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 allegedly excess
commission paid to corporate agents amounting to
? 27,529 Lakhs (previous year ended March 31,2025:
? 27,529 Lakhs) to the members or the beneficiaries
vide order no. IRDA/Life/ORD/Misc/083/03/2014
dated March 11, 2014. The SBI Life Insurance
Company Limited ('the Company'), has preferred
appeal against the order with the Securities
Appellate Tribunal ('the SAT') for quashing the
order passed by IRDAI as aforesaid. While deciding/
disposing off the appeal the SAT vide its order dated
29 January 2020 opined that the amount of ? 27,529
Lakhs has wrongly been calculated by the IRDAI and
the appeal is partly allowed. The matter is remitted
to the IRDAI to recalculate the unlawful gain, namely,
the interest earned on advance premium collected
and recover the same accordingly and pay it to the
policyholders. However, the IRDAI recalculation, if
any, has not been received by the Company instead
the IRDAI preferred an appeal against the SAT order
before the Hon'ble Supreme Court of India in Civil
Appeal Nos. 254-255 of 2021. The Company has also

challenged the SAT order dated 29 January 2020
before the Hon'ble Supreme Court of India in Civil
Appeal No. 2497-2498 of 2021, inter-alia praying for
quashing the aforesaid order. At this juncture, the
operation of the SAT order granting partial reliefs
on quantum of disgorgement has been challenged
in the Hon'ble Supreme Court by the IRDAI and the
Company. Pending final adjudication of these cross
appeals filed with the Hon'ble Supreme Court, the
Company has considered entire disputed amount of
? 27,529 Lakhs as contingent liability.

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 ? 12,894 Lakhs at March 31, 2026
(Previous year ended March 31, 2025 ? 5,319 Lakhs)
where the management assessment of a financial
outflow is probable.

2. 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 31,2026.

5. Actuarial assumptions

a. All the policies in force and for policies in respect
of which premium has been discontinued but
liability exists as at March 31, 2026 have been
taken into account for this valuation.

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.

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:

b. The mortality assumptions used based on
Company experience and are expressed as
percentage of 'Indian Assured Lives Mortality
(2012-2014) Ultimate Rates' for life business
and 'Indian Individual Annuitant's Mortality
Table (2012-15)' for Annuity business.
For morbidity assumption, the morbidity rates
provided by reinsurers have been used with
appropriate adjustments.

The Withdrawal assumptions range from 0%
to 26.91% for valuation as at March 31, 2026
as compared to 0% to 25% for valuation as at
March 31,2025.

For Non-Participating Group Savings & Group
VIP products, expense of 0.165% of fund
has been assumed.

An expense inflation rate of 5.50% per annum
(previous year ended March 31, 2025: 5.50%
per annum) is assumed for fixed per policy/ per
member expenses.

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, 2026. 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.

An appropriate allowance towards Margin
for Adverse Deviation has been made while
setting the assumptions to ensure prudence
in accordance with the APS -7 issued by the
Institute of Actuaries of India in concurrence
with the IRDAI.

In respect of policies which are in force as at
the valuation date and subsequently cancelled
during their free-look period, there could be a
strain to the extent of the amount payable being
higher than the reserve held for that policy.
In order to provide for such future strain, an

adequate provision has been made in respect
of such policies which are likely to be cancelled
during the free-look period basis company's
past experience.

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

Provision for reinsurance has also been
duly allowed for.

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

The Surplus emerged from non-participating
segment has been transferred to Profit & Loss
Account for the period ended March 31, 2026
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.

Funds for Future Appropriation

As at March 31, 2026, the Funds for Future
Appropriation (FFA) in non-linked participating
segments is f 157,420 Lakhs (previous year
ended March 31,2025 f 144,797 Lakhs).

As at March 31, 2026, the Funds for Future
Appropriation (FFA) held in linked segments is
f 14,645 Lakhs (previous year ended March 31,
2025: f 14,340 Lakhs) in accordance with the
IRDAI AFI Regulations 2024 and the IRDAI AFI
Master Circular 2024.

