ICICI Lombard General Insurance Company Ltd Management Discussions

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

During fiscal year 2025, the Indian economy experienced growth moderation, yet remained one of the fastest-growing economies in the world. According to the latest GDP estimates released by MOSPI1 the domestic economy grew , by 6.5% during FY2025. The economy showed resilience against global uncertainties related to escalating trade tensions, volatile financial markets and uncertainties around tariffs.

In the first half of the fiscal year, domestic growth was sluggish due to postponement in government expenditure, lower credit growth, and tighter macro-prudential lending norms. However, growth picked up in the second half due to accelerated government spending to meet its capex targets, the beginning of monetary easing, relaxation of the macro-prudential lending measures by the RBI, and strong exports amidst uncertain global environment. The high level of consumption spending during the festive season and a favourable kharif harvest supported rural growth, while urban demand remained sluggish due to lower wage growth and higher prices while, services exports also contributed to the growth. The high-frequency indicators such as e-way bills, toll collections, GST collections, air passenger traffic, and hotel tariffs witnessed growth during the year indicating the strength in the underlying economy. The Union Budget for FY2026 reflects the governments continued focus on fiscal consolidation along with an impetus on boosting consumption through significant tax incentives, which should, in turn, stimulate private capex. The government also continued its focus on capital expenditure in roads, railways, and building logistical infrastructure and increasing coverage for credit availability for SME.

Looking forward, government tax incentives, easing inflation, lower interest rates, and good agricultural sector output should support private consumption. This, along with a healthy corporate and banking balance sheets, higher services exports and the growth of new-age industries like electronics, mobile, semiconductor manufacturing, and renewable energy, should augur well for sustainable growth of the domestic economy.

The global economy experienced a slowdown with divergent growth across countries. The US witnessed mild growth deceleration, while Europe, China, and the UK saw a pickup in growth due to higher fiscal spending. The central banks of the advanced economy eased monetary policies as inflation eased as the elevated interest rates were previously hampering growth.

Overall, moderating global economic growth, geopolitical uncertainties, global trade disruptions and recent US tariff announcements have led to bouts of volatility in global financial markets posing significant downside risks to the global economic outlook. In this highly uncertain environment, India witnessed FPI2 outflows from its equity markets; however, the strong domestic flows continued to support the market.

II. NON-LIFE INSURANCE INDUSTRY DEVELOPMENTS

A. Regulatory developments:

The non-life insurance landscape is continuously evolving, with the regulators continued focus on fostering a conducive regulatory environment that protects interests of the policyholders and encourages innovation, competition, and sustainable growth in the insurance industry. All these regulatory reforms are 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 regulatory reforms introduced by the regulator during the year are as follows:

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

The Authority on May 10, 2024 issued the Master Circular which prescribes the methodology for achieving the minimum rural, social sector and motor third party insurance business to be undertaken by the insurers. The compliance and measurement of these statutory obligations have been revised in order to enhance the penetration of insurance and reach out to the last mile.

Master Circular on Actuarial, Finance and Investment Functions of Insurers

The Master Circular issued by the Authority on May 17, 2024 lays down operational procedure and guidelines with respect to actuarial, finance andinvestmentfunctionsundertakenbyinsurers.

The Circular introduced accounting treatment for long-term products on a 1/n basis and changes in guidelines for calculating solvency norms, effective October 1, 2024 onwards.

Master Circular on Corporate Governance for Insurers, 2024

The Authority issued the Master Circular on May 22, 2024 which aims to establish a robust governance framework, defining the roles and responsibilities of the board and management and the various operational and procedural aspects, for adoption by all insurers. By emphasizing transparency, accountability, and ethical conduct, the Circular aims to enhance trust and confidence among stakeholders.

Master Circulars on IRDAI (Insurance Products) Regulations 2024 - Health Insurance and General Insurance

The Authority on May 29, 2024 issued Master Circular on Health Insurance Business and further on June 11, 2024 issued Master Circular on General Insurance Business to promote policyholder centric reforms enabling more product choices and customizations, introduction of customer information sheet, enhanced free-look and grace periods, multilingual access, reduced waiting periods, smooth portability, seamless paperless claims, reduced turnaround times etc.

Master Circular on Operations and Allied Matters of Insurers & Protection of Policyholders Interests

The Authority on June 19, 2024 issued

Master Circular on Operations and Allied

Matters aiming towards strengthening the governance measures on operations and allied matters and further on September 5, 2024 issued Master Circular on Protection of Policyholders Interests endeavouring towards policyholder centric reforms in the insurance sector. The Circulars inter alia consolidates policyholder entitlements into a single reference document, emphasizes measures towards providing seamless, faster and hassle-free claims settlement experience to a policyholder, and provide highest quality service, prescribes operational provisions related to advertisements, places of business, outsourcing, treatment of unclaimed amount, grievance redressal, policyholder engagement & awareness and provisions to streamline group insurance business.

IRDAI (Regulatory Sandbox) Regulations, 2025

The Authority on January 1, 2025 notified IRDAI (Regulatory Sandbox) Regulations, 2025 which aims to provide controlled environment to test new ideas with relaxed regulatory provisions, promote innovation and at the same time benefiting both the policyholders and industry.

