (other than taxation) | |||||
| (a) For diminution in the value of investments (Net) | - | - | - | - | |
| (b) For Others: Provision for nonstandard assets / non-performing assets | - | (19.93) | (6.40) | - | |
| Goods and Services Tax on ULIP charges | 217.18 | 189.09 | 906.63 | 720.20 | 656.96 |
| Total (B) | 3,640.58 | 3,169.27 | 15,900.14 | 14,189.43 | 13,158.37 |
| Benefits Paid (Net) | 10,998.78 | 26,127.00 | 50,608.89 | 31,506.52 | 30,789.39 |
| Interim and terminal bonuses paid | 68.53 | 52.53 | 228.28 | 157.11 | 134.61 |
| Change in valuation of liability in respect of life policies | |||||
| (a) Gross | 9,277.91 | (10,041.98) | 25,840.44 | 41,224.45 | 40,579.36 |
| (b) (Amount ceded in Reinsurance) | (2,656.01 | (261.19) | 568.40 | (58.38) | (682.18) |
| (c) Amount accepted in Reinsurance | - | - | - | - | |
| (d) Fund Reserve for Linked Policies | 13,375.26 | 11,087.38 | 11,810.23 | 28,936.28 | (1,633.04) |
| (e) Fund for Discontinued Policies | 1,510.28 | 483.54 | 496.08 | 845.21 | 1,045.68 |
| Total (C) | 32,574.75 | 27,447.28 | 89,552.32 | 102,611.19 | 70,233.82 |
| Surplus/(Deficit) (D) = (A) - (B) - (C) | (87.26) | 50.04 | 811.55 | 756.53 | 152.75 |
| Amount transferred from Shareholders A/c (Non-technical A/c) | 126.29 | 226.96 | 965.68 | 1,062.77 | 1,431.92 |
| Amount Available for Appropriation | 39.03 | 277.00 | 1,777.23 | 1,819.30 | 1,584.67 |
| Appropriations | |||||
| Transfer to Shareholders Account | 164.67 | 229.95 | 1,320.49 | 1,443.95 | 1,695.89 |
| Transfer to other Reserves | - | - | - | - | |
| Balance being funds for future appropriations | (125.64) | 47.05 | 456.74 | 375.35 | (111.22) |
| Total (E) | 39.03 | 277.00 | 1,777.23 | 1,819.30 | 1,584.67 |
| Total surplus in the period | |||||
| (a) Interim and terminal Bonus Paid | 68.53 | 52.53 | 228.28 | 157.11 | 134.61 |
| (b) Allocation of Bonus to Policyholders | - | 1,041.28 | 919.81 | 802.11 | |
| (c) Surplus shown in the Revenue Account | 39.03 | 277.00 | 1,777.23 | 1,819.30 | 1,584.67 |
| Total Surplus (F) | 107.56 | 329.53 | 3,046.79 | 2,896.22 | 2,521.39 |
| Profit and Loss Account (Shareholders Account/ Non-Technical Account) | Three months ended June 30, | Fiscal | |||
| 2025 | 2024 | 2025 | 2024 | 2023 | |
(Rs.in million) |
|||||
| Amounts transferred from Policyholders Account (Technical Account) | 164.67 | 229.95 | 1,320.49 | 1,443.95 | 1,695.89 |
| Income from Investments | |||||
| (a) Interest, Dividend and Rent - Gross | 233.38 | 241.91 | 917.94 | 884.01 | 853.85 |
| (b) Profit on sale/redemption of investments | 4.82 | 5.06 | 38.15 | 9.85 | 6.05 |
| (c) (Loss on sale/ redemption of investments) | (2.82) | (7.84) | (12.16) | (6.82) | (1.94) |
| (d) Amortization of premium / Discount on investments | 23.48 | 6.67 | 75.69 | 77.78 | 61.27 |
| Other Income | - | - | - | - | 0.77 |
| Total (A) | 423.53 | 475.75 | 2,340.11 | 2,408.77 | 2,615.89 |
| Expenses other than those directly related to the insurance business | 11.76 | 13.02 | 57.50 | 62.21 | 85.36 |
| Contribution to Policyholders Account | |||||
| (a) Towards Excess Expenses of Management | - | - | - | - | 64.03 |
| (b) Towards the Remuneration of MD/CEOs/WTDs/ Other KMPs | 17.80 | 10.44 | 24.19 | 33.90 | 29.22 |
| (c) Others | - | - | - | - | - |
| Interest on subordinated debt | - |
- |
- |
- |
- |
| Expenses towards CSR activities | 8.19 | 5.49 | 15.90 | 14.50 | 18.00 |
| Penalties | - | - | - | - | - |
| Bad debts written off | - | - | - | - | 1.07 |
| Amount transferred to Policyholders Account | 126.29 | 226.96 | 965.68 | 1,062.77 | 1,431.92 |
| Provisions (other than taxation) | |||||
| (a) For diminution in the value of investments (net) | - | - | - | - | - |
| (b) Provision for doubtful debts | (1.15) | 0.95 | 17.76 | - | 1.33 |
| (c) Others: Provision for non-standard assets / non-performing assets | - | (22.37) | (3.34) | (13.27) | |
| Total (B) | 162.89 | 256.86 | 1,058.66 | 1,170.04 | 1,617.66 |
| Profit/ (Loss) before Tax | 260.64 | 218.89 | 1,281.45 | 1,238.73 | 998.23 |
| Provision for taxation | 26.51 | 31.87 | 111.64 | 105.56 | 86.29 |
| Profit/ (Loss) after Tax | 234.13 | 187.02 | 1,169.81 | 1,133.17 | 911.94 |
| Appropriations | |||||
| (a) Balance at the beginning of the year | 4,418.63 | 3,438.82 | 3,438.82 | 2,780.65 | 2,153.71 |
| (b) Interim dividend paid | - |
- |
- |
190.00 | - |
| (c) Final dividend paid | - | - | 190.00 | 285.00 | 285.00 |
| (d) Transfer to reserves/ other accounts | - | - | - | - | - |
| Profit/ (Loss) carried forward to the Balance Sheet | 4,652.76 | 3,625.84 | 4,418.63 | 3,438.82 | 2,780.65 |
Principal components of our Revenue Account - Policyholders Account (Technical Account)
Premium
Premium income includes premiums received by us from all individual and group customers and is classified into first year, renewal and single premium. First year premium refers to premiums received during the first year of the regular premium policies. Renewal Premium refers to premiums received during the years after the first year of the regular premium policies, until premium payment term is over or the policy lapses, whichever is earlier. Single premium refers to premiums received on single premium products and one-year renewable group term assurance policies and also includes top-up premiums, which are additional amounts of premiums that can be paid over and above basic premiums for unit-linked policies.
Reinsurance Ceded
Reinsurance ceded refers to the amount of reinsurance premium paid/payable to reinsurers in respect of the risk underwritten by them. Reinsurance ceded is shown as a deduction from premium.
Income from Investments
Income from investments refers to the income earned by policyholders funds on investments made in the Policyholders Account in accordance with IRDAI regulations and includes interest, dividend and rent income, profit/loss on sale/ redemption of investments, transfer/ gain on revaluation/change in fair value and amortization of premium/ discount on investments.
Income from investments from unit-linked policyholder investments is linked to market changes and can be quite volatile. The income from investments from unit-linked policyholder investments is directly attributable to policyholders and is reflected as a corresponding change in the unit reserves. Income from investments from nonparticipating and participating policyholder investments is relatively stable as it is mainly based on income of debt securities, which are not market-linked. Realization of gains/losses in investments from non-linked (participating and non-participating) policyholder investments can affect income from investments.
Other Income (Miscellaneous Income)
Other income (miscellaneous income) mainly comprises of interest on policy loans, income from unclaimed funds, and other miscellaneous income.
Commissions
This includes commission paid to intermediaries and our distributions partners for the purposes of sourcing new and renewal business premiums. As with premiums, commissions are classified into first year, renewal and single premium commissions.