6. Cost of guarantee

Provision of f 54,243 Lakhs (previous year ended March 31,2025 f 58,010 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 f 21,251,261 Lakhs as on March 31, 2026 (previous year ended
March 31,2025 : f 17,988,323 Lakhs) includes the following non-unit reserve held for linked liabilities:

10. Investments

i. Investments have been made in accordance with the Insurance Act, 1938 as amended by the Insurance Laws
(Amendment) Act, 2015, Insurance (Amendment) Act, 2021, the IRDAI AFI Regulations 2024 and IRDAI AFI
Master Circular 2024, as amended from time to time.

ii. All investments of the Company are performing investments except as disclosed in Note no. 21(B) of
Schedule 16 (C).

The total linked liabilities (excluding non-unit reserve) stands at f 25,894,445 Lakhs as at March 31,2026 (previous
year ended March 31,2025: f 24,763,567 Lakhs).

The provisions made towards policy cancellations during free-look period in the year ended March 31, 2026 is
f 969 Lakhs. The corresponding amount for the year ended March 31,2025 was f 2,119 Lakhs.

8. Reinsurance or Risk retention

In the normal course of its business, the Company seeks to reduce risk exposure by reinsuring certain levels of
risk in various areas of exposure with reinsurers. An asset or liability is recorded in the Balance Sheet representing
premiums due to or payments due from reinsurers and share of claims recoverable from re- insurers. Extent of
risk retained and reinsured is given below:

Qualitative Disclosures

1. Information relating to the composition and mandate of the Nomination and Remuneration Committee

The Board Nomination and Remuneration Committee (NRC) oversees and governs the compensation
practices of the Company. The Company's Remuneration Policy is guided by a reward framework and set of
principles and objectives as more fully and particularly envisaged under section 178 of Companies Act 2013,
Master Circular on Corporate Governance for Insurers, 2024 and SEBI Listing Regulations.

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 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.

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 'Earning 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.

(ii) Provident Fund

The rules of the Company's Provident Fund administered by a Trust require that if the Board of Trustees are
unable to pay interest at the rate declared for Employees' Provident Fund by the Government under para 60
of the Employees' Provident Fund Scheme, 1952 for the reason that the return on investment is less or for
any other reason, then the deficiency shall be made good by the Company. Based on an actuarial valuation
conducted by an independent actuary, the details of provident fund are as below.

(iv) Other long term benefits

The Company accrues the liability for compensated absences and long term service awards in accordance
with Accounting Standard - 15 (Revised). The net present value of the Company's obligation is determined
based on the projected unit credit method as at the Balance Sheet date.

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 1,00,00,000 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.

The Company follows intrinsic value method to account for its share-based employee compensation plans.
During the year ended March 31,2026, the Company has granted 830,000 options to its eligible employees under
ESOS 2018. Out of the total 3,287,122 options outstanding as at previous year ended March 31, 2025, 661,170
options are vested during the year ended March 31,2026.

During the year ended March 31,2026, 957,038 stock options are exercised (previous year ended March 31,2025,
669,618 stock options). The details of ESOPs with respect to option exercised during the year & compensation cost
recognised are as follows:

20. Accounting for diminution in valuation of investments

A. Equity:

The Company has made the provision for diminution in value of investments on a prudent basis for loss on account
of reduction in market values of long term investment in equities as under:

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

The investment in Real Estate Investment Trusts (REIT's) of f 222,931 Lakhs as at year ended March 31, 2026
(Previous year ended March 31, 2025 f 131,338 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 (as amended)
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"), and Bond Forward Agreements (BFAs).

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 (FRAs) / Bond Forward Agreements (BFAs) 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 and IRDAI circular on Exposure to Forward Contracts
in Government Securities.

Interest Rate derivative contracts (FRAs / BFAs) are over-the-counter (OTC) derivative contracts 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 / BFA) 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 ?(52,237) Lakhs for the year ended March 31, 2026 (Previous year ended March 31, 2025
?(7,072) 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 31,2026 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 and BFA 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 and BFA). Gains or losses arising from hedge ineffectiveness, if any, are
recognised in the Revenue Account.

