ICICI Lombard General Insurance Company Ltd Management Discussions

I. MACRO ECONOMIC ENVIRONMENT AND NON-LIFE INSURANCE INDUSTRY DEVELOPMENTS

India remained one of the fastest-growing major economies in FY2026, recording GDP growth of 7.6% as per MOSPI1 estimates, with stable momentum supported by resilient domestic fundamentals despite global uncertainties and financial market volatility. Growth remained steady despite global uncertainties, including trade tensions, tariff-related concerns, and intermittent volatility in financial markets.

Economic activity was supported by sustained public investment, improving credit availability, and an accommodative monetary policy environment. Continued government focus on infrastructure spending, alongside calibrated easing of macroprudential measures by the Reserve Bank of India (RBI)2, contributed to maintaining growth momentum. Exports, particularly in services, also remained an important pillar of support.

Consumption trends were aided by easing inflationary pressures, lower interest rates, and targeted fiscal interventions, resulting in a broadly stable and balanced macroeconomic environment.

Rural demand remained resilient, supported by a favourable kharif harvest and festive season consumption. In contrast, urban demand was relatively subdued, reflecting moderate wage growth and persistent price pressures. High-frequency indicators such as GST collections, e-way bill generation, toll traffic, air passenger movement, and hotel occupancy levels indicated steady economic activity throughout the year. Looking ahead, the ongoing cyclical recovery is expected to further support private consumption. Strong corporate and banking sector balance sheets, sustained growth in services exports, and continued investments in emerging sectors including electronics, semiconductors, mobile manufacturing, and renewable energy are expected to underpin medium-term growth. Government focus on key sectors such as defence, power, and infrastructure is also likely to remain supportive.

Globally, economic growth remained stable but uneven across regions. While the United States witnessed some moderation in growth, Europe, China, and the United Kingdom recorded modest expansion, supported in part by fiscal measures. With inflationary pressures easing, central banks in advanced economies began softening monetary policy after a prolonged period of tight financial conditions. However, the global environment continued to face challenges, including geopolitical uncertainties, trade disruptions, and tariff-related risks, contributing to periodic volatility in financial markets.

Geopolitical tensions in the Middle East further heightened global uncertainty, disrupting critical energy supply routes and infrastructure. A prolonged escalation could adversely impact global growth and inflation dynamics. Given India?s dependence on energy imports, such developments pose risks to the current account balance, inflation levels, and fiscal position. Domestically, these factors resulted in intermittent volatility in equity and bond markets, along with episodes of depreciation pressure on the Indian Rupee.

During the year, Indian equity markets also experienced phases of FPI3 outflows amid global risk aversion.

However, strong and consistent inflows from domestic institutional investors helped offset these pressures and provided stability to the overall market environment.

Overall, despite external headwinds, India?s macroeconomic fundamentals remained robust, supportingastableoperatingenvironmentduringFY2026 and providing a strong foundation for sustained growth.

II. NON-LIFE INSURANCE INDUSTRY DEVELOPMENTS

A. Regulatory developments

The non-life insurance landscape continued to evolve significantly during fiscal 2026, with the regulator?s sustained focus on fostering a conducive regulatory environment that protects interests of the policyholders and encourages innovation, competition, and sustainable growth in the insurance industry. The year witnessed landmark legislative reforms alongside continued regulatory modernisation, all poised to propel the Indian insurance industry towards greater efficiency and effectiveness leading towards the vision of ‘Insurance for All by 2047?. Some of the key regulatory reforms and developments during the year are as follows:

Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025

The Sabka Bima Sabki Raksha (Amendment of Insurance

Laws) Act, 2025, notified on December 21, 2025 and brought into force on February 5, 2026, marks the most significant legislative recalibration of India?s insurance statutes, amending the Insurance Act, 1938, the LIC Act, 1956 and the IRDA Act, 1999. The Act permits 100.0% foreign direct investment in Indian insurance companies, raises the threshold for prior regulatory approval of share capital transfers from 1% to 5%, reduces the net owned funds requirement for foreign reinsurers, introduces a onetime registration for insurance agents and intermediaries and enables mergers of insurance business with non-insurance businesses subject to IRDAI approval. It also grants the Authority disgorgement powers and enhances the maximum penalty for violations from

1 crore to 10 crores. Further, it empowers the Authority to establish Policyholders? Education and Protection Fund to facilitate the education and protection of the interests of policyholders. The reforms are expected to attract long-term global capital, enhance sectoral efficiency and deepen insurance penetration in line with the goal of Insurance for All by 2047.

Master Circular on Rural, Social Sector and Motor Third Party Obligations, 2025

The Authority on July 25, 2025 issued the Master Circular on Rural, Social Sector and Motor Third Party Obligations, 2025, superseding the 2024 Master Circular and specifying the revised obligations to be achieved by insurers for FY2026 and FY2027. For the Rural Sector, insurers are mandated to cover lives, dwellings, shops, and vehicles in allocated Gram Panchayats, with all insurers collectively required to cover 25,000 Gram Panchayats for FY2026 with individual insurers aiming for 15% coverage within their allocated Gram Panchayats. Social sector obligations require a minimum 10% of lives covered for FY2026. For Motor Third Party Business, general insurers are required to achieve a specified percentage increase in the number of goods carrying, passenger carrying vehicles, and tractors insured, with targets varying based on the insurer?s market share.

Insurance Fraud Monitoring Framework Guidelines, 2025

The Authority on October 9, 2025 issued the Insurance Fraud Monitoring Framework Guidelines, 2025, which take effect from April 1, 2026, superseding the existing 2013 Guidelines. The Guidelines expand their scope to cover distribution channels and reinsurers in addition to insurers, introduce new categories of fraud such as ‘external fraud? , ‘affinity/complex fraud? and cyber/ new age fraud, and require insurers to establish a Fraud Monitoring Committee and a supporting Fraud Monitoring Unit. The Guidelines prescribe standardised reporting requirements, mandate the adoption of a strong cybersecurity framework to address cyber fraud, and require distribution channels to implement fraud risk management frameworks aligned with their operations.

IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Amendment) Regulations, 2026

The IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Amendment) Regulations, 2026 were notified on March 30, 2026, mandating the preparation and presentation of financial statements by insurers in accordance with applicable Indian Accounting Standards (Ind AS), with effect from April 1, 2026. The implementation is applicable to all categories of insurers, including Life, General, Stand Alone Health Insurers, and Reinsurers. The amendment aims to enhance consistency, transparency, and comparability in financial reporting across the insurance sector, in alignment with globally accepted standards, while preserving regulatory prudence and safeguarding policyholder interests.

Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025

The Ministry of Finance, on December 30, 2025, notified the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025, to operationalise the increase in the foreign direct investment (FDI) cap to 100% and streamline governance requirements for the insurance sector.

B. Financial performance

The non-life insurance industry registered growth of 9.3%4 (on GDPI basis) in fiscal 2026. The industry has grown at a CAGR of 14.5% from fiscal 2008 to fiscal

2026. Despite this, non-life insurance penetration in India continues to be around 1.0%5 of Gross Domestic Product for CY2024 against world average of 4.3%5 and given India?s demographic dividend, the sector is poised to reach newer heights in the coming years due to the economic tailwinds like rising disposable income, young population, increased digital awareness, digital penetration and cohesive regulatory environment.

