icici prudential life insurance company ltd share price Directors report


TO THE MEMBERS

ICICI Prudential Life Insurance Company Limited

Your Directors have pleasure in presenting the 23rd Annual Report of ICICI Prudential Life Insurance Company Limited (the Company) with the audited statement of accounts for the year ended March 31, 2023 (FY2023).

PERFORMANCE Industry in FY2023

During the financial year 2023, global economies recovering from the COVID-19 pandemic witnessed another hindrance in the form of a geopolitical conflict which caused significant pricing pressures across economies including India. This resulted in an increase in commodity and energy prices globally, thereby increasing inflationary pressures across most economies including India. COVID-19 restrictions in China as well as geopolitical conflict continued to pose supply side challenges. However, with the calibrated approach of Reserve Bank of India and effective measures taken by the Government of India, the Indian economy was able to gain pace through the rest of the financial year. In this context, the new business Retail Weighted Received Premium (RWRP) for the industry increased by 18.7% from Rs. 875.73 billion in FY2022 to Rs. 1,039.56 billion in FY2023. The market share of private players increased from 62.9% in FY2022 to 65.8% in FY2023.

Company in FY2023

Our objective continues to be that of creation of value for our key stakeholders, namely, customers, employees and shareholders. Customer-centricity continues to be at the core of everything we do. We offer a well-diversified product suite through a multichannel distribution architecture catering to a wide range of customer segments as well as customer needs. With this customer-centric approach, we have had a robust performance across various customer service parameters. Our claim settlement ratio for individual death claims was 95.3% for FY2023. The overall claim settlement ratio (inclusive of individual and group death claims) was 98.7% for FY2023. Average time taken for settlement of non-investigated retail death claims stood at 1.2 days in FY2023. Our 13th month persistency ratio1 improved from 84.6% in FY2022 to 85.4% in FY2023, which was the highest in the last five financial years. Our 49th month persistency ratio1 improved from 63.4% in FY2022 to 63.9% in FY2023, which was the highest in the last five financial years. Our grievance ratio stood at 59 per 10,000 new business policies issued for FY2023.

Alignment between our business and people strategy and the consistent investment in the growth and development of our employees have helped us make our human resources a source of our strength and a key competitive advantage. The focus of our key people imperatives in FY2023 has been to:

• Strengthen Capacity through talent attraction and robust onboarding,

• Develop Capability to enable future-ready talent, and

• Enable a Culture that delivers our employee value proposition of providing a Supportive Environment, providing Learning & Growth and ensuring Fairness & Meritocracy In alignment with the business strategy, the Company has augmented capacity for risk-calibrated growth & profitability and invested in core roles as well as innovation-centric roles. This is supported through a robust capability development framework that involves structured learning interventions, skill mapping & professional certifications, on the-job training, job rotation, management development programs and self-paced virtual learning platforms. A well-defined performance & talent management system ensures clarity of purpose across levels and alignment to the Key Performance Indicators of the Company. In addition, it also helps create a talent pipeline by nurturing high-potential talent and enables differentiated rewards to help ring-fence talent.

Key elements of our culture include aligning employees to key organisational imperatives, fostering diversity & inclusion, enabling holistic employee well-being, crowdsourcing innovation and coming together & celebrating. In addition, mechanisms are in place to listen, empathise and respond to employee feedback through employee surveys leading to a periodic review of employee policies, processes & benefits; as well as a robust grievance redressal mechanism to ensure all employee concerns are addressed.

The people strategy has enabled the Company to have leadership stability, with 82% of the senior management team having served the Company for more than ten years, leadership depth with 96% of senior management having done more than three job rotations, and leadership cover with 97% of key positions at leadership levels having adequate / moderate leadership cover.

For our shareholders, we delivered on the objective of doubling the FY2019 Value of New Business (VNB) in FY2023, with a four-year compounded annual growth rate of 20.1% and industry leading margins of 32%. The path taken to achieve the VNB doubling objective was to transform ourselves in the last four years from being a Company focused on ULIPs, distributed primarily through a single channel and catering mostly to affluent individuals in top tier cities to an organisation offering well-diversified product suite distributed through multichannel architecture catering to a wide range of customer segments as well as customer needs. In FY2023, the Company has a diversified product mix, channel mix and most importantly, the power of a large customer base spread across various income segments. This four-year transformation journey has resulted in well diversified pools of profit, thereby helping us reach our stated objective of doubling of FY2019 VNB. Our primary focus continues to be to deliver growth of absolute VNB through the 4P strategy of Premium growth, Protection business growth, Persistency improvement and Productivity enhancement, while keeping customer centricity at the core. We continue to integrate aspects of Environmental, Social, and Governance (ESG) into the management of our business as well. We believe that this 4P strategy is appropriate in the context of the large insurance opportunity in the country, a facilitative regulatory regime and coupled with our objective to grow absolute VNB.

Premium growth: The Annualised Premium Equivalent (APE) for the Company increased by 11.7% from Rs. 77.33 billion in FY2022 to Rs. 86.40 billion in FY2023. Our new business received premium grew by 12.5% from Rs. 150.36 billion in FY2022 to Rs. 169.22 billion in FY2023. In FY2023, the Company had a market share of 7.2% based on RWRP.

Protection business growth: The Company continued its focus on the protection business, resulting in a new business sum assured growth of 34.7% to Rs. 10.4 trillion in FY2023. The Companys market share based of new business sum assured has increased from 13.4% in FY2022 to 14.3% for FY2023. Retail protection business registered sequential growth for Q2-FY2023, Q3-FY2023 and Q4-FY2023, as well as a year-on-year growth for Q4-FY2023. The Company has continued to leverage the growth opportunity in group protection business in FY2023 as well. As a result, the overall protection APE saw a growth of 14.5% from Rs. 13.13 billion in FY2022 to

Rs. 15.04 billion in FY2023.

Persistency improvement: For FY2023, our persistency ratios1 for 13th month and 49th month stood at 85.4% and 63.9% respectively. Our retail renewal premium stood at

Rs. 223.77 billion in FY2023. Our assets under management stood at Rs. 2.5 trillion at March 31, 2023.

Productivity enhancement: Total expenses increased from Rs. 53.63 billion in FY2022 to Rs. 64.75 billion in FY2023. The absolute expenses are higher as compared to the same period last year due to investments made to deliver sustainable future growth. The cost to total weighted received premium (TWRP2) ratio increased from 18.6% in FY2022 to 21.5% in FY2023. Also, the cost to TWRP ratio for savings business stood at 14.2% in FY2023.

Resilient Balance Sheet: The Company has maintained a strong and healthy Balance Sheet throughout its journey. Only 0.3% of the fixed income portfolio has been invested in bonds rated below AA and the Company continues to maintain its track record of not having a single non-performing asset (NPA) in its fixed income portfolio since inception.

Value of New Business (VNB): The outcome of our focus on 4Ps has resulted in our VNB for FY2023 of Rs. 27.65 billion, a growth of 27.8% over FY2022. Embedded value increased from Rs. 316.25 billion at March 31, 2022 to

Rs. 356.34 billion at March 31, 2023.

A summary of key financial and business parameters is set out below: ( billion)

Particulars FY2022 FY2023
New business premium 150.36 169.22
Annualised premium equivalent 77.33 86.40
Savings 61.20 66.29
Protection 13.13 15.04
Annuity 3.00 5.07
Sum assured for new business 7,731.46 10,413.92
13th month persistency1 84.6% 85.4%
49th month persistency1 63.4% 63.9%
Retail renewal premium 214.36 223.77
Cost to total weighted received premium (TWRP)2 18.6% 21.5%
Cost to TWRP (savings) 12.8% 14.2%
Value of new business 21.63 27.65
(VNB)
Embedded value (EV) 316.25 356.34

Outlook for the industry and the Company

The size of the Indian life insurance sector was Rs. 6.9 trillion (Source: IRDAI, Annual Report 2021-22) on a total premium basis in FY2022, making it the ninth largest life insurancemarketintheworldandthefourthlargestinAsia (Source: Swiss Re sigma No. 4/2022). The total premium in the Indian life insurance sector grew at a CAGR of ~14% between FY2002 and FY2022. Based on retail weighted received premium (RWRP), new business premium of the industry has grown at a CAGR of ~11% during FY2002 to FY2023. This growth can be attributed to efforts toward financial inclusion, rapid digitalisation of financial services powered by high penetration of the internet in the country, rising middle class disposable income, increasing awareness towards retirement planning & long-term savings, push by government incentives on various instruments etc. The life insurance penetration of the country has increased from 2.1% in FY2002 to 2.9% in FY2022 (life insurance premium measured as a percentage of gross domestic product). Although the life insurance industry has grown manifold over the last two decades, there is still a huge opportunity to grow further and expand the outreach, with the larger objective of increasing the insurance penetration and improving the insurance density of the country. Given this immense opportunity, a facilitative regulatory regime coupled with Indias demographic factors such as a growing middle class, young insurable population, growing awareness of the need for protection & retirement planning, rapid rise in urbanisation and increasing financial savings are expected to aid the growth of the life insurance industry in India.

The Company would continue to focus on its objective of growing value of new business (VNB) through the 4P approach.

Premium growth: The Company would endeavour to grow premium through:

• Deepening penetration in under-served customer segments: The Company would continue to focus on broadening the customer base through initiatives spanning across both distribution and products.

• Enhancing distribution: The Company would strengthen its distribution through a closer mapping of distribution segments with customer segments and products. The Company is also focused on expanding the distribution network through acquisition of new partners as well investing in creation of new sourcing channels.

• Focus on pension & annuity: The Company would continue to cater to the retirement savings need of customers while managing the investment risk appropriately.

Protection business growth: The Company is focused on expanding the health & protection business across both retail and group lines of business. This would be done by offering protection products across channels, penetrating the online term insurance market and partnering with loan providers to offer coverage against loans. Persistency improvement: The Company would seek to drive persistency improvements across all durations by encouraging long term behaviour in customers.

Productivity enhancement: The Company would focus on cost efficiency and in particular, would leverage the digital platform to improve customer experience and efficiency of service operations.

Our Reach

The Company reaches its customers through 471 offices in 408 locations as of March 31, 2023. On March 31, 2023, the Company had 17,825 employees and 201,472 advisors to cater to the needs of customers. The Company distributes its products through agents, corporate agents, banks, brokers, proprietary sales force (PSF) and online channels. The Companys digital platform (website and mobile application) provides a seamless, convenient and immersive experience to its customers, be it for product explorations, purchase, service requests or claims. The digital platform supports ~3.4 million service interactions every month with more than 92.5% of the Companys service interactions done via self-help/digital modes. As on March 31, 2023, there have been over 1.5 million mobile application downloads.

Products

Broadly, the Companys products can be categorised into savings, protection and annuities. Savings products are offered on three platforms - linked, participating and non-participating.

These plan offers life cover as well as savings which is paid either in lump sum in form of regular stream of income. Protection products are available on retail, group and credit life platforms. These products provide cover for life, disability, critical illness and accidental death. Annuity products are available on retail and group platform. These products provide a regular stream of guaranteed income.

Claims

The Company settled over 246,273 mortality claims amounting to a total of Rs. 38.51 (Individual Rs. 19.50, Group

Rs. 19.01) billion in FY2023 with individual claim settlement ratio of 95.3% and group claim settlement ratio of 98.9%. The overall claims settlement ratio with individual claims and group claims is 98.7%.

Further, the Company has also paid 99,105 maturity claimsfromitsretailbusinessoperationsandover200,000 survival benefit claims amounting to Rs. 38.84 billion and Rs. 5.53 billion, respectively for FY2023. Additionally, the Company has settled 347,061 surrender claims from its retail business operations and 129,510 from group business, amounting to a total of Rs. 236.35 billion. For non-investigated retail death claims, the settlement was completed within an average turnaround time of 1.2 days from the receipt of the last requirement as compared to thirty days allowed by the regulator.

Subsidiary

The Companys wholly owned unlisted subsidiary, ICICI Prudential Pension Funds Management Company Limited (PFM) acts as a pension fund manager under the National Pension System (NPS) with an objective of providing a strategic platform to leverage the substantial pension opportunity in India. Further, the PFM is also registered to serve as a Point of Presence (PoP) entity for distribution of NPS products and servicing.

During FY2023, the subscriber assets managed by PFM increased by 41.8%, from Rs. 116.14 billion at March 31, 2022 to Rs. 164.66 billion at March 31, 2023. Additionally, the PFM enrolled 137,063 new subscribers during the year. PFM continued to be profitable for a second consecutive year. The profit before tax decreased from Rs. 0.04 billion in FY2022 to Rs. 0.03 billion in FY2023 primarily on account of increase in employee benefit expenses and expenses incurred for building capacity to support future growth. The profit after tax of the PFM decreased from Rs. 0.05 billion in FY2022 to Rs. 0.03 billion in FY2023. The profit after tax in FY2022 includes the recognition of a deferred tax asset arising from carried forward losses and unabsorbed depreciation, in view of the virtual certainty of realisation of this asset. The overall contribution of the subsidiary to the financial results of the Company is not significant currently. The subsidiary is committed towards increasing its presence in the industry and is focused on scaling up the business and revenue.

The Company will make available separate audited financial statements of the subsidiary company to any Member upon request. These documents/details are available on the Companys website (www.iciciprulife.com) and will also be made available for inspection by any Member of the Company at its registered office. A statement containing salient features of the financial statements of the subsidiary company forms part of the financial statements of the Company.

Rural and social business

The Company has micro insurance retail products and group micro insurance products to cater to the protection need of the unorganized and economically vulnerable section of the society.

• The Company has provided risk cover to self-help group (SHG) members predominantly in the rural areas of Tamil Nadu, Maharashtra and Karnataka. These members belong to a group of micro entrepreneurs having homogeneous social and economic background, who come together to avail micro credit for financing their small and micro enterprises.

• The Company partners with micro finance institutions, banks and extends both retail and group micro insurance cover to customers for covering their loss of income risk arising out of unfortunate and untimely demise.

• The Company has deployed dedicated manpower in ICICI Bank branches across the identified/allotted rural markets to deep-mine the opportunity through retail & group products largely aimed at covering the loan portfolio of bank customers. The team engages with the members associated with Banks SHPIs (Self-Help Promoting Institutions) to educate on need of insurance & selling of micro-insurance products.

• 136,615 policies were issued in rural areas, constituting 22.63% of total policy issuances. The Company also covered 4,497,729 lives as a part of its social sector coverage.

FINANCIALS & AUDIT Financials

Particulars Standalone Consolidated
FY2022 FY2023 FY2022 FY2023
Profit after tax 7.54 8.11 7.59 8.13
Balance brought forward from the previous year 36.11 40.78 36.01 40.73
Profit available for appropriations 43.65 48.88 43.60 48.86
Appropriations:
Interim Equity Dividend - - - -
Final Equity Dividend 2.87 0.79 2.87 0.79
Tax on Equity Dividend - - - -
Surplus carried to next years account 40.78 48.09 40.73 48.07

The financial position of the Company remained strong with a solvency ratio of 208.9% at March 31, 2023 (204.5% at March 31, 2022) against the minimum regulatory requirement of 150%.

Dividend and dividend distribution policy

The operations have resulted in a profit after tax of Rs. 8.11 billion in fiscal 2023 as compared to a profit after tax of

Rs. 7.54 billion for the previous year.

The Company has paid annual coupon payable on non-convertible debentures on its due date of November 5, 2022. The interest accrued thereafter has been duly provided for in the books of accounts. The Companys solvency ratio stood at 208.9% on March 31, 2023. The Board has proposed a final dividend of Rs. 0.60 per equity share for FY2023 amounting to Rs. 0.86 billion for FY2023, representing a dividend payout ratio of 10.6% of PAT.

In terms of Regulation 43A of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), the Dividend Distribution Policy of the Company is disclosed on its website https://www.iciciprulife.com/ about-us/corporate-policies.html.