Operating Expenses Related to Insurance Business
Operating expenses related to insurance business includes all expenses that are incurred for the purposes of sourcing new business and expenses incurred for policy servicing (which are known as maintenance costs). Our operating expenses primarily include employees remuneration and welfare benefits, information technology expenses,
advertisement and publicity expenses, business development and sales promotion expenses and communication expenses.
Benefits paid (net)
Benefits paid (net) include the payouts made by us against claims, upon policy maturity, surrenders and withdrawals, discontinuance termination, as well as interest on unclaimed amounts by policyholders. Benefits paid are disclosed net of amounts recoverable from reinsurers.
Change in valuation of liability in respect of life policies
Change in valuation of liability in respect of life policies represents the increase/decrease in policyholders liabilities during the relevant period. Policyholders liabilities are calculated using actuarial principles for all policies where a liability exists on valuation.
Three months ended June 30, 2025 compared to three months ended June 30, 2024 Premiums earned - net (Revenue Account)
Premiums earned - net represents gross premium earned as adjusted for reinsurance ceded (or accepted).
Premiums earned - net increased by 26.01% from ^13,121.72 million in the three months ended June 30, 2024 to ?16,534.33 million in the three months ended June 30, 2025, primarily due to an increase in first year premiums by 15.15%, renewal premiums by 35.24% and single premiums by 18.65%.
Premium increased by 25.85% from ?13,883.22 million in the three months ended June 30, 2024 to ^17,472.31 million in the three months ended June 30, 2025. Reinsurance ceded increased from ?(761.50) million in three months ended June 30, 2024 to ?(937.98) million in three months ended June 30, 2025, an increase of 23.18% primarily driven by increase in premiums.
The following table sets forth our segmental gross premium (net of GST) for the three months ended June 30, 2025 and June 30, 2024:
| Segments | Three months ended | |||||||
| June 30, 2025 | June 30, 2024 | |||||||
| First Year Premium | Renewal Premium | Single Premium | Total | First Year Premium | Renewal Premium | Single Premium | Total | |
| Linked Non Participating - Life | 2,108.36 | 4,249.94 | 8.06 | 6,366.36 | 1,970.71 | 2,632.45 | 35.80 | 4,638.96 |
| Linked Non Participating - Pension | (5.60) | 81.36 | - | 75.76 | 14.44 | 64.94 | - | 79.38 |
| Non Linked Participating - Life | 332.28 | 1,261.87 | 1,594.15 | 241.11 | 1,191.31 | - | 1,432.42 | |
| Non Linked Non Participating - Life | 805.06 | 3,072.52 | 4,240.33 | 8,117.91 | 809.57 | 2,755.74 | 3,546.45 | 7,111.76 |
| Non Linked Non Participating - Pension | 738.62 | 466.85 | 107.82 | 1,313.29 | 419.26 | 106.65 | 89.25 | 615.16 |
| Non Linked Non Participating - Health | - | 4.84 | - | 4.84 | 0.07 | 5.47 | 5.54 | |
| Total | 3,978.72 | 9,137.38 | 4,356.21 | 17,472.31 | 3,455.16 | 6,756.56 | 3,671.50 | 13,883.22 |
The following table sets forth certain information relating to our various product categories for the three months ended June 30, 2025 and June 30, 2024:
| Segments | Three months ended | |||||
| June 30, 2025 | June 30, 2024 | |||||
| Net Premium | Income from Investments | Other Income | Net Premium | Income from Investments | Other Income | |
| Linked Non Participating - Life | 6,334.13 | 15,163.83 | 9.67 | 4,609.42 | 13,679.98 | 5.21 |
| Linked Non Participating - Pension | 75.76 | 120.55 | 0.15 | 79.38 | 107.23 | 0.07 |
| Non Linked Participating - Life | 1,591.31 | 1,358.76 | 19.44 | 1,432.17 | 1,157.28 | 9.57 |
| Non Linked Non Participating - Life | 7,216.39 | 2,395.02 | 20.74 | 6,381.65 | 1,880.30 | 8.95 |
| Non Linked Non Participating - Pension | 1,313.29 | 483.92 | 2.97 | 615.16 | 675.32 | 9.67 |
| Non Linked Non Participating - Health | 3.45 | 0.88 | 0.01 | 3.94 | 0.85 | - |
| Total | 16,534.33 | 19,522.96 | 52.98 | 13,121.72 | 17,500.96 | 33.47 |
Income from Investments (Revenue Account)
Income from investments increased by 11.55% from ?17,500.96 million for the three months ended June 30, 2024 to ?19,522.96 million for the three months ended June 30, 2025. The increase was primarily due to a increase in income from transfer/gain on revaluation/change in fair value from ?9,167.94 million in the three months ended June 30, 2024 to ?12,330.75 million in the three months ended June 30, 2025 owing to mark-to-market movement in respect of investments under the unit-linked business wherein such gains belongs to the policyholders.
Other Income (Miscellaneous Income) (Revenue Account)
Other income (miscellaneous income) increased by 58.29% from ?33.47million in the three months ended June 30, 2024 to ?52.98 million in the three months ended June 30, 2025 primarily driven by increase in interest income from policy loans and other miscellaneous income.
Transfers/ Contribution from the Shareholders Account (Revenue Account)
Transfers/ Contribution from the Shareholders Account represents the funding from the Profit and Loss Account (Shareholders Account) to various lines of business in case of a deficit in any line of business and for remuneration of the Managing Director and Chief Executive Officer, as per IRDAI regulations.
In the three months ended June 30, 2025 there was a contribution from the Shareholders Account of ?17.80 million towards remuneration of the Managing Director and Chief Executive Officer in line with IRDAI regulations which require the remuneration over and above ?40 million on an annualized basis to be contributed by shareholders accounts.
Commission (Revenue Account)
Commissions represent commissions paid to our bancassurance channel partners and other distribution channels. Commissions paid primarily relate to our individual products, and to a limited extent to our group products.
Commissions increased by 34.27% from ?716.22 million in the three months ended June 30, 2024 to ?961.65 million in the three months ended June 30, 2025. First year premium commission increased from ?488.17 million in the three months ended June 30, 2024 to ?607.23 million in the three months ended June 30, 2025, Renewal Premium commission increased from ?181.62 million in the three months ended June 30,2024 to ^231.15 million in the three months ended June 30, 2025 and Single premium commission increased from ?46.43 million in the three months ended June 30, 2024 to ?123.27 million in the three months ended June 30, 2025 primarily due to increase in corresponding premiums as well as underline product mix.
Operating Expenses relating to Insurance Business (Revenue Account)
Operating expenses relating to insurance business increased by 8.74% from ?2,263.96 million in the three months ended June 30, 2024 to ?2,461.75 million in the three months ended June 30, 2025. This increase was primarily due to an increase in employees remuneration and welfare benefits expenses. Employees remuneration and welfare benefits expenses increased from ?1,547.14 million in the three months ended June 30, 2024 to ?1,699.69 million in the three months ended June 30, 2025 primarily due to the increase in number of employees to support growth in our business operations as well as annual increments.
GST on Unit Linked Insurance Plan Charges (Revenue Account)
GST on linked charges represents the goods and service tax on the charges collected from policyholders on our unit- linked products and these are offset against reserve movements.
GST on unit linked insurance plan charges increased by 14.86% from ?189.09 million in the three months ended June 30, 2024 to ?217.18 million in the three months ended June 30, 2025, due to increase in unit-linked charges.