The overall GDPI growth in fiscal 2026 was 9.3% against the growth of 6.2% in fiscal 2025, (on n basis, the GDPI grew by 11.0% in fiscal 2026). With effect from

October 1, 2024 Long-term Products are accounted on a 1/n basis, as mandated by IRDAI.

The market share of Private players and Public Sector undertakings marginally declined during fiscal 2026.

Consequently, the overall market share of Private players decreased from 53.0% in fiscal 2025 to 52.3% in fiscal

2026, while market share of SAHI?s increased from 12.5% in fiscal 2025 to 13.6% in fiscal 2026.

Health (including PA & Travel) segment continued to remain largest GDPI contributing segment for the industry constituting around ~44.0% of the market share in fiscal 2026. The industry growth was driven by growth in Retail Health, Group Health, Motor, Fire and Engineering line of business which grew by 19.9%, 12.9%, 9.2%, 13.4% and 13.1% respectively in fiscal 2026.

III. DISCUSSION ON FINANCIAL PERFORMANCE AND ANALYSIS OF FINANCIAL STATEMENTS

A. Overview of the business

ICICI Lombard General Insurance Company Limited (The Company) continued to be one of the largest private sector non-life insurer in India based on Gross Direct

Premium Income (GDPI) for fiscal 2026. The Company offers its customers a comprehensive and well-diversified range of products, including Fire, Motor, Health, PA & Travel, Crop, Marine, Engineering and Liability insurance, through multiple distribution channels.

Company?s strategic pillars :

The consistent performance of ICICI Lombard (The Company) is anchored by the following strategic pillars: (a) Profitable growth · Our focus on calibrated growth underpinned by disciplined underwriting, operational discipline and long-term value creation has helped us to consistently perform over the years

Particulars	ICICI Lombard	Industry
COR - 10 Year average	102.9%	115.3%
ROE - 10 Year average	19.1%	4.0%

(b) Diversified portfolio of products and diversified distribution channels The Company endeavors to maintain a healthy mix of business across its multi-line distribution. The Company?s key distribution channels are direct sales, individual agents (including POS), corporate agents - banks, corporate agents - others, Motor Insurance Service Providers (MISPs), brokers and digital, through which the Company services individual, corporate, government and rural customers. In addition, the Company continues to maintain a diversified product portfolio to address varying insurance needs of the customers while maximizing value to our three key stakeholders i.e., Customer, Distributor, and the Shareholders (c) Focusing on customer service and claims experience as a core differentiator through use of technology Our endeavor is to provide a seamless Customer experience and to that end, we have leveraged on our One IL One Digital framework to create an integrated , omnichannel ecosystem that connects the customers, partners and our internal teams.

Our ‘IL TakeCare? app, a one-stop solution for insurance and wellness needs, achieved ~21.0 million downloads as at March 31, 2026, customer engagement and digital adoption. We will continue to focus on improving the service experience for our customers with a single simplified interface for their insurance requirements. Our digital adoption has scaled significantly and under the One IL One Call Centre initiative we continue to deliver strong momentum in the Companys transition towards a digital first Do-It- Yourself (DIY) servicing model. In March 2026 alone, more than 5 lakh service engagements - 69% of the total service engagements, were executed digitally. IL Sahayak has further strengthened on-ground claims support for our Health customers with our customer coverage improving by 25% over the previous year. As a part of their feedback, 95.0% of the customers surveyed rated their experience as exemplary ( 4.5/5), highlighting the support provided during claims processing and assistance with hospital coordination. This reaffirms our focus on best-in-class service to our customer during the moments that truly matter. This is visible in our claims NPS scores of 73 in Health claims and 69 in Motor claims.

(d) Robust underwriting and risk management practices Risk management as culture is embedded across the organisation. Practicing disciplined underwriting supported by strong analytics and improved risk selection models are central to our approach. In fiscal 2026, we further strengthened our practice by deepening the use of data and analytics into our decision-making processes. Our reinsurance strategy focuses on optimizing risk retention while our reserving philosophy ensures that we are prudent in our reserving practices adequately supported by actuarial rigor and monitoring. (e) Superior Investment Management The focus of our investment management is capital preservation and hence a high proportion of our investments are in sovereign and AAA rated instruments

Performance summary fiscal 2026:

The following are the key performance drivers of the business in fiscal 2026: The Companyreported fiscal GDPIof 287.12billionin 2026 as against 268.33 billion in fiscal 2025, a growth of 7.0%, translating to a market share of 8.5% among all non-life insurers in India. For fiscal 2026, the Company issued 39.3 million policies and covered 57.6 million lives. Our Return on equity stood at 17.8% which is a testimony of the choices we have made to prioritize on profitability despite operating in a highly competitive environment. In the motor segment, we sustained a market leadership position with a 10.7% market share in fiscal 2026 as against 10.8% in fiscal 2025 while maintaining pricing discipline as well as our approach of granular segmentation. We grew at 7.6 % as against industry growth of 9.2%. Buoyed by GST rationalization, the automobile sector saw a significant uptick in sales in the second half of the year. This improved new vehicles demand has helped us also to grow in the second half of the year, demonstrating our ability to scale up when the right opportunities arise. In the Health segment the market share of the Company stood at 6.1% in fiscal 2026 from 5.9% in fiscal 2025. Our

Retail Health business continued to demonstrate strong growth of 51.1% for fiscal 2026, significantly outpacing the industry growth of 19.9% in the same period. This growth has been primarily from new to insurance customers suggesting the improved awareness of health insurance aided by the GST exemption which was announced in Sep 2025. Consequently, our market share has improved from 3.3% in fiscal 2025 to 4.1% in fiscal 2026.

In our Group Health segment, the Company?s market share stood at 8.7% for fiscal 2026 as against 8.9% in fiscal 2025.

In the commercial lines segment, the Company?s market share stood at 12.9% in fiscal 2026 as against 13.7 % in fiscal 2025. During fiscal 2026, in the Commercial lines segment, the Company grew by 5.4% as against the industry growth of 12.2%, amidst competitive pressure, we have continued to drive profitable growth through prudent underwriting and judicious risk selection through our multi-channel distribution. Further during the year, the Company accreted market share in Commercial segments such as Engineering. The Company is at an industry leading position in Marine Cargo and Liability lines of business while being the second largest in Fire and Engineering lines of business. Investments: As on March 31, 2026, the Company reported 584.21 billion in total investment assets with an investment leverage (net of borrowings) of 3.48x. The Company?s investment policy is designed with the objective of capital conservation and achieving superior total returns within identified risk parameters.

The Company?s philosophy of generating superior risk adjusted returns along with protection of capital has resulted in a total portfolio return of 9.46%6. Since fiscal 2008, the Company?s listed equity portfolio has returned an annualised total return of 17.25%, as compared to an annualised return of 10.17% on the benchmark S&P7 NIFTY index.

