2.17. Provisions and contingencies

Provision is recognized when the Company has a present
obligation as a result of past event and it is probable
that an outflow of resources embodying economic
benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the
obligation. Provisions are determined based on the basis
of best estimate of the outflow of economic resources
required to settle the obligation at the reporting date.
These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.

A disclosure of a contingent liability is made when there
is a possible obligation or present obligations that may,
but probably will not, require an outflow of resources or
it cannot be reliably estimated. When there is a possible
obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision
or disclosure is made.

Contingent assets are neither recognised nor disclosed.

2.18. Segmental reporting

Identification of segments

Based on the primary segments identified in
accordance with AS 17 on “Segmental Reporting”
notified under section 133 of the Companies Act 2013
and rules thereunder, the Regulation, and the Master
Circular the Company has classified and disclosed
segmental information separately for Shareholders'
and Policyholders' in standalone financial statements.
Within Policyholders', the businesses are further
segmented into Participating (Life and Pension), Non¬
Participating (Life, Pension, Annuity and Health), Non¬
Participating variable (Life and Pension) and Linked (Life,
Pension, Health and Group).

There are no reportable geographical segments, since all
business is written in India.

Allocation/ Apportionment methodology

The allocation and apportionment of income, expenses,
assets and liabilities to specific segments is done in the
following manner, which is applied on a consistent basis:

Income, expenses, assets and liabilities that are directly
identifiable to the respective segments are allocated
on actual basis.

Income, expenses which are not directly identifiable to
a business segment though attributable, other indirect
expenses, assets and liabilities which are not attributable
to a business segment, are apportioned based on one
or combination of some of the following parameters, as
considered appropriate by the management in adherence
with the policy approved by the board of directors :

• Number of policies

• Number of claims

• Annualised premium since inception

• Sum assured

• Premium income

• Medical cases

• Funds under management

• Commission

• Total operating expenses (for assets and liabilities)

• Use of asset (for depreciation expense)

The accounting policies used in segmental reporting are
the same as those used in the preparation of standalone
financial statements.

2.19. Foreign exchange transactions

Initial recognition: Foreign currency transactions are
recorded in Indian Rupees, by applying to the foreign

currency amount the exchange rate between the
Indian Rupee and the foreign currency at the date of
the transaction.

Conversion: Foreign currency monetary items are
translated using the exchange rate prevailing at
the reporting date. Non-monetary items, which are
measured in terms of historical cost denominated in a
foreign currency, are reported using the exchange rate at
the date of the transaction. Non-monetary items, which
are measured at fair value or other similar valuation
denominated in a foreign currency, are translated
using the exchange rate at the date when such value
was determined.

Exchange differences: Exchange differences arising
on such conversions are recognised as income or as
expenses in the period in which they arise either in the
Standalone Revenue Account or the Standalone Profit
and Loss Account, as the case may be.

The transactions of the IFC branch (IIO unit) are in US
Dollars. It being an integral foreign operation, as per
Accounting Standard-11, consolidation of the financial
information of IFSC branch is being done as follows:

• The assets and liabilities, both monetary and non¬
monetary, of the integral foreign operation has been
translated at the closing rate.

• Income and expense items of the integral
foreign operation are translated at the average
exchange rate for the month in which the
transactions have occurred.

• All resulting exchange differences are recognised as
income or as expenses in the Revenue Account in
the period in which they arise.

2.20. Earnings per share

Basic earnings per share are calculated by dividing the
profit or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year. For the purpose of
calculating diluted earnings per share, the profit or loss
after tax for the year attributable to equity shareholders
and the weighted average number of shares outstanding
during the year are adjusted for the effects of all dilutive
potential equity shares which could have been issued on
the conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only
if their conversion to equity shares would decrease
the net profit per share from continuing ordinary
operations. Potential dilutive equity shares are deemed
to be converted as at the beginning of the period, unless
they have been issued at a later date. The dilutive
potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair
value. Dilutive potential equity shares are determined
independently for each period presented.

2.21. Cash and Cash Equivalents

Cash and cash equivalents for the purpose of Receipts
and Payments account include cash and cheques in
hand, bank balances, liquid mutual funds and other
investments with original maturity of three months or less
which are subject to insignificant risk of changes in value.
Receipts and Payments Account is prepared and reported
using the Direct Method in accordance with Accounting
Standard (AS) 3, “Cash Flow Statements” as per
requirements of the Regulation and the Master Circular.

2.22. Unclaimed amount of policyholders

The unclaimed amount of policyholders is governed
by the Master Circular, directives received from IRDAI
vide email dated August 27, 2024 and Investment
Regulations, 2016 as amended from time to time.
The Company maintains a single segregated fund to
manage all unclaimed amounts.

Unclaimed amount of policyholders' liability is determined
on the basis of NAV of the units outstanding as at the
valuation date.

Assets held for unclaimed amount of policyholders
and unclaimed amount of policyholders' liability are
considered as current assets and current liabilities,
respectively and are disclosed in Schedule 12 “Advances
and Other Assets” and Schedule 13 “Current Liabilities”.