Benefits Paid (Net) (Revenue Account)
Benefits paid (net) consists of all categories of net benefits paid to all our policyholders. The following table sets forth the benefits paid (net) in the three months ended June 30, 2025 and June 30, 2024:
| Particulars | Three months ended | |
| June 30, 2025 | June 30, 2024 | |
(^ in million) |
||
| Insurance claims: | ||
| (a) Claims by death | 1,497.62 | 1,432.30 |
| (b) Claims by maturity | 1,116.96 | 819.31 |
| (c) Annuities/ Pension payment | 149.60 | 111.62 |
| (d) Periodical Benefit | 94.71 | 54.59 |
| (e) Health | 2.00 | - |
| (f) Surrenders | 3,577.94 | 4,144.75 |
| (g) Other benefits | ||
| - Withdrawals | 4,897.68 | 19,993.13 |
| Amount ceded in reinsurance: | ||
| (a) Claims by death | (336.63) | (428.70) |
| (b) Claims by maturity | - | - |
| (c) Annuities/ Pension payment | - |
- |
| (d) Periodical Benefit | - |
- |
| (e) Health | (1.10) | - |
| (f) Other benefits | - | |
| Amount accepted in reinsurance: | ||
| (a) Claims by death | - |
- |
| (b) Claims by maturity | - | - |
| (c) Annuities/ Pension payment | - | - |
| (d) Periodical Benefit | - | - |
| (e) Health | - |
- |
| (f) Other benefits | - |
- |
| Total | 10,998.78 | 26,127.00 |
Benefits paid (net) decreased by 57.90% from ?26,127.00 million in the three months ended June 30, 2024 to ?10,998.78 million in the three months ended June 30, 2025. This decrease was primarily due to a decrease in withdrawal payouts from ?19,993.13 million in the three months ended June 30, 2024 to ?4,897.68 million in the three months ended June 30, 2025 primarily on account of lower withdrawals in our fund-based group products.
Change in Valuation of Liability in respect of Life Policies (Revenue Account)
Change in valuation of liability in respect of life policies represents the change in our policy liabilities, net of the amount ceded in reinsurance and changes in our fund reserves for linked policies and funds for discontinued policies.
Change in valuation of policy liability in respect of life policies increased by 1,596.50% from ?1,267.75 million in the three months ended June 30, 2024 to ?21,507.44 million in the three months ended June 30, 2025. This increase is primarily due to higher premium income along with better persistency and lower withdrawals in fund based group business in the three months ended June 30, 2025.
Surplus (Revenue Account)
As a result of the above, the surplus/(deficit) before transfer from/ to shareholders and to fund for appropriation was ?(87.26) million in the three months ended June 30, 2025 as against ?50.04 million in the three months ended June 30, 2024. The variance is attributed to a decrease in surpluses in our non-linked non-participating life and non-linked participating products which has been partly offset by an increase in surplus in our linked non-participating products and non-linked non-participating pension products.
The table below provides our segmental surplus/ (deficit) net of transfer from shareholders account for the periods indicated:
| Particulars | For the three months ended | |
| June 30, 2025 | June 30, 2024 | |
(f in million) |
||
| Linked Non Participating - Life | 98.96 | 34.52 |
| Linked Non Participating - Pension | 16.26 | (1.33) |
| Non Linked Participating - Life | 7.61 | - |
| Non Linked Non Participating - Life | 41.06 | 195.43 |
| Non Linked Non Participating - Pension | (126.29) | (224.36) |
| Non Linked Non Participating - Health | 0.78 | (1.27) |
| Shareholders | 222.26 | 215.90 |
| Profit/ (Loss) before tax | 260.64 | 218.89 |
| Less: Provision for Taxation | 26.51 | 31.87 |
| Profit/ (Loss) after tax | 234.13 | 187.02 |
Transfer to Shareholders Account (Net)
Transfer to Shareholders Account (Net) represents the net surplus transferred from the revenue account (policyholders account) to the profit and loss account (Shareholders Account).
Transfer to Shareholders Account increased by 1,183.61% from ?2.99 million in the three months ended June 30, 2024 to ?38.38 million in the three months ended June 30, 2025. The remaining surplus was retained in the revenue account as funds for future appropriations, in line with regulatory requirements.
Income from Investments (Profit and Loss Account)
Income from investments includes income from investments of our shareholders assets.
Income from investments increased by 5.31% from ?245.80 million in the three months ended June 30, 2024 to ?258.86 million in the three months ended June 30, 2025.
Expenses other than those directly related to the Insurance Business (Profit and Loss Account)
Expenses other than those directly related to the insurance business decreased by 9.68% from ?13.02 million in the three months ended June 30, 2024 to ^11.76 million in the three months ended June 30, 2025.
Contribution towards Remuneration of MD/ CEOs/ WTDs/ Other KMPs
Contribution to policyholders account, as required under the IRDAI regulations, towards remuneration of the Managing Director, Chief Executive Officer, Whole Time Directors and Other Key Managerial Personnel was ?17.80 million in the three months period ended June 30, 2025 as against ?10.44 million in the three months period ended June 30, 2024.
Profit (Profit and Loss Account)
As a result of the above, profit before tax and profit after tax of ?218.89 million and ?187.02 million in three months ended June 30, 2024, respectively, increased to profit before tax and profit after tax of ?260.64 million and ?234.13 million in three months ended June 30, 2025, respectively.
Fiscal 2025 Compared to Fiscal 2024
Premiums earned - net increased by 13.24% from ?69,326.39 million in Fiscal 2024 to ?78,502.41 million in Fiscal 2025, primarily due to an increase in first year premiums and renewal premiums which was partially offset by a decrease in single premiums. The decrease in single premium business was primarily on account of lower premiums from fund-based group products as we had strategically decided to focus more on individual and group credit life products instead of group fund-based business.
Premium increased by 12.61% from ?71,287.01 million in Fiscal 2024 to ?80,274.62 million in Fiscal 2025. Reinsurance ceded decreased by 9.61% from ?(1,960.62) million in Fiscal 2024 to ?(1,772.21) million in Fiscal 2025. This decrease was primarily due to reinsurance rate reduction for PMJJBY business.
The following table sets forth our segmental gross premium (net of GST) in Fiscal 2025 and Fiscal 2024:
| Fiscal | ||||||||
| 2025 | 2024 | |||||||
| Segments | First Year Premium | Renewal Premium | Single Premium | Total | First Year Premium | Renewal Premium | Single Premium | Total |
| Linked Non Participating - Life | 12,170.92 | 16,479.45 | 91.20 | 28,741.57 | 6,417.33 | 14,693.56 | 156.04 | 21,266.93 |
| Linked Non Participating - Pension | 27.24 | 402.98 | - | 430.22 | 104.31 | 459.48 | - | 563.79 |
| Non Linked Participating - Life | 2,013.58 | 9,485.51 | - |
11,499.09 | 1,917.32 | 9,352.15 | - |
11,269.47 |
| Non Linked Non Participating - Life | 4,599.75 | 20,737.62 | 8,918.26 | 34,255.63 | 6,364.59 | 17,744.68 | 8,543.86 | 32,653.13 |
| Non Linked Non Participating - Pension | 2,925.54 | 1,929.94 | 468.65 | 5,324.13 | 2,134.38 | - | 3,372.17 | 5,506.55 |
| Non Linked Non Participating - Health | 0.21 | 23.77 | 23.98 | 0.82 | 26.32 | - | 27.14 | |
| Total | 21,737.24 | 49,059.27 | 9,478.11 | 80,274.62 | 16,938.75 | 42,276.19 | 12,072.07 | 71,287.01 |
The following table sets forth certain information relating to our various product categories for Fiscal 2025 and Fiscal 2024:
| Segments | Fiscal | |||||
| 2025 | 2024 | |||||
| Net Premium | Income from Investments | Other Income | Net Premium | Income from Investments | Other Income | |
| Linked Non Participating - Life | 28,646.75 | 11,586.10 | 34.58 | 21,179.77 | 34,282.03 | 28.20 |
| Linked Non Participating - Pension | 430.22 | 215.53 | 0.55 | 563.79 | 298.90 | 0.51 |
| Non Linked Participating - Life | 11,491.66 | 5,288.64 | 59.02 | 11,258.90 | 4,141.47 | 33.49 |
| Non Linked Non Participating - Life | 32,591.28 | 8,370.99 | 51.68 | 30,795.36 | 6,329.54 | 38.12 |
| Non Linked Non Participating - Pension | 5,324.13 | 2,108.97 | 17.88 | 5,506.55 | 3,068.58 | 6.27 |
| Non Linked Non Participating - Health | 18.37 | 3.45 | 0.02 | 22.02 | 3.63 | 0.02 |
| Total | 78,502.41 | 27,573.68 | 163.73 | 69,326.39 | 48,124.15 | 106.61 |
Income from Investments (Revenue Account)
Income from investments decreased by 42.70% from ?48,124.15 million in Fiscal 2024 to ?27,573.68 million in Fiscal 2025. This decrease was primarily due to a decrease in income from transfer/gain on revaluation/change in fair
value from ?22,776.43 million in Fiscal 2024 to ?(4,934.25) million in Fiscal 2025 owing to mark-to-market movement in respect of investments under unit-linked business where such gains/losses were borne by policyholders.
