ICICI Lombard General Insurance Company Ltd Management Discussions

I. MACRO ECONOMIC ENVIRONMENT AND NON-LIFE INSURANCE INDUSTRY DEVELOPMENTS

During fiscal year 2024, the Indian economy witnessed robust growth and continued to remain one of the fastest growing economies in the world¹. The Indian economy remained resilient against the global backdrop of uncertainties related to geo-political tensions, geo-economic fragmentation, polarization of trade, red sea route issues and volatile global financial markets.

The global economy continued to witness divergent growth across countries. The United States of America and major South Asian emerging market economies witnessed strong growth, whereas Europe, China, and Japan experienced moderate growth. The central banks of advanced economies maintained policy restraint to achieve the inflation targets. Consequently, inflation in these regions eased substantially albeit remaining above the central banks target levels. China on the other hand is facing backlash from developed economies for extending political support to some countries, has faced domestic challenges from the real estate sector and is witnessing slow growth. Consequently, the government of China has provided both fiscal and monetary policy support to stimulate growth.

Globally, prolonged higher inflation prints, strong economic growth, elevated government debt, disruption in trade routes, localised wars, and uncertainty on trajectory of monetary policy has brought about bouts of volatility in the bond markets yields and posed downside risk to the global economic outlook.

Domestically, high frequency indicators like E-way bills, toll collections, GST collections, automobile sales, air passenger traffic, hotel tariffs witnessed growth during the year. GST collections crossed Rs. 20 trillion indicating strong domestic economic growth. The domestic economy grew by 7.6%² during the fiscal 2024 as per the second advance estimates released by NSO. This growth was primarily due to an upturn in the investment cycle backed by governments capital expenditure on infrastructure, constructions, buoyant real estate activity and healthy credit growth. The private consumption growth in urban was strong while the overall growth moderated during the year at ~ 3%. The bank credit growth remained strong at 16.0%³ for fiscal 2024 even with higher interest rates implying underlying strong domestic demand conditions predominantly in the services and retail segment. The Interim Budget for FY2025 reflects governments focus on the fiscal consolidation path and improving the quality of spending. The fiscal deficit target reduced to 5.1%⁴ for fiscal 2025 from 5.9% for fiscal 2024 implying lower government borrowing during the year thereby providing opportunities for private corporate borrowing. Government capital expenditure is focussed on roads, highways, railways and building of the logistic infrastructure to support business growth.

Going forward normal monsoon, governments infrastructure push, likely private capex and buoyant business prospects along with high consumer confidence should support the private consumption. Overall, strong capex push, higher services exports, healthy corporate and banking sector, prudent fiscal spending, focussed monetary policy and stable external position provides a strong bedrock for medium to long-term growth.

With this backdrop, the financial markets witnessed large flows from FPIs, mutual funds, retail investors and strong demand from pension funds and insurance companies. The domestic yields have been stable indicating prudent macro policies from government and RBI with renewed confidenceamongst foreign investors for domestic bonds. The domestic equity market delivered robust returns due to strong domestic investor flows into mutual funds further aided by strong global equity market performance.

II. NON-LIFE INSURANCE INDUSTRY DEVELOPMENTS

(A) Regulatory developments:

The non-life insurance industry has recently undergone radical changes in the regulatory and technological landscape. Amidst the changing macro and micro economic environment, the regulator announced various regulatory reforms that aims to protect the interests of the policyholders while encouraging innovation, competition, and sustainable growth in the insurance industry, further reaffirming the. visiontowardsinsurancefor all by 2047 Some of the regulatory reforms introduced by the regulator during the course of the year are as follows:

Expenses of Management, including Commission

The Authority on March 2023, issued regulations w.r.t. Expenses of management and commission payment in order to enable and provide flexibility to the insurers to manage their expenses, including commissions, by prescribing an overall limit for the expenses of management w.e.f April 1, 2023. Further the Authority on

January 22, 2024, notified the consolidated regulation,

IRDAI (Expenses of Management, including Commission, of Insurers) Regulations, 2024 for a more coherent and efficient regulatory framework. This regulatory framework is expected to enable insurers to optimally utilize their resources for enhancing benefits to policyholders and to improve insurance penetration. This regulation alsoall benefits insurers to manage their overall expenses at a

Company level which was earlier getting managed at a product level.

Reinsurance Amendment Regulations

The Authority on August 22, 2023 published IRDAI (Re-insurance) (Amendment) Regulations, 2023 with an objective to harmonize and streamline the existing regulations that apply to Indian insurers, Indian reinsurers, Foreign Reinsurance Branches, and International Financial

Services Centre Insurance Offices. This regulation is intended to strategically position India as a prominent global reinsurance hub.

Bima Vahak Guidelines collaboration

The Authority on October 9, 2023 issued the IRDAI (Bima Vahak) Guidelines, 2023 with an objective of establishing women centric dedicated distribution channel that focuses on enhancing insurance inclusion and creating awareness in every village / Gram Panchayat, thereby, improving accessibility and availability of insurance and to identify and develop resources locally. Guidelines on AYUSH Coverage in Health Insurance Policies

On January 31, 2024 the Authority issued guidelines to include AYUSH coverage in all Health Insurance policies at par with any other treatment or coverage thereby giving an option to the policyholders to choose the treatment of their choice.