Income on unclaimed amount of policyholders is
accreted to the unclaimed fund and is accounted for
on an accrual basis, net of fund management charges,
and is disclosed under the head “Interest on unclaimed
amounts” in Schedule 4 “Benefits paid” in Standalone
Revenue Account.

The unclaimed of policyholders except litigation cases
which are more than 10 years as on 30^th September
every year, are transferred to the Senior Citizens' Welfare
Fund (SCWF) on or before 1^st March of that financial year.

3.2. Pending litigations

The Company's pending litigation comprises of claims
against the Company primarily by the customers and
proceedings pending with Tax authorities. The Company
has reviewed all its pending litigations and proceedings
and has adequately provided for where provisions are
required and disclosed the contingent liabilities where
applicable, in its standalone financial statements.
The Company does not expect the outcome of these
proceedings to have a material adverse effect on its
financial statements at March 31, 2026. Refer note 3.1
for details on contingent liabilities.

In respect of litigations, where the management
assessment of a financial outflow is probable, the
Company has made a provision of ' 15,680 lakhs at
March 31, 2026 (March 31, 2025: ' 14,739 lakhs).

3.3. Actuarial method and assumptions

The actuarial liability in respect of both participating
and non-participating policies is calculated using the
gross premium method, using assumptions for interest,
mortality, morbidity, persistency, expense and inflation
and, in the case of participating policies, future bonuses
together with allowance for taxation and allocation
of profits to shareholders. These assumptions are
determined as prudent estimates at the date of valuation
including allowances for possible adverse deviations.

The liability for the unexpired portion of the risk for the
non-unit liabilities of linked business and attached riders
is the higher of the liability calculated using discounted
cash flows and the unearned premium reserve.

An unexpired risk reserve and a reserve in respect of
claims incurred but not reported is held for contracts
wherein there is a possibility of lag in intimation of claims

The unit liability in respect of linked business is the value of
the units standing to the credit of policyholders, using the
Net Asset Value (‘NAV') prevailing at the valuation date.

A brief of the assumptions used in actuarial
valuation is as below:

a) The interest rates used for valuing the liabilities (for
Within India business)are in the range of 4.11% to
6.57% per annum as at March 31, 2026. The interest
rates used at March 31, 2025 were in the range of
5.12% to 6.53% per annum

b) The interest rates used for valuing the liabilities
for business sourced through, Company's IFSC
Insurance Office (Gandhinagar) is in the range of
2.25% to 3.61% per annum for as at March 31, 2026

c) Mortality rates used are based on the published
“Indian Assured Lives Mortality (2012 - 2014) Ult.”
mortality table for assurances and “Indian Individual
Annuitant's Mortality Table (2012-15)” table for
annuities adjusted to reflect expected experience

d) Morbidity rates used are based on CIBT 93 table,
adjusted for expected experience, or on risk rates
provided by reinsurers.

e) For products where there is a persistency
assumption, it is based on most recent experience of
the Company, and varies according to the premium
frequency and premium size of the product.

f) Expenses are provided for at least at the current
levels in respect of renewal expenses, with no
allowance for any future improvement.

g) Per policy renewal expenses are assumed to
inflate at 4.63% per annum. The expense inflation
assumption used at March 31, 2025 was 4.88%.

h) The bonus rates for participating business to
be declared in the future is consistent with the
valuation assumptions.

i) The tax rate applicable for valuation at
March 31, 2026 is 14.56% per annum. The tax rate
applicable for valuation at March 31, 2025 was
14.56% per annum.

Certain explicit additional provisions are made, which
include the following:

a) Reserves for additional expenses that the Company
may have to incur if it were to close to new business
twelve months after the valuation date.

b) Reserves for guarantees available to individual and
group insurance policies.

c) Reserves for cost of non-negative claw
back additions.

d) If a policy which is in force as at the valuation date
is subsequently cancelled in the free-look period,
then there could be a strain. An expected free look
cancellation rate is applied to the reserve for policies
issued within a period of two months preceding
the valuation date. The reserve is calculated as the
strain (subject to a floor of zero) that would arise
if the policies were to exercise the free look option,
multiplied with a prudent estimate of the free look
cancellation rate. Reserves for free look option
given to policyholders are '27 lakhs as on March 31,
2026. The free look reserves as on March 31, 2025
were ' 13 lakhs.

e) Reserves for lapsed policies eligible for revivals.

f) An additional reserve is held for incurred but not
reported claims.

g) An additional reserve is held as Global Resilience
Reserve to manage uncertainty around future
earnings yield in light of ongoing conflict in West Asia.

3.4. Funds for Future Appropriations (‘FFA’)

The balance of funds for future appropriations related
to participating line of business, amounting to ' 190,820
(March 31, 2025: ' 126,831 lakhs) represents funds, the
allocation of which, either to Participating Policyholders
or to Shareholders, has not been determined at the
Balance Sheet date. Transfers to and from the fund
reflect the excess or deficit of income over expenses
and appropriations in each accounting period arising

in the Company's Policyholders' fund. Any allocation to
the policyholder would also give rise to a shareholder
transfer in the required proportion.