Other Income (Miscellaneous Income) (Revenue Account)
Other income increased by 53.58% from ?106.61 million in Fiscal 2024 to ?163.73 million in Fiscal 2025. This increase was primarily due to an increase in interest on policy loans and other miscellaneous income.
Transfers/ Contribution from the Shareholders Account (Revenue Account)
In Fiscal 2025, there was a contribution from the Shareholders Account of ?24.19 million towards remuneration of the Managing Director and Chief Executive Officer in line with IRDAI regulations which require the remuneration over and above ?40 million on an annualized basis to be contributed by shareholders accounts.
Commissions (Revenue Account)
Commissions increased by 23.35% from ^4,111.22 million in Fiscal 2024 to ?5,071.24 million in Fiscal 2025 primarily driven by increase in First year as well as Renewal premiums
Operating Expenses relating to Insurance Business (Revenue Account)
Operating expenses relating to insurance business increased by 6.29% from ?9,354.06 million in Fiscal 2024 to ?9,942.20 million in Fiscal 2025. This increase was primarily due to an increase in employees remuneration and welfare benefits expenses from ?5,826.75 million in Fiscal 2024 to ?6,374.82 million in Fiscal 2025 largely driven by an increase in number of employees to support growth in our business operations as well as annual increments. Business development and sales promotion expenses increased from ?354.56 million in Fiscal 2024 to ?475.19 million in Fiscal 2025 primarily due to higher volume of business and an increase in training expenses from ?105.38 million in Fiscal 2024 to ?347.47 million in Fiscal 2025 due to an increase in employee count as well as enhanced focus on training. This was partially offset by a decrease in advertisement and publicity expenses from ?392.30 million in Fiscal 2024 to ?256.45 million in Fiscal 2025 and decrease in communication expenses from ?506.57 million in Fiscal 2024 to ?217.77 million in Fiscal 2025.
Provisions (other than taxation) (Revenue Account)
Provision (other than taxation) stood at ?(19.93) million in Fiscal 2025 as against ?(6.40) million in Fiscal 2024, representing reversal of provisions made earlier due to recovery against the same.
GST on Unit Linked Insurance Plan Charges (Revenue Account)
GST on unit linked insurance plan charges increased by 25.89% from ?720.20 million in Fiscal 2024 to ?906.63 million in Fiscal 2025, primarily due to increase in unit-linked charges. These are offset against movements in reserves.
Benefits Paid (Net) (Revenue Account)
The following table sets forth the benefits paid (net) for the years indicated:
| Particulars | Fiscal | |
| 2025 | 2024 | |
(t in million) |
||
| Insurance claims: | ||
| (a) Claims by death | 5,614.93 | 4,620.12 |
| (b) Claims by maturity | 4,522.08 | 2,587.10 |
| (c) Annuities/ Pension payment | 589.13 | 618.63 |
| (d) Periodical Benefit | 318.25 | 508.12 |
| (e) Health | 0.88 | 7.65 |
| (f) Surrenders | 15,025.40 | 15,713.40 |
| (g) Other benefits | ||
| - Withdrawals | 26,104.31 | 8,593.80 |
| Amount ceded in reinsurance: | ||
| (a) Claims by death | (1,565.89) | (1,142.30) |
| (b) Claims by maturity | - | - |
| (c) Annuities/ Pension payment | - |
- |
| (d) Periodical Benefit | - | - |
| (e) Health | (0.20) | - |
| (f) Other benefits | - | - |
| Amount accepted in reinsurance: | ||
| (a) Claims by death | - |
- |
| (b) Claims by maturity | - |
- |
| (c) Annuities/ Pension payment | - | - |
| (d) Periodical Benefit | - | - |
| (e) Health | - | - |
| (f) Other benefits | - |
- |
| Total | 50,608.89 | 31,506.52 |
Benefits paid (net) increased by 60.63% from ?31,506.52 million in Fiscal 2024 to ?50,608.89 million in Fiscal 2025. This increase was primarily due to withdrawal by policyholders from fund based group products in Fiscal 2025.
Change in Valuation of Liability in respect of Life Policies (Revenue Account)
Change in valuation of policy liability decreased by 45.43% from ?70,947.56 million in Fiscal 2024 to ^38,715.15 million in Fiscal 2025. This decrease was primarily due to decrease in fund reserve for linked liabilities following mark to market adverse movements as well as decrease in reserves for fund based group products following higher withdrawals in Fiscal 2025.
Surplus (Revenue Account)
Surplus before transfer from/ to shareholders and to fund for appropriation increased from ?756.53 million in Fiscal 2024 to ^811.55 million in Fiscal 2025. This increase is attributed to an increase in surplus in our non-linked nonparticipating life products, non-linked participating products and linked non-participating pension products, which was partly offset by a decrease in surplus in our linked non-participating-life, non-linked non-participating - pension and health products.
The table below provides our segmental surplus/ (deficit) net from shareholders account in Fiscal 2025 and 2024:
| Particulars | Fiscal | |
| 2025 | 2024 | |
(Rs.in million) |
||
| Linked Non Participating - Life | 195.59 | 1,277.26 |
| Linked Non Participating - Pension | 55.99 | 38.93 |
| Non Linked Participating - Life | 141.06 | 119.66 |
| Non Linked Non Participating - Life | 927.85 | (648.99) |
| Non Linked Non Participating - Pension | (963.70) | (404.70) |
| Non Linked Non Participating - Health | (1.98) | (0.98) |
| Shareholders | 926.64 | 857.55 |
| Profit/ (Loss) before tax | 1,281.45 | 1,238.73 |
| Less: Provision for Taxation | 111.64 | 105.56 |
| Profit/ (Loss) after tax | 1,169.81 | 1,133.17 |
Transfer to Shareholders Account (Net)
Transfer to Shareholders Account (net) decreased from ^381.18 million in Fiscal 2024 to ?354.81 million in Fiscal 2025. The remaining surplus was retained in the revenue account as funds for future appropriations, in line with regulatory requirements.
Income from Investments (Profit and Loss Account)
Income from investments increased marginally by 5.68% from ?964.82 million in Fiscal 2024 to ?1,019.62 million in Fiscal 2025 primarily due to increase in interest, dividend and rent income.
Expenses other than those directly related to the Insurance Business (Profit and Loss Account)
Expenses other than those directly related to the insurance business decreased by 7.57% from ?62.21 million in Fiscal 2024 to ?57.50 million in Fiscal 2025.
Contribution towards Remuneration of MD/CEOs/ WTDs/Other KMPs
Contribution to policyholders account, as required under the IRDAI regulations, towards remuneration of the Managing Director, Chief Executive Officer, Whole Time Directors and Other Key Managerial Personnel decreased 28.64% from ?33.90 million in Fiscal 2024 to ?24.19 million in Fiscal 2025.
Profit (Profit and Loss Account)
As a result of the above, profit before tax and profit after tax of ?1,238.73 million and ?1,133.17 million in Fiscal 2024, respectively, increased to profit before tax and profit after tax of ?1,281.45 million and ?1,169.81 million in Fiscal 2025, respectively.