Transfer of unclaimed dividend and shares to Investor Education & Protection Fund (IEPF)

Pursuant to the provisions of Section 124 of the Companies Act, 2013 (CA2013), the amount of dividend remaining unpaid or unclaimed for a period of seven years from the date of its transfer to the ‘unpaid dividend account/s of the Company, are required to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government. The unclaimed dividend for the financial year ended March 31, 2016 and March 31, 2017 shall be transferred to the IEPF in FY2024. The corresponding shares, if the dividend is unclaimed for a period of seven years along with the unclaimed dividend shall also be transferred to the dematerialised account of the IEPF Authority.

Members who have not yet encashed their dividend warrant(s) can claim the same in accordance with the process made available on the website of the Company by accessing the following link https://www.iciciprulife. com/about-us/shareholder-information/dividends.html.

Particulars of loans, guarantees or investments

The provisions of Section 186(4) of the CA2013, requiring disclosure in the financial statements of the full particulars of the loans given, investment made or guarantee given or security provided including the purpose for which the loan or guarantee or security is proposed to be utilised by the Company, are not applicable to an insurance company.

Particulars of contracts or arrangements with related parties

The particulars of contracts or arrangements entered into by the Company with related parties referred to in sub-section (1) of Section 188 of the CA2013 including certain arms length transactions under third proviso thereto are disclosed in Form AOC-2 appended as Annexure A. Further, as per the shareholding pattern of the Company, only ICICI Bank Limited and Prudential Corporations Holdings Limited have a holding of 10% and more in the Company. The transactions with these entities are disclosed in the note 3.12 of related party transactions under notes to accounts.

The Company has a Board approved policy on Related Party Transactions, which has been updated as per the amendments in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 issued in November 2021 and the updated policy has been hosted on the website of the Company and can be viewed at https://www.iciciprulife.com/about-us/ corporate-policies.html.

Public deposits

During the year under review, the Company has not accepted any deposits under Section 73 of the CA2013.

Auditors Statutory auditors

B S R & Co. LLP, bearing registration number 101248W/ W-100022, Chartered Accountants and Walker Chandiok

& Co LLP bearing registration number 001076N/ N500013, Chartered Accountants are the joint statutory auditors of the Company, as per the applicable provisions of the Companies Act, 2013 and the IRDAI Corporate Governance guidelines for insures in India, 2016.

B S R & Co. LLP were originally appointed as one of the joint statutory auditors from FY2014-15 and were re-appointed on July 17, 2019 for a term of five years i.e. from conclusion of the 19th annual general meeting (AGM) upto the conclusion of 24th AGM of the Company.

Walker Chandiok & Co LLP were originally appointed as one of the joint statutory auditors from FY2016-17 and were re-appointed on June 25, 2021 for a term of five years i.e. from the conclusion of the 21st AGM upto the conclusion of the 26th AGM of the Company.

Fees for services to statutory auditors

The Company has incurred Rs. 23.96 million as statutory audit fees for the year ended March 31, 2023. Further, the Company has not availed any other services from the statutory auditors or its network entities/affiliated firms during the year ended March 31, 2023.

Secretarial auditors

The Company has, with the approval of its Board of Directors, appointed M/s. Makarand M. Joshi & Co., Company Secretaries to undertake secretarial audit of the Company for FY2023. The secretarial audit report is annexed herewith as Annexure B.

Auditors report

There is no qualification, reservation or adverse remark made by both, the statutory auditors and secretarial auditors, in their report. There were no reportable frauds identified by the auditors during the FY2023.

COMPLIANCE AND RISK

Statement in respect of adequacy of internal financial controls

The Company has complied with internal financial controls (IFC) as per section-134 (5) of Companies Act, 2013 and regulation 17(8) of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015 in terms of internal controls over financial reporting and section 404 of Sarbanes Oxley Act (SOX), 2002. To ensure effective internal financial controls, the Company has implemented Internal Control Framework, 2013 endorsed by the Committee of Sponsoring Organisations (COSO) of the Treadway Commission. The Companys internal financial control framework comprises of internal controls over financial reporting, operating controls, and fraud prevention controls. The framework is designed to ensure accuracy, completeness and reliability of financial records, orderly and efficient conduct of business and safeguarding of assets as well as prevention and detection of fraud. The Company has a mechanism of testing the controls at regular intervals for design and operating effectiveness. Further, the auditors opine on the adequacy and operating effectiveness of internal financial controls over financial reporting. The Company believes that strengthening of internal controls is an ongoing process and there will be continuous efforts to keep pace with changing business needs and environment. The key components of the internal financial control framework include:

Entity level controls: The control environment of the Company relies on a set of Entity Level Controls (ELCs) that operate at an organisation level and may not be embedded in any single process of the Company. The ELCs set up by the Company include: (a) Corporate governance framework comprising Board and Executive committees for oversight of the management of the Company. (b) Policies commensurate with the Companys size and level of complexity to establish standards of conduct, including a code of conduct, whistle blower policy, prevention of harassment in the workplace, conflict of interest, insurance awareness and customer education policy, grievance redressal policy, record maintenance policy, delegation of financial powers, accounting policy, etc.

(c) Risk and fraud management framework to identify, measure, monitor and control various risks including operational risks, and a framework for identifying, monitoring and control over outsourced activities.

(d) Independent Internal Audit Department with oversight from the Audit Committee.

(e) Employee management framework comprises hiring, retention, training, performance evaluation, remuneration structure, compensation, succession planning through leadership cover index, etc.

(f) Framework to ensure compliance with regulations, laws including compliance certification, regular communication of changes in regulations/ laws, and litigation management. Framework to ensure compliance of internal control over financial reporting.

(g) Budgeting, monitoring, and reporting of the performance with key performance indicators.

(h) Information and cyber security policy and information security framework along with framework to ensure business continuity and disaster recovery.

Process controls: These comprise of controls operating at process level with the objective of providing assurance at a transaction recording stage. The salient aspects of the control framework include:

(a) All business processes having implications on financial results, regulatory and shareholder reporting are subject to quarterly reviews. Any material deficiency is discussed at the Audit Committee meetings.

(b) The Company has deployed automation in most aspects of transaction processing (including policy administration, investment management, actuarial computations, expense processing, claims management, human resource processes and accounting) to ensure greater control and efficiency.

Information Technology (IT) controls: The Company has in place a robust IT control environment including controls pertaining to change management, system & database management, access management, master maintenance, interface, job scheduling, and backup and disaster recovery to ensure data integrity and accuracy of information stored in IT systems.

Control over third parties providing services: The Company has a vendor on-boarding process with due diligence, risk assessment, document review and periodic assessment to ensure controls over third-party service providers relevant from a financial reporting perspective. Further, the Board Risk Management Committee has oversight on the implementation of controls and monitors the performance of the outsourced vendors. Safeguarding of assets: The Company has adequate controls over safeguarding of assets (comprising of investment assets, IT assets and other assets). These controls are based on value and custody of assets. Review controls: Review controls comprise of multiple levels of oversight over financial reporting by way of a strong reporting and review framework as follows:

(a) The financials are audited by joint statutory auditors and are reviewed and approved by the Audit Committee and Board. They are also submitted to the Insurance Regulatory and Development Authority of India (IRDAI).

(b) The Internal Audit Department exercises independent oversight over operational and financial processes. Any significant observations and recommendations are presented to the Audit Committee. The investment operations function is subject to concurrent audit certification and an Investment Risk Management Systems (IRMS) audit once in two years. Any significant findings in the concurrent audit or IRMS audit are presented to the Audit Committee.

(c) The Company has an effective organisation structure that segregates duties among business groups, thereby, ensuring orderly and efficient conduct of business. Additionally, the Board has constituted various committees responsible for specific operational areas, formulation of policies and frameworks, and identification, assessment and monitoring of principal risks in accordance with the policies and procedures. (d) There are senior management controls comprising of high-level controls (HLC) and management review controls (MRC) to monitor and identify any material misstatement. Management exercises review control by way of in-depth reviews of financials, ledger balances, suspense items and payables, liability assumptions, information security, regulatory compliance, communication and reporting, key compliance issues, supervision of risk management function, etc. conducted by the Chief Financial Officer, Appointed Actuary, Head of Information Technology, Head of Operations and Head of Compliance & Risk.

Fraud prevention: The Company has a Board approved fraud risk management policy which is based on ‘Insurance Fraud Monitoring Framework guidelines issued by IRDAI. The Company has an Operational Risk Management Committee (ORMC) which independently monitors frauds. The ORMC reports to the Executive Risk Committee which ultimately reports to the Board Risk Management Committee (BRMC).

(a) The fraud control framework consists of preventive measures, incident management and awareness activities. Preventive measures include fraud risk assessment for design of processes, investigation triggers across policy life cycle, and proactive use of analytics to identify fraud patterns. Incident management includes recovery of loss, action through law enforcement agencies, detailed investigation and root cause analysis, and fraud incident reporting to BRMC. Awareness includes mandatory induction training and awareness program for employees, regular communication to policy holders, fraud prevention tips on the Companys website, etc.

(b) The Company ensures implementation of controls to prevent repetition of incidents, financial recovery process, and disciplinary action against involved employees. It also initiates actions through law enforcement authorities based on severity of the incident. (c) TheCompanyundertakesseveralmeasuresfromtime to time to create awareness amongst its employees and customers against fraudulent practices.

Internal audit and compliance framework

Internal audit:

The Internal Audit Department (IAD) of the Company acts as an independent entity and reports to the Audit Committee of the Board. IAD has an unrestricted access to the Audit Committee Chairperson and the Managing Director and Chief Executive Officer (MD & CEO). The Head–Internal Audit reports directly to the Audit Committee of the Board and administratively reports to the Chief Risk & Compliance Officer. The IAD has developed a Risk Based Audit Plan (RBAP) and the same has been approved by the Audit Committee of the Board. The basic philosophy of risk based audit framework is to provide reasonable assurance to the Audit Committee of the Board and management about the adequacy and effectiveness of the risk management and control framework in the Company. The scope of Internal Audit includes the review of risk management procedures, internal control systems, information systems and governance processes. Key audit observations and recommendations made are reported to and discussed at the Audit Committee of the Board. Implementation of the recommendations is actively monitored.

Compliance:

The Board Audit Committee oversees the compliance framework of the Company. The Company has formulated various internal policies/procedures, such as the Compliance Policy, Anti- Bribery and Anti- Corruption Policy, Anti-Money Laundering Policy and an employee code of conduct, which govern the day-to-day activities to ensure compliance. The compliance function disseminates the information regarding relevant laws, regulations and circulars related to insurance and anti-money laundering to various functions. It also serves as a reference point for the staff of various functions for seeking clarifications on applicable laws, regulations and circulars issued on these aspects. The compliance team also monitors the adequacy of the compliance framework across the Company with the Internal Audit Department through an integrated risk based audit plan. Key issues observed as a part of this monitoring are reported to the Board Audit Committee and implementation of recommendations is actively monitored. A compliance certificate signed by the Managing Director & CEO, based on the certification from respective functional heads, is placed at the Board Audit Committee and Board of Directors meetings on a quarterly basis.

Risk management

The Company recognises that risk is an integral element of the business and the managed acceptance of risk is essential for generating shareholder value. The risk governance structure of the Company consists of the Board, the Board Risk Management Committee (BRMC), the Product Management Committee (PMC), the Executive Risk Committee (ERC) and its sub-committees. The risk philosophy of the Company is outlined in the Board approved risk policy which is reviewed by the Board at least annually. The Board risk policy details identification, measurement, monitoring and control standards relating to various individual risks, namely investment (market, credit and liquidity), insurance, operational (including legal, compliance, outsourcing, customer dissonance, business continuity, information and cyber security) and reputation. The Board periodically reviews the potential impact of strategic risks such as changes in macro-economic factors, government policies, regulatory environment and tax regime on the business plan of the Company. In addition to these risks, the life insurance industry faces a number of emerging risks. While COVID-19 claims during the year were much lower, there has been a resurgence of COVID-19 infections recently in the country and the claims experience will need to be monitored. Geo-political tensions and the potential for disruption to energy supplies are an additional source of uncertainty for financial and commodity markets and trigger for inflation (which could impact credit quality of counterparties, as well as reduce real wages thereby impacting discretionary savings, insurance new business and persistency risk). There are also emerging risks related to ESG (environmental, social and governance) issues. One of the most prominent ESG risks is that of climate change which could potentially have wide-ranging implications including (but not limited to) adverse impact on economic growth and investment markets and higher than expected claims due to increased risk of future weather related catastrophes, pandemics as well as possible changes in long-term mortality/morbidity rates. Apart from climate change, there are emerging risks associated with public health trends such as increase in obesity related disorders and demographic changes such as population urbanisation and ageing. Other important ESG elements include data privacy which has an increasing material impact on Companys reputation.

The risk management framework of the Company seeks to identify, measure and control its exposures to all these risks within its overall risk appetite. The Company periodically carries out stress testing of its assets and liabilities to identify impact on regulatory and economic solvency, statutory profits and liquidity position. Such testing is used as an aid in identifying significant existing or emerging risks to its financial position, including the potential impact of severe economic shocks and catastrophic events like pandemics, which could materialize as a consequence of several risk factors including climate change and other sustainability risks. The Company has a framework for information and cyber security as well as business continuity management to analyse emerging risks through regular monitoring of the external and internal environment which has been further augmented in the current situation. The Company also has a privacy policy to ensure protection of sensitive personal data or information collected. During the year, the Company has updated the Board risk policy by integrating sustainability risks in the risk management framework. The key aspects of the Companys risk management framework have been outlined below. Further information on the Companys approach to risk management is available in the sections on ‘Enterprise Risk Management and ‘Risks and Opportunities of this Annual Report.

1.1. Investment risk

Investment risk is the risk arising out of variations in the level or volatility of market prices of assets and financial instruments, including the risk arising from any mismatch between assets and liabilities, due to external market and economic factors. The Company faces limited liquidity risk due to the nature of its liabilities. The key mitigation approaches for this risk are as follows: (a) Product approval process: Launching new products can significantly alter the risk profile of the Companys Balance Sheet. Investment risks inherent in new products or significant modifications to existing products are identified at product design stage and products are launched only after approval by the ERC and PMC. (b) Asset Liability Management (ALM): The Company has detailed Investment Specifications that govern the investment strategy and limits for each fund depending on the profile of the liability backed by those assets. For each category of products, the Investment Specifications define limits to permissible exposures to various asset classes, duration guidelines for fixed income instruments and minimum investment in liquid assets. The Company uses derivatives to hedge interest rate risk.

(c) Exposure limits have been defined for companies, groups and industries in accordance with regulatory guidelines and the Companys internal Investment Policy. The Company restricts investments primarily to securities rated AA and above.

(d) The Company has a liquidity contingency plan in place.

(e) As part of its ESG philosophy, the Company has implemented a framework for investment decisions that will support mitigation of risks due to climate change as well as other environmental, social and governance risks by factoring these in its investment decisions.

1.2. Insurance Risk

Insurance risk is the risk arising because of variance to the best estimate or because of random fluctuations in the frequency, size and timing of insurance liabilities. Insurance risk comprise the following components: mortality, morbidity, persistency and expense risk. These risks are mitigated through the following:

(a) Product approval process: Insurance risks inherent in the new products or significant modifications to existing products are identified at product design stage and products are launched only after approval by the ERC and PMC. The Company, in its product design, incorporates product features and uses appropriate policy wordings to mitigate insurance risk.

(b) Reinsurance: The Company uses appropriate reinsurance arrangements, including catastrophe reinsurance, to manage insurance risk. Such reinsurance arrangements may be used to support risk transfer of sustainability risks as well. The arrangements are with select and financially sound reinsurers. The Companys reinsurance exposures are considered and approved by the ERC periodically.

(c) Underwriting and claims controls: Underwriting and claims policies and procedures are in place to assess and manage mortality and morbidity risks. The Company seeks to minimise these risks by diversifying its business portfolio and adhering to appropriate and segmented underwriting norms. The Company conducts periodic reviews of both underwriting and claims procedures. Adjustments to the underwriting strategy may be made to allow for any changes in the insurance risk landscape or emerging risks.