Review of revision in premium rates under health insurance policies for senior citizens

The Authority on January 30, 2025 issued Circular which aims to protect the interest of the senior citizens from the steep increase in health insurance premiums. The Circular restricts insurers from revising the premium of indemnity based health insurance products for senior citizens by more than 10% per annum or withdrawing any health insurance product for senior citizens, without consultation with the Authority.

Circular on BIMA-ASBA

The Authority on February 18, 2025 issued a Circular which requires insurers to provide an option of one-time mandate for blocking the premium remitted through UPI in the bank account of the customer till acceptance of proposal by the insurer. The Circular is applicable for issuance of life and health insurance policies, except for policies issued basis good health declaration. BIMA-ASBA facility enhances the insurance payment process by making it more seamless, transparent, and efficient for policyholders.

Guidelines on Hedging Through Equity Derivatives

The Authority on February 28, 2025 issued comprehensive guidelines permitting insurers to utilize equity derivatives to hedge their equity portfolios. This move aims to facilitate insurers to hedge their existing equity exposures against volatility in equity market and ensure preservation of market value of equity investments, thereby reducing risks in equity portfolio.

B. Financial performance:

The non-life insurance industry registered single digit growth of 6.2%3 (on GDPI basis) in fiscal 2025, (on n basis, the GDPI grew by 8.6% in fiscal 2025). The industry has grown at a CAGR of 14.8% since fiscal 2008. Despite this, non-life insurance penetration in India continues to be around 1.0%4 of Gross Domestic Product for CY2023 against world average of 4.2%4 and given Indias 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 2025 for the industry was 6.2% as against the growth of 12.8% in fiscal 2024, (on n basis, the GDPI grew by 8.6% in fiscal 2025). 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 2025. Consequently, the overall market share of Private players decreased from 53.5% in fiscal 2024 to 52.9% in fiscal 2025, while market share of SAHIs increased from 11.4% in fiscal 2024 to 12.5% in fiscal 2025.

Health (including PA & Travel) segment continued to remain largest GDPI contributing segment for the industry constituting ~41.4% of the market share in fiscal 2025.

The industry growth was driven by growth in Retail Health, Group Health, Motor and Engineering line of business. Retail Health, Group Health, Motor and Engineering line of business grew by 12.1%, 10.5%, 8.0% and 11.5% respectively in fiscal 2025.

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 the second largest non-life insurer in India based on Gross Direct Premium Income (GDPI) for fiscal 2025. 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.

For fiscal 2025, the Company issued 37.6 million policies and covered 93.9 million lives and the GDPI of the Company was at 268.33 billion in fiscal 2025 as against 247.76 billion in fiscal 2024, a growth of 8.3%, translating to a market share of 8.7% among all non-life insurers in India, (on n basis, the GDPI grew by 11.0% in fiscal 2025). The Companys 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.

During fiscal 2025, the Company has maintained leadership position among the private sector non-life insurers in India across Motor, Fire, Engineering, Liability and Marine Cargo segments. On GDPI basis for fiscal 2025, the Company was second largest general insurer in India. The Companys market share in the overall Health segment increased to 5.9% in fiscal 2025 from 5.7% in fiscal 2024, Retail Health market share of the Company stood at 3.3% for fiscal 2025 from 3.0% for fiscal 2024 and on the Group Health segment, the Companys market share stood at 8.9% for fiscal 2025 whereas Commercial lines market share stood at 13.7% for fiscal 2025. Due to the pricing pressure in Fire segment, the Company remained vigilant in terms of risk selection thereby leading to marginal decrease in market share from 13.1% in fiscal 2024 to 13.0% in fiscal 2025.

The Companys market share in Motor segment increased to 10.8% in fiscal 2025 as against 10.5% in fiscal 2024. During fiscal 2025, the Company demonstrated growth aided by sales in both old and new business. The Company continues to maintain market leadership in Motor segment on the back of robust capabilities across distribution, underwriting, claims servicing and actuarial practices. The de-notification of tariff wordings and operational guidelines of master circular provided the Company with newer product opportunities in Motor segment, which led to the introduction of long-term product for Private Car and Two-wheeler during fiscal 2025. The Company continues to remain focused on making investments in the Retail Health segment, create differentiation, and provide solutions for the segment. In this endeavor to enhance value proposition in Retail Health insurance solution, the Company launched Elevate powered by AI. Further, the Company also revamped super top-up product - Activate

Booster, and travel product - TripSecure+ were introduced during the year.

During fiscal 2025, in the Commercial lines segment, the Company grew by 2.1% as against the industry growth of 1.5% thereby, demonstrating the strength of brand, relationship and service quality in an environment where the industry faced continued pricing pressure throughout the year.

Investments:

As on March 31, 2025, the Company reported 535.08 billion in total investment assets with an investment leverage (net of borrowings) of 3.74x. The Companys investment policy is designed with the objective of capital conservation and achieving superior total returns within identified risk parameters. The Companys philosophy of generating superior risk adjusted returns along with protection of capital has resulted in a total portfolio return of 9.82%5. Since fiscal 2008, the Companys listed equity portfolio has returned an annualised total return of 17.55%, as compared to an annualised return of 10.49% on the benchmark S&P6NIFTY index.