Fiscal 2024 Compared to Fiscal 2023 Premiums earned - net (Revenue Account)
Premiums earned - net decreased marginally by 1.38% from ?70,297.22 million in Fiscal 2023 to ?69,326.39 million in Fiscal 2024, primarily due to a decrease in single premiums which was marginally offset by an increase in first year premiums and Renewal Premiums. The decrease in single premium business was primarily on account of lower premiums from fund-based group products as we had strategically decided to focus more on individual and group credit life products instead of group fund-based business.
Premium decreased by 0.95% from ?71,973.83 million in Fiscal 2023 to ?71,287.01 million in Fiscal 2024. Reinsurance ceded increased by 16.94% from ?(1,676.61) million in Fiscal 2023 to ?(1,960.62) million in Fiscal 2024. This increase was primarily due to increase in premiums (excluding fund-based group premium which does not have any significant reinsurance risk and hence is not reinsured).
The following table sets forth our segmental gross premium (net of GST) in Fiscal 2024 and Fiscal 2023:
| Fiscal | ||||||||
| 2024 | 2023 | |||||||
| Segments | First Year Premium | Renewal Premium | Single Premium | Total | First Year Premium | Renewal Premium | Single Premium | Total |
| Linked Non Participating - Life | 6,417.33 | 14,693.56 | 156.04 | 21,266.93 | 6,086.55 | 12,755.97 | 259.99 | 19,102.51 |
| Linked Non Participating - Pension | 104.31 | 459.48 | - | 563.79 | 403.56 | 254.64 | 5.08 | 663.28 |
| Non Linked Participating - Life | 1,917.32 | 9,352.15 | - |
11,269.47 | 1,672.24 | 9,439.20 | - | 11,111.44 |
| Non Linked Non Participating - Life | 6,364.59 | 17,744.68 | 8,543.86 | 32,653.13 | 8,210.30 | 12,329.84 | 6,906.78 | 27,446.92 |
| Non Linked Non Participating - Pension | 2,134.38 | - | 3,372.17 | 5,506.55 | - | - | 13,620.02 | 13,620.02 |
| Non Linked Non Participating - Health | 0.82 | 26.32 | - | 27.14 | 1.85 | 27.81 | - | 29.66 |
| Total | 16,938.75 | 42,276.19 | 12,072.07 | 71,287.01 | 16,374.50 | 34,807.46 | 20,791.87 | 71,973.83 |
The following table sets forth certain information relating to our various product categories for Fiscal 2024 and Fiscal 2023:
| Segments | Fiscal | |||||
| 2024 | 2023 | |||||
| Net Premium | Income from Investments | Other Income | Net Premium | Income from Investments | Other Income | |
| Linked Non Participating - Life | 21,179.77 | 34,282.03 | 28.20 | 19,020.26 | 2,938.92 | 11.69 |
| Linked Non Participating - Pension | 563.79 | 298.90 | 0.51 | 663.28 | 64.29 | 0.24 |
| Non Linked Participating - Life | 11,258.90 | 4,141.47 | 33.49 | 11,102.66 | 3,256.64 | 11.73 |
| Non Linked Non Participating - Life | 30,795.36 | 6,329.54 | 38.12 | 25,866.70 | 4,669.22 | 20.60 |
| Non Linked Non Participating - Pension | 5,506.55 | 3,068.58 | 6.27 | 13,620.02 | 2,201.75 | 5.03 |
| Non Linked Non Participating - Health | 22.02 | 3.63 | 0.02 | 24.30 | 3.57 | 0.01 |
| Total | 69,326.39 | 48,124.15 | 106.61 | 70,297.22 | 13,134.39 | 49.30 |
Income from Investments (Revenue Account)
Income from investments increased by 266.40% from ^13,134.39 million in Fiscal 2023 to ?48,124.15 million in Fiscal 2024. This increase was primarily due to an increase in income from transfer/gain on revaluation/change in fair value from ?(5,782.46) million in Fiscal 2023 to ?22,776.43 million in Fiscal 2024 which was caused by mark-to- market movement in respect of investments under unit-linked business where such gains/losses are borne by policyholders.
Other Income (Miscellaneous Income) (Revenue Account)
Other income increased by 116.25% from ?49.30 million in Fiscal 2023 to ?106.61 million in Fiscal 2024. This increase was due to an increase in interest on policy loans, investment income from unclaimed funds and other miscellaneous income.
Contribution from the Shareholders Account (Revenue Account)
In Fiscal 2023, there was a contribution from the Shareholders Account of ?64.03 million towards excess expenses of management in respect of few lines of businesses although the expenses were within the allowable limits at an overall level as well as separately for par and non-par business as per the prevailing regulations. In Fiscal 2024, the contribution was required to be made only if the expenses were higher than allowable limits at par and non-par level and since the actual expenses were within the allowable limit, no contribution was made from the Shareholders Account in Fiscal 2024 in line with the prevailing regulations.
Commissions (Revenue Account)
Commissions decreased marginally by 0.59% from ?4,135.48 million in Fiscal 2023 to ?4,111.22 million in Fiscal 2024.
Operating Expenses relating to Insurance Business (Revenue Account)
Operating expenses relating to insurance business increased by 11.86% from ?8,362.29 million in Fiscal 2023 to ?9,354.06 million in Fiscal 2024. This increase was primarily due to an increase in employees remuneration and welfare benefits expenses from ?4,701.45 million in Fiscal 2023 to ?5,826.75 million in Fiscal 2024 primarily due to an increase in number of employees to support an increase in the size of our business operations as well as inflationary increases. This was partially offset by a decrease in advertisement and publicity expenses from ?609.28 million in Fiscal 2023 to ?392.30 million in Fiscal 2024. The higher expenses in Fiscal 2023 were due to promotional activities associated with our Companys name change to ‘Canara HSBC Life Insurance Company Limited.
Provision for Doubtful Debts (Revenue Account)
Provisions for doubtful debts increased from ?3.26 million in Fiscal 2023 to ?10.35 million in Fiscal 2024.
Bad debts written off (Revenue Account)
In Fiscal 2023, we had written off bad debts amounting to ?0.38 million.
Provisions (other than taxation) (Revenue Account)
Provision (other than taxation) stood at ?(6.40) million in Fiscal 2024 which comprised of reversal of a provision made earlier due to recovery against the same.
GST on Unit Linked Insurance Plan Charges (Revenue Account)
GST on unit linked insurance plan charges increased by 9.63% from ?656.96 million in Fiscal 2023 to ?720.20 million in Fiscal 2024, primarily due to increase in unit-linked charges. These are offset against movements in reserves.
Benefits Paid (Net) (Revenue Account)
The following table sets forth the benefits paid (net) for the years indicated:
| Particulars | Fiscal | |
| 2024 | 2023 | |
(^ in million) |
||
| Insurance claims: | ||
| (h) Claims by death | 4,620.12 | 4,279.38 |
| (i) Claims by maturity | 2,587.10 | 1,712.32 |
| (j) Annuities/ Pension payment | 618.63 | 497.59 |
| (k) Periodical Benefit | 508.12 | 517.77 |
| (l) Health | 7.65 | - |
| (m) Surrenders | 15,713.40 | 14,739.96 |
| (n) Other benefits | - | - |
| - Withdrawals | 8,593.80 | 10,112.53 |
| Amount ceded in reinsurance: | ||
| (g) Claims by death | (1,142.30) | (1,070.16) |
| (h) Claims by maturity | - | - |
| (i) Annuities/ Pension payment | - | - |
| (j) Periodical Benefit | - |
- |
| (k) Health | - |
- |
| (l) Other benefits | - | - |
| Amount accepted in reinsurance: | ||
| (g) Claims by death | - |
- |
| (h) Claims by maturity | - |
- |
| (i) Annuities/ Pension payment | - | - |
| (j) Periodical Benefit | - | - |
| (k) Health | - | - |
| (l) Other benefits | - |
- |
| Total | 31,506.52 | 30,789.39 |
Benefits paid (net) paid increased marginally by 2.33% from ?30,789.39 million in Fiscal 2023 to ?31,506.52 million in Fiscal 2024.