B. Opportunities

Demographics and Low Insurance Penetration

As per the latest Swiss Re Sigma Report (Sigma 2/2025), India continues to exhibit lower non-life insurance penetration at 1.0% for CY2024 as against the world global average of 4.3%. However, the non-life insurance density for CY2024 remained at US$ 25 per capita. (Source: Sigma 2/2025 Swiss Re) A young population, rising urbanisation, growing private consumption, and improving rural incomes continue to expand the base of insurable customers and reinforce the structural case for non-life insurance growth. The Company remains focused to capture these opportunities through its multi-product, multi-distribution strategy and its continued focus on evolving customer needs.

6 CAGR (FY2008 - FY2026)

7 Standard & Poor

Regulatory Environment

The Union Budget for fiscal 2027, which emphasizes scaling up manufacturing across strategic and frontier sectors, supporting MSMEs, enhancing infrastructure and energy security, and deepening the services sector as an employment engine, has created a positive environment for the economy and insurance companies. The budgetary proposal for increase in FDI limits for the insurance industry to 100%, now enacted through the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, shall facilitate a conducive market for foreign insurance companies to enter the Indian market. Further, Union Budget FY2027 introduced an Urban

Challenge Fund of 1 lakh crore for city redevelopment, a Deep Tech Fund of Funds to support next-generation startups, reduction in customs duty on critical minerals, and Semiconductor Mission 2.0. The regulatory announcements during the fiscal year lay emphasis on protecting policyholder?s interests, increasing insurance penetration, favouring ease of doing business while fostering innovation and sustainable growth for the industry, thereby reinforcing the authority?s vision of ‘Insurance for All by 2047?.

Goods and Services Tax Reform on Health Insurance

The landmark decision of exemption of GST on Retail

Health insurance has significantly improved affordability and increased awareness. This has led to an increase in policy uptake as more customers are seeking healthcare protection. Growth in Retail Health appears to be broad-based across markets and is supported by a surge in first-time buyers, especially from Tier 2 and Tier 3 cities, which is a positive for this sector.

GST Rationalisation in the Automobile Sector

Buoyed by GST rationalisation, the automobile sector has seen a significant uptick in sales, with the auto industry recording its highest growth in the last twelve quarters during the second half of the fiscal year. This growth has been more broad-based, as Tier 3 cities and beyond have demonstrated faster growth in both Private Car and Two-wheeler segments. As a leading Motor insurer with a strong distribution footprint across original equipment manufacturers and dealerships, the Company is well placed to participate in the underlying buoyancy in new motor vehicle sales.

Reform in Foreign Direct Investment Framework

With the passage of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, foreign investment in an Indian insurance company has been enhanced from 74% to 100%, thereby supporting capital inflows. The Act also contains enabling provisions to facilitate business other than traditional insurance underwriting and distribution, thereby allowing insurers to offer holistic risk management services, alongside simplification of provisions relating to investments of assets. These changes are structurally positive and would accelerate the growth and development of the insurance sector, facilitating ease of doing business and providing better protection and risk management solutions to policyholders.

Implementation of New Central Labour Codes

In another significant reform in November 2025, the

Government of India formally made effective four new central labour codes, including the Code on Social Security, 2020. Consequent to this, benefits like gratuity, leave encashment, etc. paid on basic salary are now required to be paid basis the new broader definition of wage. These changes should translate into a more resilient workforce and strengthen employee security over time.

Industry Awareness Initiative · ‘Achha Kiya Insurance Liya?

The launch of the unified industry awareness campaign ‘Achha Kiya Insurance Liya? by the General Insurance Council during fiscal 2026 represents a commendable collective step by the non-life insurance industry towards enhancing public awareness and increasing insurance penetration across diverse customer segments. The Company, as one of the leading players in the Indian non-life insurance industry, is well-positioned to contribute to and benefit from the increased awareness and consumer engagement that this collaborative effort is expected to generate.

Awareness for Health Insurance

During fiscal 2026, the Indian Health insurance segment (including Personal Accident and Travel) collected 1,487.47 billion {Source: GI Council}as Health insurance premium registering a growth of about 16.7% over fiscal 2025. The Health, Travel and PA continues to be one of the fastest growing and largest contributor to the overall non-life insurance industry. The changing regulatory environment is more cohesive for the insurer and policyholder. The rising medical costs and high out-of-pocket expenses have increased the demand for Health insurance. The Company continues to remain committed to invest, create differentiation, and provide solutions for Health segment. The Company makes consistent efforts towards increasing market share in the Health segment while remaining cautious in the segments experiencing high competitive intensity.

C. Risk Management

The Company recognizes that risk is an integral element of insurance business and with a view to mitigate risks, the Company has in place Board approved Risk Management Framework. A strong risk culture is ensured through embedding the principles of Risk Management in strategy and operations. Accordingly, the Company has developed a risk universe, broadly categorised into six distinct groups, namely, Credit Risk, Market Risk, Underwriting Risk, Strategic Risk, Operational Risk and Environmental, Social and Governance Risk. As part of the Enterprise Risk Management exercise, critical risks along with the detailed mitigation plans are presented to the Risk Management Committee of the Board on a quarterly basis. The risk mitigation plan/s is/are monitored regularly by the Company to ensure timely and appropriate execution. The senior management of the Company is responsible for periodic review of the risk management process to ensure that the process initiatives are aligned to the desired objectives. The

Chief Risk Officer of the Company is responsible for the implementation and monitoring of the Risk Management Framework. A statement indicating development and implementation of Risk Management Framework including identification therein elements of risk, if any, which may pose significant risk to the Company are given in the Corporate Governance Report forming part of this Report.

D. Competitive Strengths

The Company?s strategic objective is to build a sustainable organization that remains relevant to the agenda of the stakeholders. The Company believes in providing value to its customers, while creating growth opportunities for its employees and generating profitable returns for its investors. The following competitive strengths which contribute to the success and position well for future growth:

Consistent market leadership and profitable growth:

The industry leadership has been reinforced by Company?s comprehensive and diverse portfolio of insurance products that continuously adapts to evolving needs of customers and evolving industry dynamics.

Further, during fiscal 2026, the Company exhibited market leadership position in Marine Cargo, Liability and Motor segments and among private sector non-life insurers in India across Motor, Fire, Engineering, Liability and Marine segments.

Diverse product line with multi-channel distribution network:

The Company continued to offer products and solutions that address the untapped and evolving needs of the customers. The Company has established itself as a reliable one-stop insurer for diverse customer requirements. Further, the Company has been expanding its distribution network to increase penetration in Tier 3 and Tier 4 cities. The Company?s individual agents (including POS Agents) increased to 157,101 as on

March 31, 2026.

Excellence in Customer Service and Technology:

The Company?s customer-centric approach of delivering value focuses on providing convenience and customised solutions. The number of policies written stood at 39.3 million for fiscal 2026. The Company has been at the forefront of leveraging technology in the Indian non-life insurance industry. The Company leverages its tech capabilities such as Artificial Intelligence, Machine

Learning, Advanced analytics, Internet of Things etc. from issuance of policies to settlement of claims and fraud detection. The Company?s investment in capability building is focused on building a culture of data-enabled decision making and enabling its employees to deliver customer-centric solutions. As on March 31, 2026, the headcount of the Company was 16,447.