(d) Experience analysis: The Company conducts its experience analysis regularly in order to monitor trends, gain insights on emerging risks, if any and to ensure that corrective actions can be initiated at the earliest opportunity and that assumptions used in product pricing, reserving and embedded value reportingareinlinewiththeexperience.TheCompany actively monitors its claims experience, persistency levels and expense ratios. During the course of the COVID-19 pandemic, the Company has been closely monitoring the overall mortality experience including the deaths on account of COVID-19.

(e) Aligning key performance indicators: The Company uses appropriate key performance indicators for different levels of hierarchy in sales and operations to align interests and ensure adequate focus on insurance risk especially, persistency and expense.

(f) Product contracts: The Company designs exclusions and terms and conditions in consultation with reinsurers and with due regard to market practices to manage insurance risk, especially mortality and morbidity risk. In order to deal with a changing insurance landscape or emerging risks, new products may be developed with more suitable product features, policy wordings, exclusions and terms and conditions.

(g) Repricing: The Company reserves the right to reprice future new business with IRDAI approval in case of adverse experience, which could materialize due to various factors including sustainability issues.

1.3. Operational risk:

Operational risk is the risk of loss, resulting from inadequate or failed internal processes, people and systems, or from external events. The Company uses the following approaches to manage operational risk:

(a) The Company develops and monitors mitigation plans for high risk items identified through the Risk and Control Self-Assessment (R&CSA) conducted for each business function, through analysis of, loss events and review of audit findings.

(b) The Company continuously monitors internal loss events and ensures adequate mitigation for material impact events.

(c) The Company actively promotes a risk awareness culture by improving understanding through communication and education. It further engages with law enforcement agencies to create awareness on various insurance frauds and emerging issues

(d) Fraud Management: The Company has a fraud risk management policy that sets out the approach and guidelines for management of fraud risk. The Company follows both a proactive and reactive approach to manage fraud. Proactive management is done by using triggers to identify suspected frauds and through random sample checks. Reactive management is done through incident management. The Company ensures implementation of controls to prevent recurrence of such incidents, financial recovery whenever applicable and disciplinary action against involved employees in accordance with the Companys Code of Conduct. It also initiates actions through law enforcement authorities based on severity of incidents.

(e) Outsourcing Risk: The Company has an outsourcing policy to ensure effective oversight and adequate due diligence with regard to outsourcing of activities. The Company outsources processes which are permitted based on the regulatory guidelines. The Company carries out required due-diligence for any new vendor empanelment and annual assessment of outsourced vendors.

(f) Business Continuity Management (BCM): The Company has a BCM policy and framework to ensure resilience and continuity of key products and services at a minimum acceptable level. BCM includes systems and processes for management of risk including use of disaster recovery sites and business continuity plans for critical processes which are being tested periodically. The Company has been accredited with the ISO 22301:2019 certification for the business continuity management systems.

(g) Information and cyber security: The Company has an information and cyber security policy and framework that ensures all information assets are safeguarded by establishing comprehensive management processesthroughouttheorganisation.TheCompany has defence-in-depth approach, and has deployed security solutions like firewalls, intrusion prevention systems, anti-malware solutions, email security, data leakage prevention and web proxy. Vulnerability assessment and penetration testing program for critical information technology applications and infrastructure has been defined, to ensure IT Systems are secured for operations during its life-cycle. Further, cloud security strategy and practices for protecting data and IT infrastructure has been implemented. Cyber security operations centre (SOC) has been set up for proactive monitoring (24x7), incident response, recovery and remediation activities. Cyber security advisories issued by security experts on current geopolitical environment are being monitored and suitable actions are being initiated. Based on the Information Security Management System (ISMS) controls implemented and the assessment conducted by the certification body, the Company has been awarded a certification under ISO 27001:2013 standard.

(h) Privacy policy: The Company has a privacy policy in accordance with Information technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011. The policy provides the Companys commitment to privacy throughout the life-cycle of the information from collection, processing, sharing, retention and destruction, by taking reasonable steps to protect the confidentiality of the Personal Information provided and protect it from unauthorised access or alteration, disclosure or destruction.

(i) The Company has adopted highest business, governance, ethical and legal standards. The Whistle blower policy aims to provide a mechanism to ensure that concerns are appropriately raised, independently investigated and addressed.

1.4. Reputation Risk:

Reputation risk is defined as the risk of negative opinion about the financial stability, service levels, integrity, transparency or any other aspect, as perceived by the stakeholders, resulting in a decline in business volumes and eventually impacting continuity of business. The Company has a framework in place for managing reputation risk and periodically monitors various parameters that could impact the reputation of the Company.

Code of conduct under Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015

The Company has in place a Code of conduct to regulate, monitor and report trades in Securities by Designated Persons ("Code") which is in accordance with the SEBI (Prohibition of Insider Trading) Regulations, 2015 as amended from time to time. The Code is applicable to the Directors, employees of the Company, Designated Persons and their immediate relatives, as detailed therein. The objective of the Code is to achieve compliance to the SEBI (Prohibition of Insider Trading) Regulations. Any infractions/violations of the Code are suitably dealt with as provided for in the Code.

CEO/CFO certification

In terms of the Listing Regulations, the certification by the Managing Director & CEO and Chief Financial Officer on the financial statements and internal controls relating to financial reporting has been obtained.

CORPORATE GOVERNANCE

The Company considers its stakeholders as partners in success, and remains committed to delivering value to stakeholders. The Company believes that a sound corporate governance mechanism is critical to retain and enhance stakeholders trust. It is committed to exercise overall responsibilities rigorously and diligently throughout the organisation, managing its affairs in a manner consistent with corporate governance requirements and expectations.

The Companys corporate governance philosophy is based on an effective independent Board including the separation of Boards supervisory role from the executive management. The Board Committees are generally comprising of a majority of independent/non-executive Directors and are chaired by independent Directors, to oversee critical areas of business operations.

Significantandmaterialorderspassedbytheregulators or courts or tribunals impacting the going concern status of the Company and its future operations

There are no significant and/or material orders passed by the regulators or courts or tribunals impacting the going concern status of future operations of the Company.

Compliance to Secretarial Standards

The Company was in compliance with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India for the FY2023.

Annual return

A copy of the annual return for FY2023 is hosted on the website of the Company at https:// www.iciciprulife.com/about-us/shareholder-information/ other.html in accordance with the provisions of the CA2013 with the information available up to the date of this report, and shall be further updated as soon as possible but no later than sixty days from the date of the Annual General Meeting.

Particulars of employees

The statement containing the particulars of employees as required to be disclosed under Section 197(12) of the CA2013, read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is set out in an Annexure and forms part of this Report. In terms of Section 136(1) of CA2013, the Report and the Accounts are sent to the members excluding the aforesaid Annexure. Any member interested in obtaining a copy of this Annexure may write to the Company Secretary at the Registered Office of the Company.

Corporate Social Responsibility (CSR) initiatives

The Corporate Social Responsibility policy as approved by the Board has been hosted on the Companys website (https://www.iciciprulife.com/about-us/corporate-policies.html?ID=about-corp) The Company has spent Rs. 39.6 million for FY2023 towards CSR programs as against Rs. 38.8 million required to be spent, which is 2.04% of the average net profits made during the three immediately preceding financial years, in accordance with Section 135 of the Companies Act, 2013. The detailed annual report on Corporate Social Responsibility activities is annexed herewith as Annexure C.

Sexual harassment policy

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 provides protection against sexual harassment of women at the workplace and lays down guidelines for the prevention and redressal of complaints of sexual harassment. The Company has implemented its policy on prevention of sexual harassment at the workplace and has made it available to all employees on the Companys intranet. The Company in its endeavor to extending a safe and secure working environment, on an ongoing basis, ensures awareness and sensitization of the policy amongst its employees. Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013: a. number of complaints filed during the financial year: 18 b. number of complaints disposed of during the financial year: 17 c. number of complaints pending to be resolved as on end of financial year: 1*

* The one pending complaint as on March 31, 2023, stands resolved as on the date of the report.

Further, the Company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Whistle blower policy

The Company has adopted highest business, governance, ethical and legal standards. The Whistle Blower policy aims to provide a mechanism to ensure that concerns are appropriately raised, independently investigated and addressed.

The purpose of the policy is to encourage employees/ stakeholders to report matters without the risk of subsequent victimisation, discrimination or disadvantage. The Whistle Blower policy covers all employees, including Directors of the Company and stakeholders. The policy encourages any employee, stakeholder or Director to report any breach of any law, statute or regulation, issues related to accounting policies and procedures, acts resulting in financial loss or loss of reputation, misuse of office, suspected/actual fraud and criminal offences, non-compliance to anti-bribery and anti-corruption policy. Besides, it also includes leak of any unpublished price sensitive information (UPSI) pursuant to SEBI Regulations or any such information prescribed pursuant to any regulations/laws, as amended from time to time. Such complaints are reported to the Audit Committee of the Board. The policy has been periodically communicated to the employees and for stakeholders, an extract of the same has also been hosted on the Companys intranet and details pertaining to establishment of a vigil mechanism are hosted on the website at https://www.iciciprulife. com/about-us/corporate-policies.html?ID=about-corp.

Code of conduct

The Company has a code of conduct (Code) for Directors and employees of the Company, which was last reviewed and amended by the Board of Directors at its meeting held on July 16, 2022. The Code aims at ensuring consistent standards of conduct and ethical business practices across the constituents of the Company. The Code lays down the broad framework of general guiding principles for conducting day-to-day business. This Code is available on the website of the Company (https://www.iciciprulife. com/about-us/corporate-policies.html?ID=about-corp). Pursuant to the Listing Regulations, a confirmation from the Managing Director & CEO regarding compliance with the Code by all the Directors and senior management forms part of this Annual Report.

Policy for determining material subsidiaries

In accordance with the requirements of the Listing Regulations, the Company has formulated a policy for determining material subsidiaries and the same has been hosted on the website of the Company (https:// www.iciciprulife.com/about-us/corporate-policies. html?ID=about-corp).

Board of Directors

The Companys Board is constituted in compliance with the CA2013, in accordance with Listing Regulations and IRDAI Corporate Governance Guidelines, 2016. At March 31, 2023, the Board of Directors of the Company comprised five independent Directors, three non-executive Directors, and the Managing Director & CEO. Out of the three non-executive Directors, two Directors are nominated by ICICI Bank Limited and one by Prudential Corporation Holdings Limited. The Chairman of the Board is an Independent Director. Except the Managing Director & CEO, all other Directors including the Chairman of the Board are non-executive Directors and/ or independent Directors. The Board is responsible for the corporate strategy and other responsibilities as laid down by IRDAI under the Corporate Governance guidelines. The Managing Director & CEO oversees implementation of the strategy, achievement of the business plan and day-to-day operations. There is an appropriate mix of executive, non-executive and independent Directors on various Board Committees. None of the Directors is/are related to any other Director or employee of the Company. The Board functions either as a full Board or through various Committees constituted to oversee specific areas. The Board has constituted Committees, namely, Board Audit Committee, Board Risk Management Committee, Board Investment Committee, Board Customer Service & Policyholders Protection Committee, Board Nomination and Remuneration Committee, Board Corporate Social Responsibility Committee, Stakeholders Relationship Committee, With Profits Committee and Strategy Committee.

The Company recognises that a diverse Board will have different thoughts, perspectives, knowledge, skill, industry experience, age and gender, which will ensure that the

Company retains its competitive advantage. The Board Nomination and Remuneration Committee recommends the appointment of Director(s) to the Board of the Company based on the criteria for appointment of Directors.

In accordance with the ‘criteria for appointment of the Directors and official(s) who may be appointed in senior management of the Company, identified by the Board, the areas of knowledge, skills and expertise which would be required to be possessed by the Board of the Directors of the Company in the context of life insurance business, included finance & accountancy, banking, insurance, strategy and corporate planning, risk management, securities market, economics, law and governance, consumer insights, marketing and human resources. The Directors of the Company have the skills and expertise as prescribed in the criteria, details of which are given below along with their educational qualification.

Directors Identification Name of the Director Number (DIN) Educational Qualification Field of specialisation/ areas of core expertise
Non-executive non-independent Directors
Mr. Sandeep Batra, 03620913 non-executive Director nominated by ICICI Bank Limited Chartered Accountant and Company Secretary Finance & accountancy, banking, insurance, risk management, securities market and economics, law and governance, customer insights, marketing, human resources
Mr. Anuj Bhargava, 02647635 non-executive Director nominated by ICICI Bank Limited1 Chartered Accountant from the Institute of Chartered Accountants of India, Bachelor of Commerce (Sydenham College). Finance and Accountancy, Banking, Marketing
Mr. Benjamin Bulmer, 09682658 non-executive Director nominated by Prudential Corporation Holdings Limited2 Non-executive independent Directors Fellow Chartered Accountant from the Chartered Institute of Management Accountants, Bachelor of Arts (Hons), London School of Economics. Finance & accountancy, actuarial and taxation
Mr. M. S. 00943629 Ramachandran – Chairman Mr. Dilip Karnik 06419513 BachelorsdegreeinMechanicalEngineering from the College of Engineering, Guindy (Anna University) Bachelors degree in Science and Bachelors degree in Law (Gold Medalist) Strategy and corporate planning Law and governance
Mr. R. K. Nair 07225354 Masters degree in Science, Bachelors degree in Law, Master of Business Administration – Financial Management, Diploma in Securities Law Finance & accountancy, banking, insurance and securities market and economics
Mr. Dileep Choksi 00016322 Chartered Accountant, Bachelors degree in Law, a member of the Institute of Cost and Works Accountants of India (ICWA), and Trust and Estate Practitioner (TEP) and member of Society of Trust and Estate Practitioners (STEP) Finance & accountancy, taxation, strategy and corporate planning
Ms. Vibha Paul Rishi 05180796 Whole-time Director(s) Master degree in Business Administration with a specialisation in Marketing from the Faculty of Management Studies, University of Delhi and Honours in Economics from Lady Sri Ram College, Delhi University Consumer insights, marketing, strategy and human resources
Mr.N.S.Kannan,Managing 00066009 Director & CEO3 MBA from the Indian Institute of Management, Bangalore with a gold medal for best all-round performance. A distinguished alumnus of the National Institute of Technology, Trichy from where he graduated as a Mechanical Engineer with Honours. Chartered Financial Analyst from the Institute of Chartered Financial Analysts of India. Finance & accountancy, banking, insurance, strategy and corporate planning, risk management and securities market and economics
Mr. Anup Bagchi, 00105962 Executive Director and Chief Operating Officer4 Management degree from Indian Institute of Management, Bangalore and Engineering degree from Indian Institute of Technology, Kanpur Finance & accountancy, banking, strategy and corporate planning

1 Appointed as a non-executive (Additional) Director of the Company w.e.f. May 1, 2023

2 Appointed as a non-executive Director of the Company w.e.f. July 27, 2022

3 Shall superannuate from the services of the Company on the completion of his term as Managing Director & CEO on June 18, 2023.

4 Appointed as the Executive Director & Chief Operating Officer effective May 1, 2023 and as the Managing Director & CEO of the Company with effect from June 19, 2023, subject to the approval of the shareholders. Prior to this, he was a non-executive Director nominated by ICICI Bank Limited upto April 30, 2023.

During the year ended March 31, 2023, the Board of Directors of the Company through a resolution dated July 27, 2022 approved the appointment of Mr. Benjamin Bulmer (DIN: 09682658) as a non-executive (Additional) Director of the Company, nominated by Prudential Corporation Holdings Limited, with effect from July 27, 2022.

Accordingly, based on the recommendation of the Board Nomination and Remuneration Committee, the Board had recommended the appointment of Mr. Benjamin Bulmer as non-executive Director of the Company for the approval of the members through postal ballot to transact the special business, pertaining to appointment of Mr. Benjamin Bulmer (DIN: 0009682658) as a Non-Executive Director of the Company with effect from July 27, 2022, by way of an ordinary resolution, and the same has been passed by the members, with requisite majority.