Insurance Products Regulations

The Authority on March 20, 2024 issued IRDAI (Insurance Products) Regulations, 2024 which facilitates insurers to respond faster to the emerging market needs, to design innovative products, to promote ease of doing business and to improve insurance penetration.

Rural, Social Sector and Motor Third Party Obligations

The Authority on March 20, 2024 issued IRDAI (Rural, Social Sector, and Motor Third Party Obligations) Regulations, 2024 prescribing minimum rural, social sector and motor third party insurance business to be undertaken by the insurers. The compliance and measurement of these statutory obligations have been revised in order to enhance the penetration of insurance and reach out to the last mile.

De-notification of the Tariff Wordings tariff On March 20, 2024 the Authority de-notified wordings, notified by the erstwhile Tariff Advisory Committee which continued to be in force since

December 2006. With the de-notification of the existing tariff wordings, the Company is at liberty to design all the general insurance products in line with its Underwriting Policy. Further pricing of Motor Third Party line of business continues to be under tariff regime.

Bima Sugam – Insurance Electronic Marketplace

On March 20, 2024 the Authority issued IRDAI (Bima Sugam - Insurance Electronic Marketplace) Regulations, 2024 allowing establishment of a Digital Public Infrastructure / Insurance Electronic Marketplace as a one stop solution for all insurance stakeholders to promote transparency, efficiency, the entire insurance value chain, technological innovation in insurance sector and universalize and democratize insurance. With this the Authority has set out a vision for democratizing insurance to achieve vision of ‘Insurance for all by 2047.

Corporate Governance Regulations

The Authority on March 20, 2024 issued IRDAI (Corporate Governance for Insurers) Regulations, 2024 to establish a robust governance framework for insurers, defining the roles and responsibilities of the board and the management.

(B) Financial performance:

The non-life insurance industry registered a growth of 12.8%⁵ in fiscal 2024. The industry has grown at a CAGR of approximately 15.5% since fiscal 2008. Despite this, non-life insurance penetration in India continues to be around 1.0%⁶ of Gross Domestic Product against world average of 4.0%⁶ and given Indias demographic dividend, the sector is poised to reach newer heights in the coming years.

The market share of Private players and Standalone Health Insurers (SAHI) continued the momentum of demonstrating an increasing trend for fiscal 2024 while the share of Public

Sector undertakings continued to decline during the same period. Consequently, the overall market share of Private players increased from 51.4% in fiscal 2023 to 53.5% in fiscal 2024, while market share of SAHIs increased fro m 10.2% in fiscal 2023 to 11.4% in fiscal 2024.

Health (including PA & Travel) segment continued to remain largest GDPI contributing segment for the industry constituting ~40.3% of the market share in fiscal 2024.

The industry growth was driven by growth in Retail Health, Group Health, Aviation, and Engineering line of business. Retail Health, Group Health, Aviation, Engineering, and Motor line of business grew by 19.1%, 20.5%, 17.9%,

26.0% and 12.9% respectively in fiscal 2024.

III. DISCUSSION ON FINANCIAL PERFORMANCE AND ANALYSIS OF FINANCIAL STATEMENTS

(A) Overview of the business

ICICI Lombard General Insurance Company Limited (The Company) continued to be the second largest non-life insurer in India based on Gross Direct Premium Income

(GDPI) for fiscal 2024. The Company offers its customers a comprehensive and well-diversified range of products, including Fire, Motor, Health, PA & Travel, Crop, Marine, Engineering and Liability insurance, through multiple distribution channels.

For fiscal 2024, the Company issued 36.2 million policies and covered 24.7 million lives and the Companys GDPI was Rs. 247.76 billion, translating to a market share of 8.6% among all non-life insurers in India. The Companys key distribution channels are direct sales, individual agents (including POS), corporate agents - banks, corporate agents - others, Motor Insurance Service Providers

(MISPs), brokers and digital, through which the Company services individual, corporate, government and rural customers.

During fiscal 2024, the Company has maintained leadership position among the private sector non-life insurers in India across Motor, Fire, Engineering, Liability and Marine segments. On GDPI basis for fiscal 2024 the Company was second largest general insurer in India. The Companys market share in the overall Health segment increased to 5.7% in fiscal 2024 from 5.3% in fiscal 2023, for commercial lines market share increased to 13.6% in fiscal 2024 from 13.0% in fiscal 2023.

The market share in Motor segment stood at 10.5% in fiscal 2024 as against 10.6% in fiscal 2023. During last few years the Company had recalibrated approach due to the highly competitive market conditions. However the Company demonstrated strength during the year as there was some semblance coming back in the market and consequently ended the year as an industry leader in the Motor segment.

Investments:

As on March 31, 2024, the Company reported Rs. 489.07 billion in total investment assets with an investment leverage (net of borrowings) of 4.09x. The Companys investment policy is designed with the objective of capital conservation and achieving superior total returns within identified risk parameters. The Companys philosophy of generating superior risk adjusted returns along with protection of capital has resulted in a total portfolio return of 9.85%⁷. Since fiscal 2008, the Companys listed equity portfolio has returned an annualised total return of 18.07%, as compared to an annualised return of 10.80% on the benchmark S&P⁸ NIFTY index.

(B) Opportunities

Demographics and Low Insurance Penetration

India is forecasted to become the 6th largest insurance market in the world by 2032, ahead of Germany, Canada and South Korea. Further the non-life insurance industry penetration for India stood at 1% for CY 2022 and CY 2021 and non-life insurance density for CY 2022 remained the same as in CY 2021 which was US $ 22 per capita for India.