Further, as per the IRDAI Master Circular on Actuarial,
Finance and Investment Functions of Insurers, IRDAI/
ACTL/CIR/MISC/80/05/2024 dated May 17, 2024,

discontinuance charges amounting to ' 3,188 lakhs
(March 31, 2025: ' 1,487 lakhs) arising from policies
discontinued after April 1, 2024 and that have not exited
from the books by March 31, 2026 have been transferred
to the funds for future appropriation of linked line of
business and shown in the Balance Sheet.

3.5. Claims settled and remaining unpaid

Claims settled and remaining unpaid for a period of
more than six months at March 31, 2026 is ' 1,353 lakhs
(March 31, 2025: ' 1,046 lakhs). These claims remain
unpaid awaiting receipt of duly executed discharge
documents from the claimants or litigation pending.

3.6. Reconciliation of unclaimed amounts of
policyholders

The unclaimed amount of policyholders is governed by
the Master Circular on Operations and Allied Matters
of Insurers, 2024 - IRDAI/PPGR/CIR/MISC/97/06/2024
dated June 19, 2024 and Investment Regulations,
2016 as amended from time to time. The Company
maintains a single segregated fund to manage all
unclaimed amounts.

The unclaimed amount of policyholders liability has
been disclosed under “Current Liabilities” in schedule 13.
The amount in the unclaimed fund has been disclosed
in schedule 12 as “Assets held for unclaimed amount
of policyholders”. Investment income accruing to the
unclaimed fund has been credited to the fund and
disclosed as “Other Income” under Linked Life segment
in the Revenue Account. Such investment income net of
fund management charges (‘FMC') is paid/ accrued as
“interest on unclaimed amounts” in schedule 4 of the
standalone financial statements as “Benefits paid”.

The IRDAI, vide its email dated August 27, 2024 had
directed the Company to exclude unpaid amounts
arising from maturities, foreclosures, survival benefits,
cancellations (excluding freelook cancellations), pension
and annuity payments, and refunds of excess premiums
or deposits from being classified as unclaimed amounts.
Further, amounts outstanding in respect of foreclosure
of linked policies shall be reinstated back to the
discontinuance fund.

The amount remaining in unclaimed fund as on March 31,
2026, pertains to amounts under litigation or subject to
statutory holds.

During the current financial year, the Company has reversed excess provision of income tax amounting to ' 33,913
lakhs pertaining to earlier years post conclusion of income tax assessment and same has been netted off from the
current year tax provision in the Revenue Account .

3.10. Operating lease commitments

The Company takes premises, motor vehicles, office equipments and servers on operating lease. Certain lease
arrangements provide for cancellation by either party and also contain a clause for renewal of the lease agreement.
Lease payments on cancellable and non-cancellable operating lease arrangements are charged to the Revenue
account and the Profit and Loss account over the lease term on a straight line basis. The total operating lease rentals
charged for the year ended March 31, 2026 is ' 10,142 lakhs (March 31, 2025: ' 11,053 lakhs).

3.11. Assets given on operating lease

The Company has entered into an agreement in the nature of leave and license for leasing out the investment property.
This is in the nature of operating lease and lease arrangement contains provisions for renewal. There are no restrictions
imposed by lease arrangement and the rent is not determined based on any contingency. The total lease payments
received in respect of such lease recognised in the Revenue account and the Profit and Loss account for the year ended
March 31, 2026 is ' 4,878 lakhs (March 31, 2025: ' 5,260 lakhs).

Pursuant to the notification issued by the Ministry of Labour and Employment, the Code on Wages, 2019, the Code
on Social Security, 2020, the Industrial Relations Code, 2020 and the Occupational Safety, Health and Working
Conditions Code, 2020 (collectively referred to as the “New Labour Codes”) became effective from November 21, 2025.
The Company has reassessed its employee benefit obligations in accordance with the revised definition of wages.
Accordingly, an incremental liability on account of past service cost, determined in accordance with AS 15 - Employee
Benefits amounting to ' 557 lakhs has been recognised and charged to the Revenue and Profit and Loss Account
during the year. The impact of the above has been included in the defined benefit obligation as at March 31, 2026.

(ii) Provident fund

Provident fund benefits are aimed at providing security to staff members and their dependents on retirement, disability
or death. Both employee and the Company contribute an equal percentage of the basic salary, a part of which is
towards Government administered pension fund and balance portion is contributed to the fund administered by
trustees. The Provident fund is managed by ICICI Prudential Life Insurance Company Employees' Provident Fund Trust.

The minimum rate at which the annual interest is payable by the Trust to members is prescribed by the Government.
The Company has an obligation to make good the shortfall, if any, between the Government prescribed rate and actual
return earned by the Provident fund.

3.19.Employee Stock Option Scheme (ESOS) and Employee Stock Unit Scheme (ESU)

Employee Stock Option Scheme (ESOS)

The Company granted options to its employees under its Employees Stock Option Scheme, prior to listing, since
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 had 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, 2026. The scheme had been
instituted vide approval of its Members at the Extra-Ordinary General Meeting (EGM) dated March 28, 2005 and had
been 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.

The meeting of 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 revised 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.