B. Opportunities

Demographics and Low Insurance Penetration

As per the latest Swiss Re report, India continues to exhibit lower non-life insurance penetration at 1% for CY2023 as against the world global average of 4.2%. However, the non-life insurance density for CY2023 increased to US$ 25 per capita for India from US$ 22 per capita for CY2022. Indias insurance market is one of the fastest-growing globally, and Swiss Re predicts it will be the fastest-growing within the G20 over the next five years.

(Source: Sigma 3 / 2024 Swiss Re)

Changing population dynamics, comprising of significant proportion of young productive individuals, increasing urbanization, a rising trend in private final consumption expenditure, and growing rural per capita income, are all factors that will contribute to the growth of the insurance industry. The Company remains focused on harnessing the multi-product, multi-distribution strategy and continues to cater for the changing market dynamics.

Regulatory Environment

The recent budget for fiscal 2026, which emphasizes on consumption over capital expenditure, has created a positive environment for insurance companies. Further, the budgetary proposal for increase in FDI limits for the insurance industry shall facilitate a conducive market for foreign insurance companies to enter the Indian market.

The regulatory announcements during the fiscal year lay emphasis on protecting policyholders interests, increasing insurance penetration, favoring ease of doing business while fostering innovation and sustainable growth for the industry, thereby reinforcing the authoritys vision of ‘Insurance for All by 2047.

Awareness for Health Insurance

During fiscal 2025, the Indian Health insurance segment (including Personal Accident and Travel) collected 1,272.86 billion as Health insurance premium registering a growth of about 9.1% over fiscal 2024. The Health, Travel and PA continues to be one of the fastest growing and largest contributor to the overall non-general insurance industry premium.

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 premiums.

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 Framework 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 Companys 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 Companys comprehensive and diverse portfolio of insurance products that continuously adapts to evolving needs of customers and evolving industry dynamics. Further, during fiscal 2025, 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 Companys Virtual offices network stood at 992 as on March 31, 2025. The Companys individual agents (including POS Agents) increased to 1,40,736 as on March 31, 2025.

ExcellenceinCustomerServiceandTechnology:

The Companys customer-centric approach of delivering value focuses on providing convenience and customised solutions. The number of policies written stood at 37.6 million for fiscal 2025. 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 Companys investment in capability building is focussed on building a culture of data-enabled decision making and enabling its employees to deliver customer-centric solutions. As on March 31, 2025, the headcount of the Company was 16,695.

Under banner of One IL One Team, one of the initiative 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 ~14.9 million user downloads till date, incremental downloads for fiscal 2025 was ~5.6 million. During the same period, premium sourced through this app was 2.65 billion. The Companys Customer-Facing Digital Asset business grew by 15.8%, constituting 6.6% of the overall GDP in fiscal 2025.

The Company continues its journey of digital transformation through thrust on Project Orion which focuses on three pivotal pillars of reimagining processes with a digital-first approach, modernizing technology by shifting away from legacy systems and enhancing stakeholder experience through superior engagement models. Further, during the year, ‘Health business transformation was initiated and has now achieved a critical milestone which led to the rolling out of flagship retail indemnity product Elevate on the new core platform. Going forward, the Company expects shorter period for the development of products on the new system, Artemis. The Company staunchly believes Project Orion will be a key enabler driving the vision of - One IL One Team.

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 pg. 45 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 86.1% in sovereign and AAA7 rated securities as on March 31, 2025. All the Bonds and Debentures are AA7 rated & above. There has been Zero instance of default in ILs Debt portfolio since inception.

Strong investment returns on diversified portfolio:

The total investment assets increased to 535.08 billion as of March 31, 2025, with an investment leverage of 3.74x. The Company achieved a realised return of 8.42% on its investment portfolio for fiscal 2025.

E. Strategy and Future Outlook

In fiscal 2025, the Company strengthened its focus on strategic priorities of growth within preferred profitable segments; however, the Company maintained a cautious approach in segments where competitive intensity persisted in general insurance market. During the fiscal year, the Company continued to drive synergies driven by various initiatives like One Il One Digital, One IL One Agency and One IL One Call Center. The collective efforts through various initiatives focus on the organizations goals resulting in creation of tailwinds, which are driving superior growth.

In the ensuing financial year, the Company will continue to remain committed towards profitable growth and focus on creating sustainable value led by robust multi-product, multi-distribution strategy, coupled with strong product innovation, data analytics, and digital enhancements. Simultaneously, the core philosophy adopted by the Company One IL One Team will continue to remain the driving force behind scaling up of the profit pools and fostering sustainable growth.

Basis of preparation of financial 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 of the Insurance Act, 1938, Insurance Laws (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.

Note: a In accordance with the Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024, Investment income from Pool required to be shown under the head ‘Income from investments instead of ‘Other Income and Contribution from the Shareholders Account towards remuneration of MD/CEO/WTD/Other KMPs are required to be shown under the head Other Income instead of reversal from ‘Employees remuneration & welfare benefits in ‘Schedule

– 4 Operating expenses related to insurance business. Therefore, previous period figures have been regrouped in the respective schedule and notes wherever necessary.