(Source: Sigma 3 / 2023 Swiss Re )

This presents an opportunity for the non life insurance sector on the back of favorable macros such as increased risk awareness, acceptance of the digital landscape, rising young population and increasing disposable income levels. The Companys multi product, multi channel distribution strategy enables it to seize opportunities that the market presents.

Regulatory Environment

The regulator has been issuing amendments that are favourable for the industry and are focused towards increasing penetration, facilitating ease of doing business and ensuring ‘Insurance for all by 2047 in line with its vision. During the year the regulator issued series of reforms details of which can be accessed on pg 176 of the Management Discussion and Analysis section of the integrated report.

Awareness for Health Insurance

The Indian health insurance sector has emerged as one of the fastest-growing segments in the wake of the

2024, the GDPI from Covid-19pandemic. During fiscal

Health, Travel and PA for the industry increased to Rs.

1,167.51 billion from Rs. 976.86 billion in fiscal

Industry, Health, Travel and PA segment remained the largest contributor, constituting 30.0% share in fiscal 2020, which rose to 40.3% in fiscal 2024.

Health has been one of the preferred segments for the Company. Further the Company would continue to invest in this segment in terms of human, technology and knowledge capital to further improve market share.

Growth within the Auto Industry

In 2023, India retained its position as the third-largest light vehicle market in the world, hitting a new peak and marking its third consecutive year of growth. Further the demand on ground still remains resilient. It is interesting to note that contribution of SUV in private car sales has gone up from 37% in FY2022 to 49% in FY2024.

(Source: Google search)

Over the years, the Company has developed strong capabilities across distribution, underwriting, claims servicing and actuarial practices. Given the Companys presence across all three sub-segments of Private car (Pvt car), two wheeler (TW) and commercial vehicles (CV), it will continue to balance the portfolio mix depending upon the market opportunities.

(C) Risk Management

The Company recognizes that risk is an integral element of insurance business and with a view to mitigate risks, the Company has in place Board approved Risk Management Framework.

A strong risk culture is ensured through embedding the principles of Risk Management Framework in strategy and operations. Accordingly, the Company has developed a risk universe, broadly categorised into six distinct groups, namely, Credit Risk, Market Risk, Underwriting Risk, Strategic Risk, Operational Risk and Environmental, Social and Governance Risk.

As part of the Enterprise Risk Management exercise, critical risks along with the detailed mitigation plans are presented to the Risk Management Committee of the Board on a quarterly basis. The risk mitigation plan/s is/ are monitored regularly by the Company to ensure timely and appropriate execution. The senior management of the Company is responsible for periodic review of the risk management process to ensure that the process initiatives are aligned to the desired objectives. The Chief Risk Officer of the Company is responsible for the implementation and monitoring of the Risk Management Framework.

A statement indicating development and implementation of Risk Management Framework including identification therein elements of risk, if any, which may pose significant risk to the Company are given in the Corporate Governance Report forming part of this Report.

(D) Competitive Strengths

The Companys strategic objective is to build a sustainable organization that remains relevant to the agenda of the stakeholders. The Company believes in providing value to its customers, while creating growth opportunities for its employees and generating profitable returns for its investors.

The following competitive strengths which contribute to the success and position well for future growth:

Consistent Market Leadership and profitable growth:

The industry leadership has been reinforced by Companys comprehensive and diverse portfolio of insurance products that continuously adapts to evolving needs of customers and changing industry dynamics. Further during the fiscal

2024, the Company exhibited market leadership position in Marine Cargo, Liability and Motor segments and among private sector non-life insurers in India across Motor, Fire, Engineering, Liability and Marine segments.

Diverse product line with multi-channel distribution network: The Company continued to offer products and solutions that address the untapped and evolving needs of the customers. The Company has established itself as a reliable one-stop insurer for diverse customer requirements. Further, the Company has been expanding its distribution network to increase penetration in tier 3 and tier 4 cities. The Companys Virtual offices stood at 917 as on March 31, 2024. The Companys individual agents (including POS Agents) increased to 1,28,411 as on March 31, 2024.

Further the Companys investments to strengthen digital distribution network has resulted in the digital revenues (including business sourced through IL TakeCare App) to clock GDPI of Rs. 14.97 billion for fiscal2024 which accounts for 6.0% of the Companys overall GDPI.

Bancassurance and Key Relationship Groups grew at

20.2% for fiscal 2024. Within this, ICICI Group distribution grew by 22.5% for fiscal deep-mine its existing relationships by creating new value streams, and at the same time, focusing on acquiring new relationships. Further during the year, the Company has added over 80 partnerships.

Excellence in Customer Service and Technology: The Companys customer-centric approach of delivering value focuses on providing convenience and customised solutions. The number of policies written stood at 36.2 million for fiscal 2024. The Company has been at the forefront of leveraging technology in the Indian non-life insurance industry. The Company leverages its tech capabilities such as Artificial Intelligence, Machine Learning, Advanced analytics, Internet of Things etc. from issuance of policies to settlement of claims and fraud detection.

The Companys investment in capability building is focussed on building a culture of data-enabled decision making and enabling its employees to deliver customer-centric solutions. As on March 31, 2024, the headcount of the Company was 14,996.