Further, the meetings of BNRC and the Board held on May 16, 2025 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 revised scheme or any other stock option scheme of the Company, by 1.76%
of the number of shares issued as on March 31, 2016, i.e. from a limit of 3.54% of the number of shares issued as on

March 31, 2016 to 5.30%. The revision to the limit was approved by the members of the Company at its Annual General
Meeting held on June 27, 2025.

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 5.30% 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 BNRC 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 of the Company and/or the BNRC in accordance with the criteria ascertained
pursuant to the Company's compensation policy.

The Company granted options in twenty more tranches under ESOS 2005 (Revised), namely 2017-18, 2018-19, 2018¬
19 special options, 2018-19 joining options, 2019-20, 2019-20 joining options, 2020-21, two tranches of 2020-21
joining options, 2021-22 three tranches of 2021-22 joining options, 2022-23, 2022-23 joining options, 2023-24, 2023¬
24 joining options, 2024-25, 2025-26 and 2025-26 joining options.

The weighted average price of options exercised during the year ended March 31, 2026 is ' 408.77 (March 31,

2025: ' 405.14).

Out of the total outstanding options at April 1, 2025, 4,113,092 options vested during the year ended March 31, 2026
and ' 14,924 Lakhs was realised by exercise of options during the year ended March 31, 2025. Amount realized by
exercise of options does not include options exercised by employees during the financial year where payments are
received after March 31, 2026.

The Company follows intrinsic value method. During the year ended March 31, 2026, the Company has recognised a
compensation cost of ' Nil ( March 31, 2025: ' Nil) as the intrinsic value of the unit.

Employee Stock Option Unit (ESU)

The Board Nomination and Remuneration Committee (BNRC) at its meeting held on June 10, 2023, approved the
‘ICICI Prudential Employees Stock Unit Scheme - 2023' (Unit Scheme), designed in accordance with SEBI Regulations
and other applicable regulations. Subsequent to the approval of the Unit Scheme by the Board at its meeting held on
June 10, 2023 it was approved by the shareholders of the Company at its meeting held on July 28, 2023.

The Maximum number of Shares that can be issued under this Unit Scheme shall be 1,45,00,000 (one crore forty five
lakhs). Each Unit on Exercise will entitle the participant to 1 (One) share. The Grants under the Unit Scheme shall be
made in one or more tranches as may be determined by the Committee over a period of 6 (six) years from the date of
approval of the Unit Scheme by the shareholders. The maximum number of Units granted to any Eligible Employee
shall not exceed 60,000 (sixty thousand) Units in any financial year.

The Vesting shall commence on the expiry of minimum period of one (1) year from the date of Grant of the Units and
the Vesting Period would be spread over a minimum period of three (3) years from the date of Grant of the Units.
The Committee has the authority to prescribe the Exercise Period not exceeding 5 years from date of vesting within
which the Participant can Exercise the vested Units and that would lapse on failure to Exercise the same within the
Exercise Period. The Exercise Price shall be the face value of the Shares of the Company.

Had the Company followed fair value method based on Black Scholes model valuing its options and units compensation
cost for the year ended would have been higher by ' 5,383 lakhs (March 31, 2025: ' 4,467 lakhs) in case of ESOS and
' 280 lakhs (March 31, 2025: ' 7 lakhs) in case of ESU and the proforma profit after tax would have been ' 154,373
lakhs (March 31, 2025: ' 114,433 lakhs). On a proforma basis, the company's basic and diluted earnings per share
would have been ' 10.67 for the year ended March 31, 2026 (March 31, 2025: ' 7.93) and ' 10.61 for the year ended
March 31, 2026 (March 31, 2025: ' 7.87) respectively.

3.20. Foreign exchange gain/loss

Transactions in foreign currencies are recorded at exchange rate prevailing on the date of transaction. The exchange
difference between the rate prevailing on the date of transaction and on the date of settlement is recognised as income
or expense, as the case may be. The net foreign exchange fluctuation gain credited to the Revenue account and the
Profit and Loss account for the year ended March 31, 2026 is ' 1 lakh (March 31, 2025: ' 65 lakhs).

3.21. Earnings per share

In accordance with Accounting Standard 20 on 'Earnings Per Share', basic earnings per share is calculated by dividing
the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year
attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are
adjusted for effects of all dilutive equity shares.

3.22. Managerial Remuneration
The appointment of managerial personnel is in
accordance with the requirements of Section 34A of
the Insurance Act, 1938. IRDAI has issued guidelines
on June 30, 2023 on remuneration of Non-Executive
Directors and Managing Director (‘MD') /Chief Executive
Officer (‘CEO') /Whole Time Directors (‘WTD') and Master
Circular on Corporate Governance for Insurers, 2024
issued vide reference no. IRDAI/F&I/CIR/MISC/82/5/2024
dated May 22, 2024, which have prescribed certain
qualitative and quantitative disclosures. The disclosures
for year ended March 31, 2026, are given below:

Remuneration to MD/CEO/WTD:

Qualitative disclosures:

A) Information relating to the composition and
mandate of the Nomination and Remuneration
Committee

