r. Provisions and Contingent Liabilities / Assets

The Company recognises a provision when there is
a present obligation as a result of a past event that
probably requires an outflow of resources and a
reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is
made when there is a possible obligation or a present
obligation that may, but probably will not, require
an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood
of outflow of resources is remote, no provision or

disclosure is made. Loss contingencies arising from
litigation etc. are recorded when it is probable that
a liability has been incurred and the amount can be
reasonably estimated.

Contingent assets are neither recognised nor disclosed.

s. Earnings per Share

As per Accounting Standard 20 on Earnings Per Share,
basic earnings per share are calculated by dividing the
net profit or loss for the period in the shareholders'
account by the weighted average number of equity
shares outstanding during the period.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable
to shareholders and the weighted average number of
shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.

t. Cash and Cash Equivalents

Cash and cash equivalents for the purpose of
Receipts and Payments Account comprises of cash
and cheques in hand, bank balances, deposits with
banks and other short-term highly liquid investments
with original maturities of three months or less.
Receipts and Payments Account is prepared and
reported using the Direct Method in accordance with
Accounting Standard 3, Cash Flow Statements" as per
requirements of the IRDAI AFI Master Circular 2024
and the IRDAI AFI Regulations 2024.

Notes:

Note 1:

Show-cause notices issued by various Government
Authorities are not considered as an obligation.
When any order or notice is raised by the authorities
for which the Company is in appeal under
adjudication, these are disclosed as contingent liability
except in cases where the probability of any financial
outflow is remote.

Note 2:

The IRDAI has issued directions under section 34 (1)
of the Insurance Act, 1938 to refund to the members
or the beneficiaries, the excess commission allegedly
paid to corporate agents amounting to ' 27,529 Lakhs
(previous year ended March 31, 2024: ' 27,529 Lakhs)
vide order no. IRDA/Life/ORD/Misc/083/03/2014
dated March 11, 2014 has been set aside by Securities
Appellate Tribunal (SAT) vide its order dated 29
January 2020. The SAT has remitted the matter to
IRDAI to recalculate the interest earned on advance
premium collected. The IRDAI recalculation, if any,
has not been received by the Company. The IRDAI
and SBI Life both, have challenged SAT order dated
January 29 2020 before the Hon'ble Supreme Court

of India in Civil Appeal Nos. 254-255 of 2021 and Civil
Appeal No. 2497-2498 of 2021 respectively, which is
yet to be adjudicated upon.

Note 3:

These cases pertain to litigation arising in the ordinary
course of business and pending at various appellate
forums/courts. The Company has made a provision of
' 5,319 Lakhs at March 31, 2025 (Previous year ended
March 31, 2024'4,388 Lakhs) where the management
assessment of a financial outflow is probable.

Pending Litigation

The Company's pending litigations comprise of
claims against the Company primarily by 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 liability (refer note 1 of Schedule 16
(C)) where applicable, in its financial statements.
The Company does not expect the outcome of these
proceedings to have a material adverse effect on its
financial statements as at March 31, 2025.

5. Actuarial Assumptions

The assumptions used in valuation of liabilities are in accordance with the guidelines and norms issued by the IRDAI
and the Institute of Actuaries of India (IAI) in concurrence with IRDAI.

The actuarial assumptions certified by the Appointed Actuary are as under:

a. In the actuarial valuation all the policies, which were in the books of the Company and where there is a liability
as at March 31, 2025, have been taken into account.

The portfolio consists of Participating,
Non-Participating and Linked segments.

'Participating' segment is further classified in
to the following Lines of Businesses (LoBs):
Individual - Life - Participating, Individual -
Pension - Participating, Group - Pension -
Participating and Individual - VIP - Participating.

'Non-Participating' segment is further
classified in to the following LoBs: Individual

- Life - Non-Participating, Individual

- Pension - Non-Participating, Group
Savings - Non-Participating, Group One
Year Renewable Group Term Assurance
(OYRGTA) - Non-Participating, Group
Other - Non-Participating, Annuity -
Non-Participating (Individual and Group), Health

- Non-Participating (Individual and Group), and
VIP - Non-Participating (Individual and Group).