Under banner of One IL One Team, one of the initiative the Company has outlined is the One IL One Digital Strategy. Through this, the Company aims to consolidate customer facing digital assets of IL TakeCare App, Website and alliances along with distribution facing front ends. This will allow the Company to exploit synergies across all platforms which will result in benefits to the Company.

With the aim of enhancing customer engagement and experience and to provide better services, the one stop solution for all insurance and wellness needs, "IL TakeCare App" has surpassed ~9.3 million user downloads till date, incremental downloads for fiscal 2024 was ~4.7 million.

During the same period, premium sourced through this app was over Rs. 3.68 billion registering 3x year-on-year growth.

After transitioning to cloud, the Company continues to of the make significant technology platforms. The Companys core business and technology transformation project, "Project Orion", is also underway. Project Orion would entail three pivotal pillars of reimagining processes with a digital-first approach, modernizing technology by shifting away from legacy systems, and enhancing stakeholder experience through superior engagement models.

The Company firmly believes Project Orion will be a key enabler of the vision of - One IL One Team.

Robust risk selection and management framework: The Company takes a holistic approach to risk management, which includes a data-driven risk selection framework, conservative reserving and quality reinsurance. Further details with respect to risk management strategy have been articulated in the Risk management section pg. 43 of this Integrated report. As per IRDAI guidelines, non-life insurers in India are not allowed to discount their reserves. The Company tests its reserves regularly based on claim experience, claim inflation and other factors. The Company was the first to disclose aggregate reserving triangles as part of its annual reports since fiscal 2016. The Company has enhanced disclosure requirement of reserving triangles by giving separate reserving triangles for Motor Third Party and Non Motor Third Party lines of business since fiscal

2022. This is in accordance with the Regulatory guidelines on public disclosures applicable to all companies.

When it comes to investment management, the Company has tighter internal exposure norms as against regulatory limits. The Company has invested in high proportion of Debt portfolio and has 93.9% in sovereign and AAA⁹ rated securities as on March 31, 2024. All the Bonds and

Debentures are AA⁹ rated & above. There has been Zero instance of default in ILs Debt portfolio since inception.

Strong investment returns on diversified portfolio:

The total investment assets increased to Rs. 489.07 billion as of March 31, 2024, with an investment leverage of 4.09x. The Company achieved a realised return of 7.98% on its investment portfolio for fiscal 2024.

(E) Strategy and Future Outlook

In fiscal 2024, the Company strengthened its focus on strategic priorities of growth within preferred profitable segments. Given the current business environment Company adopted theme of One IL One Team aiming to transcend functional silos and convert the entire organization into a united team working towards a single organizational purpose. During the year the Company has undertaken several initiatives guided by the philosophy of One IL One Team.

In the new financial year, the Company will focus on leveraging its multi product, multi distribution strategy. Through effective use of data, digital advancements and launching new products the Company will maintain focus on scaling up profit pools, while continuing to grow as One

IL One Team.

Basis of preparation of financial statements

The financial statements have been prepared and presented on a going concern basis in accordance with Generally Accepted Accounting Principles followed in India under the historical cost convention, unless otherwise specifically stated, on the accrual basis of accounting, and comply with the applicable accounting standards specified in section 133 of the Companies Act, 2013 read with Companies (Accounting Standards) Amendment Rules, 2021 dated June 23, 2021 to the extent applicable, and in accordance with the provisions of the Insurance Act, 1938, Insurance Laws (Amendment) Act, 2015 (to the extent notified), Insurance Regulatory and Development

Authority of India Act, 1999, the Insurance Regulatory and Development Authority of India (Preparation of Financial Statements and Auditors Report of Insurance

Companies Regulations), 2002 (‘the Regulations) and orders / directions prescribed by the Insurance Regulatory and Development Authority of India (the "IRDAI") in this behalf, the provisions of the Companies Act, 2013 (to the extent applicable) (the "Act") in the manner so required and current practices prevailing within the insurance industry in India.

The management evaluates, all recently issued or revised accounting pronouncements, on an ongoing basis.

The Financial Statements are presented in Indian rupees rounded off to the nearest thousand.

i. Revenue Account and Profit and Loss Account

The revenue account contains income and expenses relating to policyholders, and the surplus or deficit generated in this account is appropriated to the profit and loss account every fiscal.

The statement below summarises the Revenue account.

Revenue Account

Particulars	Fiscal 2023	Fiscal 2024
Premium earned (net)	148.23	168.66
Income from Investments (net)	23.21	27.76
Contribution from	8.91	-
Shareholders Funds towards excess EOM
Other income	0.60	1.10
Total (A)	180.95	197.52
Claims Incurred (net)	107.26	119.39
Commission paid (net)	4.72	30.89
Operating expenses related to insurance business	45.15	28.18
Total (B)	157.13	178.46
Operating Profit / (Loss)	23.82	19.06
(C) =(A)-(B)

The profit and loss account contains the income and expenses pertaining to shareholders.

The statement below summarises the Profit and Loss account.