Name, composition 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 and
recommending to the Board their appointment & removal
and formulating a criteria and specifying the manner
for effective evaluation of every individual director's
performance, evaluation of the performance of the Board
and its Committees, and reviewing its implementation and
compliance; considering to extend or continue the term of
appointment of the Independent Directors, on the basis
of the report of performance evaluation of Independent
Directors; determining and recommending to the Board
a policy relating to the remuneration for the Directors,
the CEO, key management persons and other employees
in alignment with applicable guidelines and framework;
recommending to the Board all remuneration, in whatever
form, payable to senior management; ensuring 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; ensuring
that the relationship of remuneration to performance is

clear and meets appropriate performance benchmarks;
approving the compensation program and ensuring that
remuneration to Directors, key management persons
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; formulating the criteria
for determining qualifications, positive attributes and
independence of a Director; devising a policy on diversity
of the Board; considering and approving employee stock
option schemes and administering & supervising the
same; ensuring that the proposed appointments/re-
appointments of key management persons or Directors
are in conformity with the Board approved policy on
retirement/superannuation; scrutinising the declarations
of intending applicants before the appointment/re-
appointment/election of Directors by the shareholders
at the annual general meeting; and scrutinising the
applications and details submitted by the aspirants for
appointment as the key management person and to make
independent/ discreet references, where necessary, well
in time to verify the accuracy of the information furnished
by the applicant.

External consultants whose advice has been sought,
the body by which they were commissioned and in
what areas of the remuneration process:

The Company employed the services of reputed
consulting firms for market benchmarking in the area of
compensation.

Scope of the Company's remuneration policy (e.g. by
regions, business lines), including the extent to which
it is applicable to foreign subsidiaries and branches:

The Company's Policy on Compensation & Benefits
(“Compensation Policy”) for Managing Director & CEO,
other Wholetime 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 their Meetings
held on April 15, 2025.

Type of employees covered and number of such employees:

All employees of the Company are governed by the
Compensation Policy. The total number of employees
governed by the Compensation Policy of the Company at
March 31, 2026 was 19,303.

B) Information relating to the design and structure of
remuneration process.

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 Company's 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 BNRC
has the oversight for framing, review and implementation
of the Company's Compensation Policy on behalf of the
Board, and shall work in close coordination with the
Board Risk Management Committee for an integrated
approach to the formulation of the Compensation Policy
where required .The decision relating to the remuneration
of the Managing Director and CEO (MD & CEO) , other
wholetime Directors and KMPs/SMPs 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 and grant of long-term pay, if
applicable. The BNRC assesses 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 wholetime
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 performance-linked variable pay, with a higher
proportion of variable pay at senior levels. For the MD
& CEO and other wholetime Directors and KMPs/SMPs,
compensation is sought to be aligned to the pre-defined
performance objectives of the Company. In addition,
the Company has an Employees Stock Option Scheme
and an Employee Stock Unit Scheme aimed at enabling
employees to participate in the long-term growth and
financial success of the Company through stock option
grants/stock unit grants that vest over a period of time.

Whether the Remuneration Committee reviewed the
firm's remuneration policy during the past year, and if so,
an overview of any changes that were made:

The BNRC reviewed the Company's Compensation Policy
at its meeting held on April 15, 2025.

• The Compensation Policy had a clause on maximum
cap on performance-linked variable pay and long¬
term pay together of 300% of fixed pay for all
employees, which was amended to be applicable to
full-time employees.

The revised compensation policy was approved by the
BNRC and the Board at their meetings held on April 15,
2025.

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

processes.

• The Company follows prudent compensation
practices under the guidance of the Board and the
Board Nominations & Remuneration Committee
(BNRC). The Company's 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 an 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, other wholetime Directors and
KMPs/SMPs, compensation is sought to be aligned to
pre-defined performance objectives of the Company
which are approved by the BNRC and the Board.

• For the MD & CEO, other wholetime Directors and
KMPs/SMPs, the quantum of variable pay does not
exceed 300% as stipulated in the Compensation
Policy) of total fixed pay in a year; a minimum
of 50% of the variable pay (as stipulated in the
Compensation Policy) will be under deferment. If the
bonus amount is under ' 25 lakhs, 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 pro rata
basis. Additionally, vesting will not be more frequent
than on a yearly basis.

• Ensuring balance in setting performance objectives,
capping the payout of performance bonus and
following an annual payout cycle for variable
pay ensures that prudent behaviour is suitably
encouraged and rewarded.

• The deferred part of the variable pay (performance
bonus and long-term pay in the form of stock options/
stock units) for wholetime Directors and KMPs/SMPs
is subject to malus, under which, the Company will
prevent vesting of all or part of the variable pay in the
event of act of willful or gross misconduct or neglect,
the commission of felony, fraud, misappropriation,
embezzlement, breach of trust or an offence involving

moral turpitude or breach of integrity, gross or willful
insubordination, or materially inaccurate financial
statements due to the result of misconduct including
fraud, or poor compliance in respect of corporate
governance and regulatory matters, or any other
act detrimental to the interest of the Company.
The details of malus and clawback arrangements
are defined in the Company's Compensation Policy.
In addition, under the events mentioned above and
defined in the Compensation Policy, as per clawback
arrangements with wholetime Directors and KMPs/
SMPs, the employee agrees to return, in case asked
for, the previously paid variable pay to the Company.