There were seven meetings of the Board held during FY2023: Meetings were held on April 16, 2022, May 17, 2022, July 16, 2022, October 15, 2022, January 17, 2023, March 15, 2023, and March 16, 2023. The maximum interval between any two meetings did not exceed 120 days. The attendance of Directors at the Board meetings during the year is set out in the following table:

Name of the Director Board meetings attended/held during the year ended March 31, 2023 Attendance at last AGM (June 27, 2022)
Non-executive non-independent Directors
Mr. Anup Bagchi, non-executive Director nominated by ICICI Bank Limited1 7/7 Present
Mr. Sandeep Batra, non-executive Director nominated by ICICI Bank Limited 7/7 Present
Mr. Wilfred John Blackburn, non-executive Director nominated by Prudential 2/3 Present
Corporation Holding Limited2
Mr. Benjamin Bulmer, non-executive Director nominated by Prudential 3/4 -
Corporation Holding Limited3
Non-executive independent Directors
Mr. M. S. Ramachandran, Chairman 7/7 Present
Mr. Dilip Karnik 7/7 Present
Mr. R. K. Nair 7/7 Present
Mr. Dileep Choksi 5/7 Present
Ms. Vibha Paul Rishi 7/7 Present
Whole-time Director(s)
Mr. N. S. Kannan, Managing Director & CEO4 7/7 Present

1 Appointed as the Executive Director & Chief Operating Officer effective May 1, 2023 and as the Managing Director & CEO of the Company with effect from June 19, 2023, subject to the approval of the shareholders.

2 Ceased to be a non-executive Director of the Company w.e.f. July 27, 2022

3 Appointed as a non-executive Director of the Company w.e.f. July 27, 2022

4 Shall superannuate from the services of the Company on the completion of his term as Managing Director & CEO on June 18, 2023.

The details of other directorships/committee membership held by the Directors of the Company as at March 31, 2023 are set out below:

Name of the Director Indian public limited companies1 Number of other directorships other companies2

Number of other committee memberships3 (Audit Committee and Stakeholders Relationship Committee of Indian public limited companies)

Names of other listed entities where the person is a director and category of directorship
Non-executive non-independent Directors
Mr. Anup Bagchi, non-executive 3(1) 0 0 ICICI Bank Limited, Executive Director
Director nominated by
ICICI Bank Limited4
Mr. Sandeep Batra, 4 0 3 1. ICICI Bank Limited, Executive Director
non-executive 2. ICICI Lombard General Insurance
Director nominated by Company Limited, Non-Executive -
ICICI Bank Limited Non Independent Director
Mr. Benjamin Bulmer, 0 5(2) 0 -
non-executive
Director nominated by
Prudential Corporation
Holding Limited
Non-executive independent Directors
Mr. M. S. Ramachandran, Chairman 2 1 1 1. Supreme Petrochem Limited, Non- Executive - Independent Director
2. ESTER Industries Limited, Non- Executive - Independent Director
Mr. Dilip Karnik 5 0 3 1. Birla Corporation Limited, Non- Executive - Non Independent Director
2. Universal Cables Limited, Non- Executive - Non Independent Director
3. Vindhya Telelinks Limited, Non- Executive - Non Independent Director
4. ICICI Securities Primary Dealership Limited (Debt listed), Independent Director
Mr. R. K. Nair 5 2 6(1) 1. ICICI Bank Limited, Non-Executive - Independent Director
2. Geojit Financial Services Limited, Non- Executive - Independent Director
3. ICICI Securities Primary Dealership Limited (Debt listed), Independent Director
4. Inditrade Capital Limited - Non- Executive - Independent Director
Mr. Dileep Choksi 8 2 7(2) 1. Arvind Limited, Non-Executive - Independent Director
2. Deepak Nitrite Limited, Non-Executive - Independent Director
3. AIA Engineering Limited, Non -Executive - Independent Director
4. Swaraj Engines Ltd, Non-Executive - Independent Director
Ms. Vibha Paul Rishi 4 4 5(3) 1. Asian Paints Limited, Non-Executive - Independent Director
2. Tata Chemicals Limited, Non- Executive - Independent Director
3. ICICI Bank Limited, Non-Executive - Independent Director
4. Piramal Pharma Limited - Non- Executive – Independent Director
Whole-time Director(s)
Mr. N. S. Kannan, Managing Director & CEO 1(1) 0 0 -

1. Comprises of other public limited companies incorporated in India. Figures in parentheses indicate Board chairpersonship by the Directors in other unlisted public companies.

2. Comprises of private limited companies incorporated in India and foreign companies but excludes Section 8 companies and not for profit foreign companies. Figures in parentheses indicate Board chairpersonship.

3. Figures in parentheses indicate committee chairmanship including alternate chairpersonship.

4. Appointed as the Executive Director & Chief Operating Officer effective May 1, 2023 and as the Managing Director & CEO of the Company with effect from June 19, 2023, subject to the approval of the shareholders.

In terms of the Listing Regulations, the number of Committees (Audit Committee and Stakeholders Relationship Committee) of public limited companies in which a Director is a member/chairperson were within the limits prescribed under Listing Regulations, for all the Directors of the Company. The number of directorships of each independent Director is also within the limits prescribed under Listing Regulations.

Independent Directors

The Board of Directors of the Company at March 31, 2023 comprised nine Directors, out of which five are independent Directors. Further, the Board of Directors of the Company as on the date of this Report comprised ten Directors, out of which five are independent Directors.

All independent Directors have confirmed that they meet the criteria of independence as laid down under Section 149(6) of the CA2013 and the Listing Regulations and have confirmed that their names have been added in the data bank maintained by the Indian Institute of Corporate Affairs for independent directors, in accordance with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014.

Pursuant to the provisions of Rule 6 of the Companies (AppointmentandQualificationsofDirectors)Rules,2014, every individual whose name is so included in the data bank shall pass an online proficiency self-assessment test. However, an individual who has fulfilled the criteria prescribed in the Rule 6(4) of the said Rules, is exempted from passing the online self-assessment test. In view of the same, none of the Independent Directors were required to take the proficiency self-assessment test. The Board at its meeting held on April 20, 2023 has reviewed the submissions received from all the independent Directors and has confirmed that the independent Directors fulfil the criteria laid down by requisite regulations and are independent from the management. Further, based on these disclosures and confirmations, the Board is of the opinion that the Directors of the Company are eminent persons with integrity and have necessary expertise and experience to continue to discharge their responsibilities as the Director of the Company.

Further, pursuant to the provisions of the CA2013, the shareholders in the 19th AGM of the Company held on July 17, 2019, had appointed Ms. Vibha Paul Rishi (DIN: 05180796) as Independent Director of the Company to hold office for five consecutive years with effect from January 1, 2019, to December 31, 2023. As per section 149(10) of the Companies Act, 2013, an independent director shall be eligible for re-appointment upon passing a special resolution by the members of the Company and disclosure of such appointment in the Boards Report.

Accordingly, the Board has recommended the reappointment of Ms. Vibha Paul Rishi, aged 62 years, as of date, as an Independent Director of the Company, not liable to retire by rotation, for a second term of five consecutive years commencing from January 1, 2024, till December 31, 2028, for the approval of the members through a special resolution to be passed at the 23rd AGM of the Company. Her brief profile and other details as required under the CA2013 and Listing Regulations pertaining to re-appointment is provided in the Notice of 23rd AGM of the Company and the explanatory statement under section 102 of the CA2013, annexed to it.

Board Committees

The details of Board Committees are as follows:

A. Board Audit Committee

The primary objective of the Committee is to monitor and provide an effective supervision of the financial reporting process, with high levels of transparency, integrity and quality of financial reporting. The Committee oversees the functions of internal audit & compliance functions and ensures deployment of policies for an effective control mechanism including mechanism to address potential conflict of interest amongst stakeholders. The Committee has the authority and responsibility to select, evaluate and recommend the statutory auditors in accordance with law. The Committee ensures independence of control functions demonstrated by a credible reporting arrangement.

Terms of reference:

i. Accounts & Audit

i. Oversee the financial statements, financial reporting process, statement of cash flow and disclosure of its financial information, both on an annual and quarterly basis, to ensure that the financial statement is correct, sufficient and credible;

ii. Recommend the appointment, reappointment, terms of appointment and, if required, the replacement or removal; remuneration, reviewing (with management) performance and oversight of the work of the auditors (internal/ statutory/ concurrent) and to review and monitor the auditors independence and performance, and effectiveness of audit process;

iii. Oversight of the procedures and processes established to attend issues relating to maintenance of books of account, administration procedures, transactions and other matters having a bearing on the financial position of the Company, whether raised by the auditors or by any other person;

iv. Evaluation of internal financial controls and risk management systems;

v. Discuss with the statutory auditors before the audit commences, about the nature and scope of audit, as well as, have post-audit discussions to address areas of concern;

vi. Approval of payment to statutory auditors and internal auditors or any of its associated persons or companies, for any other services rendered by them;

vii. Reviewing, with the management, the annual financial statements and auditors report thereon before submission to the Board for approval, with particular reference to:

• Matters required to be included in the directors responsibility statement to be included in the Boards report in terms of clause (c) of subsection (3) of Section 134 of the Companies Act, 2013;

• Changes, if any, in accounting policies and practices and reasons for the same;

• Major accounting entries involving estimates based on the exercise of judgment by management;

• Significant adjustments made in the financial statements arising out of audit findings;

• Compliance with listing and other legal requirements relating to financial statements to the extent applicable;

• Approval or any subsequent modification and disclosure of any related party transactions of the Company, in accordance with applicable provisions, as amended from time to time; and

• Modified opinion(s) in the draft audit report.

viii. Reviewing, with the management, the quarterly, half-yearly and annual financial statements before submission to the Board for approval;

ix. To the extent applicable, review with the management, the statement of uses/ end use/application of funds raised through an issue (public issue, rights issue, preferential issue, etc.) and related matter, the statement of funds utilised for purposes other than those stated in the offer document/ prospectus/ notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter; x. Review of housekeeping items, particularly review of suspense balances, reconciliations (including subsidiary general ledger (SGL) accounts) and other outstanding assets & liabilities;

xi. Scrutiny of inter-corporate loans and investments, if any;

xii. Valuation of undertakings or assets of the Company, wherever it is necessary;

xiii. To review the utilisation of loans and/ or advances from/investment by the holding company in the subsidiary exceeding

Rs. 100 crore or 10% of the asset size of the subsidiary, whichever is lower including existing loans/advances/investments.

ii. Internal audit i. Review the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure, coverage and frequency of internal audit;

ii. Oversee the efficient functioning of the internal audit department and review its reports. The Committee would additionally monitor the progress made in rectification of irregularities and changes in processes wherever deficiencies have come to notice;

iii. Set-up procedures and processes to address all concerns relating to adequacy of checks and control mechanisms;

iv. Discussion with internal auditors of any significant findings and follow up there on;

v. Review the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board;

vi. Review with the management, performance of internal auditors and the adequacy of the internal control systems;

vii. Look into the reasons for substantial defaults in the payment, if any, to the depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors; and

viii. Review the functioning of the whistle blower/vigil mechanism.

iii. Compliance & ethics and others

i. Monitor the compliance function and the Companys risk profile in respect of compliance with external laws and regulations and internal policies, including the Companys code of ethics or conduct;

ii. Review reports on the above and on proactive compliance activities aimed at increasing the Companys ability to meet its legal and ethical obligations, on identified weaknesses, lapses, breaches or violations and the controls and other measures in place to help detect and address the same;

iii. Discuss the level of compliance in the Company and any associated risks and to monitor and report to the Board on any significant compliance breaches;

iv. Supervise and monitor matters reported using the Companys whistle blowing or other confidential mechanisms for employees and others to report ethical and compliance concerns or potential breaches or violations;

v. Advise the Board on the effect of the above on the Companys conduct of business and helping the Board set the correct ‘tone at the top by communicating, or supporting the communication, throughout the Company of the importance of ethics and compliance;

vi. Approve compliance programmes, reviewing their effectiveness on a regular basis and signing off on any material compliance issues or matters;

vii. Review key transactions involving conflict of interest;

viii. Review the anti-money laundering (AML)/ counter – financing of terrorism (CFT) policy annually and review the implementation of the Companys AML/CFT program;

ix. ReviewcomplianceofInsuranceRegulatory & Development Authority of India (IRDAI) corporate governance guidelines;

x. Monitor the directives issued/ penalties imposed/ penal action taken against the Company under various laws and statutes and action taken for corrective measures; and

xi. Approval of appointment of chief financial officer or any other person heading the finance function or discharging that function after assessing the qualifications, experience and background, etc. of the candidate.

xii. Consider and comment on rationale, cost-benefits and impact of schemes involving merger, demerger, amalgamation etc., on the Company and its shareholders.

xiii. Carrying out any other function, if any, as is mentioned in the terms of reference of the Audit Committee and any other terms of reference as may be decided by the Board and/or specified/ provided under the Companies Act, 2013 or the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations"), or by any other regulatory authority.

Composition

There were ten meetings of the Board Audit Committee held during FY2023: Meetings were held on April 14, 2022, April 16, 2022, May 17, 2022, June 17, 2022, July 15, 2022, July 16, 2022, October12,2022,October15,2022,January12,2023 and January 17, 2023. The details of the composition of the Committee and attendance at its meetings are set out in the following table:

Name of the member Number of meetings attended/ held
Mr. R. K. Nair – Chairman 10/10
Mr. Dileep Choksi 9/10
Mr. Dilip Karnik 10/10
Ms. Vibha Paul Rishi 10/10
Mr. Sandeep Batra 9/10
Mr. Wilfred John Blackburn1 4/6
Mr. Benjamin Bulmer2 4/4

1 Ceased to be a non-executive Director of the Company w.e.f. July 27, 2022 2 Appointed as a non-executive Director of the Company w.e.f. July 27, 2022

B. Board Risk Management Committee

The Committee reviews the Risk Management policy of the Company, including asset liability management (ALM), to monitor all risks across the various lines of business of the Company and establish appropriate systems to mitigate such risks. The Committee also reviews the risk appetite and risk profile of the Company. The Committee oversees the effective operation of the risk management system and advises the Board on key risk issues.