Change in Valuation of Liability in respect of Life Policies (Revenue Account)
Change in valuation of policy liability increased by 80.48% from ?39,309.82 million in Fiscal 2023 to ?70,947.56 million in Fiscal 2024. This increase was primarily due to an increase in fund reserve for linked liabilities from ?(1,633.04) million in Fiscal 2023 to ?28,936.28 million in Fiscal 2024.
Surplus (Revenue Account)
As a result of business operation, there was an increase in surplus before transfer from/ to shareholders and to fund for appropriation from ?152.75 million in Fiscal 2023 to ?756.53 million in Fiscal 2024. This increase can be attributed to an increase in surpluses in our non-linked non-participating life products, non-linked participating products and linked non-participating pension products, which was offset to an extent by a decrease in surplus in our linked non-participating-life and non-linked non-participating - pension and health products.
The table below provides our segmental surplus/ (deficit) net from shareholders account in Fiscal 2024 and 2023:
| Particulars | Fiscal | |
| 2024 | 2023 | |
in million) |
||
| Linked Non Participating - Life | 1,277.26 | 1,462.47 |
| Linked Non Participating - Pension | 38.93 | 30.47 |
| Non Linked Participating - Life | 119.66 | 104.08 |
| Non Linked Non Participating - Life | (648.99) | (1,431.88) |
| Non Linked Non Participating - Pension | (404.70) | 80.35 |
| Non Linked Non Participating - Health | (0.98) | 18.48 |
| Shareholders | 857.55 | 734.26 |
| Profit/ (Loss) before tax | 1,238.73 | 998.23 |
| Less: Provision for Taxation | 105.56 | 86.29 |
| Profit/ (Loss) after tax | 1,133.17 | 911.94 |
Transfer to Shareholders Account (Net)
Transfer to Shareholders Account (net) increased by 44.40% from ?263.97 million in Fiscal 2023 to ?381.18 million in Fiscal 2024. The remaining surplus was retained in the revenue account as funds for future appropriations, in line with regulatory requirements.
Income from Investments (Profit and Loss Account)
Income from investments increased marginally by 4.96% from ?919.23 million in Fiscal 2023 to ?964.82 million in Fiscal 2024.
Other Income (Profit and Loss Account)
In Fiscal 2023, we had other income of ?0.77 million.
Expenses other than those directly related to the Insurance Business (Profit and Loss Account)
Expenses other than those directly related to the insurance business decreased by 27.12% from ?85.36 million in Fiscal 2023 to ?62.21 million in Fiscal 2024.
Towards Excess Expenses of Management and Remuneration of MD/ CEOs/ WTDs/ Other KMPs
Contribution to policyholders, as required under the IRDAI regulations, account towards remuneration of the Managing Director, Chief Executive Officer, Whole Time Directors and Other Key Managerial Personnel increased 16.02% from ?29.22 million in Fiscal 2023 to ?33.90 million in Fiscal 2024.
In Fiscal 2023, contribution to policyholders account towards excess expenses of management was ?64.03 million which was in respect of few lines of businesses although the expenses were within the allowable limits at an overall level as well as separately for par and non-par business as per the prevailing regulations.
Profit (Profit and Loss Account)
As a result of the above, profit before tax and profit after tax of ?998.23 million and ^911.94 million in Fiscal 2023, respectively, increased to profit before tax and profit after tax of ?1,238.73 million and ^1,133.17 million in Fiscal 2024, respectively.
Financial Position
The following table sets forth, at the dates indicated, our summary balance sheet, which is based on our financial statements set forth in "Restated Financial Information" on page 354:
| Balance sheet | Three months period ended June 30 | As at March 31, | |||
| 2025 | 2024 | 2025 | 2024 | 2023 | |
(Rs.in million) |
|||||
| Sources of funds: | |||||
| Shareholders funds | |||||
| Share Capital | 9,500.00 | 9,500.00 | 9,500.00 | 9,500.00 | 9,500.00 |
Share Application Money Pending Allotment
| Balance sheet | Three months period ended June 30 | As at March 31, | |||
| 2025 | 2024 | 2025 | 2024 | 2023 | |
in million) |
|||||
| Reserves and Surplus | 5,902.76 | 4,875.84 | 5,668.63 | 4,688.82 | 4,030.65 |
| Credit/ (Debit) Fair Value Change Account | |||||
| Sub-total (A) | 15,402.76 | 14,375.84 | 15,168.63 | 14,188.82 | 13,530.65 |
| Borrowings | - | - |
- |
- | |
| Policyholders funds | |||||
| Credit/ (Debit) Fair Value Change Account | 1,663.83 | 1,409.52 | 1,320.82 | 1,109.60 | 421.58 |
| Policy liabilities | 230,290.11 | 186,956.19 | 223,668.20 | 197,259.36 | 156,093.29 |
| Funds for Discounted Policies | |||||
| (i) Discontinued on account of nonpayment of premiums | 9,805.89 | 8,353.36 | 8,293.54 | 7,866.56 | 7,015.98 |
| (ii) Others | 158.26 | 87.97 | 160.33 | 91.23 | 96.59 |
| Sub-total | 9,964.15 | 8,441.33 | 8,453.87 | 7,957.79 | 7,112.57 |
| Insurance reserves | - |
- |
- |
- | |
| Provision for linked liabilities | |||||
| Linked Liabilities | 131,762.02 | 115,893.71 | 130,730.94 | 113,959.33 | 107,812.84 |
| Add: Credit (Debit) Fair Value Change Account | 44,641.67 | 46,411.88 | 32,297.49 | 37,258.87 | 14,469.09 |
| Sub-total (B) | 418,321.78 | 359,112.63 | 396,471.32 | 357,544.95 | 285,909.37 |
| Fund for Future Appropriation | |||||
| Linked | 86.68 | - | 74.35 | - | - |
| Non-Linked (Non-PAR) | - | - | - | - | |
| Non-Linked (PAR) | 6,668.60 | 6,471.25 | 6,806.59 | 6,424.20 | 6,048.85 |
| Sub-total (C) | 6,755.28 | 6,471.25 | 6,880.94 | 6,424.20 | 6,048.85 |
| Deferred Tax Liabilities (Net) (D) | - |
- |
- |
- | |
| Total (E) = (A)+(B)+(C)+(D) | 440,479.82 | 379,959.72 | 418,520.89 | 378,157.97 | 305,488.87 |
| Application of funds: | |||||
| Investments | |||||
| Shareholders | 15,601.85 | 14,425.23 | 13,746.71 | 15,703.32 | 13,653.66 |
| Policyholders | 234,425.29 | 193,651.61 | 226,435.10 | 198,925.09 | 158,995.84 |
| Assets held to cover linked liabilities | 186,367.84 | 170,746.92 | 171,482.30 | 159,176.00 | 129,394.50 |
| Loans | 1,169.33 | 584.28 | 1,008.06 | 490.44 | 221.46 |
| Fixed Assets | 413.29 | 522.55 | 462.95 | 562.49 | 527.37 |
| Deferred Tax Assets (Net) | - |
- |
- | ||
| Current Assets | |||||
| Cash and bank balances | 1,773.03 | 1,380.75 | 6,109.63 | 4,219.82 | 3,866.29 |
| Advances and other assets | 8,958.03 | 7,143.33 | 9,898.13 | 8,431.14 | 6,440.42 |
| Sub-total (F) | 10,731.06 | 8,524.08 | 16,007.76 | 12,650.96 | 10,306.71 |
| Current Liabilities | 7,940.15 | 8,236.28 | 10,302.66 | 9,088.70 | 7,435.55 |
| Provisions | 288.69 | 258.67 | 319.33 | 261.63 | 175.12 |
| Sub-total (G) | 8,228.84 | 8,494.95 | 10,621.99 | 9,350.33 | 7,610.67 |
| Net current assets (H) = (F)-(G) | 2,502.22 | 29.13 | 5,385.77 | 3,300.63 | 2,696.04 |
| Miscellaneous Expenditure (To the extent not written off or adjusted) | |||||
| Debit Balance in Profit and Loss Account (Shareholders account) | |||||
| Deficit in the Revenue Account (Policyholders Account) | |||||
| Total | 440,479.82 | 379,959.72 | 418,520.89 | 378,157.97 | 305,488.87 |
Total assets increased to ?440,479.82 million as at June 30, 2025 from ?379,959.72 million as at June 30, 2024, an increase of 15.93%. This increase was primarily due to an increase in assets held to cover linked liabilities and an increase in investments held in our policyholders accounts.