• Due process including inquiries or investigations as
required and/or adherence to principles of natural
justice are ensured prior to conclusion on the above
events of breaches and which would form the
basis of decisions. Errors of judgment shall not be
construed to be breaches.

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

The Company's 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 & organisation performance for non-sales
frontline employees & 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 MD & CEO, other wholetime
Directors and KMPs/SMPs to ensure effective alignment
of compensation with prudent risk parameters,
the Company takes into account certain minimum
parameters (as defined in the Compensation Policy and
in line with the IRDAI Master Circular) to determine the
performance assessment along with any other pre¬
defined performance objectives of the Company as may
be determined by the BNRC and the Board.

3.25. Investments

The investments are made from the respective funds of the Policyholder's or Shareholder's and investment income
thereon has been accounted accordingly. All investments are performing investments.

3.26. Interest rate derivatives

In line with the requirement of IRDAI Master Circular on Actuarial, Finance and Investment Functions of Insurers, the
Company has put in place a derivative policy approved by the Board. The policy covers various aspects substantiating
the hedge strategy to mitigate the interest rate risk, thereby managing the volatility of returns from future fixed income
investments due to variations in market interest rates.

A) The Company has during the period, as part of its hedging strategy, entered into Forward Contracts in Government
Securities (Bond Forwards) to hedge the interest rate sensitivity for highly probable forecasted transactions as
permitted by the IRDAI Master circular on Actuarial, Finance And Investment Functions, 2024, and the IRDAI
Circular on Exposure to Forward Contracts in Government Securities (Bond Forwards) . The Forward Rate
Agreement and Bond Forward derivative contracts are Over The Counter (OTC) transactions, agreeing to buy the
notional value of a debt security at a specified future date, at a price determined at the time of the contract with
an objective to lock in the price of an interest bearing security at a future date.

B) The portion of the fair value gain/loss on the interest rate derivatives that is determined to be an effective hedge is
recognised directly in ‘Credit/(Debit) Fair Value Change Account' in the Balance Sheet under policyholders' funds and
the portion that gets determined as ineffective hedge or ineffective portion of effective hedge, based on the hedge
effectiveness assessment is recognised in the Revenue Account under the head “Transfer/Gain on revaluation/Change
in fair value”.

Mark-to-market (MTM) gains/(losses) in respect of Interest Rate Derivatives (Forward Rate Agreements and Bond
Forwards) outstanding:

D) A net amount of ' 37,592 lakhs for the year ended March 31, 2026 (March 31, 2025: ' 2,150 lakhs) was recognised
in Revenue Account being the portion of loss determined to be ineffective portion of the effective hedge. The amount
that was removed from the cash flow hedge reserve account during the year ended March 31, 2026 in respect of
forecast transaction for which hedge accounting had previously been used but is no longer expected to occur is
' Nil (March 31, 2025: ' Nil). The hedged forecast transactions are expected to occur over the outstanding tenor
of underlying policy liabilities and corresponding hedging gain/loss will accordingly flow to the Revenue Account.

E) Disclosures on risk exposure in Interest rate derivatives:

i. Interest rate derivative hedging instruments: Derivatives are financial instruments whose characteristics are
derived from the underlying assets, or from interest and exchange rates or indices. Interest rate derivatives include
forward rate agreements, Bond Forwards, interest rate swaps and interest rate futures. The Company during
the financial year has entered into Bond forwards derivative instrument to hedge exposure due to interest rate
sensitivity for highly probable forecasted transactions. These hedges were entered only for hedging purpose to
hedge the interest rate risk. This hedge is carried in accordance with its established policies, strategy, objective
and applicable regulations.

ii. Derivative policy, process and hedge effectiveness assessment: The Company has a well-defined Board
approved derivative policy and standard operating procedures setting out the strategic objectives, regulatory
and operational framework and risks associated with interest rate derivatives. The policy includes the risk
measurement and monitoring, processes to be followed and controls thereon. The accounting treatment has been
documented and ensures a process of periodic effectiveness assessment and accounting in accordance with
applicable accounting standard issued by the Institute of Chartered Accountants of India (ICAI).

The Company has clearly defined roles and responsibilities to ensure independence and accountability through
the investment decision, trade execution, to settlement, accounting and periodic reporting and audit of the Interest
rate derivative exposures. The overall policy, risk management framework for the Interest rate derivatives are
monitored by the Board Risk Management Committee.

iii. Scope and nature of risk identification, risk measurement, and risk monitoring: The derivative policy as
approved by the Board identify risk associated with interest rate derivatives transactions and sets appropriate
market risk limits such as stress testing and value-at-risk limits. Financial risks of the derivative portfolio are
measured and monitored on periodic basis.