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

(Rs. billion)

Particulars	Fiscal 2024	Fiscal 2025
Premium earned (net)	168.66	198.00
Income from Investments (net)	28.60	31.56
Contribution from
Shareholders Funds towards excess EOM	0.08	0.04
Other income	0.25	(0.23)
Total (A)	197.59	229.37
Claims Incurred (net)	119.39	139.87
Commission paid (net)	30.88	38.38
Operating expenses related to insurance business	28.26	28.45
Total (B)	178.53	206.70
Operating Profit / (Loss) (C) =(A)-(B)	19.06	22.67

and expenses pertaining to shareholders.

The statement below summarises the Profit and Loss account.

Profit & Loss Account

(Rs. billion)

Particulars	Fiscal 2024	Fiscal 2025
Operating profit / (loss)	19.06	22.67
Income from investments (net)	8.45	10.05
Other income	0.05	0.59
Total (A)	27.56	33.31
Provisions (other than taxation)	0.57	(0.47)
Other expenses	1.44	0.57
Total (B)	2.01	0.10
Profit before tax	25.55	33.21
Provision for taxation	6.36	8.13
Profit after tax	19.19	25.08

Premium earned (net) (NEP)

(Rs. billion)

Particulars	Fiscal 2024	Fiscal 2025
Premium from direct business written - net of GST (GDPI)	247.76	268.33
Premium on reinsurance accepted	8.18	14.25
Gross Written Premium (GWP)	255.94	282.58
Less: Premium on reinsurance ceded	74.29	74.97
Net Written Premium (NWP)	181.65	207.61
Less: Adjustment for change in reserve for unexpired risks	12.99	9.61
Premium earned (net) (NEP)	168.66	198.00

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 268.33 billion for fiscal 2025 from 247.76 billion for fiscal 2024, a growth of 8.3%. The GDPI growth was driven by growth in the preferred segments such as Motor OD, Motor TP, Health and Commercial segments such as Liability, Marine Cargo and

Engineering.

In the Commercial business segment, except for the Fire segment wherein the Company maintained a cautious approach due to pricing pressure, the Company continued to consolidate its market position, by leveraging on unique distribution network enhanced by value added services, prudent risk based underwriting and highly rated reinsurer capacities. During fiscal 2025, the Company grew by 2.1% in this segment as against the industry growth of 1.5%.

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.

Motor continues to be the largest contributor to the Companys GDPI product mix for fiscal 2025 and the Company continues to maintain leadership in this segment. Given the presence across all three sub-segments of Private Car, Two-wheeler and Commercial Vehicle, the

Company strategically balances its portfolio in response to the evolving market opportunities. During fiscal 2025, the Company maintained healthy mix of old and new business book, which led to higher growth in the segment, despite slow down in new vehicle sales in the Motor industry. For fiscal 2025, the Company grew at 11.5% in this segment as against the industry growth of 8.0%.

For fiscal 2025, the mix for Private Car, Two-wheeler and Commercial Vehicle stood at 53.4%, 25.4% and 21.2% respectively.

The Health segment continued to be the fastest growing segment for the industry. The Company grew by 12.6% for fiscal 2025. However, the Health segment growth during the year was largely impacted due to 1/n accounting norm effective October 1, 2024 and subdued credit disbursement by financial institutions resulting in a slower growth for Health Benefit business.

In the Group Health segment, the Company closed fiscal 2025 with growth of 9.5%. Within the Group Health segment, the Employer Employee segment grew at 18.5% for fiscal 2025. The change in the underlying industry pricing sentiment resulted in customers moving towards insurers with superior servicing capabilities.

In Retail Health business, the Company grew at 25.0% for fiscal 2025. The Company continues to remain committed to invest, create differentiation, and provide innovative solutions for the Retail Health segment. The Companys focus on product innovation and technology integration led to the introduction of some innovative solutions like Elevate powered by AI, revamped super top-up product - Activate Booster, and introduced travel product TripSecure+. As at March 31, 2025, the Retail Health market share for the Company stood at 3.3% as against 3.0% as at March 31, 2024.

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 14.25 billion for fiscal 2025 from 8.18 billion for fiscal 2024, a growth of 74.2%. Health, Motor and Fire segments primarily contributed to premium on reinsurance accepted.

Consequently, GWP increased to 282.58 billion for fiscal 2025 from 255.94 billion for fiscal 2024, a growth of 10.4%.

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 grew to 74.97 billion for fiscal 2025 from 74.29 billion for fiscal 2024, a growth of 0.9%. Reinsurance ceding was mainly contributed by segments such as Fire, Health, Crop and Engineering.

Consequently, NWP increased to 207.61 billion for fiscal 2025 from 181.65 billion for fiscal 2024, a growth of 14.3%.

NEP increased to 198.00 billion for fiscal 2025 from 168.66 billion for fiscal 2024, a growth of 17.4% primarily driven by Health, Travel, Motor & Marine Cargo segments.