Total assets increased to ?4,18,520.89 million as at March 31, 2025 from ?3,78,157.97 million as at March 31, 2024, an increase of 10.67%. This increase was primarily due to an increase in assets held to cover linked liabilities and an increase in investments held in our policyholders accounts.
Total assets increased to ?378,157.97 million as at March 31, 2024 from ?305,488.87 million as at March 31, 2023, an increase of 23.79%. This increase was primarily due to an increase in assets held to cover linked liabilities and an increase in investments held in our policyholders accounts.
Total liabilities increased to ?425,077.06 million as at June 30, 2025 from ?365,583.88 million as at June 30, 2024, an increase of 16.27%. This increase was primarily due to increase in provision for linked liabilities and our policy liabilities.
Total liabilities increased to ?403,352.26 million as at March 31, 2025 from ?363,969.15 million as at March 31, 2024, an increase of 10.82%. This increase was primarily due to increase in our policy liabilities and provision for linked liabilities.
Total liabilities increased to ?363,969.15 million as at March 31, 2024 from ?291,958.22 million as at March 31, 2023, an increase of 24.66%. This increase was primarily due to increase in our policy liabilities and provision for linked liabilities.
Current assets increased to ?10,731.06 million as at June 30, 2025 from ?8,524.08 million as at June 30, 2024, an increase of 25.89% and current liabilities and provisions decreased to ?8,228.84 million as at June 30, 2025 from ?8,494.95 million as at June 30, 2024, a decrease of 3.13%.
Current assets increased to ?16,007.76 million as at March 31, 2025 from ?12,650.96 million as at March 31, 2024, an increase of 26.53% and current liabilities and provisions also increased to ?10,621.99 million as at March 31, 2025 from ?9,350.33 million as at March 31, 2024, an increase of 13.60%.
The consistent increase in current assets and current liabilities was primarily attributable to growth in business as our Individual WPI and total business premium has grown at a CAGR of 14.65% and 5.61%, respectively between Fiscal 2023 and Fiscal 2025.
Analysis of Earnings Per Share
The following table sets forth, for the periods indicated, a summary of our basic and diluted earnings per equity share:
| Particulars | Three months ended June 30 | Fiscal | |||
| 2025 | 2024 | 2025 | 2024 | 2023 | |
(in absolute f) |
|||||
| Basic and diluted earnings per equity share | 0.251 | 0.201 | 1.23 | 09 | 0.96 |
Our basic and diluted earnings per equity share has been consistently increasing driven by increase in profits after tax.
Analysis of total cost ratio and operating expenses to Gross Written Premium (GWP) ratio
The following table sets forth, for the periods indicated, our total cost ratio and operating expenses to GWP ratio:
| Key Performance Indicator | Three months ended June 30 | Fiscal | |||
| 2025 | 2024 | 2025 | 2024 | 2023 | |
| Total cost ratio (1) | 19.59% | 21.47% | 18.70% | 18.89% | 17.36% |
| Operating expenses to GWP ratio (2) | 14.09% | 16.31% | 12.39% | 13.12% | 11.62% |
Notes:
(1) Total cost ratio includes all expenses in the nature of operating expenses of life insurance business including commission, remuneration/ brokerage, rewards to the insurance agents and intermediaries which are charged to revenue account divided by total premium (GWP) during the specified time Fiscal/period
(2) Operating expenses to GWP ratio is calculated as total operating expenses of the company divided by total GWP during the specified Fiscal/ period.
Our total cost ratio was 19.59% for the three months ended June 30, 2025, compared to 21.47% in the three months ended June 30, 2024. Further, the total cost ratio was 18.70% in Fiscal 2025, 18.89% in Fiscal 2024 and 17.36% in Fiscal 2023.
Similarly, the operating expenses to GWP ratio was 14.09% for the three months ended June 30, 2025, compared to 16.31% in the three months ended June 30, 2024. Further, the ratio was 12.39% in Fiscal 2025, 13.12% in Fiscal 2024 and 11.62% in Fiscal 2023.
GWP includes premium from both individual and group business.
Our total cost ratio as well as the operating expenses to GWP Ratio, have gone down during the three months period ended June 30, 2025 in comparison to the three months period ended June 30, 2024 driven by growth in business volumes coupled with operating efficiencies.
Our total cost ratio as well as the operating expenses to GWP ratio have gone down in Fiscal 2025 as compared to Fiscal 2024 driven by growth in our business volumes coupled with opex efficiencies.
Liquidity and Capital Resources
The following table sets forth, for the periods indicated, a summary of our cash flows:
| Receipts and Payments Accounts | Three months ended June 30 | Fiscal | |||
| 2025 | 2024 | 2025 | 2024 | 2023 | |
(^ in million) |
|||||
| Net cash flow from/(used in) operating activities | 3,840.22 | (13,507.04) | 12,078.07 | 23,101.12 | 25,924.96 |
| Net cash flow from/(used in) investing activities | (9,315.07) | 13,245.33 | (7,144.65) | (20,447.40) | (25,761.01) |
| Net cash flow (used in) financing activities | - | - | (190.00) | (475.00) | (285.00) |
Operating Activities
Three months ended June 30, 2025
Net cash flow from operating activities was ?3,840.22 million in the three months period ended June 30, 2025. This was primarily due to premiums received from policyholders, including advance receipts partially offset by payment of claims and other operating expenses.
Three months ended June 30, 2024
Net cash used in operating activities was Rs.13,507.04 million in three months period ended June 30, 2024. This was primarily due to premiums received from policyholders, including advance receipts partially offset by payment of claims and other operating expenses. This was negative primarily due to higher withdrawals in fund based group business, which were adequately reserved and backed by investments held in policyholders account and were met from cash flows from investment activities. Further, the life insurance business is a long-term business where liabilities, reflected as policy liabilities, are backed by policyholders investments. During certain periods, claim- related outflows, including withdrawals, may exceed operating cash inflows (which are mainly arising from premium collections) and may result in cash outflows under operating activities even though they are met out of inflows from policyholders investments backing such liabilities.
Fiscal 2025
Net cash flows from operating activities was ?12,078.07 million in Fiscal 2025. This was primarily due to premium received from policyholders, including advance receipts which was partially offset by payment of claims and payment of other operating expenses.
Fiscal 2024
Net cash flows from operating activities was ^23,101.12 million in Fiscal 2024. This was primarily due to premium received from policyholders, including advance receipts which was partially offset by payment of claims and payment of other operating expenses.
Fiscal 2023
Net cash flows from operating activities was ?25,924.96 million in Fiscal 2023. This was primarily due to premium received from policyholders, including advance receipts which was partially offset by payment of claims and payment of other operating expenses.
Investing A ctivities
Three months ended June 30, 2025
Net cash flows used in investing activities was ?9,315.07 million in three months ended June 30, 2025. This was primarily due to purchase of investments, which was partially offset by sale of investments and rent/interests/dividend received.
Three months ended June 30, 2024
Net cash flows from investing activities was ?13,245.33 million in three months ended June 30, 2024. This was primarily due to sale of investments, which was partially offset by purchase of investments.
Fiscal 2025
Net cash flows used in investing activities was ?7,144.65 million in Fiscal 2025. This was primarily due to purchase of investments, which was partially offset by sale of investments and rent/interests/dividend received.