F) Risk exposure in Interest Rate Derivatives

A hedge is deemed effective, if it has a high statistical correlation between the change in value of the hedged
item and the hedging instrument. Gains or losses arising from hedge ineffectiveness, if any, are recognized in
the Revenue Account. The tenor of the hedging instrument may be less than or equal to the tenor of underlying
hedged transaction.

The exposure limit has been calculated on the basis of Credit Equivalent Amount using the Current Exposure Method
(CEM) as detailed below:

The Credit Equivalent Amount of a market related off-balance sheet transaction calculated using the CEM is the sum of

a) The current credit exposure (gross positive mark to market value of the contract)

b) Potential future credit exposure which is a product of the notional principal amount across the outstanding
contract and a factor that is based on the mandated credit conversion factors as prescribed under the IRDAI
circular on Interest Rate Derivatives, which is applied on the residual maturity of the contract.

3.27. Valuation of Investment property

During the year ended March 31, 2026, there was a change in use of an owner-occupied building, resulting in its
reclassification from Fixed Assets Schedule, Buildings, to Investment Property under shareholders' funds. On the date
of change in use, the property was measured at its carrying (written down) value of ' 10,806 lakhs, which has been
considered as the deemed cost of the investment property. Subsequently, the investment property is measured at fair
value and disclosed at market price in the Investment Schedule. The resultant fair value gains of ' 8,907 lakhs have
been recognised in Revaluation Reserve under Reserves and Surplus in the Balance Sheet.

In accordance with the IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024, Schedule II
Part I clause 7(1), the Company's investment property has been revalued. The Company has revalued all its investment
properties held for more than one year and market value for such properties is based on valuation performed by
an independent valuer at March 31, 2026. The opinion on market value by the independent valuer, is prepared in
accordance with the “The RICS Valuation Standards” published by the Royal Institution of Chartered Surveyors
("RICS"), subject to variation to meet local established law, custom, practice and market conditions. The methods used
in valuation of property includes “Direct comparable approach”. The real estate investment property is accordingly
valued at ' 71,004 lakhs at March 31, 2026 (March 31, 2025: ' 50,365 lakhs). The historical cost of the property at
March 31, 2026 is ' 52,720 lakhs (March 31, 2025: ' 41,914 lakhs).

3.28. Impairment of investment assets

In accordance with the IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024, Schedule
II Part I on “Accounting Principle for Preparation of Financial Statements” on procedure to determine the value of
investment, the impairment in value of investments other than temporary diminution has been assessed as at March 31,
2026 and accordingly impairment provisions/(reversal) have been provided as below.

Listed Equity Shares and Unlisted Equity Shares

In case of Listed Equity Shares, a provision/(reversal) for impairment loss has been recognized in Standalone
Revenue Account and Profit and Loss Account under the head “Provision for diminution in the value of investments”.
Policyholders' and Shareholders' Fair Value Change Account under Policyholders' and Shareholders' Funds respectively
in the Balance Sheet have been adjusted for such provision/(reversal) of impairment loss. The details of impairment for
the year are given below:

3.41. Extra allocation

As per the product filing for Group Unit Linked Superannuation and Group Unit Linked Employee Benefit Plan, extra
allocation of units made and total extra allocation recovered is disclosed as below.

Total extra allocation made with respect to group products (Group Unit Linked Superannuation and Group Unit Linked
Employee Benefit Plan) for the year ended March 31, 2026 is ' 393,647 (for year ended March 31, 2025 is ' Nil).

The amount of recovery towards extra allocation for the year ended March 31, 2026 is ' Nil lakhs (March 31,
2025: ' 5 lakhs).

3.42. Dividend

Final dividend proposed for year ended March 31, 2026 is ' 1.65 per equity share (March 31, 2025: ' 0.85 per equity share)
of ' 10 each in its board meeting held on April 14, 2026, subject to shareholder approval in annual general meeting.

Unclaimed dividend of ' 14 lakhs at March 31, 2026 (March 31, 2025: ' 32 lakhs) represents dividend paid but not
claimed by shareholders, and are represented by a bank balance of an equivalent amount

3.46. Long term contracts

The Company has a process whereby periodically all long term contracts are assessed for material foreseeable
losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law
/ accounting standards for material foreseeable losses on such long term contracts including derivative contracts has
been made in the standalone financial statements.

For insurance contracts, actuarial valuation of liabilities for policies is done by the Appointed Actuary of the Company.
The methods and assumptions used in valuation of liabilities are in accordance with the regulations issued by the
Insurance Regulatory and Development Authority of India ('IRDAI') and actuarial practice standards and guidance
notes issued by the Institute of Actuaries of India.

3.47. Corporate Social Responsibility

The Company's CSR obligation has been determined as per Section 135(5) of the Companies Act, 2013, which
mandates a minimum contribution of 2% of the average net profits of the company for the three immediately preceeding
financial years. Accordingly, the CSR obligation for FY2026 is calculated based on the net profits reported for FY2023,
FY2024 and FY2025.

Further, as per the Companies (Corporate Social Responsibility Policy) Rules, 2014, such net profit for the calculation
of CSR obligation shall not include any dividend received from other companies in India which are covered under and
complying with the provisions of Section 135 of the Act.