Terms of reference: a. Risk management

i. Establish effective Risk Management framework for identification of internal and external risks, in particular including financial, operational, sectoral, sustainability (particularly

ESG related risks), information, cyber security risks, business continuity risk or any other risk as may be determined by the Committee and recommend to the Board the Risk Management policy and processes for the organisation which should include measures for risk mitigation including systems and processes for internal control of identified risks;

ii. Monitor and oversee implementation of the risk management policy, including evaluating the adequacy of risk management systems;

iii. Ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business of the Company; iv. Assisting the Board in effective operation of the risk management system by performing specialised analyses and quality reviews;

v. Monitoring and reviewing the cyber security system of the Company;

vi. Maintain a group wide and aggregated view on the risk profile of the Company in addition to the solo and individual risk profiles;

vii. Report to the Board, the nature and content of its discussions, recommendations and actions to be taken including details on the risk exposures and the actions taken to manage the exposures; set the risk tolerance limits and assess the cost and benefits associated with risk exposure and review, monitor and challenge where necessary, risks undertaken by the Company;

viii. Advising the Board with regard to risk management decisions in relation to strategic and operational matters such as corporate strategy, acquisitions and related matters;

ix. ReviewtheCompanysrisk-rewardperformance to align with overall policy objectives;

x. Discuss and consider best practices in risk management in the market and advise the respective functions;

xi. Maintain an aggregated view on the risk profile of the Company for all categories of risk including insurance risk, market risk, credit risk, liquidity risk, operational risk, compliance risk, legal risk, reputation risk, etc.;

xii. Review the solvency position of the Company on a regular basis;

xiii. Monitor and review regular updates on business continuity;

xiv. Formulation of a Fraud monitoring policy and framework for approval by the Board;

xv. Monitor implementation of Anti-fraud policy for effective deterrence, prevention detection and mitigation of frauds;

xvi. Review compliance with the guidelines on Insurance Fraud Monitoring Framework dated January 21, 2013, issued by the Authority;

xvii. Review the appointment, removal and terms of remuneration of the Chief Risk Officer;

xviii. Carry out any other function, if any, as prescribed in the terms of reference of the BRMC and any other terms of reference as may be decided by the Board and/or specified/ provided under the Companies Act, 2013 or the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, or by any other regulatory authority.

b. Asset liability management (ALM)

i. Formulating and implementing optimal ALM strategies, both at the product level an enterprise level and meeting risk v/s reward objectives and ensuring they remain within acceptable monitored tolerances for liquidity, solvency and the risk profile of the entity;

ii. Reviewing the Companys overall risk appetite and laying down the risk tolerance limits including annual review of strategic asset allocation;

iii. Monitor risk exposures at periodic intervals and revising strategies as appropriate including those for ALM;

iv. Placing information pertaining to ALM before the Board at periodic intervals;

v. Setting the risk/reward objectives i.e. risk appetite of the Company informed by assessment of policyholder expectations and other relevant factors;

vi. Quantifying the level of risk exposures (e.g. market, credit and liquidity) and assessing the expected rewards and costs associated with the risk exposure;

vii. Ensuring that management and valuation of all assets and liabilities comply with the standards, prevailing legislation and internal and external reporting requirements;

viii. Reviewing key methodologies and assumptions including actuarial assumptions, used to value assets and liabilities;

ix. Managing capital requirements at the company levelusingtheregulatorysolvencyrequirements;

x. Reviewing, approving and monitoring capital plans and related decisions over capital transactions;

xi. To carry out any other function, if any, as prescribed in the terms of reference of the Risk Management Committee and any other terms of reference as may be decided by the Board and/or specified/provided under the Companies Act, 2013 or the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, or by any other regulatory authority;

Composition

There were four meetings of the Board Risk Management Committee held during FY2023: The meetings were held on April 15, 2022, July 14, 2022, October 14, 2022 and January 11, 2023. The details of the composition of the Committee and attendance at its meetings are set out in the following table:

Name of the member Number of meetings attended/ held
Mr. M. S. Ramachandran – 4/4
Chairman
Mr. R. K. Nair 4/4
Mr. Anup Bagchi 4/4
Mr. Wilfred John Blackburn1 1/2
Mr. Benjamin Bulmer2 2/2

1 Ceased to be a non-executive Director of the Company w.e.f. July 27, 2022

2 Appointed as a non-executive Director of the Company w.e.f. July 27, 2022

Note: Mr. Deepak Kinger, Chief Risk & Compliance Officer of the Company attended all the four meetings of the Board Risk Management Committee.

C. Board Investment Committee

The Investment Committee assists the Board in fulfilling its oversight responsibility for the investment assets of the Company. The Committee is responsible for formulating the overall investment policy and establishing a framework for its investment operations with adequate controls. The Committee also monitors investment performance against the applicable benchmarks and provide guidance for protection of shareholders and policyholders funds.

Terms of reference:

i. Responsible for the recommendation of the Investment Policy and laying down of the operational framework for the investment operations of the Company. The Investment Policy and operational framework should, inter alia, focus on a prudential asset liability management supported by robust internal control systems; and encompass aspects concerning liquidity for smooth operations, compliance with prudential regulatory norms on investments, risk management/mitigation strategies to ensure commensurate yield on investments in line with policyholders reasonable expectations and above all protection of policyholders funds.

ii. Put in place an effective reporting system to ensure compliance with the Investment Policy set out by it apart from internal/concurrent audit mechanisms for a sustained and ongoing monitoring of investment operations.

iii. To submit a report to the Board on the performance of investments at least on a quarterly basis and provide an analysis of its investment portfolio (including with regard to the portfolios safety and soundness) and on the future outlook.

iv. The Committee should independently review its investment decisions and ensure that support by the internal due diligence process is an input in making appropriate investment decisions.

v. To carry out any other function, if any, as prescribed in the terms of reference of the Board Investment Committee and any other terms of reference as may be decided by the Board and/ or specified/provided under the CA2013 or by any other regulatory authority.

Composition

There were four meetings of the Board Investment Committee held during FY2023: The meetings were held on April 15, 2022, July 15, 2022, October 14, 2022 and January 12, 2023. The details of the composition of the Committee and attendance at its meetings are set out in the following table:

Name of the member Number of meetings attended/ held
Mr. M. S. Ramachandran – 4/4
Chairman
Mr. R. K. Nair 4/4
Mr. Sandeep Batra 4/4
Mr. Wilfred John Blackburn1 1/2
Mr. Benjamin Bulmer2 2/2
Mr. N. S. Kannan 4/4
*Mr. Satyan Jambunathan 4/4
*Mr. Manish Kumar 4/4
*Mr. Deepak Kinger 4/4
*Mr. Souvik Jash 4/4

1 Ceased to be a non-executive Director of the Company w.e.f. July 27, 2022

2 Appointed as a non-executive Director of the Company w.e.f. July 27, 2022 * As per IRDAI Corporate Governance guidelines 2016 and the IRDAI Investment Regulations, 2016, the Board Investment Committee shall also have Chief Financial Officer, Chief Risk Officer, Chief Investment Officer and Appointed Actuary as members.

D. Board Customer Service & Policyholders Protection Committee

The Board Customer Service & Policyholders Protection Committee assists the Board to protect the interests of the policyholders and improve their experiences in dealing with the Company at all stages and levels of their relationship with the Company. In this connection, the Committee aims to upgrade and monitor policies and procedures for grievance redressal and resolution of disputes, disclosure of "material information" to the policy holders, and compliance with the regulatory requirements.

Terms of reference:

i. Putting in place proper procedures and effective mechanism to address complaints and grievances of policyholders including mis-selling by intermediaries.

ii. Ensure compliance with the statutory requirements as laid down in the regulatory framework pertaining to policyholders protection.

iii. Review of the mechanism at periodic intervals.

iv. Ensure adequacy of disclosure of "material information" to the policyholders. These disclosures shall, for the present, comply with the requirements laid down by the Authority both at the point of sale and at periodic intervals.

v. Review the status of complaints of the policyholders, and take steps to reduce these complaints, at periodic intervals.

vi. Provide the details of grievances at periodic intervals in such formats as may be prescribed by the Authority

vii. Provide details of insurance ombudsmen to the policyholders. viii. Shape the customer service philosophy and policies of the organisation based on the overall environment in the financial services industry.

ix. Oversee the functions of the customer service council.

x. Review measures for enhancing the quality of customer service.

xi. Provide guidance to improve in the overall satisfaction level of customers.

xii. Adopt standard operating procedures to treat the customer fairly including time-frames for policy and claims servicing parameters and monitoring implementation thereof.

xiii. Put in place a framework for review of awards given by Insurance Ombudsman/Consumer Forums. Analyse the root cause of customer complaints, identify market conduct issues and advise the management appropriately about rectifying systemic issues, if any.

xiv. Review all the awards given by Insurance Ombudsman/Consumer Forums remaining unimplemented for more than three (3) months with reasons therefor and report the same to the Board for initiating remedial action, where necessary.

xv. Review of claims report, including status of outstanding claims with ageing of outstanding claims. xvi. Reviewing repudiated claims with analysis of reasons.

xvii. Status of settlement of other customer benefit payouts like surrenders, loan, and partial withdrawal requests etc.

xviii. Review of unclaimed amounts of policyholders, as required under the circulars and guidelines issued by the Authority.

The Grievance Redressal Committee (GRC) is chaired by an eminent independent member Mr. Rajagopalan Venkatarama. The other members of the Committee comprise of Ms. Poonam Bharadwaj, an independent member and three other internal members. As part of the grievance redressal mechanism, the GRC is constituted as the final authority to address the policyholders grievances before approaching the Regulator and the Ombudsman office. A summary of the key discussions of the GRC meeting are put up at the Board Customer Service & Policyholders Protection Committee for information.

The GRC meets on a quarterly basis with the following terms of reference:

a. Evaluate feedback on quality of customer service and claims experience.

b. Review and approve representations received on claims repudiations and complaints.

c. Ensure that the Company follows all prescribed regulatory requirements on policyholder service.

d. Submit report on its performance to the Customer Service & Policyholder Protection Committee (CS&PPC) on a quarterly basis.

Composition

There were four meetings of the Board Customer Service & Policyholders Protection Committee held during FY2023: Meetings were held on April 14, 2022, July 13, 2022, October 12, 2022 and January 11, 2023. The details of the composition of the Committee and attendance at its meetings are set out in the following table:

Name of the member Number of meetings attended/ held
Ms. Vibha Paul Rishi – 4/4
Chairperson
Mr. Dilip Karnik 4/4
Mr. Dileep Choksi 4/4
Mr. Anup Bagchi 4/4
Mr. Wilfred John Blackburn1 1/2
Mr. Benjamin Bulmer2 2/2

1 Ceased to be a non-executive Director of the Company w.e.f. July 27, 2022 2 Appointed as a non-executive Director of the Company w.e.f. July 27, 2022

Note: The Board of Directors of the Company appointed Mr. Rajagopalan Venkatarama, an independent person as the customer representative on the Board Customer Service & Policyholders Protection Committee with effect from July 16, 2022. He attended the Committee meeting held on July 13, 2022 as an invitee and the Committee meetings held on October 12, 2022 and January 11, 2023 as a customer representative.

E. Board Nomination and Remuneration Committee

The Board Nomination and Remuneration Committee assists the Board to formulate policies relating to the composition and remuneration of the Directors, key managerial personnel, other employees consistent with criteria approved by the Board. The Committee coordinates and oversee the self-evaluation of the performance of the Board and succession planning for senior management. The Committee ensures that the Board comprises of competent and qualified Directors.

Terms of reference:

i. To formulate the criteria for determining qualifications, positive attributes and independence of a director and recommend to the Board a policy, relating to the remuneration for the directors, key managerial personnel and other employees;

ii. To consider and approve employee stock option schemes and to administer and supervise the same;

iii. To devise a policy on diversity of the Board; iv. To identify persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down, recommend to the Board their appointment and removal and formulate a criteria and specify the manner for effective evaluation of every individual directors performance, evaluation of the performance of Board and its committees; and review its implementation and compliance;

v. To recommend to the Board, all remuneration, in whatever form, payable to senior management;

vi. To scrutinise the declarations of intending applicants before the appointment/ reappointment/ election of directors by the shareholders at the annual general meeting; and to scrutinise the applications and details submitted by the aspirants for appointment as the key managerial personnel;

vii. To consider whether to extend or continue the term of appointment of the independent director, on the basis of the report of performance evaluation of independent directors;

viii. To ensure that the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate directors of the qualityrequiredtoruntheCompanysuccessfully;

ix. To ensure that relationship of remuneration to performance is clear and meets appropriate performance benchmarks;

x. To approve the compensation program and to ensure that remuneration to directors, key managerial personnel and senior management involves a balance between fixed and incentive pay reflecting short and long term performance objectives appropriate to the working of the Company and its goals;

xi. To ensure that the proposed appointments/ re-appointments of key managerial personnel or directors are in conformity with the Board approved policy on retirement/ superannuation; and

xii. To carry out any other function, if any, as prescribed in the terms of reference of the Board Nomination and Remuneration Committee and any other terms of reference as may be decided by the Board and/or specified/ provided under the Companies Act, 2013 or the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, or by any other regulatory authority.

Composition

There were six meetings of the Board Nomination and Remuneration Committee held during FY2023: April 16, 2022, May 17, 2022, July 15, 2022, October 12, 2022, January 12, 2023 and March 16, 2023. The details of the composition of the Committee and attendance at its meetings are set out in the following table:

Name of the member Number of meetings attended/ held
Mr. Dilip Karnik – Chairman 6/6
Mr. M. S. Ramachandran 6/6
Mr. Dileep Choksi 6/6
Ms. Vibha Paul Rishi 6/6
Mr. Sandeep Batra 6/6
Mr. Wilfred John Blackburn1 2/3
Mr. Benjamin Bulmer2 3/3

1 Ceased to be a non-executive Director of the Company w.e.f. July 27, 2022

2 Appointed as a non-executive Director of the Company w.e.f. July 27, 2022

F. Board Sustainability and Corporate Social Responsibility Committee

The purpose of the Committee is to formulate and recommend to the Board the CSR policy of the Company, formulate the annual CSR plan, and monitor the CSR activities and compliance with the CSR policy from time to time. Corporate Social Responsibility Policy of the Company as per section 135 of the CA2013 is put up on the Companys website. Further, the terms of reference of the Board Corporate Social Responsibility Committee, was amended to oversee and monitor the matters related to Sustainability including Environment, Social and Governance (ESG) and Business Responsibility and Sustainability initiatives undertaken by the Company. In order to give effect to the enhanced scope, the nomenclature of the Board Corporate Social Responsibility Committee was renamed as "Board Sustainability and Corporate Social Responsibility Committee".

Terms of reference:

i. To formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the Company.

ii. To recommend the amount of expenditure to be incurred on the Corporate Social Responsibility activities.

iii. To monitor the Corporate Social Responsibility Policy of the Company from time to time.

iv. To oversee and monitor Sustainability activities including ESG initiatives undertaken by the Company, related key disclosures, review its performance thereon and advice on related matters.

v. To review and monitor matters related to Sustainability such as the ESG Report, Business Responsibility and Sustainability Report.

Composition

TherewerethreemeetingsoftheBoardSustainability and Corporate Social Responsibility Committee held during FY2023: Meeting were held on April 14, 2022,

October 14, 2022 and January 13, 2023. The details of the composition of the Committee and attendance at its meetings are set out in the following table:

Name of the member Number of meetings attended/ held
Mr. Dilip Karnik – Chairman 3/3
Mr. Dileep Choksi 3/3
Mr. Wilfred John Blackburn1 1/1
Mr. Benjamin Bulmer2 2/2

1 Ceased to be a non-executive Director of the Company w.e.f. July 27, 2022

2 Appointed as a non-executive Director of the Company w.e.f. July 27, 2022

G. Stakeholders Relationship Committee Terms of reference:

i. Consider and review redressal and resolutions of the grievances and complaints of the security holders of the company, including those of shareholders, debenture holders and other security holders related to transfer/ transmission of shares, non-receipt of annual report, non-receipt of declared dividends, issue of new/duplicate certificates, general meetings;

ii. Approval and rejection of transfer and transmission of shares or securities, including preference shares, bonds, debentures and securities;

iii. Approval and rejection of requests for split and consolidation of share certificates;

iv. Approval and rejection of issue of duplicate share, issued from time to time;

v. Redemption of securities and the listing of securities on stock exchanges;

vi. Allotment of shares and securities;

vii. Review of measures taken for effective exercise of voting rights by shareholders;

viii. Review of adherence to the service standards adopted by the Company in respect of various services being rendered by the Registrar & Share Transfer Agent;

ix. Review of various measures and initiatives taken by the Company for reducing the quantum of unclaimed dividends and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the shareholders of the company; and

x. Any other activities which are incidental or ancillary to the various aspects of interests of shareholders, debenture holders and/or other security holders.

Composition

There were four meetings of the Stakeholders Relationship Committee held during FY2023: April 14, 2022, July 15, 2022, October 14, 2022 and January 11, 2023. The details of the composition of the Committee and attendance at its meetings are set out in the following table:

Name of the member Number of meetings attended/ held
Mr. Dileep Choksi– 4/4
Chairman
Mr. R. K. Nair 4/4
Mr. N. S. Kannan 4/4

Ms. Sonali Chandak, Company Secretary is designatedastheComplianceOfficeroftheCompany in accordance with the requirements of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The total number of complaints from shareholders in FY2023 were 71, majority being related to non-receipt of dividend, exemption for tax deductible at source on dividend and change of bank mandate. All these complaints have been addressed within the prescribed timeline. At March 31, 2023, no complaints were pending for resolution.