The credit exposure limit for FRA and BFA 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.

24. Micro, Small and Medium Enterprises Development Act, 2006

Under the Micro, Small and Medium Enterprises Development Act, 2006 and amendments made thereafter,
certain disclosures are required to be made relating to Micro, Small and Medium Enterprises.

According to information available with the management, on the basis of intimation received from suppliers,
regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and
amendments made thereafter, the Company has amounts due to Micro and Small Enterprises under the said
Act as follows:

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.

The Company has an Information Security Risk Management Committee (ISRMC) which oversees all
information and cyber security risks and its control. The Company has constituted a Data Governance
Committee (DGC) to oversee formulation and implementation of data governance framework / policies /
procedures in the Company.

The Company also has a Risk Event Monitoring Committee (REMC) which primarily oversees reputational
risks and other significant external risk events. Minutes of the ISRMC, DGC and REMC meetings are put up to
RMC-E for information.

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, 2026 stands at 1.90 times (previous year ended
March 31, 2025: 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 31,2026 is 87.94% (previous year ended March 31,2025 is 87.41 %) based
on premium amount and 81.54% (previous year ended March 31,2025 is 80.45%) 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 31,2026 and March 31,2025 are calculated using policies issued
in 1^st March to 28^th/29^th February of the relevant years.

x. Deposits made under Local laws

The Company has no deposit as at March 31,2026 (previous year ended March 31,2025: Nil) made under local
laws or otherwise encumbered in or outside India, except investments and deposits detailed in Note 3(b) of
Schedule 16(C).

26. Age-wise analysis for policyholders' - unclaimed amount

In accordance with IRDAI Master Circular on Operation and Allied Matters of Insurers dated June 19, 2024 and
IRDAI AFI regulation 2024, the Company maintains a single segregated fund to manage all unclaimed amounts.
The amount is invested in money market instruments, liquid mutual funds and fixed deposits of scheduled banks.

The amount in the unclaimed fund has been disclosed in schedule 12 as "Assets held for unclaimed amount of
policyholders" along with "Income accrued on unclaimed fund". 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 Revenue account.

37. Corporate Social Responsibility

The Company has spent f 2,001 Lakhs for the year ended March 31,2026 (previous year ended March 31,2025 f 1,990
Lakhs) towards Corporate Social Responsibility activities mentioned in Schedule VII of the Companies Act, 2013.

39. Ind AS update

International Accounting Standard Board ('IASB') has notified the amended IFRS 17, with global date of
implementation starting from January 1, 2023. The Institute of Chartered Accountants of India ('ICAI') has issued
exposure draft of amendments in Ind AS 117 on 8^th February, 2022. The Ministry of Corporate Affairs (MCA) vide its
notification dated August 12, 2024 has notified the Ind AS 117 on Insurance Contracts. Further, on September 28,
2024, the MCA has issued a notification that insurance company may provide its financial statements as per
Ind AS 104 for the purpose of consolidated financial statements till IRDAI notifies the Ind AS 117. The IRDAI
('the Authority') vide its communication dated July 14, 2022 on Ind AS implementation in Insurance Sector has
conveyed its broad approach on Ind AS implementation and necessary steps to be initiated by the insurers.
On 3 March 2026, IRDAI issued the Exposure Draft of the IRDAI (Actuarial, Finance and Investment Functions of
Insurers) (Amendment) Regulations, 2026, proposing mandatory adoption of Indian Accounting Standards (Ind
AS) by all insurers with effect from 1 April 2026. Thereafter, on 30 March 2026, IRDAI notified the IRDAI (Actuarial,
Finance and Investment Functions of Insurers) (Amendment) Regulations, 2026, mandating preparation and
presentation of financial statements in accordance with applicable Ind AS, including Ind AS 117, with effect from
1 April 2026. The Regulations, inter alia, provide one year forbearance, at the discretion of IRDAI, for insurers
facing implementation challenges, subject to submission of a Board approved Ind AS transition plan with defined
milestones and quarterly submission of Ind AS financial information to IRDAI during the forbearance period.