'Linked' segment is further classified in to the
following LoBs: Individual - Life - Linked, Group
- Linked and Individual - Pension - Linked.

b. In respect of the policies which are likely to get
cancelled during their free-look period, adequate
provision has been made towards the strain that
may arise. Such provision has been made in line
with the company experience and the relevant
provisions in the policy contract(s).

c. The following parametric values are used to carry
out the actuarial valuation:

For mortality assumption under life business
'Indian Assured Lives (2012-2014) Ultimate
Mortality table' and under general annuity
business 'Indian Individual Annuitant's
Mortality Table (2012-15)' has been used.
For Morbidity assumption, the Morbidity Tables
provided by re-insurers has been used with
suitable adjustment.

For participating products, the vested bonuses
are those which were distributed by the
Company consequent to the actuarial valuations
carried out annually at the end of each financial
year dated March 31, 2002 to March 31, 2025.
Regarding bonus provisions for the current
financial year and bonus provision for future
years, the bonus rates have been assessed by
carrying out Bonus Earning Capacity (BEC) / asset
share investigations and taking into consideration
the policyholder's reasonable expectations.

Prevailing tax rate as applicable has been duly
allowed for in valuation of policy liabilities.

For participating pension products, special
one-time bonus declared during financial year
2003-04 and 2004-05 have been taken into
account. Appropriate future bonus assumptions
have been made.

Margin for Adverse Deviation (MAD) has been
provided, wherever applicable and required.

In addition to this, Incurred but Not Reported
(IBNR) claims reserve is also provided
wherever required.

The above parameters and the MAD provision
have been observed to ensure prudence and are
in accordance with the GN / APS issued by the
Institute of Actuaries of India and in concurrence
with the Regulations and circulars of IRDAI.

The Surplus emerged from Non-participating
segment has been transferred to Profit & Loss
Account for the year ended March 31, 2025
based on the recommendation of the Appointed
Actuary and the necessary fund transfer will be
made after the year end on the basis of Audited
financials with required recommendations by the
Appointed Actuary.

Appointed Actuary is satisfied that the nature
and extent of reinsurance arrangements require
no additional reserve to be set aside apart from
reinsurance reserves set aside based on Unearned
Premium Reserve (UPR) methodology.

Considering the prudence of the valuation
basis and the margins in the assumptions, our
assessment is that, the reserve set aside is
sufficient to meet all future policy outgoes under
adverse conditions.

Funds for Future Appropriation

As at March 31, 2025, the Funds for Future
Appropriation (FFA) in non-linked participating
segments is ' 144,797 Lakhs (previous year ended
March 31, 2024'133,656 Lakhs).

As at March 31, 2025, the Funds for Future
Appropriation (FFA) held in linked segments
is ' 14,340 Lakhs (previous year ended

March 31, 2024: Nil) in accordance with the
IRDAI AFI Regulations 2024 and the IRDAI AFI
Master Circular 2024.

6. Cost of Guarantee

Provision of ' 58,010 Lakhs (previous year ended March 31, 2024'32,493 Lakhs) has also been made for the cost of
guarantee under Individual unit linked policies with guarantee.

7. Policy Liabilities

The non-linked policy liability after reinsurance of ' 17,988,323 Lakhs as on March 31, 2025 (previous year ended
March 31, 2024 : ' 15,580,850 Lakhs) includes the following non-unit reserve held for linked liabilities:

performance is clear and meets performance
benchmarks. Remuneration shall consist of
Fixed Pay including allowances, perquisites,
retirement benefits and Variable Pay
including incentives, bonus, share linked
instruments, joining / sign of bonus, etc.

• To provide to Key Management Persons,
Senior Management and other employees,
rewards linked directly to their effort,
performance, dedication and achievement
relating to the Company's operations
and shall not encourage Key Managerial
Persons to take inappropriate or excessive
risks for their performance based
variable remuneration.