Profit & Loss Account

Particulars	Fiscal 2023	Fiscal 2024
Operating profit / (loss)	23.82	19.06
Income from investments (net)	7.32	8.45
Other income	0.44	0.05
Total (A)	31.58	27.56
Provision (other than taxation)	0.61	0.57
Other expenses	9.84	1.44
Total (B)	10.45	2.01
Profit before tax	21.13	25.55
Provision for taxation rate hardening in the reinsurance 3.84 6.36
Profit after tax	17.29	19.19

Premium earned (net) (NEP)

Particulars	Fiscal 2023	Fiscal 2024
Premium from direct business written - net of GST (GDPI)	210.25	247.76
Premium on reinsurance accepted	7.47	8.18
Gross Written Premium	217.72	255.94
(GWP)
Less: Premium on reinsurance ceded	62.32	74.29
Net Written Premium	155.40	181.65
(NWP)
Less: Adjustment for change in reserve for unexpired risks	7.17	12.99
Premium earned (net)	148.23	168.66
(NEP)

Premium from direct business written net of GST (GDPI), is the total premium received before considering reinsurance assumed and ceded. This is calculated net of GST on such premiums.

The GDPI increased to Rs. 247.76 billion for fiscal 2024 from Rs. 210.25 billion for fiscal 2023, a growth of 17.8%. The GDPI growth was driven by growth in the preferred segments such as Health, Motor OD, Motor TP and Commercial segments such as Fire, Marine cargo and Engineering.

In the Commercial business segment, the Company continued to consolidate its market position, by leveraging on unique distribution network enhanced by value added services, prudent risk based underwriting and highly rated reinsurer capacities.

During fiscal 2024, the Company this segment.

Further during the year, the Company accreted market share across commercial segments such as Fire, Marine Cargo, Engineering and Liability. The Company is at an industry leading position in Marine Cargo and Liability lines of business while being the 2nd largest in Fire and Engineering lines of business.

During fiscal 2023, the Company experienced significant in line with global trends. However, the recent reinsurance treaty renewals on April 1,2024 has largely been benign.

Motor continues to be the largest contributor to the Companys GDPI product mix for fiscal 2024.

Given the presence across all three sub-segments of Pvt car, TW and CV, the Company would continue to balance the portfolio mix depending upon the market opportunities. During the fiscal 2024 the Company saw some discipline return to the market and thus scaled up its position in a calibrated manner and consequently ended the year as the industry leader in this segment . For fiscal 2024 the Company grew at 12.3% in this segment. Excluding the one off transaction in Q4 of fiscal 2023 , the Companys growth in this segment was at 8.9%.

For fiscal 2024, the mix for Pvt car, TW and CV stood at 51.4%, 26.8% and 21.9% respectively.

The Health segment continued to be the fastest growing segment for the industry. The Company grew at 29.1% for fiscal 2024.

The Group Health segment for the Company grew at

31.6% for fiscal 2024.

Within the Group Health, the Employer Employee segment grew at 30.3% for fiscal 2024. The change in the underlying industry pricing sentiment resulted in customers moving towards insurers with superior servicing capabilities.

In Retail Health business the Company grew at 20.0%. The Company would continue to invest in this segment in terms of human, technology and knowledge capital to further improve market share. As at March 31, 2024, the retail health agency manager headcount stands at ~1,600. The Company will continue to strengthen its growth levers, given the prevalent market opportunities in this segment.

Premium on reinsurance accepted is the premium received by the insurer due to risks that it reinsures, which is also referred to as "reinsurance inward". Premium on reinsurance accepted stood at Rs. 8.18 billion for fiscal 2024 fromRs. 7.47 billion for fiscal

2023, a growth of 9.5%. Health and Marine Cargo segments primarily contributed to premium on reinsurance accepted.

Consequently, GWP increased to Rs. 255.94 billion for fiscal 2024 fromRs. 217.72 billion for fiscal 2023, a growth of 17.6%.

Premium on reinsurance ceded is the premium in relation to the risk ceded to reinsurers. In the case of non-proportional reinsurance, like risk, excess-of-loss or catastrophic excess-of-loss, this amount is the premium that the insurer pays to its reinsurers. In case of proportional reinsurance, this amount is calculated based on the premium received for ensuring a particular risk and the proportion of such risk ceded to its reinsurers.

The premium on reinsurance ceded grew to Rs. 74.29 billion for fiscal 2024 from Rs. 62.32 billion for fiscal

2023, a growth of 19.2%. This was primarily driven by growth in segments such as Fire, Health, Motor and Crop.

Consequently, NWP increased to Rs. 181.65 billion for fiscal 2024 from Rs. 155.40 billion for fiscal 2023, a growth of 16.9%.

NEP increased to Rs. 168.66 billion for fiscal Rs. 148.23 billion for fiscal 2023, a growth of 13.8% primarily driven by Health, Travel & PA segments. Segmental NEP is shown in the table below:

Segmental NEP

Particulars	Fiscal 2023	Fiscal 2024
Motor:
Motor - Own Damage	40.38	41.64
Motor - Third Party	43.55	45.38
Motor – Total	83.93	87.02
Health Insurance	38.77	52.63
Crop / Weather	2.40	3.53
Marine:
Marine – Cargo	4.36	5.17
Marine - Other than	0.03	0.06
Cargo
Marine – Total	4.39	5.23
Personal Accident	4.46	5.26
Fire	6.52	6.15
Engineering	1.78	2.03
Aviation	0.25	0.16
Workmens	0.90	1.04
Compensation
Public / Product Liability	0.52	0.63
Credit Insurance	0.02	0.03
Others	4.29	4.95
Total	148.23	168.66

NEP of the Motor segment increased to Rs. 87.02 billion for fiscal 2024 from Rs. 83.93 billion for fiscal 2023, a growth of 3.7%.