As per the directions of Authority, the Company has constituted Steering Committee headed by President & CFO
and members from cross-functional areas such as actuarial, investment, information technology. The Company
has engaged knowledge partner for Ind AS implementation. The Ind AS Gap and impact assessment is completed.
The Company has prepared and submitted to the Authority Ind AS Proforma Financial information for the FY
2023-24 and FY 2024-25. The Company is currently in the process of preparing the Proforma Ind AS Financial
information for the year ended March 31, 2026, along with quarterly Ind AS proforma financial information,
for submission to IRDAI in line with stipulated regulatory timelines. The Company is currently in the process of
evaluation and finalization of the system for Ind AS implementation. The Audit Committee and Board of Directors
have been updated regularly on status update of Ind AS implementation.

40. Remuneration to Non-Executive Directors

No remuneration or commission is paid to Non-Executive Directors, other than the Sitting Fees for attending
Board and/or its Committee meetings. The amount of sitting fees paid to the Non-Executive Directors is disclosed
in Profit and Loss (Shareholders) Account.

41. Refund of Administrative fees as per IRDAI directions

IRDAI has issued directions under section 34(1) of the Insurance Act, 1938 to distribute the administrative charges
paid to master policyholders amounting to ?8,432 Lakhs vide its order no. IRDA/Life/ORD/MISC/228/10/2012 dated
October 5, 2012 and subsequent order no. IRDA/Life/ORD/MISC/009/01/2017 dated January 11,2017. The Securities
Appellate Tribunal (SAT) vide its order dated April 7, 2021 has dismissed the appeal filed by the Company against
the IRDAI order. Subsequently, the Hon'ble Supreme Court vide its order dated September 22, 2021 has dismissed
petition filed by the Company against the SAT order. Accordingly, in FY 2022, the Company has made provision
in the Profit and Loss Account (Shareholders' Account) for refund of administrative charges paid to group master
policy holders amounting to ? 8,432 Lakhs plus applicable interest as per IRDAI order dated January 11,2017. As at
March 31,2026, out of the total provision amount, the Company has refunded administrative fees of ? 5,746 Lakhs
along with interest of ? 2,358 Lakhs (As at March 31,2025 administrative fees of ? 5,665 Lakhs and interest of ?
2,299 Lakhs) to the members of group insurance policy.

42. Status update on Sahara Life Insurance Company Limited

Insurance Regulatory and Development Authority of India ('IRDAI') vide its order dated June 2, 2023 ('IRDAI order')
passed in terms of section 52B (2) of the Insurance Act, 1938 has directed to transfer the life insurance business
of Sahara India Life Insurance Company Limited ('SILIC') involving policy liabilities and policyholders' investment/
assets to SBI Life Insurance Company Limited ('SBI Life' or 'the Company').On appeal filed by SILIC against the said
IRDAI order, the Securities Appellate Tribunal ('SAT' or 'Tribunal') vide its order dated June 13, 2023 has granted
stay on the effect and operation of the said IRDAI order. Subsequently, the IRDAI has filed an appeal with Hon'ble
Supreme Court against the stay order passed by SAT. The Hon'ble Supreme Court in its hearing held on July 17,

2023 has set aside Securities Appellate Tribunal's (SAT) stay and directed the SAT to hear the case and decide it
afresh. Thereafter, the SAT, vide its order dated December 5, 2025, has dismissed the appeal filed by SILIC and
upheld the order passed by the IRDAI dated June 2, 2023 therefore the order is no longer sub judice. The Company
has initiated steps to seek directions from the IRDAI for complying with the IRDAI order dated June 2, 2023.