• To retain, motivate and promote talent
and to ensure long term sustainability of
talented managerial persons and create
competitive advantage.

• To ensure alignment of compensation with
prudent risk taking.

The policy is reviewed by Board NRC annually or
as and when required.

3. Description of the ways in which current
and future risks are taken into account in the
remuneration policy including the nature and
type of the key measures used to take account
of these risks

The Remuneration policy promotes
sound and prudent risk management.
Remuneration structure is well aligned with
the long-term growth, health and objectives
of the company. Compensation outcomes are
symmetric with risk outcomes and pay-outs
thereof are sensitive to the time horizon of the

risk and the mix of cash, equity and other forms of
remuneration are consistent with risk alignment.

The Remuneration policy of the Company
ensures proper balance between fixed pay and
variable pay. Variable Pay is in the form of “pay
at risk" and depending on performance and risk
outcomes at individual and company-wide level,
the quantum of Variable Pay changes.

As per the Remuneration policy, which is aligned
with IRDAI circular, for Key Managerial Persons,
at least 50% of the total variable pay is under
deferral arrangement and the deferral is spread
over at least three years. The deferred variable
pay is also subject to Malus and Claw-Back
clauses as detailed in the Remuneration Policy
of the Company.

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

The Company has an annual increment and
variable pay policy which is based on merit pay
philosophy linked to both individual as well as
Company's performance.

Various performance parameters for the
Company are reviewed by Board NRC and
approved by the Board every year. Based on the
actual performance, the Company performance
rating is approved by the Board based on the
recommendations of Board NRC after the end of
every financial year.

The framework of annual increment and
performance linked Variable Pay for all employees
is reviewed by the Board NRC and approved by
the Board every year.

2. Information relating to the design and structure
of remuneration policy and the key features and
objective of remuneration policy

We follow contribution-oriented philosophy
and our compensation is performance-driven,
emphasizing and recognizing the contributions
made by individual employees. It accentuates
performance-based pay, incentives, and shared
responsibility for benefits. The key objectives of
the remuneration policy are:

• To define and implement overall
remuneration philosophy and framework
for payment of remuneration payable to
Directors (Executive and Non-Executive),
Key Managerial Persons and other
employees of the Company.

• To ensure that level and composition
of remuneration is reasonable and
sufficient, relationship of remuneration to

Income tax provisions involves significant judgments in determining the provision for income taxes including judgment
on whether tax positions are probable of being sustained in tax assessments. The Management periodically reassess
and evaluates tax position with respect to applicable tax law based on the existing facts and circumstances.

16. Operating lease arrangements
(a) Assets taken on operating lease:

In accordance with Accounting Standard 19 on 'Leases', the details of leasing arrangements entered into by the
Company are as under:

The Company has entered into agreements in the nature of lease or leave and licence with different lessors or
licensors for residential premises, office premises and motor vehicles. These are in the nature of operating lease.
Some of these lease arrangements contain provisions for renewal and escalation. There are no restrictions imposed
by lease arrangements nor are there any options given to the Company to purchase the properties and the rent is not
determined based on any contingency.

The operating lease rentals charged to the Revenue Account during the year and future minimum lease payments as
at the Balance Sheet date are as follows:

17. Earnings per share

In accordance with Accounting Standard 20 on 'Earnings per share', basic earnings per share are calculated by dividing
the net profit or loss in the shareholders' account 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 shareholders
and the weighted average number of shares outstanding during the year are adjusted for the effects 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.