Segmental NEP is shown in the table below:

Segmental NEP

(Rs. billion)

Paticulars	Fiscal 2024	Fiscal 2025
Motor:
Motor - Own Damage	41.64	50.30
Motor - Third Party	45.38	50.20
Motor - Total	87.02	100.50
Health Insurance	50.87	63.22
Travel	1.76	2.04
Crop / Weather	3.53	4.25
Marine:
Marine - Cargo	5.17	6.01
Marine - Other than
	0.06	0.06
Cargo
Marine - Total	5.23	6.07
Personal Accident	5.26	4.89
Fire	6.15	6.51
Engineering	2.03	2.46
Aviation	0.16	0.27
Workmens
	1.04	1.27
Compensation
Public / Product Liability	0.63	0.80
Credit Insurance	0.03	0.03
Others	4.95	5.69
Total	168.66	198.00

NEP of the Motor segment increased to 100.50 billion for fiscal 2025 from 87.02 billion for fiscal 2024, a growth of 15.5%.

NEP of the Health, Travel & PA segment increased to 70.15 billion for fiscal 2025 from 57.89 billion for fiscal 2024, an increase of 21.2%. This was primarily driven by growth of GDPI in Group Health Employer-Employee and Retail Health insurance business.

NEP of the Marine segment increased to 6.07 billion for fiscal 2025 from 5.23 billion for fiscal 2024, a growth of 16.1%. This was largely contributed by Marine Cargo segment.

NEP of the Fire segment stood at 6.51 billion for fiscal 2025 from 6.15 billion for fiscal 2024.

Income from investments (net) (revenue account)

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

Income from investments (net)(revenue account)

(Rs. billion)

Particulars	Fiscal 2024	Fiscal 2025
Net Profit on sale and redemption of investments	4.91	5.36
Interest, Dividend and Rent - Gross	23.69	26.20
Income from investments (net) (revenue account)	28.60	31.56

Incomefrominvestments(net)(revenueaccount) increased to 31.56 billion for fiscal 2025 from 28.60 billion for fiscal 2024, a growth of 10.3%. The gross interest, dividend and rent (revenue account) increased to 26.20 billion in fiscal 2025 from 23.69 billion in fiscal 2024, a growth of 10.6%. The investment income grew during the period led by increase in investment assets generating higher accrual income and increase in realization of gains.

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)

(Rs. billion)

Particulars	Fiscal 2024	Fiscal 2025
Foreign exchange gain / (loss)	0.11	(0.38)
Miscellaneous income	0.14	0.15
Total	0.25	(0.23)

Other income (revenue account) reported loss of 0.23 billion for fiscal 2025 from profit of 0.25 billion for fiscal 2024. For fiscal 2025, there was a foreign exchange loss of 0.38 billion from gain of 0.11 billion for fiscal 2024. The miscellaneous income stood at 0.15 billion for fiscal 2025 compared to 0.14 billion for fiscal 2024.

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)

(Rs. billion)

Particulars	Fiscal 2024	Fiscal 2025
Claims paid – Direct	122.04	144.84
Claims paid on reinsurance accepted	4.40	9.99
Gross claims paid	126.44	154.83
Less: Claims recovered from reinsurance ceded	26.25	29.96
Net Claims paid	100.19	124.87
Add: Increase / (decrease) in claims outstanding (net)	19.20	15.00
Claims incurred (net)	119.39	139.87

Claims incurred (net) increased to 139.87 billion for fiscal 2025 from 119.39 billion for fiscal 2024, a growth of 17.2%, whereas, the increase in NEP stood at 17.4% for fiscal 2025. There was marginal decrease in overall loss ratio to 70.6% in fiscal 2025 from 70.8% in fiscal 2024.

Net claims paid increased to 124.87 billion in fiscal 2025 from 100.19 billion in fiscal 2024, a growth of 24.6%. The claims outstanding (net) stood at 15.00 billion in fiscal 2025 as against 19.20 billion in fiscal 2024.

The table below gives the segmental loss ratios:

Segmental loss ratios

Paticulars	Fiscal 2024	Fiscal 2025
Motor:
Motor - Own Damage	63.5%	65.2%
Motor - Third Party	66.8%	63.2%
Motor - Total	65.2%	64.2%
Health Insurance	82.8%	85.5%
Travel	41.5%	49.0%
Crop / Weather	88.4%	89.2%
Marine:
Marine - Cargo	72.7%	79.8%
Marine - Other than Cargo	136.8%	71.7%
Marine - Total	73.4%	79.8%
Personal Accident	53.3%	53.5%
Fire	62.2%	46.8%
Engineering	63.8%	36.8%
Aviation	217.3%	87.3%
Workmens Compensation	61.2%	75.1%
Public / Product Liability	54.2%	40.8%
Credit Insurance	94.0%	85.1%
Others	71.9%	61.9%
Total	70.8%	70.6%

The overall loss ratio marginally improved to 70.6% in fiscal 2025 from 70.8% in fiscal 2024. Further, the Health loss ratio increased to 85.5% in fiscal 2025 from 82.8% in fiscal 2024.

The loss ratio of Motor improved to 64.2% in fiscal 2025 from 65.2% in fiscal 2024. This was due to continuous improvement in the portfolio mix and efficiency in claims settlement process.

The Motor TP loss ratio of the Company improved to 63.2% in fiscal 2025 as against 66.8% in fiscal 2024.