A significant in-house capability advanced during the year is IL OneForce, an enterprise productivity platform that integrates work execution, performance management, collaboration, and recognition onto a single interface. Already deployed across the Company?s sales workforce, IL OneForce is on track to become the single operating platform for the entire organisation, providing real-time enterprise-wide visibility and reinforcing execution discipline across the partner lifecycle.

Under banner of ‘One IL One Team?, one of the initiatives the Company has outlined is the ‘One IL One Digital? strategy. Through this, the Company has consolidated the customer facing digital assets of ‘IL TakeCare App?,

Website and alliances along with distribution facing front ends. This will allow the Company to exploit synergies across all platforms, which will reap benefits to the Company. With the aim of enhancing customer engagement, experience and to provide better services, the one stop solution for all insurance and wellness needs, ‘IL TakeCare App? has surpassed ~21.0 million user downloads till date, incremental downloads for fiscal 2026 were approximately 6.1 million.

The Company continued its digital transformation journey through Project Orion, which is built on three pillars: reimagining processes with a digital-first approach; modernising technology by shifting away from legacy systems; and enhancing stakeholder experience through superior engagement models. Project Orion is positioned as a key enabler of the One IL One Team vision.

During fiscal 2026, the Company advanced its service transformation through the One IL One Call Centre initiative, unifying customer support onto a single platform using technologies such as AI, voice bots, and propensity modelling. The shift toward a digital-first, Do-It-Yourself servicing model gained meaningful traction during the year, and Net Promoter Scores for the call centre rose over the course of fiscal 2026.

Differentiated Service Desks, launched during the year for priority customer segments such as senior citizens and customers with multiple product holdings, enabled more personalised and empathetic engagement. Claims servicing continued to be a key strength. In Health, the IL Sahayak initiative expanded its on-ground claims support, with customer coverage growing meaningfully year-on-year and majority of surveyed customers rating their experience as exemplary. In Motor, an expanded cashless-garage network and Preferred Partner Network supported faster, hassle-free settlements. Noteworthy performance in claim turnaround times, together with high customer satisfaction scores across Health and Motor claims, reinforced the Companys customer-centric approach.

Robust risk selection and management framework:

The Company takes a holistic approach to risk management, which includes a data-driven risk selection framework, conservative reserving and quality reinsurance. Further, details with respect to risk management strategy have been articulated in the Risk management section page 46 of this Integrated report. As per IRDAI guidelines, non-life insurers in India are not allowed to discount their reserves. The Company tests its reserves regularly based on claim experience, claim inflation and other factors. The Company was the first to disclose aggregate reserving triangles as part of its annual reports since fiscal 2016. The Company has enhanced disclosure requirement of reserving triangles by giving separate reserving triangles for Motor Third Party and Non Motor Third Party lines of business since fiscal 2022. This is in accordance with the regulatory guidelines on public disclosures applicable to all companies. When it comes to investment management, the Company has tighter internal exposure norms as against regulatory limits. The Company has invested in high proportion of Debt portfolio and has 88.1% in sovereign and AAA8 rated securities as on March 31, 2026. All the Bonds and Debentures are AA8 rated & above. There has been Zero instance of default in IL?s Debt portfolio since inception.

Strong investment returns on diversified portfolio:

The total investment assets increased to 584.21 billion as of March 31, 2026, with an investment leverage of 3.48x. The Company achieved a realised return of 8.47% on its investment portfolio for fiscal 2026.

E. Strategy and Future Outlook

In fiscal 2026, the Company stayed focused on profitable growth within preferred segments, maintaining a disciplined approach where competitive intensity remained elevated. The One IL One Team philosophy continued to anchor the Companys strategic direction, fostering collaboration, operational excellence, and a unified approach across the organisation. During the year, this philosophy was strengthened through the in-house IL OneForce platform an enterprise productivity capability that consolidates work execution, performance management, and partner engagement onto a single interface alongside the established One IL One Digital, One IL One Agency, and One IL One Call Centre initiatives. Looking ahead, the Company will continue to leverage its multi-product, multi-distribution strategy, supported by product innovation, data analytics, and digital enhancements, while preparing for an orderly transition to Indian Accounting Standards. As the Company enters its 25th year of operations, the core philosophy of One IL One Team will remain the driving force behind sustainable, profitable growth and consistent value creation for all stakeholders.

Basis of preparation of statements

The financial statements have been prepared and presented on a going concern basis in accordance with Generally Accepted Accounting Principles followed in India under the historical cost convention, unless otherwise specifically stated, on the accrual basis of accounting, and comply with the applicable accounting standards specified in section 133 of the Companies

Act, 2013 read with Companies (Accounting Standards) Amendment Rules, 2021 dated June 23, 2021 to the extent applicable, and in accordance with the provisions oftheInsuranceAct,1938,InsuranceLaws(Amendment)

Act, 2015 (to the extent notified), Insurance Regulatory and Development Authority of India Act, 1999, the Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Function of Insurers), 2024 (‘the Regulations?) and orders / directions prescribed by the Insurance Regulatory and Development Authority of India (the “IRDAI”) in this behalf, the provisions of the Companies Act, 2013 (to the extent applicable) (the “Act”) in the manner so required and current practices prevailing within the insurance industry in India.

The management evaluates, all recently issued or revised accounting pronouncements, on an ongoing basis. The financial statements are presented in Indian rupees rounded off to the nearest lakhs.

i. Revenue Account and Profit and Loss

Account

The revenue account contains income and expenses relating to policyholders and the surplus or deficit generated in this account is appropriated to the profit and loss account every fiscal.

The statement below summarises the Revenue account.

Revenue Account

Particulars	Fiscal 2025	Fiscal 2026
Premium earned (net)	198.00	222.64
Income from	31.56	35.47
Investments (net)
Contribution from	0.04	0.05
Shareholders Funds towards excess EOM
Other income	(0.23)	0.79
Total (A)	229.37	258.95
Claims Incurred (net)	139.87	158.28
Commission paid (net)	38.38	44.84
Operating expenses related to insurance business	28.45	30.59
Total (B)	206.70	233.71
Operating Profit / (Loss) (C) = (A) - (B)	22.67	25.24

The profit and loss account contains the income and expenses pertaining to shareholders.

The statement below summarises the Profit and

Loss account.