NEP of the Health & PA segment increased to

Rs. 57.89 billion for fiscal 2024 from Rs. 43.23 billion for fiscal 2023, an increase of 33.9%. This was primarily driven by growth of GDPI in Group health insurance business.

NEP of the marine segment increased to Rs. 5.23 billion for fiscal 2024 from Rs. 4.39 billion for fiscal 2023, a growth of 19.1%. This was largely contributed by marine cargo segment.

NEP of the fire segment stood at Rs. 6.15 billion for fiscal 2024 fromRs. 6.52 billion for fiscal 2023.

Income from investments (net) (revenue account)

Income from investments (net) (revenue account) consists of net profit on sale and redemption of investments and gross interest, dividend and rent received from the investment assets. The table below summarises the Income from investments (revenue account).

Income from investments (revenue account)

Particulars	Fiscal 2023	Fiscal 2024
Net Profit on sale and redemption of investments	3.86	4.91
Interest, Dividend and	19.35	22.85
Rent - Gross
Income from investments (net) (revenue account)	23.21	27.76

Income from investments (revenue account) increased to Rs. 27.76 billion for fiscal 2024 from Rs. 23.21 billion for fiscal 2023, a growth of 19.6%.

The gross interest, dividend and rent (revenue account) increased to Rs. 22.85 billion in fiscal 2024 from Rs. 19.35 billion in fiscal 2023, a growth of 18.1%.

This can be attributed to increase in total investment assets attributable to the revenue account and better realised investment income.

Other income (revenue account)

Other income (revenue account) consists of foreign exchange gain or loss, investment income from the pools and miscellaneous income. The table below summarises the other income (revenue account).

Other income (revenue account)

Particulars	Fiscal 2023	Fiscal 2024
Foreign exchange gain / (loss)	0.06	0.11
Investment income from pools (terrorism & nuclear)	0.52	0.85
Miscellaneous income	0.02	0.14
Total	0.60	1.10

Other income (revenue account) was at Rs. 1.10 billion for fiscal 2024 from Rs. 0.60 billion for fiscal 2023, a growth of 83.3%. For fiscal 2024, there was a foreign exchange gain of Rs. 0.11 billion from Rs. 0.06 billion for fiscal 2023. Additionally, the investment income from pools (terrorism and nuclear) was at Rs. 0.85 billion for fiscal 2024 from Rs. 0.52 billion for fiscal 2023. The miscellaneous income stood at Rs. 0.14 billion for fiscal 2024 as compared to Rs. 0.02 billion for fiscal 2023.

Claims Incurred (net)

Claims incurred (net) are the total claims incurred by the insurer during a given period, both paid and outstanding including IBNR/IBNER reserves, net of claims recovered from reinsurance ceded. Under guidelines issued by the IRDAI, IBNR and IBNER reserves, which also constituted part of claims outstanding, are not discounted. The statement below summarises the Claims Incurred (net).

Claims Incurred (Net)

Particulars	Fiscal 2023	Fiscal 2024
Claims paid - Direct	106.66	122.04
Claims paid on reinsurance accepted	4.02	4.40
Gross claims paid	110.68	126.44
Less: Claims recovered from reinsurance ceded	24.54	26.25
Net Claims paid	86.14	100.19
Add: Increase / (decrease) in claims outstanding (net)	21.12	19.21
Claims incurred (net)	107.26	119.40

Claims incurred (net) increased to Rs. 119.40 billion for fiscal 2024 fromRs. 107.26 billion for fiscal 2023, a growth of 11.3%. This increase was lower than increase in NEP of 13.8% for the same period.

There was decrease in overall loss ratio to 70.8% in fiscal 2024 from 72.4% in fiscal 2023.

Net claims paid increased to Rs. 100.19 billion in fiscal

2024 from Rs. 86.14 billion in fiscal 2023, a growth of 16.3%. The claims outstanding (net) stood at

Rs. 19.21 billion in fiscal 2024 as againstRs. 21.12 billion in fiscal 2023.

The table below gives the segmental loss ratios: Segmental loss ratios

Particulars	Fiscal 2023	Fiscal 2024
Motor:
Motor - Own Damage	72.6%	63.5%
Motor - Third Party	72.2%	66.8%
Motor - Total	72.4%	65.2%
Health Insurance	81.5%	81.4%
Crop / Weather	80.1%	88.4%
Marine:
Marine - Cargo	71.8%	72.7%
Marine - Other than	178.7%	136.8%
Cargo
Marine - Total	72.4%	73.4%
Personal Accident	40.8%	53.3%
Fire	49.3%	62.2%
Engineering	55.1%	63.8%
Aviation	96.1%	217.3%
Workmens	66.8%	61.2%
Compensation
Public / Product Liability	84.4%	54.2%
Credit Insurance	99.6%	94.0%
Others	57.5%	71.9%
Total	72.4%	70.8%

The overall loss ratio improved to 70.8% in fiscal 2024 from 72.4% in fiscal 2023. Further the Health loss ratio has marginally improved to 81.4% in fiscal 2024 from 81.5% in fiscal 2023.

The loss ratio of Motor improved to 65.2% in fiscal 2024 from 72.4% in fiscal 2023. This was due to improvement in the portfolio mix and efficiency in claim settlement process.