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)

(Rs. billion)

Particulars	Fiscal 2024	Fiscal 2025
Commission paid – Direct	45.59	54.14
Commission paid on reinsurance accepted	0.71	0.72
Gross Commission paid	46.30	54.86
Less: Commission received from reinsurance ceded	15.42	16.48
Commission paid (net)	30.88	38.38

Commission paid - Direct increased to 54.14 billion for fiscal 2025 from 45.59 billion for fiscal 2024, an increase of 18.8%. 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 remained in line and stood at 0.72 billion for fiscal 2025 from 0.71 billion for fiscal 2024. Reinsurance was majorly accepted under Health and Fire segment.

Commission received from reinsurance ceded increased to 16.48 billion for fiscal 2025 from 15.42 billion for fiscal 2024, an increase of 6.9%; primarily due to increase in the Fire, Marine Cargo, Engineering and PA lines of business.

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.

During fiscal 2025, the Companys focus remained on accelerating its investments towards delivering excellence in technology, innovation, building people capabilities and value partnerships. Resultantly, operating expenses related to insurance business marginally increased to 28.45 billion for fiscal 2025 from 28.26 billion for fiscal 2024, an increase of 0.7%.

Operating profit

Based on the above, operating profit increased to 22.67 billion in fiscal 2025 from 19.06 billion in fiscal 2024, an increase of 18.9%. Fire insurance contributed 34.6% and 26.4%, Marine insurance contributed loss of 0.3% and profit of 1.4% and Miscellaneous insurance (including Motor insurance, Health insurance and other lines of insurance) contributed 65.8% and 72.1% of the operating profit for fiscal 2025 and fiscal 2024 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)

(Rs. billion)

Particulars	Fiscal 2024	Fiscal 2025
Net profit on sale and redemption of investments	1.51	1.77
Interest, Dividend and	6.94	8.28
Rent – Gross
Income from investments (net) (profit and loss account)	8.45	10.05

Income from investments (net) (profit and loss account) increased to 10.05 billion for fiscal 2025 from 8.45 billion for fiscal 2024, a growth of 18.9%. The gross interest, dividend and rent (profit and loss account) increased to 8.28 billion for fiscal 2025 from 6.94 billion for fiscal 2024, a growth of 19.3%, this was primarily due to investment income which grew during the period led by increase in investment assets generating higher accrual income and increase in realization of gains.

Other income (profit and loss account)

Other income (profit and loss account) consists of interest income on tax refund, profit on sale/ discard of fixed assets and recovery of bad debts written off.

Other income (profit and loss account)

(Rs. billion)

Particulars	Fiscal 2024	Fiscal 2025
Interest income on tax refund	-	0.09
Profit on sale/discard of fixed assets	0.01	0.01
Recovery of bad debts written off	0.04	0.49
Other income (profit and loss account)	0.05	0.59

The recovery of bad debts written off stood at 0.49 billion in fiscal 2025 from 0.04 billion in fiscal 2024, the increase was mainly due to recovery from investment assets previously written-off.

Other income (profit and loss account) increased to 0.59 billion for fiscal 2025 from 0.05 billion for fiscal 2024. Also, profit on sale/ discard of fixed assets was 0.01 billion for fiscal 2025.

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)

(Rs. billion)

Particulars	Fiscal 2024	Fiscal 2025
For diminution in the value of investments	0.96	(0.41)
For doubtful debts	(0.39)	(0.06)
Others	-	-
Provisions other than taxation (profit and loss account)	0.57	(0.47)

Provisions (other than taxation) stood at (0.47) billion for fiscal 2025 from 0.57 billion for fiscal 2024.

The decrease in the provision for diminution in the value of investments during fiscal 2025 was primarily due to an impairment charge of 0.43 billion on equity assets, which was offset by a reversal of impairment amounting to 0.84 billion following the sale of the underlying securities for which impairment had previously been recognized. This resulted in a net negative impairment of 0.41 billion for fiscal 2025.

Provision of doubtful debts stood at (0.06) billion in fiscal 2025 from (0.39) billion in fiscal 2024, 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 reduced to 0.57 billion for fiscal 2025 from 1.44 billion for fiscal 2024, a reduction of 60.4%, the major reduction in other expenses was mainly on account of reduction in bad debts written off during fiscal 2025 as against fiscal 2024. Other expenses for fiscal 2025 includes CSR expenditure, loss on sale of fixed assets, managerial and employee remuneration.

Profit

As a result of the above, profit before tax increased to 33.21 billion for fiscal 2025 from 25.55 billion for fiscal 2024, a growth of 30.0%.

Provision for taxation stood at 8.13 billion in fiscal 2025 compared to 6.36 billion in fiscal 2024, a growth of 27.8%.

Profit after tax (PAT) increased to 25.08 billion for fiscal 2025 from 19.19 billion for fiscal 2024, a growth of 30.7%.