H. With Profits Committee Terms of reference:

i. Maintaining the asset shares.

ii. Providing approval for the detailed working of the asset share, the expense allowed for in the asset share, the investment income earned on the fund, and other associated elements which were represented in the asset share determined by the Appointed Actuary.

iii. To submit a report to the Board covering at least:

• appropriateness of the methodology and basis used in calculation of asset shares and justification for any change,

• bonus earning capacity including its calculation,

• sensitivity analysis of bonus rates and basis as appropriate,

• a brief note on how policyholders reasonable expectations (PRE) is met,

• any change in special surrender value with justification,

• treatment of With Profit fund for future appropriation, and

• the expenses debited to the With Profit fund and its appropriateness.

Composition

There was one meeting of the With Profits Committee held during FY2023: Meeting was held on April 14, 2022. The details of the composition of the Committee and attendance at its Meeting are set out in the following table:

Name of the member Number of meetings attended/ held
Mr. R. K. Nair – Chairman 1/1
Mr. Sandeep Batra 1/1
Mr. Wilfred John Blackburn1 1/1
Mr. Benjamin Bulmer2 0/0
Mr. N. S. Kannan 1/1
*Mr. Chandan Khasnobis3 1/1
* Mr. Heerak Basu4 0/0
* Mr. Satyan Jambunathan 1/1
* Mr. Souvik Jash 1/1

* As per IRDAI (Non-linked Insurance Products) Regulations 2019, With Profits Committee shall also have the Chief Financial Officer, the Appointed Actuary and an Independent Actuary, as members.

1 Ceased to be a non-executive Director of the Company w.e.f. July 27, 2022

2 Appointed as a non-executive Director of the Company w.e.f. July 27, 2022

3 Ceased to be a member with effect from October 15, 2022

4 Appointed as a member with effect from October 15, 2022

I. Strategy Committee

The Board of Directors at its Meeting held on January 19, 2018 had constituted a Strategy Committee to consider and evaluate any combination, arrangement, transfer of assets, acquisition, divestiture and any other strategic initiative and recommend such proposals to the Board of Directors.

Terms of reference

i. To evaluate transaction(s) of transfer of assets, combination, arrangement, acquisition, divestitures and any other strategic initiatives proposed to be undertaken by the Company (through the processes entailing technical/price bids, due diligence process, etc.) and submit the proposal to the Board for its consideration.

ii. To take all necessary actions in connection with such specific transactions.

Composition

There was one meeting of the Strategy Committee held during FY2023: Meeting was held on May 17, 2022. The details of the composition of the Committee and attendance at its Meeting are set out in the following table:

Name of the member Number of meetings attended/ held
Mr. M. S. Ramachandran – 1/1
Chairman
Mr. Anup Bagchi 1/1
Mr. Wilfred John Blackburn1 1/1
Mr. Benjamin Bulmer2 0/0
Mr. N. S. Kannan 1/1

1 Ceased to be a non-executive Director of the Company w.e.f. July 27, 2022

2 Appointed as a non-executive Director of the Company w.e.f. July 27, 2022

Familiarisation programme for Independent Directors

Independent Directors are familiarised with their roles, rights and responsibilities in the Company as well as with the nature of the industry and the business model of the Company through induction programmes at the time of their appointment as Directors and through presentations on economy and industry overview, business overview, key regulatory developments, governance, strategy, investment, human resource and operating performance which are made to the Directors from time to time. The details of the familiarisation programmes have been hosted on the website of the Company and can be accessed on the link: https:// www.iciciprulife.com/about-us/company-overview/ familiarization.html.

Changes in the composition of the Board of Directors and other key managerial personnel (KMP) as per CA2013 during the year ended March 31, 2023

Name of Director/KMP Appointment/ Resignation/ Cessation of tenure/Withdrawal of nomination With effect from
Mr. Wilfred John Blackburn Resignation July 27, 2022
Mr. Benjamin Bulmer Appointment July 27, 2022

Separate meeting of independent Directors

During FY2023, a separate meeting of the Independent Directors was held on April 16, 2022.

Retirement by rotation

In accordance with Section 149, Section 152 of the CA2013 and the Articles of Association of the Company, Mr. Anup Bagchi (DIN: 00105962) would retire by rotation at the ensuing AGM. Mr. Anup Bagchi, being eligible has offered himself for re-appointment.

Criteria for appointment of a Director and official(s) who may be appointed as key managerial person/ personnel or as senior managerial personnel

The Company has a well-defined criteria for appointment of Directors and those in senior management positions (that is who may be appointed as key managerial person/personnel (KMP) or as senior managerial personnel (SMP)) in accordance with the requirements prescribed.

Remuneration Remuneration policy

The Company has in place a policy on Compensation

& Benefits ("Compensation Policy") for Managing Director & CEO, other whole-time Directors, non-executive Directors, Key Management Person (KMP), Senior Management Personnel (SMP) and other employees.

Further details with respect to the Compensation policy are provided under the section titled "Compensation & Benefit policy", which has also been hosted on the website of the Company and can be accessed on the link: https://www.iciciprulife. com/about-us/corporate-policies.html.

Details of remuneration paid to whole-time Directors

The Board Nomination and Remuneration Committee (BNRC) determines and recommends to the Board the remuneration, including performance bonus and non-cash benefits and perquisites, payable to the whole-time Directors.

The following table sets out the details of remuneration (including perquisites and retiral benefits) paid to the whole-time Director during FY2023:

Particulars Details of Remuneration () Mr. N. S. Kannan
Basic 27,231,840
Variable pay 14,610,131
Allowances1 and perquisites2 24,495,400
Contribution to provident fund 3,267,816
Contribution to gratuity fund3 2,268,408
Stock options of the Company (Numbers)
Granted in FY2023 435,500
Granted in FY2022 721,300

Note: For the year ended March 31, 2023 the remuneration details pertain to the amount paid/options granted during the period of service as per IRDAI approval

1 Allowances also include Superannuation

2 Perquisites are evaluated as per Income-Tax rules wherever applicable, and exclude perquisites on Provident Fund and perquisites on exercise of stock options, if any. Stock options exercised during the year does not constitute remuneration paid to the whole-time directors and accordingly is not considered here.

3 Provision towards gratuity is actuarially valued for the group of all eligible employees on an overall basis, however, for the purpose of this section, annual contribution towards gratuity fund of the Company as approved by BNRC/Board has been given.

Details of remuneration paid to non-executive Directors

As provided in the Articles of Association of the Company, the fees payable to the non-executive independent Directors for attending a Meeting of the Board or Committee thereof is decided by the Board of Directors from time to time within the limits prescribed by the CA2013. For FY2023, the Company has paid Rs. 100,000 as sitting fees for each meeting of the Board, Rs. 100,000 for each Board Audit Committee meeting and

Rs. 50,000 as sitting fees for each Meeting of other Board Committee meetings attended. This amount is within the limits prescribed as per Rule 4 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 of the CA2013.

The members of the Company at the Annual General

Meeting held on July 17, 2019, have approved the payment of compensation in form of profit related commission upto Rs. 1 million per annum, in proportion to the time served by him/her as a Director in a year, to each non-executive Director of the Company (other than the non-executive directors nominated by ICICI Bank Limited and Prudential Corporation Holdings Limited). The payments are subject to the regulatory provisions applicable to the Company and availability of net profits at the end of each financial year. Sitting fees paid to independent Directors are outside the purview of the above limits. Further, Mr. M. S. Ramachandran, non-executive IndependentDirector,ChairmanoftheCompany,was also provided an office, including its maintenance, at the Companys expense, for attending to his duties as the Chairman of the Company pursuant to the resolution passed by the members of the Company on October 30, 2020, through postal ballot. The details of the sitting fees and commission are as below:

Sitting fees paid to independent Directors for the financial year ended March 31, 2023:

Name of the Director Amount (in )
Mr. M. S. Ramachandran, Chairman 1.45 million
Mr. Dilip Karnik 2.35 million
Mr. R. K. Nair 2.35 million
Mr. Dileep Choksi 2.25 million
Ms. Vibha Paul Rishi 2.20 million

Commission to be paid to independent Directors for the financial year ended March 31, 2023:

Name of the Director Amount (in Rs. )
Mr. M. S. Ramachandran, Chairman 1 million
Mr. Dilip Karnik 1 million
Mr. R. K. Nair 1 million
Mr. Dileep Choksi 1 million
Ms. Vibha Paul Rishi 1 million

Remuneration disclosures pursuant to IRDAI guidelines

Pursuant to IRDAI guidelines on remuneration of non-executive Directors and Managing Director/ Chief Executive Officer/Whole-time Directors of Insurers (IRDAI Guidelines) issued vide reference no. IRDA/F&A/GDL/LSTD/155/08/2016 dated August 5, 2016, requires the Company to make the following disclosures on remuneration in the Annual Report:

Compensation policy and practices

1. Qualitative disclosures a. Information relating to the design and structure of remuneration processes and the key features and objectives of remuneration policy.

(i) Name and mandate of the main body overseeing remuneration: The Board Nomination and Remuneration Committee (BNRC/ Committee) is the body which oversees aspects pertaining to remuneration. The functions of the Committee include identifying persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down as well as recommending to the Board their appointment and removal; and formulating the criteria for determining qualifications, positive attributes and independence of a Director; and also devising a policy on diversity of the Board. The Committee ensures that the proposed appointments/re-appointments of key management person or Directors are in conformity with the Board approved policy on retirement/ superannuation; scrutinises the declarations of intending applicants before the appointment/reappointment/election of Directors by the shareholders at the Annual General Meeting; and scrutinises the applications and details submitted by the aspirants for appointment as the key management person. The Committee also formulates criteria and specifies the manner for effective evaluation of every individual directors performance, and that of the Board and its committees, and reviews its implementation and compliance. The Committee considers the extension or continuation of the term of appointment of the Independent Directors, on the basis of the report of performance evaluation of Independent Directors. In addition, the Committee recommends to the Board the policy relating to the remuneration for the Directors, key management persons and other employees; and recommends to the Board all remuneration, in whatever form, payable to senior management; and considers and approves employee stock option schemes and administers and supervises the same. The Committee ensures that the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate Directors of the quality required to run the Company successfully; and that the relationship of remuneration to performance is clear and meets appropriate performance benchmarks; along with approving the compensation program and ensuring that remuneration to Directors, key management person and senior management involves a balance between fixed and incentive pay reflecting short and long term performance objectives appropriate to the working of the Company and its goals.

(ii) External consultants whose advice has been sought, the body by which they were commissioned and in what areas of the remuneration process: The Company engaged the services of reputed consulting firms for market benchmarking in the area of compensation.

(iii) Scope of the Companys remuneration policy (eg. by regions, business lines), including the extent to which it is applicable to foreign subsidiaries and branches.

The Companys Policy on

Compensation & Benefits ("Compensation Policy") for Managing Director & CEO, other Whole-time Directors, non-executive Directors, Key Management Person (KMP), Senior Management Personnel (SMP) and other employees was last amended and approved by the BNRC and the Board at its Meetings held on April 16, 2022.

(iv) Type of employees covered and number of such employees: All employees of the Company are governed by the Compensation Policy. The total number of permanent employees governed by the Compensation Policy of the Company at March 31, 2023 was 17,825.

(v) Key features and objectives of remuneration policy: The Company has historically followed prudent compensation practices under the guidance of the Board and the BNRC. The Companys approach to compensation is based on the ethos of meritocracy and fairness within the framework of prudent risk management. This approach has been incorporated in the Compensation Policy, the key elements of which are given below:

Effective governance of compensation

The Company follows prudent compensation practices under the guidance of the BNRC and the Board. The decision relating to the remuneration of the Managing Director & CEO (MD & CEO) and other Whole-time Directors is reviewed and approved by the BNRC and the Board. The BNRC and the Board approves the Key Performance Indicators (KPIs) and the performance threshold for payment of performance bonus, if applicable. The BNRC evaluates business performance against the KPIs and on various risk parameters as prescribed by IRDAI. Based on its assessment, it makes recommendations to the Board regarding compensation for MD & CEO and other Whole-time Directors, performance bonus and long-term pay for all eligible employees, including senior management and key management persons.

Alignment of compensation philosophy with prudent risk taking

The Company seeks to achieve a prudent mix of fixed and variable pay, with a higher proportion of variable pay at senior levels. For the MD & CEO and other Whole-time Directors (WTD), compensation is sought to be aligned to both pre-defined performance objectives of the Company as well as prudent risk parameters. In addition, the Company has an Employees Stock Option Scheme aimed at enabling employees to participate in the long-term growth and financial success of the Company through stock option grants that vest over a period of time.

Whether the BNRC reviewed the Companys remuneration policy during the past year, and if so, an overview of any changes that were made

The BNRC reviewed the Companys Compensation and Benefits policy at its meeting held on April 16, 2022. The key changes in the policy are:

• The clause on variable pay for the Managing Director & CEO and Other Whole-time Directors (in Part B of the Compensation Policy) has been modified to defer a minimum of 50% of the bonus amount for Managing Director & CEO and other Whole-time Directors. If the bonus is under

Rs. 25 lacs, the deferment shall not be applicable. The deferral period would be spread over a minimum period of three years (deferment period). The frequency of vesting will be on annual basis and the first vesting shall not be before one year from the commencement of deferral period. The vesting shall be no faster than a prorata basis. Additionally, vesting will not be more frequent than on a yearly basis.

b. Description of the ways in which current and future risks are taken into account in the remuneration processes.

• The Company follows prudent compensationpracticesundertheguidance of the Board and the Board Nomination and Remuneration Committee (BNRC). The Companys approach to compensation is based on the ethos of meritocracy and fairness within the framework of prudent risk management. The performance rating assigned to employees is based on assessment of performance delivered against a set of defined performance objectives. These objectives are balanced in nature and comprise a holistic mix of financial, customer, people, process, quality, compliance objectives and/or any other parameters as may be deemed fit.

• For the MD & CEO and other Whole-time Directors, compensation is sought to be aligned to both pre-defined performance objectives of the Company as well as prudent risk parameters.

• For the MD & CEO and other Whole-time Directors, the quantum of bonus does not exceed a certain percentage (as stipulated in the Compensation Policy) of total fixed pay in a year; a minimum of 50% (as stipulated in the Compensation Policy) will be under deferment. If the bonus amount is under Rs. 25 lacs, the deferment shall not be applicable. The deferral period would be spread over a minimum period of three years (deferment period). The frequency of vesting will be on annual basis and the first vesting shall not be before one year from the commencement of deferral period. The vesting shall be no faster than a prorata basis. Additionally, vesting will not be more frequent than on a yearly basis.

• The deferred part of the variable pay (performance bonus) for Whole-time Directors is subject to malus, under which, the Company will prevent vesting of all or part of the variable pay in the event of an enquiry determining gross negligence or integrity breach.

• In claw back arrangements with Whole-time Directors, the employee agrees to return, in case asked for, the previously paid variable pay to the Company in the event of an enquiry determining gross negligence or integrity breach, taking into account relevant regulatory stipulations.

• For malus and clawback, acts of gross negligence and integrity breach are covered under the purview of the compensation policy. Errors of judgment shall not be construed to be breaches.

c. Description of the ways in which the Company seeks to link performance during a performance measurement period with levels of remuneration

The Companys approach to compensation is based on the ethos of meritocracy and fairness within the framework of prudent risk management. The extent of variable pay for individual employees is linked to individual performance for sales frontline employees and to individual and organisation performance for non-sales frontline employees and employees in the management cadre. For the latter, the performance rating assigned is based on assessment of performance delivered against a set of defined performance objectives. These objectives are balanced in nature, and comprise a holistic mix of financial, customer, people, process, quality and compliance objectives and/or any other parameters as may be deemed fit. For the Managing Director & CEO and other Whole-time Directors, to ensure effective alignment of compensation with prudent risk parameters, the Company takes into account various risk parameters along with other pre-defined performance objectives of the Company.