Profit and Loss Account

Particulars	Fiscal 2025	Fiscal 2026
Operating profit / (loss)	22.67	25.24
Income from investments (net)	10.05	11.84
Other income	0.59	0.10
Total (A)	33.31	37.17
Provisions (other than taxation)	(0.47)	(0.34)
Other expenses	0.57	0.92
Total (B)	0.10	0.58
Profit before tax	33.21	36.59
Provision for taxation	8.13	8.87
Profit after tax	25.08	27.72

Premium earned (net) (NEP)

Particulars	Fiscal 2025	Fiscal 2026
Premium from direct business written - net of GST (GDPI)	268.33	287.12
Premium on reinsurance accepted	14.25	19.06
Gross Written Premium (GWP)	282.58	306.18
Less: Premium on reinsurance ceded	74.97	72.44
Net Written Premium (NWP)	207.61	233.74
Less: Adjustment for change in reserve for unexpired risks	9.61	11.11
Premium earned (net) (NEP)	198.00	222.63

Premium from direct business written net of GST (GDPI), is the total premium received before considering reinsurance assumed and ceded. This is calculated net of GST on such premiums.

The GDPI increased to 287.12 billion for fiscal 2026from 268.33billionfor of 7.0%. The GDPI growth was driven by growth in the preferred segments such as Motor OD, Motor TP, Health and Commercial segments such as Fire and Engineering. for Private car, Two-wheeler For and Commercial Vehicle stood at 52.8%, 25.4% and 21.8% respectively. Premium on reinsurance accepted is the premium received by the insurer due to risks that it reinsures, which is also referred to as “reinsurance inward”.

Premium on reinsurance accepted stood at 19.06 billion for fiscal 2026 from 14.25 billion for fiscal 2025, a growth of 33.8%. Health, Motor and Fire segments primarily contributed to premium on reinsurance accepted.

Consequently, GWP increased to 306.18 billion for fiscal 2026 from 282.58 billion for fiscal 2025, a growth of 8.4%.

Premium on reinsurance ceded is the premium in relation to the risk ceded to reinsurers. In the case of non-proportional reinsurance, like risk, excess-of- loss or catastrophic excess-of-loss, this amount is the premium that the insurer pays to its reinsurers. In case of proportional reinsurance, this amount is calculated based on the premium received for ensuring a particular risk and the proportion of such risk ceded to its reinsurers.

The premium on reinsurance ceded de-grew to 72.44 billion for fiscal 2026 from 74.97 billion for fiscal 2025, a de-growth of 3.4%. Reinsurance ceding was mainly contributed by segments such as Fire, Health and Engineering.

Consequently, NWP increased to 233.74 billion for fiscal 2026 from 207.61 billion for fiscal 2025, a growth of 12.6%.

NEP increased to 222.64 billion for fiscal 2026 from 198.00 billion for fiscal 2025, a growth of 12.4% primarily driven by Health and Motor.

Segmental NEP

Particulars	Fiscal 2025	Fiscal 2026
Motor - Own Damage	50.30	55.83
Motor - Third Party	50.20	54.42
Motor - Total	100.50	110.25
Health Insurance	63.22	77.37
Travel	2.04	2.68
Crop / Weather	4.25	2.93
Marine - Cargo	6.01	6.10
Marine - Other than	0.06	0.14
Cargo
Marine - Total	6.07	6.24
Personal Accident	4.89	4.08
Fire	LIGN=RIGHT>6.51	6.90
Engineering	2.46	2.64
Aviation	0.27	0.02
Workmen?s	1.27	1.53
Compensation
Public / Product	0.80	0.89
Liability
Credit Insurance	0.03	0.05
Others	5.69	7.06
Total	198.00	222.64

NEP of the Motor segment increased to

110.25 billion for fiscal 2026 from 100.50 billion for fiscal 2025, a growth of 9.7%.

NEP of the Health, Travel & PA segment increased to 84.13 billion for fiscal 2026 from 70.15 billion for fiscal 2025, an increase of 19.9%. This was primarily driven by growth of GDPI in Retail Health insurance business.

NEP of the Marine segment increased to 6.24 billion for fiscal 2026 from 6.07 billion for fiscal 2025, a growth of 2.8%. This was largely contributed by Marine Cargo segment.

NEP of the Fire segment stood at 6.90 billion for fiscal 2026 from 6.51 billion for fiscal 2025.

Income from investments (net) (revenue account)

Particulars	Fiscal 2025	Fiscal 2026
Net Profit on sale and redemption of investments	5.36	7.37
Interest, Dividend and Rent - Gross	26.20	28.10
Income from investments (net) (revenue account)	31.56	35.47

Income from investments (net) (revenue account) increased to 35.47 billion for fiscal 2026 from 31.56 billion for fiscal 2025, a growth of 12.4%.

The gross interest, dividend and rent (revenue account) increased to 28.10 billion in fiscal 2026 from 26.20 billion in fiscal 2025, a growth of 7.3%.

Other income (revenue account)

Other income (revenue account) consists of foreign exchange gain or loss and miscellaneous income. The table below summarises the other income (revenue account). Other income (revenue account)

Particulars	Fiscal 2025	Fiscal 2026
Foreign exchange gain / (loss)	(0.38)	0.65
Miscellaneous income	0.15	0.14
Other income (revenue account)	(0.23)	0.79

Other income (revenue account) reported profit of 0.79 billion for fiscal 2026 from loss of 0.23 billion for fiscal 2025. For fiscal 2026, there was a foreign exchange profit of 0.65 billion from loss of 0.38 billion for fiscal 2025. The miscellaneous income stood at 0.14 billion for fiscal 2026 compared to 0.15 billion for fiscal 2025.

Claims Incurred (net)

Claims incurred (net) are the total claims incurred by the insurer during a given period, both paid and outstanding including IBNR/ IBNER reserves, net of claims recovered from reinsurance ceded. Under guidelines issued by the IRDAI, IBNR and IBNER reserves, which also constituted part of claims outstanding, are not discounted. The statement below summarises the Claims Incurred (net).

Claims Incurred (net)

		( billion)
Particulars	Fiscal 2025	Fiscal 2026
Claims paid - Direct	144.62	157.70
Claims paid on reinsurance accepted	10.21	13.99
Gross claims paid	154.83	171.69
Less: Claims recovered from reinsurance ceded	29.96	36.28
Net Claims paid	124.87	135.41
Add: Increase / (decrease) in claims outstanding (net)	15.0	22.87
Claims incurred (net)	139.87	158.28

Claims incurred (net) increased to 158.28 billion for fiscal 2026 from 139.87 billion for fiscal 2025, a growth of 13.2%, whereas the increase in NEP stood at 12.4% for fiscal 2026. There was marginal increase in overall loss ratio to 71.1% in fiscal 2026 from 70.6% in fiscal 2025.

Net claims paid increased to 135.41 billion in fiscal 2026 from 124.87 billion in fiscal 2025, a growth of 8.4%. The change in claims outstanding (net) stood at 22.87 billion in fiscal 2026 as against 15.00 billion in fiscal 2025.