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

(Rs. billion)

Paticulars	At March 31, 2024	At March 31, 2025
Share Capital	4.93	4.96
Reserves and Surpluses	114.67	138.07
Share application money - pending allotment	0.01	0.00
Total Equity	119.61	143.03
Current liabilities	400.50	427.39
Provisions	102.74	112.98
Fair value change account	9.90	6.81
Borrowings	0.35	-
Total liabilities	513.49	547.18
Total equity and liabilities	633.10	690.21
Total investments	489.07	535.08
Fixed assets:
- Cost / gross block	15.69	17.99
- Net block	7.02	8.02
Deferred tax asset	2.93	1.69
Cash and bank balances	3.35	0.88
Advances and other assets	130.73	144.54
Total Assets	633.10	690.21

Total Assets increased to 690.21 billion as at March 31, 2025 from 633.10 billion as at March 31, 2024, an increase of 9.0%. This increase was driven by an increase in total investment assets to 535.08 billion for fiscal 2025 from 489.07 billion for fiscal 2024. This increase in total investment assets was contributed by higher inflows from efficiencies in operations and realized investment income. Advances and other assets also increased to 144.54 billion as at March 31, 2025 from 130.73 billion as at March 31, 2024, an increase of 10.6%. The outstanding premium (net of provision for doubtful debts) increased to 8.73 billion at March 31, 2025 from 6.92 billion at March 31, 2024, a growth of 26.2%. This growth was mainly on account of increase in government receivables attributable to the Crop line of business. Advance tax paid and taxes deducted at source (net of provision for tax) stood at 2.89 billion for fiscal 2025 as against 1.84 billion for fiscal 2024.

Total liabilities increased to 547.18 billion at March 31, 2025 from 513.49 billion at March 31, 2024, an increase of 6.6%. This was due to increase in claims outstanding (gross) to

323.60 billion as at March 31, 2025 from 303.88 billion as at March 31, 2024. Further, premiums received in advance stood at 44.04 billion at March 31, 2025 and 33.88 billion at March 31, 2024. 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 FY2025 numbers are not comparable. Fair value change account

Shareholder funds decreased to 1.82 billion at March 31, 2025 from 2.45 billion at March 31, 2024, a de-growth of 25.7%. Fair value change account Policyholder funds decreased to 4.99 billion at March 31, 2025 from 7.45 billion at March 31, 2024, a de-growth of 33.0%. 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 138.07 billion as at March 31, 2025 compared to 114.67 billion as at March 31, 2024 due to increase in the Profit after Tax net of dividend paid.

Investments Shareholders stood at 137.26 billion at March 31, 2025 from 115.87 billion at March 31, 2024, an increase of 18.5%.

Investments Policyholders stood at 397.82 billion at March 31, 2025 from 373.20 billion at March 31, 2024, an increase of 6.6%. This increase was primarily duhe to an overall increase in the investment book size.

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

(Rs. billion)

Particulars	Fiscal 2024	Fiscal 2025
Net cash flow from (used in) operating activities (A)	24.07	11.47
Net cash flow from (used in) investing activities (B)	(19.21)	(11.37)
Net cash flow from (used in) financing activities (C)	(3.55)	(2.57)
Net increase / (decrease) in cash and cash equivalents (A)+(B)+(C)	1.31	(2.47)
Cash & Cash equivalents at the beginning of the year	2.04	3.35
Cash & Cash equivalents at the end of the year	3.35	0.88

Cash flows from operating activities

Net cash flows from operating activities decreased to 11.47 billion for fiscal 2025 from 24.07 billion for fiscal 2024. This decrease was primarily due to increase in the payment of claims (net of salvage) and commission & brokerage.

Cash flows from investing activities

Net cash flows (used in) investing activities reduced to (11.37) billion for fiscal 2025 from (19.21) billion for fiscal 2024.

Cash flows from financing activities

Net cash flows (used in) financing activities reduced to (2.57) billion for fiscal 2025 from (3.55) billion for fiscal 2024.

iv. Contingent Liabilities

The Statement of contingent liabilities is provided below.

Contingent Liability

(Rs. billion)

Particulars	At March 31, 2024	At March 31, 2025
Partly-paid up investments	-	-
Claims, other than those against policies, not acknowledged as debt by the Company	-	-
Underwriting commitments outstanding (in respect of shares and securities)	NA	NA
Guarantees given by or on behalf of the Company	-	-
Statutory demands/ liabilities in dispute, not provided for (Refer note-1, 2 & 3 below)	5.54	51.59
Reinsurance obligations to the extent not provided for in accounts	-	-
Others: (Refer note-4 below)	0.01	0.01

Note:

1) The Company has contingent liability of 13.98 billion (previous year: 1.19 billion) on account of Income Tax matters, the appeals of which are pending before the appropriate Authorities / in the process of being filed.

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, 2005-06, 2007-08, 2008-09, 2009-10, 2010-11, 2012-13, 2015-16, 2016-17 and 2017-18 for which the Company has received intimation from the Income Tax Department, for appeal filed with High Court/ITAT, against favorable

Appellate Orders.

c) Assessment Years 2013-14 and AY 2014-15, for which the Company has received favourable order from Income Tax Appellate Tribunal with, wherein the appeals filed by the Income Tax Department against the Company have been dismissed.

2) Contingent liability includes 13.97 billion towards a Notice of Demand, received by the Company for AY 2020-21, AY 2021-22, AY 2022-23 and AY 2023-24 from income tax authorities, on account of disallowance of certain expenses as inadmissible. The Company has been advised that the adopted tax position is legally tenable. The Company has filed appeal for AY 2022-23 and for remaining three years, the company is in process of filing appeals against the said demand.