2. Quantitative Disclosures

The following table sets forth, for the period indicated, the details of quantitative disclosure for remuneration of the Managing Director & CEO:

Particulars At March 31, 2023
Number of WTD/ CEO/ MD having received a variable remuneration award during the financial year 1
Number and total amount of sign on awards made during the financial year Nil
Details of guaranteed bonus, if any, paid as joining/ sign on bonus Nil
Breakup of amount of remuneration awarded for the financial year (in Rs. million)
Fixed1 56.2
Variable Pay2 29.2
Deferred 14.6
Non-Deferred 14.6
Share-Linked Instruments – Company2 4,35,500
Total amount of deferred remuneration paid out in the financial year
Cash (Rs. in million) Nil
Shares
Shares-linked instruments (Employee Stock Options) pending to be vested as on March 31, 2023
Company 12,44,650
ICICI Bank3 Nil
Other forms Nil

1 Fixed pay includes basic salary, supplementary allowances, superannuation, contribution to provident fund and gratuity fund by the Company. Provision towards gratuity is actuarially valued for the group of all eligible employees on an overall basis, however, for the purpose of this section, the annual contribution towards gratuity fund of the Company as approved by BNRC/Board is incorporated here.

2 Variable pay and share-linked instruments represent amounts granted/options awarded by BNRC/Board in FY2023.

3 Employee stock options last granted in May 2019

Further, provision on gratuity, leave encashment and long term payment, which is actuarially valued for all employees of the organisation, is not considered above.

Disclosures required with respect to Section 197(12) of the CA2013

The ratio of the remuneration of each Director to the median employees remuneration and such other details in terms of Section 197(12) of the CA2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. For the purpose of this section, aspects of fixed remuneration which includes basic salary, supplementary allowance and retirals (provident fund, gratuity and superannuation) have been annualised.

(i) The ratio of the remuneration of each director to the median remuneration of the employees, who are part of annual bonus plan (excluding frontline sales), of the Company for the financial year:

Mr. N S Kannan,
76:1
Managing Director & CEO

(ii) The percentage increase in remuneration of each Whole-time Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year:

The percentage increase in remuneration of Whole-time Director i.e. Managing Director

& CEO, Chief Financial Officer, and Company Secretary ranged between 6% and 8%.

(iii) The percentage increase in the median remuneration of employees, who are part of annual bonus plan (excluding frontline sales), in the financial year:

The percentage increase in the median remuneration of employees, who are part of annual bonus plan, in the financial year was around 14.7%

(iv) The number of permanent employees on the rolls of Company:

The number of employees as on March 31, 2023 is 17,825.

(v) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

The average percentage increase in the salaries of total employees other than the key management persons for fiscal 2022 was around 15.1%, while the average increase in the remuneration of the key management person was in the range of 6% to 8%.

(vi) Affirmation that the remuneration is as per the remuneration policy of the Company:

Yes

Employee Stock Option Scheme (ESOS)

The Company granted options to its employees under its Employees Stock Option Scheme, prior to listing, further to the approval of its Employees Stock Option Scheme – 2005. This pre-IPO Scheme shall be referred to as ‘ESOS 2005 or ‘Scheme. The Scheme had six tranches namely Founder, 2004-05, 2005-06, 2006-07, Founder II and 2007-08, pursuant to which shares have been allotted and listed in accordance with the in-principle approval extended by the stock exchanges. All six tranches under the pre-IPO Scheme stand lapsed as on March 31, 2023. The Scheme was instituted vide approval of its members at the Extra-Ordinary General Meeting (EGM) dated March 28, 2005 and subsequently amended by the members of the Company vide its EGM dated February 24, 2015.

The Scheme was ratified and amended by the members of the Company at its Annual

General Meeting held on July 17, 2017 which is in compliance with the SEBI (Share Based Employee Benefits) Regulations, 2014 (referred to as the ‘Revised Scheme). The meeting of Board Nomination and Remuneration Committee (BNRC) and the Board held on April 24, 2019 had approved the amendment to the definition of "Exercise Period". The revision to the definition was approved by the members of the Company at its Annual General Meeting held on July 17, 2019.

Further, the meeting of Board Nomination and Remuneration Committee (BNRC) and the Board held on April 17, 2021 and April 19, 2021 respectively had approved the increase in the limit of the number of shares issued or issuable since March 31, 2016 pursuant to the exercise of any Options granted to the Eligible Employees issued pursuant to the Scheme or any other stock option scheme of the Company, by 0.90% of the number of shares issued as on March 31, 2016, i.e. from a limit of 2.64% of the number of shares issued as on March 31, 2016 to 3.54%. The revision to the limit was approved by the members of the Company at its Annual General Meeting held on June 25, 2021.

As per the Revised Scheme, the aggregate number of shares issued or issuable since March 31, 2016 pursuant to the exercise of any Options granted to the Eligible Employees issued pursuant to the Scheme or any other stock option scheme of the Company, shall not exceed 3.54% of the number of shares issued at March 31, 2016. Further, pursuant to the Revised Scheme the maximum number of Options that can be granted to any Eligible Employee in a financial year shall not exceed 0.1% of the issued Shares of the Company at the time of grant of Options. The Revised Scheme provides for a minimum period of one year between the grant of Options and vesting of Options. The exercise price shall be determined by the Board Nomination & Remuneration Committee in concurrence with the Board of Directors of the Company on the date the options are granted and shall be reflected in the award confirmation. Shares are allotted/issued to all those who have exercised their Options, as granted by the Board/BNRC of the Company in accordance with the criteria ascertained pursuant to the Companys Compensation and Benefit policy. Pursuant to the SEBI (Share Based Employee Benefits) Regulations, 2014, the disclosures are available on the website of the Company at the following link https://www.iciciprulife.com/about-us/ corporate-policies.html.

The salient features of tranches issued under the Revised Scheme are as stated below:

Graded Vesting Period

Scheme Date of Grant Number of options granted Maximum term for exercising the options granted 1st Year 2nd Year 3rd Year 4th Year Mode of settlement
2017-18 July 25, 2017 656,300 Exercise period would commence from the date of vesting and expire on completion of ten years from the date of vesting of stock options 30% of options granted 30% of options granted 40% of options granted -
2018-19 April 24, 2018 2,167,900
2018-19 April 24, 2018 4,980,250 - - 50% of options 50% of options
Special Options granted granted
2018-19 January 22, 2019 156,000
Joining Options
2019-20 April 24, 2019 4,993,600
2019-20 July 24, 2019 80,000
Joining Options Equity
2020-21 May 10, 2020 5,072,200
2020-21 Joining Options June 11, 2020 25,000 Five years from date of vesting of stock options 30% of 30% of 40% of
2020-21 Joining Options January 27, 2021 50,000 options granted options granted options granted -
2021-22 April 19,2021 5,001,600
2021-22 July 20,2021 5,500
Joining Options
2021-22 October 19,2021 5,000
Joining Options
2021-22 January 18, 2022 49,500
Joining Options
2022-23 April 16, 2022 5,227,730

Note: The exercise price for all the options granted by the Board/BNRC of the Company, after listing (as tabulated above), is the closing price on the recognised stock exchange having higher trading volume, on the date immediately prior to the date of meeting of the BNRC scheduled to consider granting options under the Companys Employee Stock Option Scheme.

Exercise price of all the options outstanding for all years/quarter for 2017-18, 2018-19, 2018-19 Special Options and 2018-19 Joining Options, 2019-20, 2019-20 Joining Options, 2020-21, 2020-21 Joining Options (1), 2020-21 Joining Options (2), 2021-22, 2021-22 Joining Options (1), 2021-22 Joining Options (2), 2021-22 Joining Options (3), 2022-23 schemes are Rs. 468.60, Rs. 388.40, Rs. 388.40, Rs. 351.65, Rs. 369.50, Rs. 383.10, Rs. 400.10, Rs. 396.95, Rs. 501.90,

Rs. 451.05, Rs. 626.25, Rs. 656.80, Rs. 615.65 and Rs. 541.00 respectively.

Particulars of options for the year ended March 31, 2023 are given below:

Options granted 5,227,730
Options forfeited/ lapsed 199,690
Options vested 6,858,285
Options exercised 1,270,555
Total number of options in force 23,942,115
Number of shares allotted pursuant to exercise of options* 1,265,295
Extinguishment or modification of options Nil
Amount realised by exercise of options () 489,088,638

Note: For details on changes in the number of options due to actions like grants, forfeitures, vesting exercise, lapsation during the year and resultant options outstanding at the end of the year vis-?-vis start of the year, refer Notes to accounts. * 5,260 options exercised in March, 2023 were allotted in April 2023.

The following key management persons and senior management personnel (SMP), other than whole-time Director, were granted stock options of the Company up to a maximum of 147,400 options to an individual, aggregating to 710,900 options during FY2023.

Sr. No. Name Designation
1 Mr. Judhajit Das Chief-Human Resources
2 Mr. Satyan Jambunathan Chief Financial Officer
3 Mr. Amit Palta Chief Distribution Officer
4 Mr. Deepak Kinger Chief Risk & Compliance Officer
5 Mr. Manish Kumar Chief Investments Officer
6 Ms. Sonali Chandak Company Secretary

Note: Mr. Souvik Jash, Appointed Actuary of the Company was granted 109,200 options of the Company during the year ended March 31, 2023 pending IRDAI approval. These options are not included in the aggregate options specified above since they have not yet been granted. No employee was granted options during any one year equal to or exceeding 0.1% of the issued equity shares of the Company at the time of the grant.

Out of the total outstanding options at April 1, 2022, 6,858,285 options vested during the year ended March 31, 2023 and Rs. 489.0 million was realised by exercise of options during the year ended March 31, 2023. During the year ended March 31, 2023 the Company has recognised a compensation cost of Rs. Nil (year ended March 31, 2022: Rs. Nil) as the intrinsic value of the options. Had the Company followed fair value method based on binomial tree model valuing its options compensation cost for the year ended would have been higher by

Rs. 703.4 million (March 31, 2022: Rs. 587.4 million) and the proforma profit after tax would have been Rs. 7,403.3 million (March 31, 2022: Rs. 6,954.0 million). On a proforma basis, the Companys basic and diluted earnings per share would have been Rs. 5.15 for the year ended March 31, 2023 (March 31, 2022: Rs. 4.84) and Rs. 5.14 for the year ended March 31, 2023 (March 31, 2022: Rs. 4.82) respectively.

Fair value methodology

The assumptions considered in the pricing model for the ESOPs granted during the year are as below:

Particulars March March Basis
31, 2022 31, 2023
Risk-free interest rate 5.26% to 6.53% 6.19% to 6.79% G-Sec yield at grant date for tenure equal to the expected term of ESOPs
Expected life of the options 3.50 to 5.50 years 3.50 to 5.50 years Simplified method (average of minimum and maximum life of options)
Dividend yield 0.18% to 0.32% 0.37% Based on recent dividend declared
Expected volatility 17.91% to 21.12% 18.44% to 21.56% Based on historical volatility determined on the basis of Nifty 50

The weighted average price of options exercised during the year ended March 31, 2023 is Rs. 384.94 (year ended March 31, 2022: Rs. 381.95).

For the year ended March 31 2023, ICICI Bank Limited ("the Holding Company") has not granted options to the employees of ICICI Prudential Life Insurance Co. Ltd. (Previous year grant: Nil) and accordingly no cost was recognised.

Performance evaluation of Directors, Chairman, the Board and its Committees

The Company, with the approval of its Board Nomination and Remuneration Committee, has put in place a framework for evaluation of the Directors, Chairman, the Board and its Committees.

The performance evaluation was undertaken through an online survey portal. The performance of the Board was assessed on parameters relating to roles, responsibilities and obligations of the Board and functioning of the Committees including assessing the quality, quantity and timeliness of flow of information between the Company management and the Board that is necessary for the Board to effectively and reasonably perform their duties. The evaluation criteria for the Directors was based on their participation, contribution and offering guidance to and understanding of the areas which were relevant to them in their capacity as members of the Board. The evaluation criteria for the Chairman of the Board, besides the general criteria adopted for assessment of all Directors, included leadership abilities, effective management of meetings and preservation of interest of stakeholders. The evaluation criteria for the Committees were based on effective discharge of its terms of reference and their contribution to the functioning of the Board. The Board Nomination and Remuneration Committee evaluated the performance of the Whole-time Director i.e. Managing Director & CEO. The details about the evaluation of the Whole-time Director are further provided under the section titled "Compensation policy and practices."

Directors and officers liability insurance policy

The Company has taken Directors and Officers Liability Insurance for all its Directors and Officers.

General Body Meetings

The details of the last three Annual General Meetings (AGM) are as given below:

Financial Year ended Day, Date Start time Venue
Twentieth AGM Friday, August 7, 2020 3.30 p.m. Through Video Conference (VC)/ Other Audio Visual Means (OAVM). Deemed venue- Registered Office of the Company
Twenty-first AGM Friday, June 25, 2021 3.30 p.m. Through Video Conference (VC)/ Other Audio Visual Means (OAVM). Deemed venue- Registered Office of the Company
Twenty-two AGM Monday, June 27, 2022 3.00 p.m. Through Video Conference (VC)/ Other Audio Visual Means (OAVM). Deemed venue- Registered Office of the Company

The following special resolutions were passed by the members during the last three Annual General Meetings:

Annual General Meeting held on August 7, 2020

• Re-appointment of Mr. M. S. Ramachandran as an Independent Director of the Company for a second term of five consecutive years commencing from June 29, 2021 till June 28, 2026.

• Continuation of directorship of Mr. M. S. Ramachandran after attaining the age of seventy five (75) years, as an Independent Director of the Company, till June 28, 2026.

Annual General Meeting held on June 25, 2021

• Re-appointmentofMr.DilipKarnikasanIndependent Director of the Company for a second term of five consecutive years commencing from June 29, 2021 till June 28, 2026.

• Continuation of the directorship of Mr. Dilip Karnik after attaining the age of seventy five (75) years, as an Independent Director of the Company, till June 28, 2026.

• Amendment to ICICI Prudential Life Insurance Company Limited - Employees Stock Option Scheme (2005) (Scheme)

Annual General Meeting held on June 27, 2022

• Re-appointment of Mr. R. K. Nair as an Independent Director of the Company for a second term of five consecutive years commencing from July 25, 2022, till July 24, 2027.

• Re-appointment of Mr. Dileep Choksi as an Independent Director of the Company for a second term commencing from January 19, 2023 till December 25, 2024.

Postal ballot

DuringFY2023,anordinaryresolutionwaspassedthrough postal ballot for appointment of Mr. Benjamin Bulmer as a Non-Executive Director of the Company. The resolution is deemed to have been passed on the last date specified for remote e-voting i.e. October 5, 2022.

No special resolution was passed through postal ballot during FY2023.

Further, at present, no special resolution is proposed to be passed through postal ballot.

Means of communication

It is the Companys belief that all stakeholders should have access to complete information regarding its position to enable them to accurately assess its future potential. The Company disseminates information on its operations and initiatives on a regular basis. The Companys website (www.iciciprulife.com) serves as an important information dissemination platform for all its stakeholders, allowing them to access various details of the Company at their own convenience. It provides comprehensive information about the Company including Companys products, financial performance, Board of Directors and Board Committees, management/key personnel, customer service related touch points, and other statutory/ public disclosures. The Companys investor relations personnel respond to specific queries and play a proactive role in disseminating information to both analysts and investors. All information which could have a material bearing on the Companys share price is disclosed to the Stock Exchanges as per applicable regulatory provisions. The information is also disclosed to the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) from time to time in compliance with Listing Regulations and other applicable laws. The financial and other information and various compliances as required/prescribed under the Listing Regulations are filed electronically with NSE and BSE through NSE Electronic Application Processing (NEAP) System and through BSE Listing Centre and are also available on their respective websites in addition to the Companys website. Additionally, information is also disseminated to BSE/NSE where required, through email. The extract of the Companys quarterly financial results are published in the Financial Express (Mumbai, Pune, Ahmedabad, Delhi, Chandigarh, Lucknow, Kolkata, Bangalore, Chennai, Hyderabad and Kochi editions) and Loksatta (Mumbai, Pune, Nagpur, Ahmednagar, Delhi, Aurangabad editions). The financial results, official news releases, analyst call transcripts and presentations are also available on the Companys website at www.iciciprulife.com.