19. Employee benefits
a. Defined Benefit Plans:

(i) Gratuity

Gratuity is funded defined benefit plan for qualifying employees under which the Company makes a contribution
to the SBI Life Insurance Company Limited Employees Gratuity Fund. The plan provides for a lump sum payment
as determined in the manner specified under The Payment of Gratuity Act, 1972, to the vested employees either
at retirement or on death while in employment or on termination of employment. The benefit vests after five
years of continuous service. Defined benefit obligations are actuarially determined at each Balance Sheet date
using the projected unit credit method (PUCM) as per Accounting Standard 15 (Revised), “Employee benefits".
Actuarial gains and losses are recognised in the Revenue Account.

c. Employee Stock Option Scheme (ESOS)

The SBI Life Employee Stock Option Plan 2018 ('ESOP 2018') and SBI Life Employees Stock Option Scheme 2018 ('the
Scheme' or 'ESOS 2018') has been approved by the shareholders of the Company in the Annual General Meeting (AGM)
held on September 27, 2018 based on the recommendation of the Board Nomination & Remuneration Committee
('NRC') and Board of Directors ('Board') in their meetings held on August 31, 2018.

The maximum number of stock options granted to eligible employees in accordance with ESOP 2018 shall not exceed
30,000,000 shares. During any one year, no employee shall be granted Options equal to or exceeding 1% of the issued
share capital of the Company at the time of Grant of Options unless an approval from the Shareholders is taken by
way of special resolution in a General Meeting. Further, the maximum number of Options in aggregate granted to an
employee under this Plan shall not exceed 10,000,000 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 provided in the letter of grant.

The Scheme is directly administered by the Company and provides that eligible employees are granted options to
subscribe to equity shares of the Company which vest in a graded manner. The vested options may be exercised
within a specified period.

During the year ended March 31, 2025 the NRC in its meeting held on July 17, 2024 and July 24, 2024 has approved
the grant of the Employee Stock Options ('Options') under the provisions of ESOS 2018.

22. Investment Properties - Real Estate Investment Trusts (REITs)

The investment in Real Estate Investment Trusts (REIT's) of ' 131,338 Lakhs as at year ended March 31, 2025 (Previous
year ended March 31, 2024'64,726 Lakhs) has been disclosed as part of the Investment Property in accordance
with the IRDAI AFI Master Circular 2024 and the IRDAI AFI Regulations 2024 under schedule 8 and 8A of the
Financial Statements.

23. Derivatives

The Company offers guaranteed products wherein the Policyholders are assured of a fixed rate of return for premiums
to be received in future. These premiums are likely to be received over a longer tenure and the guaranteed rate
of return is fixed at the beginning of the policy term. Any fall in interest rates would mean that each incremental
investment of the Company would earn a lower rate of return. Accordingly, the Company manages the Interest Rate
Risk in accordance with the IRDAI AFI Master Circular 2024 and the IRDAI AFI Regulations 2024 which allows insurers
to deal in rupee interest rate derivatives such as Forward Rate Agreements (“FRAs"), Interest Rate Swaps (“IRS") and
Exchange Traded Interest Rate Futures (“IRF").

The Company has in place a derivative policy approved by Board which covers various aspects that apply to the
functioning of the derivative transactions undertaken to substantiate 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.

The Company enters into Forward Rate Agreements (FRA) transactions, as part of its Hedging strategy, to hedge
the interest rate sensitivity for highly probable forecasted transactions as permitted by the IRDAI circular on Interest
Rate Derivatives.

Forward Rate Agreement derivative contracts are over-the-counter (OTC) transactions wherein, the Company lock-in
the yield on the government bond for the period till the maturity of the contract with an objective to lock in the price
of an interest bearing security at a future date.

Derivatives (FRA) are undertaken by Company solely for the purpose of hedging interest rate risks on account of
following forecasted transactions: a) Reinvestment of maturity proceeds of existing fixed income investments; b)
Investment of interest income receivable; and c) Expected policy premium income receivable on insurance contracts
which are already underwritten in Life, Pension & Annuity business.

vii. A net amount of '(7,072) Lakhs for the year ended March 31, 2025 (Previous year ended March 31, 2024 '(15,811)
Lakhs) has recognized in Revenue Account being portion of loss determined to be ineffective.

viii. The amount that was removed from Hedge Reserve account during the year ended March 31, 2025 in respect of
forecast transaction for which hedge accounting had previously been used, but is no longer expected to occur
is ' Nil (Previous year ' Nil). The cash flows from the hedges are expected to occur over the outstanding tenure
of underlying policy liabilities and will accordingly flow to the Revenue Account.