The Motor TP loss ratio of the Company improved to

66.8% in fiscal2024 as against 72.2% in fiscal 2023.

Commission paid (net)

Commission paid (net) comprises of Commission paid – Direct, Commission paid on reinsurance accepted deducted by commission received from reinsurance ceded.

Commission on reinsurance ceded refers to the commissions on reinsurance arrangements received by the insurer. This commission is generally computed as a percentage of the premium on reinsurance ceded. In the case of certain proportional reinsurance contracts where the premium rates are defined, the difference between the premium received by insurer for reinsuring a particular risk and the premium rate so defined in the reinsurance contract is considered as commission on reinsurance ceded.

Commission paid (net)

Particulars	Fiscal 2023	Fiscal 2024
Commission paid - Direct	17.00	45.59
Commission paid on reinsurance accepted	0.95	0.71
Gross Commission paid	17.95	46.30
Less: Commission received from reinsurance ceded	13.23	15.42
Commission paid (net)	4.72	30.88

Commission paid - Direct increased to Rs. 45.59 billion for fiscal 2024 fromRs. 17.00 billionforfiscal2023, an increase of 168.2%. The increase in the commission was primarily due to increase in Motor, Health & PA and Commercial line of business such as Fire, Engineering and Marine coupled with implementation of the IRDAI Expenses of Management (EOM) Regulations, 2023.

Commission paid on reinsurance accepted decreased to Rs. 0.71 billion for fiscal 2024 from Rs. 0.95 billion for fiscal 2023, a decrease of 25.3%. This was primarily due to reduction in premium on reinsurance accepted under Health & PA segment and commercial segments such as Liability and others.

Commission received from reinsurance ceded increased to Rs. 15.42 billion for fiscal 2024 from Rs. 13.23 billion for fiscal 2023, an increase of 16.6%; primarily due to increase in the Motor, Commercial and Health & PA lines of business.

Operating expenses related to insurance business

Operating expenses related to insurance business includes employees remuneration, rents, rates and taxes, advertisement, sales promotion, business support service and others.

During the fiscal 2024, the Companys focus remained on accelerating its investments towards delivering excellence in technology, innovation, building people capabilities and value partnerships. Resultantly, operating expenses related to insurance business decreased to Rs. 28.18billionforfiscal2024 assets and recovery of from Rs. 45.15 billion for fiscal 2023, a decrease of 37.6%.

Operating profit

Based on the above, operating profit stood at

Rs. 19.06 billion in fiscal 2024 from Rs. 23.82 billion in fiscal 2023, a de-growth of 20.0%. Fire insurance sale/discard of contributed 26.4% and 25.0%, Marine ed assetsinsurance contributed 1.4% and 1.0% and Miscellaneous insurance (including Motor insurance, Health insurance and other lines of insurance) contributed

72.1% and74.0%oftheoperatingprofit fiscal for 2024 and fiscal 2023, respectively. The de-growth in operating profit was attributed to increase in net commission and net2024 fromincurred claims offset by net earned premium during fiscal 2024incomparison on sale/discard of with fiscal 2023

Income from investments (net) (profit and loss account)

Income from investments (profit and loss account) consists of interest, dividend and rent, and net profit on the sale and redemption of investments. The table below summarises the Income from investments

(profit and loss account).

Income from investments (profit and loss account)

Particulars	Fiscal 2023	Fiscal 2024
Net profit on sale and redemption of investments	1.32	1.51
Interest, Dividend and	6.00	6.94
Rent - Gross
Income from investments (net) (profit and loss account)	7.32	8.45

Income from investments (profitand loss account) increased to Rs. 8.45 billion for fiscal 2024 from Rs. 7.32 billion for fiscal 2023, a growth of 15.4%. The gross interest, dividend and rent (profit and loss account) increased to Rs. 6.94 billion for fiscal 2024 fromRs. 6.00 billion for fiscal 2023, a growth of 15.7% which was primarily due to an increase in total investment assets attributable to the profit and loss accou nt.

Other income (profit and loss account)

Other income (profit and loss account) consists of interest income on tax refund, profit on sale/discard written off. offixed

Other income (profit and loss account)

Particulars	Fiscal 2023	Fiscal 2024
Interest income on tax refund	0.30	-
Profit on	0.00	0.01
Recovery of bad debts written off	0.14	0.05
Other income (profit and loss account)	0.44	0.06

Other income (profit and loss account) decreased to Rs. 0.06 billion for fiscal Rs. 0.44 billion for assetsfiscal 2023. Also, profit was Rs. 0.01 billion for fiscal 2024.

Provisions (other than taxation)

Provisions (other than taxation) consists of provisions for diminution in the value of investments, doubtful debts, future recoverable under reinsurance contracts, and other provisions.

Provision other than taxation (profit and loss account)

Particulars	Fiscal 2023	Fiscal 2024
For diminution in the value of investments	0.78	0.96
For doubtful debts	(0.17)	(0.39)
For future recoverable under reinsurance contracts	-	-
Others	-	-
Provision other than taxation (profit and loss account)	0.61	0.57

Provisions (other than taxation) stood at Rs. 0.57 billion for fiscal 2024 fromRs. 0.61 billion for fiscal 2023.