The table below gives the segmental loss ratios: Segmental loss ratios

		( billion)
Particulars	Fiscal 2025	Fiscal 2026
Motor - Own Damage	65.2%	68.7%
Motor - Third Party	63.2%	63.8%
Motor - Total	64.2%	66.3%
Health Insurance	85.5%	80.5%
Travel	49.0%	69.7%
Crop / Weather	89.2%	95.2%
Marine - Cargo	79.8%	91.2%
Marine - Other than	71.7%	75.3%
Cargo
Marine - Total	79.8%	90.9%
Personal Accident	53.5%	44.1%
Fire	46.8%	52.6%
Engineering	36.8%	59.4%
Aviation	87.3%	1543.8%
Workmen?s	75.1%	76.4%
Compensation
Public / Product	40.8%	48.2%
Liability
Credit Insurance	85.1%	87.5%
Others	61.9%	51.7%
Total	70.6%	71.1%

The overall loss ratio stood at 71.1% in fiscal 2026 from 70.6% in fiscal 2025. Further, the Health loss ratio decreased to 80.5% in fiscal 2026 from 85.5% in fiscal 2025. The loss ratio of Motor stood at 66.3% in fiscal 2026 from 64.2% in fiscal 2025. The

Motor TP loss ratio of the Company stood at 63.8% in fiscal 2026 as against 63.2% in fiscal 2025.

Aviation portfolio witnessed a relatively higher set of claims in the current year. Aviation is a relatively smaller portfolio vis-?-vis other lines of business.

Commission paid (net)

Commission paid (net) comprises of Commission paid · Direct, Commission paid on reinsurance accepted deducted by commission received from reinsurance ceded.

Commission on reinsurance ceded refers to the commissions on reinsurance arrangements received by the insurer. This commission is generally computed as a percentage of the premium on reinsurance ceded. In the case of certain proportional reinsurance contracts where the premium rates are defined, the difference between the premium received by insurer for reinsuring a particular risk and the premium rate so defined in the reinsurance contract is considered as commission on reinsurance ceded.

Commission paid (net)

Particulars	Fiscal 2025	Fiscal 2026
Commission paid - Direct	54.14	60.53
Commission paid on reinsurance accepted	0.72	0.60
Gross Commission paid	54.86	61.13
Less: Commission received from reinsurance ceded	16.48	16.29
Commission paid (net)	38.38	44.84

Commission paid - Direct increased to 60.53 billion for fiscal 2026 from 54.14 billion for fiscal 2025, an increase of 11.8%. The increase in the commission was primarily due to increase in Motor, Health & Travel and Commercial lines of business such as Engineering and Marine Cargo.

Commission paid on reinsurance accepted marginally decreased and stood at 0.60 billion for fiscal 2026 from 0.72 billion for fiscal 2025.

Reinsurance was majorly accepted under Health and Fire segment. Commission received from reinsurance ceded stood at 16.29 billion for fiscal 2026 from 16.48 billion for fiscal 2025, a decrease of 1.1%.

Operating expenses related to insurance business

Operating expenses related to insurance business includes employees? remuneration, rents, rates and taxes, advertisement, sales promotion, business support service and others. The Company has focused on ensuring discipline in operating expenditure?s being incurred and has closely monitored the same. The Company has managed to keep the expenditure levels at approximately

10.0% of the GWP for fiscal 2026, notwithstanding therein the accelerated investments being made by the organization in the space of technology and artificial intelligence. Operating expenses related to insurance business stood at 30.59 billion for fiscal 2026 from 28.45 billion for fiscal 2025.

Operating profit

Based on the above, operating profit increased to 25.24 billion in fiscal 2026 from 22.67 billion in fiscal 2025, an increase of 11.3%. Fire insurance contributed 25.0% and 34.6%, Marine insurance contributed loss of 2.9% and loss of 0.3% and Miscellaneous insurance (including Motor insurance, Health insurance and other lines of insurance) contributed 77.9% and 65.8% of the operating profit for fiscal 2026 and fiscal 2025 respectively.

Income from investments (net) (profit and loss account)

Income from investments (net) (profit and loss account) consists of interest, dividend and rent, and net profit on the sale and redemption of investments. The table below summarises the Income from investments (net) (profit and loss account).

Income from investments (net) (profit and loss account)

		( billion)
Particulars	Fiscal 2025	Fiscal 2026
Net profit on sale and redemption of investments	1.77	2.55
Interest, Dividend and Rent - Gross	8.28	9.29
Income from investments (net) (profit and loss account)	10.05	11.84

Income from investments (net) (profit and loss account) increased to 11.84 billion for fiscal 2026 from 10.05 billion for fiscal 2025, a growth of 17.8%. The gross interest, dividend and rent

(profit and loss account) increased to 9.29 billion for fiscal 2026 from 8.28 billion for fiscal 2025, a growth of 12.1%.

Other income (profit and loss account)

		( billion)
Particulars	Fiscal 2025	Fiscal 2026
Interest income on tax refund	0.09	-
Profit on sale/discard of fixed assets	0.01	0.01
Recovery of bad debts written off	0.49	0.09
Other income (profit and loss account)	0.59	0.10

The recovery of bad debts written off decreased to 0.09 billion in fiscal 2026 from 0.49 billion in fiscal 2025. Other income (profit and loss account) decreased to 0.10 billion for fiscal 2026 from 0.59 billion for fiscal 2025. Also, profit on sale/ discard of fixed assets was 0.004 billion for fiscal 2026.

Provisions (other than taxation)

Provisions (other than taxation) consists of provisions for diminution in the value of investments, doubtful debts and other provisions.

Provisions other than taxation (profit and loss account)

		( billion)
Particulars	Fiscal 2025	Fiscal 2026
For diminution in the value of investments	(0.41)	(0.11)
For doubtful debts	(0.06)	(0.23)
Others	-	-
Provision other than taxation (profit and loss account)	(0.47)	(0.34)

Provisions (other than taxation) stood at (0.34) billion for fiscal 2026 from (0.47) billion for fiscal 2025. Provision of doubtful debts stood at (0.23) billion in fiscal 2026 from (0.06) billion in fiscal 2025, mainly due to reversal of provision on receivables of previous year which is no longer required or subsequently written off.

Other expenses (profit and loss account)

Other expenses consist of expenses other than those related to insurance business, which include certain employees remuneration and other expenses, managerial remuneration, directors fees and CSR expenditure, charges on issuance of the Debentures, expenses related to investment property and Contribution to Policyholders Funds towards excess Expenses of Management. Other expenses also cover, bad debts written off, loss on sale/discard of fixed assets and penalty. Other expenses stood at 0.92 billion for fiscal 2026 from 0.57 billion for fiscal 2025, an increase of 61.4%. The increase in other expenses is primarily attributable to an increase witnessed in the expenditure heads of Corporate Social Responsibility (CSR).

Profit

As a result of the above, Profit before tax increased to 36.59 billion for fiscal 2026 from 33.21 billion for fiscal 2025, a growth of 10.2%. Provision for taxation stood at 8.87 billion in fiscal 2026 compared to 8.13 billion in fiscal 2025. Profit after tax (PAT) increased to 27.72 billion for fiscal 2026 from 25.08 billion for fiscal 2025, a growth of

10.5%.

ii. Financial Position: Balance Sheet

The following table sets forth, at the dates indicated, the summary balance sheet, which is based on the financial statements.