B. Qualitative Disclosures on risk exposure in Fixed Income Derivatives:

Overview of business and processes:

a) Fixed Income Derivative Hedging instruments:

Derivatives are financial instruments whose characteristics are derived from the underlying assets, or from interest
and exchange rates or indices. These include forward rate agreements, interest rate swaps and interest rate futures.

The Company during the financial year has entered into FRA derivative instrument to minimise exposure to
fluctuations in interest rates on plan assets and liabilities. This hedge is carried in accordance with its established
policies, strategy, objective and applicable regulations. The Company does not engage in derivative transactions
for speculative purposes.

b) Derivative policy/process and Hedge effectiveness assessment:

The Company has well defined Board approved Derivative Policy and Process document setting out the strategic
objectives, regulatory and operational framework and risks associated with interest rate derivatives along with
having measurement, monitoring processes and controls thereof. The accounting policy has been clearly laid
out for ensuring a process of periodic effectiveness assessment and accounting.

The Company has clearly identified 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 risk management framework for the Interest Rate Derivatives are
monitored by the Risk Management Committee.

c) Scope and nature of risk identification, risk measurement, and risk monitoring:

The Derivative and related Policies as approved by the Board sets appropriate market limits such as sensitivity
limits and value-at-risk limits for exposures in interest rate derivatives. All financial risks of the derivative portfolio
are measured and monitored on periodic basis.

C. Quantitative disclosure on risk exposure in Forward Rate Agreement

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 (FRA). Gains or losses arising from hedge ineffectiveness, if any, are recognised in the
Revenue Account.

The credit exposure limit for FRA derivatives 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); and

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.

25. Additional disclosure requirements as per Corporate Governance Guidelines

i. Quantitative and qualitative information on the insurer's financial and operating ratios, namely, incurred
claim, commission and expenses ratios:

Refer summary of financial statement and ratios.

ii. Actual solvency margin details vis-a-vis the required solvency margin

The actual solvency margin of the Company as on March 31, 2025 stands at 1.96 times (previous year ended
March 31, 2024: 1.96 times) as against regulatory requirement of 1.50. There has been no capital infusion
after FY 2007-08.

iii. Persistency ratio

The persistency ratio (13^th month) for regular premium and limited premium paying term policies of Individual
segment for the year ended March 31, 2025 is 87.41% (previous year ended March 31, 2024 is 86.78%) based on
premium amount and 80.43% (previous year ended March 31, 2024 is 81.10%) based on number of policies.

The persistency ratios are calculated as per IRDAI circular reference IRDAI/NL/MSTCIR/RT/93/6/2024
dated June 14, 2024.

Persistency ratios for the year ended March 31, 2025 and March 31, 2024 are calculated using policies issued in
1^st March to 28^th/29^th February period of the relevant years.

iv. Financial performance including growth rate and current financial position of the insurer

Refer summary of financial statement and ratios.

v. A description of the risk management architecture

The Board has the ultimate responsibility for overseeing the management of risk within the Company. The Risk
profile of the Company is reported to the Board by the Risk Management Committee of the Board (RMC-B)
from time to time. The RMC-B is responsible for overseeing the Company's risk management program and
for ensuring that significant risks to the Company are reported to the Board on a timely basis and apprise the
Board of the various risk management strategies being adopted. The Company's Risk Appetite statement and the
Annual Risk assessment are reviewed by the Board so as to ensure that the business of the Company is carried
out within the set risk limits.

The RMC-B is supported by Risk Management Committee of the Executives (RMC-E) and the Asset Liability
Committee (ALCO). The RMC-E oversees the enterprise wide risk management activities and the ALCO monitors
insurance and investment risk portfolio.