HDFC Life achieves 18% VNB growth driven by 31% growth in individual APE, 22% increase in number of policies

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Mumbai, July 15, 2024: The Board of Directors of HDFC Life approved and adopted the reviewed standalone and consolidated financial results for the quarter ended June 30, 2024. The company has reported significant growth across several key metrics, setting a positive momentum for the fiscal year. Commenting on the results, Ms. Vibha Padalkar, MD & CEO, HDFC Life, said, “We have started the year on a strong note, achieving 31% YoY growth in individual APE, which implies a two-year CAGR of 21%. This robust growth is driven by a comprehensive performance across all metrics.

We welcome the positive impact of IRDAI's progressive reforms that are expected to significantly strengthen the life insurance proposition in India, making it simpler, more transparent and ultimately more attractive to prospective customers” Key Highlights: ▪ Market Share Expansion: Private market share expanded from 16.4% in Q1FY24 to 17.1% in Q1FY25, and the overall market share in Individual WRP increased to 11.4% ▪ Retail Sum Assured Growth: Achieved 46% growth, bolstered by higher sum assured multiples for savings products and strong rider attachment and aided by 28% growth in retail protection ▪ Profit After Tax: Grew by 15% to Rs 478 crore, with a growth in backbook surplus of 18% ▪ Assets Under Management (AUM): Surpassed Rs 3 lakh crore, with a growth of 22% ▪ Geographic Growth: Strong topline growth recorded across Tier 1, 2, and 3 geographies ▪ Bonus Declaration: Declared highest ever bonus of Rs 3,722 crore, to more than 22 lakh par policyholders HDFC Life registered a strong increase in the number of policies and witnessed expansion in ticket size as well. The company’s growth outpaced both the private sector and overall industry, both on a YoY and a two-year CAGR basis. Growth resurgence was experienced in Tier 1 markets whilst maintaining strong growth in Tier 2 and 3 geographies, which continue to account for a significant portion of the business. Product Mix: ULIPs accounted for 38%, non-par savings for 35%, participating products for 16%, term for 6%, and annuities for 5%, based on individual APE. The ULIP mix was initially elevated, but moderated during the 2 quarter with the launch of products across other categories.

Non-par products bounced back, clocking a 41% YoY increase. The latest Click2Achieve variant garnered Rs 100 crore of new business in merely 16 days. Value of New Business (VNB): Q1 VNB was Rs. 718 crore, reflecting a healthy 18% growth both YoY and on a two-year CAGR basis. The substantial gap in financial protection across India presents a compelling growth opportunity for the life insurance sector. HDFC Life is committed to securing India's future through innovative insurance solutions. Key Financial Summary Rs Crore Q1 FY25 Q1 FY24 YoY Key Financial and Actuarial Metrics Individual APE 2,467 1,882 31% Total APE 2,866 2,328 23% New Business Premium (Indl + Group) 6,400 5,869 9% Renewal Premium (Indl + Group) 6,411 5,804 10% Total Premium 12,811 11,673 10% Assets Under Management 3,10,244 2,53,301 22% Profit After Tax 478 415 15% Indian Embedded Value 49,611 41,843 19% Value of new business 718 610 18% Q1 FY25 Q1 FY24 Key Financial Ratios New Business Margins 25.0% 26.2% Operating Return on EV 15.5% 16.0% Total Expenses / Total Premium 21.4% 19.8% Solvency Ratio 186% 200% 13M / 61M Persistency 88%/56% 87%/53% Individual WRP market share (Overall ) 11.4% 10.6% Product mix by Indl APE (UL / Non par savings /Annuity/ Protection / Par) 38/35/5/6/16 25/33/9/6/26 Distribution mix by Indl APE (Corp Agents/ Agency/ Broker/ Direct) 65/17/7/11 61/20/8/12 Note: Percentages may not add up due to rounding off effect 3 Definitions and abbreviations

• Annualized Premium Equivalent (APE) - The sum of annualized first year regular premiums and 10% weighted single premiums and single premium top-ups

• Assets under Management (AUM) - The total value of Shareholders’ & Policyholders’ investments managed by the insurance company

• Embedded Value Operating Profit (EVOP) - Embedded Value Operating Profit (“EVOP”) is a measure of the increase in the EV during any given period, excluding the impact on EV due to external factors like changes in economic variables and shareholder-related actions like capital injection or dividend pay-outs

• First year premium - Premiums due in the first policy year of regular premiums received during the financial year. For example, for a monthly mode policy sold in March 2024, the first monthly instalment received would be reflected as First year premiums for 2023-24 and the remaining 11 instalments due in the first policy year would be reflected as first year premiums in 2024-25, when received

• New business received premium - The sum of first year premium and single premium, reflecting the total premiums received from the new business written

• Operating expense - It includes all expenses that are incurred for the purposes of sourcing new business and expenses incurred for policy servicing (which are known as maintenance costs) including shareholders’ expenses. It does not include commission

• Operating expense ratio - Ratio of operating expense (including shareholders’ expenses) to total premium

• Operating return on EV - Operating Return on EV is the ratio of EVOP (Embedded Value Operating Profit) for any given period to the EV at the beginning of that period

• Persistency - The proportion of business renewed from the business underwritten. The ratio is measured in terms of number of policies and premiums underwritten

• Premium less benefits payouts - The difference between total premium received and benefits paid (gross of reinsurance)

• Renewal premium - Regular recurring premiums received after the first policy year • Solvency ratio - Ratio of available solvency margin to required solvency margin

• Total premium - Total received premiums during the year including first year, single and renewal premiums for individual and group business

• Weighted received premium (WRP) - The sum of first year premium received during the year and 10% of single premiums including top-up premiums 4 About HDFC Life Established in 2000, HDFC Life is a leading, listed, long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as Protection, Pension, Savings, Investment, Annuity and Health. The Company has more than 80 products (including individual and group products) and optional riders in its portfolio, catering to a diverse range of customer needs. HDFC Life continues to benefit from its increased presence across the country, having a wide reach with branches and additional distribution touch-points through several new tie-ups and partnerships.

The count of distribution partnerships is over 300, comprising banks, NBFCs, MFIs, SFBs, brokers, new ecosystem partners amongst others. The Company has a strong base of financial consultants. For more information, please visit www.hdfclife.com. You may also connect with us on Facebook, Twitter, YouTube and LinkedIn. Disclaimer Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', 'would', ‘indicating’, ‘expected to’ etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements.

These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion in business, the impact of any acquisitions, technological implementation and changes, the actual growth in demand for insurance products and services, investment income, cashflow projections, our exposure to market risks, policies and actions of regulatory authorities; impact of competition; experience with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the impact of changes in capital, solvency or accounting standards, tax and other legislations and regulations in the jurisdictions. HDFC Life undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. None of Company or any of its directors, officers, employees, agents or advisers, or any of their respective affiliates, advisers or representatives, undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise and none of them shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this press release or its contents or otherwise arising in connection.

Further, nothing in this press release should be construed as constituting legal, business, tax or financial advice or a recommendation regarding the securities. Although Company believes that such forward‐looking statements are based on reasonable assumptions, it can give no assurance that such expectations will be met. You are cautioned not to place undue reliance on these forward-looking statements, which are based on current view of Company’s management on future events. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Company’s control. Past performance is not a reliable indication of future performance. Before acting on any information you should consider the appropriateness of the information having regard to these matters, and in particular, you should seek independent financial advice.