Balance Sheet

		( billion)
Particulars	At March 31, 2025	At March 31, 2026
Share Capital	4.96	4.99
Reserves and	138.07	163.47
Surpluses
Share application money - pending allotment	0.00	0.01
Total Equity	143.03	168.47
Current liabilities	428.64	475.85
Provisions	112.97	124.53
Fair value change account	6.81	(7.74)
Borrowings	-	-
Total liabilities	548.42	592.64
Total equity and liabilities	691.45	761.11
Total investments	535.08	584.21
Fixed assets:
- Cost / gross block	17.99	19.52
- Net block	8.02	8.39
Deferred tax asset	1.68	1.17
Cash and bank balances	0.88	9.87
Advances and other assets	145.79	157.47
Total Assets	691.45	761.11

Total Assets increased to 761.11 billion as at March 31, 2026 from 691.45 billion as at March 31,

2025, an increase of 10.1%. This increase was driven by an increase in total investment assets to

584.21 billion for fiscal 2026 from 535.08 billion for fiscal 2025. This increase in total investment assets was on account of fresh business inflow, internal accruals and capital gains. Cash and bank balances increased significantly to 9.87 billion as at March 31, 2026, compared to 0.88 billion as at March 31, 2025. This rise was mainly attributable to earmarked bank balances maintained in compliance with the Master Circular on Reinsurers 2024 for cross-border reinsurance transactions.

Advances and other assets increased to 157.47 billion as at March 31, 2026, from 145.79 billion as at March 31, 2025, registering a growth of 8.0%. This increase was primarily driven by higher reinsurance inward receivables. Advance tax paid and taxes deducted at source (net of provision for tax) stood at 4.79 billion for fiscal 2026 as against 2.89 billion for fiscal 2025. Total liabilities increased to 592.64 billion at March 31, 2026 from 548.42 billion at March 31, 2025, an increase of 8.1%. This was due to increase in claims outstanding (gross) to 349.84 billion as at March 31, 2026 from 324.85 billion as at March 31, 2025. Further, premiums received in advance stood at 62.39 billion at March 31, 2026 and 44.04 billion at March 31, 2025. The advance premium is attributable to long-term motor as well as non-motor policies wherein the premium is received upfront and would get recognized in the future years. W.e.f. October 1, 2024 Long-term Products are accounted on 1/n basis, as mandated by IRDAI, hence FY2026 numbers are not comparable. Fair value change account ·

Shareholder funds decreased to (2.13)billion at March 31, 2026 from 1.82 billion at March 31, 2025, a de-growth of 217.0%. Fair value change account Policyholder funds decreased to (5.62) billion at March 31, 2026 from 4.99 billion at March 31, 2025, a de-growth of 212.6%. Fair value change reflects unrealized gains on the portfolio subject to mark to market at the balance sheet date.

The movement in fair value change is reflective of changes in market value of the outstanding portfolio and repositioning done during the year. The

Reserves and Surplus stood at 163.47 billion as at March 31, 2026 compared to 138.07 billion as at March 31, 2025 due to increase in the Profit after Tax net of dividend paid. Investments ·

Shareholders stood at 149.29 billion at March 31, 2026 from 137.26 billion at March 31, 2025, an increase of 8.8%.

Investments Policyholders stood at 434.93 billion at March 31, 2026 from 397.82 billion at March 31, 2025, an increase of 9.3%. This increase was primarily due to an overall increase in the investment portfolio.

iii. Liquidity and Capital Resources

The following table sets forth, for the periods indicated, a summary of cash flows from the restated summary statement of receipts and payments account.

Cash flow summary

		( billion)
Particulars	Fiscal 2025	Fiscal 2026
Net cash flow from (used in) operating activities (A)	11.47	26.22
Net cash flow from (used in) investing activities (B)	(11.37)	(17.33)
Net cash flow from (used in) financing activities (C)	(2.57)	(3.36)
Net increase / (decrease) in cash and cash equivalents	(2.47)	5.53
Cash & Cash equivalents at the beginning of the year	3.34	0.87
Cash & Cash equivalents at the end of the year	0.87	6.40

Cash flows from operating activities

Net cash flows from operating activities increased to 26.22 billion for fiscal 2026 from 11.47 billion for fiscal 2025. The increase was primarily due to

Premium received from policyholders, including advanced receipts.

Cash flows from investing activities

Net cash flows (used in) investing activities increased to (17.33) billion for fiscal 2026 from (11.37) billion for fiscal 2025.

Cash flows from financing activities

Net cash flows (used in) financing activities increased to (3.36) billion for fiscal 2026 from (2.57) billion for fiscal 2025.

Reconciliation between Cash and Cash Equivalents as per Balance Sheet and Receipts and Payments Statement.

		( billion)
Particulars	As at March 31, 2025	As at March 31, 2026
Cash and Bank	0.88	9.87
Balances as per Schedule 11
Less: Unpaid Dividend	(0.002)	(0.002)
Less: Deposits under lien to Banks for issuance of Bank Guarantee	(0.01)	(0.04)
Less: Bank balance earmarked for Cross Border Reinsurers as per Master Circular on Reinsurance, 2024	-	(3.43)
Cash and cash equivalents as per Receipts and Payment account	0.87	6.40

The above Receipts & Payments Account has been prepared as prescribed by Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024 under the Direct method in accordance with Accounting Standard 3 on Cash

Flow Statements notified under the Section 133 of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2021.

iv. Contingent Liabilities

The Statement of contingent liabilities is provided below.

Contingent Liability

		( billion)
Particulars	At March 31, 2025	At March 31, 2026
Partly paid-up investments	-	-
Claims other than those under policies, not acknowledged as debt	-	-
Underwriting commitments outstanding	N.A.	N.A.
Guarantees given by or on behalf of the Company	-	-
Statutory demands / liabilities in dispute, not provided for (Refer note-1&2 below)*	51.59	48.64
Reinsurance obligations to the extent not provided for in accounts	-	-
Others	0.01	0.01

* Including interest & penalty as per Order.

Note:

1) The Company has contingent liability of 13.98 billion (previous year: 13.98 billion) on account of Income Tax matters, the appeals of which are pending before the appropriate Authorities.

This excludes,

a) Assessment Years 2006-07 in respect of which the Company has received favorable appellate order, which are pending for effect to be given by the Assessing Authority.

b) Assessment Years 2002-03, 2003-04, 2007-08, 2009-10, 2010-11, for which the Company has received intimation from the Income Tax Department, for appeal filed with High Court/ITAT, against favorable Appellate Orders.

2) Includes disputed refund / demand of 34.66 billion (previous year: 37.60 billion) from Service Tax Authorities / Goods & Service Tax Authorities / Jammu and Kashmir Sales Tax, the appeals of which are pending / in the process of being filed before the appropriate Authorities. Further, 5.36 billion (previous year: 0.63 billion) has been paid at the time of filing CESTAT/Commissioner Appeal as per the provisions of the Finance Act, 1994/ GST Act/Income Tax Act,1961.