The Company has received the premium of ? 3,777 Lakhs (excluding GST) up to March 31, 2026 (for FY 2025-26
? 1,088 Lakhs) and processed the claim pay-outs of ? 29,377 Lakhs till March 31, 2026 (for FY 2025-26 ? 14,982
Lakhs). The Company has discharged GST liability of ? 125 Lakhs on premium and charges up to March 31,2026
(for FY 2025-26 ? 32 Lakhs) and TDS payment of ? 182 Lakhs on claim pay-out till March 31,2026 (for FY 2025-26
? 36 Lakhs). As on March 31,2026, the Company has total SILIC investment assets with book value of ? 123,770
Lakhs (Market value of ? 132,748 Lakhs) and Bank balance of ? 91 Lakhs. The Company maintains separate records
of all transactions pertaining to SILIC and prepares special purpose financial statements, which are audited and
submitted to the Authority.

The overall impact of the aforesaid IRDAI order with respect to SILIC will be given in the Company's financial
statements in accordance with any further directions issued by the Authority.

45. Segment reporting

In accordance with the IRDAI AFI Regulations 2024 read with Accounting Standard - 17 on "Segment reporting",
life insurance companies are required to prepare Segmental Revenue Account and Segmental Balance Sheet.
The Company's business is segmented into traditional -par business, non-par business and unit-linked
business. Since the Company has conducted business only in India, the same is considered as one geographical
segment. The accounting policies used in segmental reporting are same as those used in the preparation of the
financial statements.

(a) Segmental Revenue Account

The methodology for determining segmental revenue and expenses adopted in the current year is
described below:

Premium income, commission, investment income and profit or loss on sale or disposal of investments is
directly allocated to the respective segments to which they relate. Within the Non-Participating segment,
investment income and profit or loss on sale or disposal of investments are directly allocated if a segregated
investment portfolio is maintained. The remaining investment income and profit or loss on sale of investments
is apportioned on the basis of the average policy liabilities in the individual business and the group business.

Operating expenses that are directly attributable and identifiable to the business segments are allocated on
actual basis. Other operating expenses, which are not directly identifiable and attributable, are allocated after
considering the following:

i. Cost centres identified by the Management

ii. Channels used for the business segments

iii. Annualised Premium Equivalent (APE)

iv. New lives covered / New policies issued during the year

v. Total number of in-force lives covered

vi. New business sum assured

vii. Actuarial Liability

(b) Segmental Balance Sheet

Investments are effected from the respective funds and have been reflected accordingly. Fixed assets have
been allocated to shareholders' funds, net current assets have been directly allocated among shareholders,
life business, pension business, group business, unit - linked business and variable insurance business
segments. Other net current assets have been allocated to life business and pension business in the ratio of
the respective policy liabilities as at the year end.

Within life business, certain assets and liabilities have been directly identified to the respective segments.
Other assets and liabilities under Life business have been allocated in the ratio of the respective policy
liabilities as at the year end.

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

46. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or any other person or entities, including foreign entities
('Intermediaries') with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
lent or invest in party identified by or on behalf of the Company (Ultimate beneficiaries). The Company has also
not received any fund from any parties (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lent or invest in other persons or entities identified by or on behalf of the Funding Party
('Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

47. On November 21, 2025, the Government of India notified Code on Wages, 2019, the Industrial Relations Code,
2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020
(collectively, the "Labour Codes"). The Ministry of Labour & Employment published draft Central Rules and FAQs to
enable assessment of the financial impact due to changes in regulations. The Company has evaluated the financial
impact of the Labour Codes basis the FAQs of the Ministry of Labour & Employment and recognised incremental
estimated liabilities towards employees' past service benefits, determined based on actuarial valuation in
accordance with AS 15 - Employee Benefits and guidance issued by the Institute of Chartered Accountants of India
(ICAI). The resulting incremental charge of ? 13,549 lakh has been recognised in the Revenue Account for the year
ended March 31, 2026. The Company continues to monitor developments related to the Labour Codes and will
assess any further impact on the measurement of employee benefits liabilities as and when they arise.

48. Previous year figures regrouped / reclassified

Previous year figures have been regrouped / reclassified / rearranged wherever necessary to make them
comparable with current year's presentation.