3) Includes disputed refund / demand (including interest and penalty) of 37.60 billion (previous year: 4.36 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, 0.63 billion (previous year: 0.60 billion) has been paid at the time of filing CESTAT/ Commissioner Appeal as per the provisions of the Finance Act, 1994/ GST Act.

4) Others include

(Rs. billion)

Particulars	At March 31,	At March 31,
	2024	2025
Relating to penalty / penal interest towards non- meeting operational guidelines (OG) of Pradhan	0.01	0.01
Mantri Fasal Bima Yojana (PMFBY) scheme
Total	0.01	0.01

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 received an order in the matter. However, basis the clarification issued by the CBIC on the recommendation of the GST Council, the Company has been advised that its tax position on both the matters is legally valid and that the Company should not ultimately 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, 2025. Further, the Company will file refund for these amounts in due course.

v. Borrowings

As of March 31, 2025, 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, alongwith detailed explanations thereof:

Sr. No Ratio	FY2024	FY2025	Change (FY2024 vs FY2025)	Reasons, if any
1 Gross Direct Premium Growth Rate	18%	8%	-53%	Refer Note 1
2 Gross Direct Premium to Net Worth Ratio	2.07	1.88	-9%	Not Applicable
3 Growth rate of Net Worth	15%	20%	30%	Refer Note 2
4 Net Retention Ratio	71%	73%	4%	Not Applicable
5 Net Commission Ratio	17%	18%	9%	Not Applicable
6 Expenses of Management to Gross Direct Premium Ratio	30%	31%	3%	Not Applicable
7 Expenses of Management to Net Written Premium Ratio	41%	40%	-2%	Not Applicable
8 Net Incurred Claims to Net Earned Premium	71%	71%	0%	Not Applicable
9 Combined Ratio	103%	103%	0%	Not Applicable
10 Technical Reserves to Net Premium Ratio	2.22	2.09	-6%	Not Applicable
11 Underwriting balance ratio	-0.06	-0.04	-24%	Not Applicable
12 Operating profit ratio	11%	11%	3%	Not Applicable
13 Liquid Assets to Liabilities Ratio	9%	8%	-13%	Not Applicable
14 Net Earnings Ratio	11%	13%	11%	Not Applicable
15 Solvency Ratio	2.62	2.69	3%	Not Applicable

Note 1: Gross Direct Premium growth is derived by growth in GDPI in comparison with the previous year. The growth rate of current fiscal year 2025 has impact of 1/n accounting effective October 1, 2024, whereas, the growth rate of fiscal year 2024 is on ‘n basis.

Note 2: Growth Rate of Networth is derived by comparison of Networth with previous year. The high growth rate in Networth is mainly on account of higher PAT which was 25.08 billion in fiscal2025 as against 19.19 billion in fiscal 2024, a growth of 30.7%.

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 17.5% for fiscal 2025 compared to 16.0% for fiscal 2024. The increase in networth can be attributable to increase in PAT for the fiscal 2025.

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 during fiscal 2025 have added net manpower of 1,453 employees. The Company started its DEI journey over 3 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 25% by fiscal 2025 and against the target of women representation to 25%; the Company achieved the actual women representation of 26% in fiscal 2025.

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 International Accounting Standard Board (IASB) notified the amended IFRS 17 with date of implementation starting from January 1, 2023. On August 12, 2024, the Ministry of Corporate Affairs (MCA) has notified the Ind AS 117: Insurance contracts (the Indian equivalent of IFRS 17) effective from April 1, 2024. An Expert Committee has been constituted involving Institute of Chartered Accountants of India (ICAI), Institute of Actuaries of India (IAI), Insurance industry experts and IRDAI for effective implementation of Ind AS in insurance sector. The General Insurance Council (GIC) has initiated discussions among all the industry players to facilitate smooth implementation of IND AS across the industry. IRDAI has also issued a letter dated January 10, 2025, whereby, it has asked for submission of Ind AS compliant Proforma Financial Statements within the timelines as per the schedule detailed below:

Phases	Proforma Financial Statements	Profoma Financial Statements
	(FY2024)	(FY2025)
Phase 1	June 30, 2025	Dec 31, 2025
Phase 2	Sept 30, 2025	Feb 28, 2026
Phase 3	Dec 31, 2025	June 30, 2026

Timelines for the submission of Proforma Financial Statements for FY2026 and quarterly Proforma submissions for FY2027 will be communicated by IRDAI in due course based on experience gained from Proforma Financial Statements submissions of FY2024 and FY2025. The Company is amongst the Phase 1 insurers to submit the Proforma Financial Statements.

Considering the above background, the Company has already initiated steps to progress towards Ind AS convergence. The Company has appointed knowledge partner and technology partner who will assist the Company in implementation of Ind AS. As a next step in the implementation journey, the Company shall submit Proforma Ind AS Financial Statements to the IRDAI within the prescribed timelines. Proforma Financial Statements will facilitate the impact assessment of Ind AS on financial position, performance and cash flows of the Company compared to the current reporting framework. It will also assist in comparing the financial performance and policy choices among insurers and will provide valuable insights for issuance of guidance.