3) Others include

		( billion)
Particulars	At March 31, 2025	At March 31, 2026
Relating to penalty / penal interest towards non meeting operational guidelines (OG) of Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme	0.01	0.01
Relating to property tax (including interest)	-	-
Total	0.01	0.01

4) During the year, the Company has received favorable Orders from the Customs, Excise & Service Tax Appellate Tribunal, Mumbai setting aside a demand of 2.25 billion for FY 2008-09 to FY 2011-12, FY 2013-14 & FY 2014-15 where the dispute was regarding the formula for determining the proportionate reversal of CENVAT credit on exempted services under Rule 6(3A) of the Rules of 2004 ; and 1.68 billion for FY 2011-12 where CENVAT credit on Service tax paid with respect to re-insurance services and on payments made to Authorized service station for repair of motor vehicles was denied.

5) Excludes, payment of 1.04 billion (previous year: 1.04 billion) under protest pursuant to a GST proceeding on account of alleged ineligible input tax credit claim and applicability of GST on salvage adjusted on motor claims settled during the period from July 2017 to March 2022. The Company has been advised that its tax position on both the matters is legally valid and that the Company should not be liable to pay the said amounts. Accordingly, the Company has treated the amount paid as deposit under “Advances and Other Assets” as at March 31, 2026. Further, the Company will file refund for these amounts in due course.

v. Borrowings

As of March 31, 2026, the Company had Nil borrowings.

Disclosure of key changes in financial indicators

Pursuant to SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, w.e.f. 01 April 2019, following details have been provided: a) Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in the key financial ratios, along with detailed explanations thereof:

Sr. Ratio	FY2025	FY2026	Change	Reasons
1 Gross Direct Premium Growth Rate	8%	7%	(16%)	Not Applicable
2 Gross Direct Premium to Net Worth Ratio	1.88	1.71	(9%)	Not Applicable
3 Growth rate of Net Worth	20%	18%	(11%)	Not Applicable
4 Net Retention Ratio	73%	76%	4%	Not Applicable
5 Net Commission Ratio	18%	19%	4%	Not Applicable
6 Expenses of Management to Gross Direct Premium Ratio	31%	32%	3%	Not Applicable
7 Expenses of Management to Net Written	40%	39%	(2%)	Not Applicable
Premium Ratio
8 Net Incurred Claims to Net Earned	71%	71%	1%	Not Applicable
Premium
9 Combined Ratio	103%	103%	1%	Not Applicable
10 Technical Reserves to Net Premium	2.09	2.01	(4%)	Not Applicable
11 Underwriting balance ratio	(0.04)	(0.05)	13%	Not Applicable
12 Operating profit ratio	11%	11%	(1%)	Not Applicable
13 Liquid Assets to Liabilities Ratio	8%	16%	111%	Refer Note 1
14 Net Earnings Ratio	13%	12%	(2%)	Not Applicable
15 Solvency Ratio	2.69	2.67	(1%)	Not Applicable

Note 1: Liquid Assets to Liabilities Ratio is derived by Short term investments + Cash and bank balances divided by Claims Outstanding

+ Reserve for Unearned Premium. The improvement was driven by a substantial increase in Short Term Investments and Cash & Bank Balances during the year, which significantly higher than the grewatapace corresponding growth in Claims Outstanding and Unearned Premium Reserve. b) Details of change in Return on Net Worth as compared to the immediately previous financial year along with detailed explanation thereof:

Return on Net Worth (RONW) is computed dividing the PAT by Net Worth (Share Capital

+ Reserves & Surpluses + Share application money received pending allotment). RONW stood at 16.5% for fiscal 2026 compared to 17.5% for fiscal 2025. The return on net worth has decreased due to the proportionate increase in net worth (driven by retained fiscal 2026) outpacing the earningsduring growth in PAT.

IV. Internal control systems and their adequacy

The internal controls of the Company are commensurate with the business requirements, its scale of operation and applicable statutes to ensure orderly and efficient conduct of business.

These controls have been designed to provide a reasonable assurance with regard to maintaining proper accounting controls, safeguarding of resources, prevention and detection of frauds and errors, ensuring operating effectiveness, reliability of financial reporting and compliance with applicable regulations. In addition, internal audits are undertaken to review significant operational areas regularly. The audit reports submitted by internal auditors are reviewed by Audit Committee and corrective actions are initiated to strengthen the controls and enhance the effectiveness of the existing systems. Statutory and Internal auditors are also invited to the Audit Committee meetings to ascertain their views on the adequacy of internal control systems. The management believes that strengthening of internal controls is a continuous process and it will therefore continue its efforts to keep pace with changing business needs and environment.

V. Key developments in human resources

The Company started its DEI journey over 4 years ago with emphasis on gender diversity and building an inclusive organization. The Company since then is striving towards improving women representation in the workforce through build enabling policies and practices and drive awareness on inclusion to further the DEI agenda. The Company had also taken a target of improving women representation to 27.0% by fiscal 2026 and against the target set the Company achieved an actual women representation of 27.6% in fiscal 2026.

VI. Update on implementation of Indian Accounting Standard (Ind AS)

IRDAI vide communication no. 100/2/Ind AS · mission mode/2022-23/1 dated July 14, 2022, advised the insurers to set up a Steering Committee to facilitate smooth transition to Ind AS. In compliance with the regulatory requirements, the Company has constituted a Steering Committee headed by Chief Financial Officer along with Appointed actuary and Chief Actuarial Officer to oversee the implementation of Ind AS. The Steering Committee consists of members of Management Committee and cross operational teams for appropriate representation. Periodic meetings of the Steering Committee are being held to review the progress made towards implementation, issues / challenges and course of action to mitigate the same. The Steering Committee is also updating the Audit Committee on the progress in preparedness towards Ind AS implementation process on a quarterly basis.

The company has submitted two proforma financial statements to IRDAI for FY 2023 24 and FY 2024·25 during the year 2025-2026. Building on the insights gained from these proforma submissions particularly in relation to accounting policy choices, actuarial assumptions, and overall financial reporting requirements the company has fast tracked its journey toward Ind AS convergence in a structured and phased manner.

To facilitate the implementation journey, knowledge partner has been onboarded to provide technical guidance and support, and detailed position papers covering key accounting and actuarial policy decisions have been finalized to ensure alignment with regulatory and Ind AS requirements. In parallel, the company has identified the various technical solution components required for implementation and has onboarded relevant partners to support these initiatives. Efforts are currently underway to finalize the end-to-end workflow design and to select and implement an appropriate financial reporting tool that will enable seamless comprehensive reporting under the new framework. IRDAI, vide its circular IRDAI/Reg/2/216/2026 dated March 30, 2026, has notified the IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Amendment) Regulations, 2026, mandating adoption of Indian Accounting Standards (Ind AS) by insurers with effect from April 1, 2026, while providing an option to seek a one-year forbearance considering implementation complexities. The Company has decided to avail one-year forbearance and defer Ind AS adoption to April 1, 2027. Accordingly, for FY 2027, the Company will continue to prepare financial statements under the existing accounting framework for all statutory purposes, including shareholder reporting, regulatory submissions, and tax filings. In parallel, the Company will adhere to all the requirements set forth by IRDAI for Insurance Companies seeking forbearance.