General Shareholder Information

The Annual General Meeting (‘AGM) is proposed to be convened through Video Conference (VC) or/and Other AudioVisualMeans(OAVM),incompliancewithapplicable provisions of the Companies Act, 2013 read with General Circular No. 10/2022 dated December 28, 2022 read alongwith earlier General Circular No. 02/2022 dated May 5, 2022, General Circular No. 20/2020 dated May 5, 2020, General Circular No. 14/2020, dated April 8, 2020, General Circular No. 17/2020 dated April 13, 2020, General Circular No. 02/2021 dated January 13, 2021 and General Circular No. 21/2021 dated December 14, 2021 issued by the Ministry of Corporate Affairs (‘MCA). Considering the same, the deemed venue for 23rd AGM shall be the registered office of the Company.

In view of the virtual AGM, the members are given the facility to attend and participate in the AGM through Video Conference (VC)/ Other Audio Visual Means (OAVM), by following the procedure mentioned in the Notice of the AGM.

General Body Day, Date & Time
Meeting
Twenty third AGM Friday, July 28, 2023 at 3:00 p.m.

Financial Year: April 1, 2022 to March 31, 2023

Book Closure: July 14, 2023 to July 28, 2023 (both days inclusive) Dividend payment date: Within 30 days of the AGM

Fit and Proper criteria for investors and continuous monitoring requirement

The IRDAI guidelines for Listed Indian Insurance Companies prescribe the following:

• Self-certification of "fit and proper person" criteria by a person holding/intending to acquire equity shares of 1% or more of paid-up equity share capital

• Prior permission of IRDAI for holding shares beyond 5% of the paid-up equity share capital.

Further information on detailed procedure and format for self-certification is hosted on the Companys website (https://www.iciciprulife.com/about-us/shareholder-information/other.html)

Business Responsibility and Sustainability Report, Environmental, Social and Governance (ESG) and Conservation of Energy and Technology absorption

Business Responsibility and Sustainability Report (BRSR) as stipulated under Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular dated May 10, 2021 forms part of the Annual Report and has been hosted on the website of the Company and can be viewed at https://www.iciciprulife.com/about-us/shareholder-information/other.html.

The Company has an elaborate ESG Report that details the efforts of the Company on sustainability and is also available on its website. The Company constantly undertakes technology and digitalization initiatives and works with employees, partners and customers to offer simple and robust technology solutions towards reducing the Companys carbon footprint.

The Company has undertaken various initiatives for energy conservation at its premises and has used information technology extensively in its operations, which includes technological interventions in aspects pertaining to policy lifecycle, marketing & lead generation, partner integration, analytics and assurance.

Digitisation

The Company has fully digitised its policy issuance and servicing processes. More than 99% of all our policies issued are logged digitally. The Company has also offered its customers the facility of opening e-insurance accounts, an electronic repository of policies. This enables our customers to electronically store and administer their policies.

To the extent permitted, the Company also communicates with its customers via sms and emails to reduce the use of paper. The digital platform is extended to employees, advisors and partners too. Due to these initiatives the Companys paper usage has dropped drastically over the years. The above initiatives and digital processes have not only provided speed and convenience to customers and distributors, but has also had a positive impact on environment.

Maintenance of cost records

The maintenance of cost records, for the services rendered by the Company, pursuant to Section 148(1) of the Companies Act, 2013 read with Rule 3 of the Companies (Cost Records and Audit) Rules, 2014, is not required.

Details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 during the year alongwith their status as at the end of the financial year.

The Company has not filed any application for settlement nor are any such proceedings pending under the Insolvency and Bankruptcy Code, 2016, against the Company, as at March 31, 2023.

Details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof.

The above is not applicable given that the Company has not filed any application for settlement under the Insolvency and Bankruptcy Code, 2016 during the financial year ended March 31, 2023.

Credit Rating during FY2023

Type of Instrument Name of the Rating Agency Rating assigned
Unsecured, subordinated, listed, rated, redeemable, taxable, non-cumulative, non-convertible debentures in the nature of ‘Subordinated Debt aggregating to Rs. 12.00 billion ICRA Limited CRISIL Limited AAA(Stable) AAA(Stable)

Foreign exchange earnings and outgo

Details of foreign exchange earnings and outgo required under section 134(3)(m) of the CA2013 read with rule 8(3) of the Companies (Accounts) Rules, 2014 are as under:

Particulars FY2022 FY2023
Foreign exchange earnings and outgo
- Earnings 1.00 0.41
- Outgo 0.17 0.95

Commodity price risk or foreign exchange risk and hedging activities

None of the above is applicable to the Company as the Company neither undertake any commodities business nor has any exposure to foreign currencies that may require implementing any hedging strategies.

Plant Locations

The Company has various branches across the country, however, there are no plants as the Company is not a manufacturing entity.

Details of unclaimed suspense account as provided by our RTA i.e. KFin Technologies Limited pursuant to Regulation 39 read with Part F of Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

No shares were lying in the unclaimed suspense account as of March 31, 2023.

Events after Balance Sheet date

There have been no material changes and commitments, affecting the financial position of the Company, which have occurred between the end of the financial year of the Company to which the Balance Sheet relates and the date of this Report.

Disclosures

(a) There are no materially significant related party transactions that may have potential conflict of interest with the overall business operations of the Company.

(b) No penalties or strictures have been imposed on the Company by the Stock Exchanges, the Securities & ExchangeBoardofIndia(SEBI),InsuranceRegulatory and Development Authority of India (IRDAI) or any other statutory authority, for any non-compliance on any matter, during the last three years.

(c) In terms of the Whistle Blower Policy of the Company, no employee of the Company has been denied access to the Audit Committee of the Board.

Adoption of mandatory and non-mandatory requirements

The Company has complied with all mandatory requirements specified in Regulations 17 to 27 and clauses (b) to (i) of sub regulation 2 of Regulation 46 and some of the non-mandatory requirements pertaining to Corporate Governance stipulated under the Listing Regulations. The Company has adopted non-mandatory requirement regarding the reporting requirement of the internal auditor, which in the Companys instance, reports directly to the Board Audit Committee.

Green Initiatives in Corporate Governance

In line with the ‘Green Initiative, the Company has effected electronic delivery of notice of Annual General Meeting and Annual Report to those Members whose e-mail ids were registered with the respective Depository Participants and downloaded from the depositories viz. National Securities Depository Limited/Central Depository Services (India) Limited. The CA2013 and the underlying rules as well as Regulation 36 of the Listing Regulations, permit the dissemination of financial statements and annual report in electronic mode to the Members. The Directors are thankful to the Members for actively participating in the Green Initiative and seek their continued support for effectively implementing the Green Initiative cause.

In order to support the cause, we have been regularly requesting Members to register/update their email ids with their Depository Participants so as to enable the Company to send various communication through electronic mode. We believe and endorse the ‘Green Initiative as it would not only rationalise the use of paper but also ensure prompt communication, avoid loss in transit and have reference value of the communication.

DETAILS PERTAINING TO SHAREHOLDING Listing of equity shares on Stock Exchange

The Company has listed its equity shares on the following stock exchanges:

Stock Exchange Code for ICICI Prudential Life Insurance Company Limited
BSE Limited (BSE) (Equity) 540133
Phiroze Jeejeebhoy Tower
Dalal Street
Mumbai 400 001
National Stock Exchange of India Limited (NSE) (Equity) ICICIPRULI
‘Exchange Plaza
Bandra-Kurla Complex
Bandra (East), Mumbai 400 051

The Company has paid the annual listing fees for the relevant periods to BSE and NSE where its equity shares are listed.

Market price Information

The reported high and low closing prices and volume of equity shares of the Company traded during fiscal 2023 on BSE and NSE are set out in the following table:

BSE NSE
Month High (Rs. ) Low (Rs. ) Volume (million) High () Low () Volume (million) Total volume of BSE and NSE (million)
April-2022 542.20 507.80 0.95 542.15 508.00 30.89 31.84
May-2022 530.30 488.90 1.34 530.40 488.85 30.21 31.54
June-2022 565.00 482.40 1.01 565.05 482.65 34.30 35.31
July-2022 553.85 499.80 1.21 553.60 500.25 21.79 23.00
August-2022 593.75 543.45 1.42 594.60 543.55 28.44 29.87
September-2022 593.80 525.25 1.14 594.05 525.95 19.77 20.90
October-2022 526.95 500.40 1.69 526.90 500.40 21.44 23.14
November-2022 519.65 452.25 0.98 520.25 452.10 49.58 50.55
December-2022 481.50 439.50 1.10 482.25 439.65 33.37 34.47
January-2023 487.15 451.95 0.98 487.35 452.40 40.94 41.92
February-2023 438.55 399.85 1.27 438.75 399.70 44.24 45.51
March-2023 435.60 383.90 1.00 435.70 384.05 46.24 47.24
FY2023 593.80 383.90 14.17 594.60 384.05 404.97 419.14

Share Transfer System

SEBI has mandated transfer of securities only in dematerialized form, except for transmission and transposition of securities. The Share Transfer Systems of the Company is managed by KFin Technologies Limited (formerly known as KFin Technologies Private Limited), Registrar and Share Transfer Agent (RTA) of the Company. The address of the RTA is as follows:

KFin Technologies Limited

Selenium Building, Tower-B, Plot No 31 & 32, Financial District,

Nanakramguda, Serilingampally, Hyderabad, Rangareddy, Telangana, India - 500 032.

Email ID: einward.ris@kfintech.com and shobha.anand@kfintech.com

Toll Free/ Phone Number: 1800 309 4001

WhatsApp Number: (91) 910 009 4099

KPRISM (Mobile Application): https://kprism.kfintech.com/

KFINTECH Corporate Website: https://www.kfintech.com

RTA website: https://ris.kfintech.com

Investor Support Centre (DIY Link): https://ris.kfintech.com/clientservices/isc

Debenture Trustees

Axis Trustee Services Limited

Registered Office: Axis House, Bombay Dyeing Mills Compound,

Pandhurang Budhkar Marg, Worli Mumbai - 400 025

Telephone Number: 022-6226 0054

Fax Number: 022-6226 0050

Email id: debenturetrustee@axistrustee.in

Website: www.axistrustee.in

Information on shareholding

Shareholding pattern of the Company as at March 31, 2023

Sr. No. Category/Name of the Shareholder Number of shares on March 31, 2023 % Total
(in million)
1 ICICI Bank Limited (Promoter) 737.61 51.27%
2 Prudential Corporation Holdings Limited (Promoter) 317.51 22.07%
3 Foreign Institutional Investors /Foreign Portfolio Investors/Foreign Bodies/Non-resident individuals 250.44 17.41%
4 Domestic Mutual Funds 66.06 4.59%
5. Domestic Insurance Company 11.05 0.77%
6. Domestic Body corporates, Institutions, Trust & NBFC 9.33 0.65%
7. Domestic Banks 2.42 0.17%
8. Alternative Investment Fund 0.14 0.01%
9. Retail Investors & Others 44.01 3.06%
Total 1438.57 100.00%

Shareholders of the Company with more than 1% holding as at March 31, 2023 (other than promoters of the Company)

Sr. No. Category/Name of the Shareholder Number of shares (in million) % to total
1 Compassvale Investments Pte. Ltd. 28.72 2.00%
2 SBI Arbitrage Opportunities Fund 24.87 1.73%
3 Camas Investments Pte. Ltd. 22.19 1.54%

Distribution of shareholding of the Company as at March 31, 2023

Distribution schedule at March 31, 2023 (Total)
Sr. No Category No. of holders % of holders Number of shares % of equity
1 1-5,000 388,047 99.64 32,945,882 2.29
2 5,001-10,000 471 0.12 3,434,777 0.24
3 10,001-20,000 258 0.07 3,660,320 0.25
4 20,001-30,000 109 0.03 2,709,410 0.19
5 30,001-40,000 85 0.02 2,967,776 0.21
6 40,001-50,000 50 0.01 2,252,787 0.16
7 50,001-100,000 100 0.03 7,259,435 0.50
8 100,001 and above 310 0.08 1,383,341,009 96.16
TOTAL: 389,430 100.00 1,438,571,396 100.00

The Companys equity shares are traded mainly in dematerialised form. At March 31, 2023, 99.99% of paid-up equity share capital is held in dematerialised form.

Increase in share capital

The paid-up capital of the Company increased by Rs. 12.65 million from the previous financial year, consequent to allotment of shares resulting due to the exercise of stock options granted under the Companys Employee Stock Option Scheme, and the paid-up capital was Rs. 14.39 billion at March 31, 2023.

Details of equity shares held by the non-executive Directors of the Company at March 31, 2023 is as set out in the table below:

Sr. No. Name of the Director Number of shares held
1. Mr. Dileep Choksi 241
2. Mr. Anup Bagchi 8,500

Queries related to the operational and financial performance of the Company may be addressed to:

Mr. Dhiren Salian

Investor Relations

Registered office:

ICICI Prudential Life Insurance Co. Ltd.

1089 Appasaheb Marathe Marg,

Prabhadevi, Mumbai 400025

Telephone: (91 22) 50391600

Fax: (91 22) 2422 4484

Email id: ir@iciciprulife.com

Address for Correspondence

Ms. Sonali Chandak

Company Secretary

ICICI Prudential Life Insurance Company Limited

1089, Appasaheb Marathe Marg,

Prabhadevi, Mumbai - 400025

Telephone: (91 22) 5039 1600

Fax: (91 22) 2422 4484

Email id: investor@iciciprulife.com or csiciprulife@

iciciprulife.com

COMPLIANCE CERTIFICATE OF THE AUDITORS

The Company has annexed to this Report (Annexure D), a certificate obtained from the statutory auditors, B S R & Co. LLP, Chartered Accountants and Walker Chandiok & Co LLP, Chartered Accountants, regarding compliance of conditions of Corporate Governance as stipulated in the Listing Regulations.

CERTIFICATE FROM A PRACTICING COMPANY SECRETARY

The Board of Directors have confirmed that they have not been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India (SEBI), Ministry of Corporate Affairs or any such statutory authority. Additionally, an independent certificate has been received from Mr. Tushar Shridharani, a Practicing Company Secretary, confirming the aforesaid declaration by the Directors of the Company.

MANAGEMENT DISCUSSION AND ANALYSIS

The Management Discussion and Analysis report for FY2023 forms part of this Annual Report.

DIRECTORS RESPONSIBILITY STATEMENT

In accordance with the requirements of Section 134(3)(c) of the CA2013 and the Corporate Governance Guidelines, the Board of Directors confirm: 1. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; 2. that they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period; 3. that they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this

Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; 4. that they have prepared the annual accounts on a going concern basis; 5. that they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and 6. that they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

ACKNOWLEDGEMENTS

The Company is grateful to the Insurance Regulatory & Development Authority of India, Securities and Exchange Board of India, Reserve Bank of India and Government of India for their continued co-operation, support and advice.

The Board of Directors and the Company would also like to take this opportunity to express sincere thanks to our valued customers for their continued patronage and the investors for reposing confidence in the Company.

The Directors express their gratitude for the valuable advice and guidance received from time to time, from the auditors, the statutory authorities, Stock Exchanges and Depositories. The Directors express their sincere appreciation to all employees and distributors, who continue to display outstanding professionalism and commitment, enabling the organisation to deliver and extend quality services. The Directors also wish to express their gratitude to ICICI Bank Limited and Prudential Corporation Holdings Limited for their continued trust and support.

For and on behalf of the Board
May 17, 2023 M. S. RAMACHANDRAN
Mumbai Chairman
DIN: 00943629