Fiscal 2024
Net cash flows used in investing activities was ?20,447.40 million in Fiscal 2024. This was primarily due to purchase of investments, which was partially offset by sale of investments and rent/interests/dividend received .
Fiscal 2023
Net cash flows used in investing activities was ?25,761.01 million in Fiscal 2023. This was primarily due to purchase of investments, which was partially offset by sale of investments and rent/interests/dividend received.
Financing Activities
Fiscal 2025
Net cash flows used in financing activities was ?190.00 million in Fiscal 2025 to account for dividends paid in the year.
Fiscal 2024
Net cash flows used in financing activities was ?475.00 million in Fiscal 2024 to account for dividends paid in the year.
Fiscal 2023
Net cash flows used in financing activities was ?285.00 million in Fiscal 2023 to account for dividends paid in the year.
Related party transactions
We enter into transactions with related parties in the ordinary course of business. These transactions principally include commission paid to our intermediaries, in case they are a related party and premium income and claim payments for group policies where the master policyholder is a related party. Related parties with whom transactions have taken place during the relevant periods include Canara Bank, HSBC, Punjab National Bank and HSBC Software Development (India) Pvt. Ltd.
In the three months ended June 30, 2025 and June 30, 2024, and Fiscals 2025, 2024 and 2023, we entered into related party transactions (excluding managerial remuneration of MD & CEO) aggregating to ?5,671.21 million, ?4,383.79 million, ?15,957.74 million, ?13,681.13 million and ?11,722.45 million, respectively, which represented 15.71%, 14.30%, 15.02%, 11.64% and 14.04% of our total income (Policyholders Account), respectively. For further
information on our related party transactions, see "Restated Financial Information—Annexure XXIX: Restated Statement of Related Party Disclosures" and "Offer Document Summary - Summary of Related Party Transactions" on pages 444 and 23, respectively.
Seasonality
We are subject to seasonal fluctuations in our results of operations and cash flow. Insurance volumes tend to be lower in the first quarter of the financial year, increasing progressively throughout the subsequent quarters. Although the increase in insurance sales due to income tax benefits in the final quarter has diminished following the introduction of a new tax regime, it remains the highest quarter for overall insurance sales due to year-end influences such as fiscal deadlines and tax considerations. Also see, "Risk Factors - Internal Risks - Our business experiences seasonal impacts, meaning our operational and cash flow results for any specific period may not accurately reflect our annual performance" on page 81.
Contractual Obligations and Commitments
As at June 30, 2025, we did not have any material contractual obligations or commercial commitments, including long-term debt, rental commitments, operating lease commitments, purchase obligations or other capital commitments, other than contractual obligations under insurance and investment contracts we enter into in the ordinary course of our business and other than those set forth in the notes to the Restated Financial and summarized as below:
• Our policy liabilities of ?416,657.95 million as at June 30, 2025 relate to the amounts held by us for meeting our expected future obligations on existing policies.
• We have operating lease obligations relating to leasing arrangements for premises and vehicles amounting to ?336.21 million.
• We have capital commitments relating to fixed assets (net of capital advances) amounting to ?11.79 million. Capital Expenditure
We make capital expenditures to support and expand our operations, primarily through information technology equipment, leasehold improvements and intangible assets, primarily consisting of computer software. We have historically funded our capital expenditures through internal accruals. The following table sets forth our capital expenditure, by category of expenditure, for each of the periods and years indicated below:
| Particulars | Three months ended June 30 | Fiscal | |||
| 2025 | 2024 | 2025 | 2024 | 2023 | |
(^ in million) |
|||||
| Furniture and Fittings | 0.77 | 0.18 | 4.65 | 6.05 | 4.31 |
| Leasehold Improvements | 8.78 | 1.27 | 8.38 | 11.23 | 6.15 |
| Information Technology Equipment | 1.18 | 2.82 | 21.15 | 136.23 | 75.91 |
| Intangibles (software) | 24.85 | 1.19 | 55.08 | 129.76 | 164.26 |
| Office Equipment | 2.00 | 0.16 | 6.58 | 6.16 | 4.01 |
| Others (Communication Equipment) | 0.01 | - | 2.33 | 1.20 | 0.05 |
| Total | 37.59 | 5.62 | 98.17 | 290.63 | 254.69 |
Contingent Liabilities and Off-Balance Sheet Transactions
The following table sets forth certain information relating to our contingent liabilities, as at June 30, 2025:
| Particulars | As at June 30, 2025 |
(f in million) |
|
| Contingent Liabilities | |
| Partly paid-up investments | 21.99 |
| Claims, other than against policies, not acknowledged as debts by the Company | - |
| Underwriting commitments outstanding (in respect of shares and securities) | - |
| Guarantees given by or on behalf of the Company | 5.50 |
| Statutory demands/ liabilities in dispute, not provided for | 2,506.52 |
| Reinsurance obligations to the extent not provided for in the accounts | - |
| Others (a) Claims against policies | 664.88 |
| Total | 3,198.89 |
For further information, see "Restated Financial Information" on page 354.
Except as disclosed in our Restated Financial Information or elsewhere in this Red Herring Prospectus, there are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that we believe are material to investors.
Indebtedness
As at June 30, 2025, we had no outstanding indebtedness. For further information, see "Financial Indebtedness" on page 464.
Known Trends or Uncertainties
Our business has been impacted, and we expect will continue to be impacted, by the trends identified above and the uncertainties described in "Risk Factors" on page 36.
Unusual or Infrequent Events or Transactions
To our knowledge, except as disclosed in this Red Herring Prospectus, there are no events or transactions relating to our Company which, in our judgment, would be considered unusual or infrequent.
Significant Dependence on Single or Few Customers
Due to the nature of our operations, our revenue is not dependent on a few customers or suppliers. However, we are dependent on our distribution channels. For details see, "Risk Factors— Internal Risks - Risks relating to the business of our Company - Any termination of, or adverse change in, our bancassurance arrangements, and in particular our distribution agreement, as amended, with our Promoter, Canara Bank, or one of our group companies, HSBC India, or decline in performance standards of our bancassurance partners, may have a material adverse effect on our business, results of operations and financial condition " and "Risk Factors Internal Risks - Risks relating to the business of our Company - Failure to retain, maintain or secure new distribution relationships, as well as any termination or disruption of our existing distribution relationships, may have a material adverse effect on our competitiveness and result in a material impact on our financial condition and results of operations " on pages 36 and 58, respectively.
Significant Economic Changes that Materially Affected or are Likely to Affect Income from Continuing Operations
See "Risk Factors— Risks relating to the business of our Company - Fluctuations in interest rates could significantly and negatively impact our profitability. Furthermore, the Indian capital markets offer a limited variety and quantity of long-term fixed income products. Legal and regulatory restrictions on the types and amounts of investments allowed for insurance entities may constrain our ability to closely align the tenure of our assets with our liabilities " on page 51.
New Products or Business Segments
Except as detailed in this Red Herring Prospectus, we have not announced any new products or business segments. As part of our regular operations, we constantly refine and develop new products to meet customer demands. We remain committed to continuously assessing market opportunities to strategically evaluate potential product offerings.
Competitive Conditions
We operate in a competitive environment. See "Our Business - Competition", "Industry Overview and "Risk Factors - Risks relating to the business of our Company - We face significant competition and our business, financial condition, results of operations and cash flows could be materially harmed if we are unable to compete effectively." on pages 293, 162 and 70, respectively, for further details on competitive conditions that we face across our various business segments.
Significant Developments after June 30, 2025
Other than as disclosed in this Red Herring Prospectus, there have not arisen any circumstances since June 30, 2025 which materially and adversely affect or are likely to affect the trading of our Companys Equity Shares, our profitability, the value of our assets, or our ability to pay our liabilities within the next 12 months.
IIFL Customer Care Number
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1860-267-3000 / 7039-050-000
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+91 9892691696
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