Accordingly, net profit of the Company to be considered for CSR calculation for FY2026 is ' 23,718 lakhs after adjusting
for dividend income received from companies adhering to Section 135 of the Companies Act and the CSR obligation is
' 159 lakhs. However, the Company has voluntarily chosen to contribute ' 264 lakhs towards CSR initiatives for FY2026
as approved and ratified by the Board. The Company also has CSR excess spent carried forward from previous year.

There are no ongoing projects for FY2026

3.48. Loans and advances to subsidiaries, associates and related entities

Pursuant to Securities and Exchange Board of India (Listing obligations and disclosure requirements) Regulations, 2015,
disclosures pertaining to loans and advances given to subsidiaries, associates and related entities are given below:

There are no loans and advances given to subsidiaries, associates and firms/companies in which directors are interested
except for advances which are in the normal course of business but not in the nature of loans (March 31, 2025: Nil)

There are no investments by the loanee in the shares of the Company.

3.49. Contribution/transfer to Policyholders’ account

Amounts contributed to policyholders' account towards excess of expense of management and towards remuneration
of MD/CEO/WTD/Other KMPs in excess of prescribed limits are disclosed separately in the Profit and Loss account &
the Revenue Account. Further, amounts have been transferred from shareholder's account for funding deficit in the
Revenue Account.

In accordance with the Insurance Regulatory and Development Authority of India (Expenses of Management, including
Commission, of Insurers) Regulations, 2024 expense of management in excess of allowable limit in Participating and
Non Participating (including linked) business segment is required to be borne by the Shareholders' and separately
disclosed in the Profit and Loss account & the Revenue Account. The Company is in compliance with the expense of
management regulation for Participating and Non Participating (including linked) business segment and also at an
overall level during the year ended March 31, 2025.

The contribution of ' 98,137 lakhs (March 31, 2025: ' 31,370 lakhs) made by the shareholders' to the policyholders'
account towards deficit funding in various line of business.

No irreversible contribution has been made from the Shareholders' account to the Policyholders' account during the
financial year ended March 31, 2026 (March 31, 2025: Nil).

3.50. Ind AS Implementation

Pursuant to IRDAI letter 100/2/Ind AS- Mission Mode/2022-23/1 dated July 14, 2022, and letter 100/2/Ind AS- Mission
Mode/2024 Vol-2 dated January 10, 2025, a disclosure on the strategy for Ind AS implementation and progress in this
regard is given below:

The Company has formed a steering committee comprising members from Actuarial, Finance and Technology functions
to oversee the implementation of Ind AS and the Board of Directors and the Board Audit Committee has been updated
on the progress of Ind AS implementation quarterly. During the year, the Company submitted proforma Ind AS financial
statements for FY2024 and FY2025 to IRDAI.

Further, IRDAI has notified the IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Amendment)
Regulations, 2026 on March 30, 2026, which is effective from April 1, 2026. The Company is currently evaluating its
accounting policy choices and system readiness in line with the captioned regulations. The Company intends to seek
forbearance from IRDAI for the implementation of Ind AS from April 1, 2027.

3.51. Loans, Advances & Investment by or on behalf of Ultimate Beneficiaries

a) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or other kind of funds) to or in any other person or entity, including foreign entity (“Intermediaries”), with
the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

b) The Company has not received any funds (which are material either individually or in the aggregate) from any
person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing
or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.

3.52. Sale of Subsidiary

On January 12, 2026, the Company sold 100% of its stake in ICICI Pension Funds Management Company Limited (‘ICICI
PFM') erstwhile ICICI Prudential Pension Funds Management Company Limited to ICICI Bank Ltd for a total consideration
of ' 20,350 lakhs. As a result of this transaction, ICICI PFM ceased to be a subsidiary of the Company from that date.
Accordingly, ICICI PFM was a subsidiary till January 12, 2026.

3.53. Details of Key financial information for the place of business outside India:

The company has been registered to undertake Life Insurance Business under Section 13 of the International Financial
Services Centers Authority Act, 2019 as an IFSC Insurance Office (IIO) at IFSC GIFT City - Gandhinagar.

Key Financial Information required to be disclosed as per Master Circular on Operations and Allied Matters (IRDAI/
PPGR/CRI/MISC/97/06/2024) is as under:

3.54. Expenses allocation/apportionment methodology

During the year there were no revisions to the expenses allocation / apportionment methodology as per the Board
approved Expenses of Management policy.

*ICICI Pension Funds Management Company Limited (erstwhile ICICI Prudential Pension Funds Management Company Limited) ceased to be
a subsidiary of ICICI Prudential Life Insurance Company Limited on January 12, 2026. Accordingly, the financial statements of the subsidiary
have been consolidated up to the date on which control ceased.

For and on behalf of the Board of Directors

Sandeep Batra R. K. Nair Samit Upadhyay

Chairperson Director Director

DIN:03620913 DIN:07225354 DIN:11288692

Anup Bagchi Dhiren Salian Souvik Jash

Managing Director & CEO Chief Financial Officer Appointed Actuary

DIN: 00105962

Priya Nair
Company Secretary

Place: Mumbai
Date: April 14, 2026