Provision for diminution in the value of investments increased to Rs. 0.96 billion in fiscal 2024 from

Rs. 0.78 billion in fiscal 2023, primarily due to impairment on equity asset amounting to

Rs. 1.47 billion offset in part by reversal of impairment on equity assets amounting to Rs. 0.51 billion.

Provision of doubtful debts stood at Rs. (0.39) billion in fiscal 2024 from Rs. (0.17) billion in fiscal 2023 mainly due to reversal of provision on recievables of previous year which is no longer required or subsequently written off.

Other expenses (profit and loss account)

Other expenses consist of expenses other than those related to insurance business, which include certain employees remuneration and other expenses, managerial remuneration, directors fees and CSR expenditure, charges on issuance of the Debentures, expenses related to investment property and Contribution to Policyholders Funds towards excess Expenses of Management. Other expenses also cover, bad debts written off, loss on sale/discard of fixed assets and penalty.

Other expenses reduced to Rs. 1.44 billion for fiscal

2024 from Rs. 9.84 billion for fiscal 2023, a reduction of 85.4%, since the expenses of management (EOM) were within the prescribed limits of the new regulation, hence there is no transfer of operating expense from revenue account to P&L account in fiscal 2024 as compared to fiscal 2023 whereRs. 8.91 billion was transferred as contribution to Policyholders fund towards excess EOM. Other expenses for fiscal 2024 includes CSR expenditure, loss on sale of fixed assets, managerial and employee remuneration.

Profit

As a result of the above, profit before tax increased to Rs. 25.55 billion for fiscal 2024 from Rs. 21.13 billion for fiscal 2023, a growth of 21.0%.

Provision for taxation stood at Rs. 6.36 billion in fiscal

2024 as compared to Rs. 3.84 billion in fiscal 2023, a growth of 65.6%.

Profit after tax (PAT) increased to Rs. 19.19 billion for fiscal 2024 fromRs. 17.29 billion for fiscal 2023, a growth of 11.0%, excluding the reversal of tax provision in Q2 of fiscal 2023 PAT grew by 19.8% in fiscal 2024

ii. Financial Position: Balance Sheet

The following table sets forth, at the dates indicated, the summary balance sheet, which is based on the financial statements.

Balance Sheet

Particulars	At March 31, 2023	At March 31, 2024
Share Capital	4.91	4.93
Reserves and Surpluses	99.01	114.67
Share application money	-	-
- pending allotment
Total Equity	103.92	119.60
Current liabilities	356.59	402.35
Provisions	87.86	100.89
Fair value change account	2.13	9.90
Borrowings	0.35	0.35
Total liabilities	446.93	513.49
Total equity and liabilities	550.85	633.09
Total investments	431.80	489.07
Fixed assets:
- Cost / gross block	14.01	15.69
- Net block	5.64	7.01
Deferred tax asset	2.65	2.93
Cash and bank balances	2.03	3.35
Advances and other assets	108.73	130.73
Total Assets	550.85	633.09

Total assets increased to Rs. 633.09 billion as at March 31, 2024 from Rs. 550.85 billion as at March 31,

2023, an increase of 14.9%. This increase was primarily driven by an increase in total investment assets to Rs. 489.07 billion for fiscal 2024 from

Rs. 431.80 billion for fiscal 2023. This increase in total investment assets was contributed by higher inflows from efficiencies in operations and realized investment income. Advances and other assets increased to Rs. 130.73 billion as at March 31, 2024 from Rs. 108.73 billion as at March 31, 2023, an increase of 20.2%. The outstanding premium (net of provision for doubtful debts) increased to Rs. 6.92 billion at March 31, 2024 from Rs. 6.10 billion at March 31, 2023, a growth of 13.4%. This growth was mainly on account of increase in government receivables attributable to the Crop line of business. Advance tax paid and taxes deducted at source (net of provision for tax) stood at Rs. 1.84 billion for fiscal

2024 as against Rs. 1.89 billion for fiscal 2023.

Total liabilities increased to Rs. 513.49 billion at March 31, 2024 from Rs. 446.93 billion at March 31,

2023, an increase of 14.9%. This was primarily due to increase in claims outstanding (gross) to Rs. 303.88 billion as at March 31, 2024 from Rs. 269.17 billion as at March 31, 2023. Further premiums received in advance stood at Rs. 33.88 billion at March 31, 2024 and Rs. 32.72 billion at March 31, 2023. The advance premium is attributable to long-term motor policies wherein the premium is received upfront and would get recognized in the future years. Fair value change account – Shareholder funds increased to

Rs. 2.45 billion at March 31, 2024 from Rs. 0.51 billion at March 31, 2023, a growth of 380.4%. Fair value change account – Policyholder funds increased to

Rs. 7.45 billion at March 31, 2024 from Rs. 1.62 billion at March 31, 2023. The increase in fair value account for shareholders and policyholders was primarily due to the increase in the market value of the equity portfolio compared to its cost price.

The Reserves and Surplus stood at Rs. 114.67 billion as at March 31, 2024 as compared to Rs. 99.01 billion as at March 31, 2023 due to increase in the Profit after

Tax net of dividend paid.

Investments – Shareholders stood at Rs. 115.87 billion at March 31, 2024 from Rs. 98.58 billion at March 31, 2023, an increase of 17.5%. Investments –Policyholders stood at Rs. 373.20 billion at March 31, 2024 from Rs. 333.22 billion at March 31, 2023, an increase of 12.0%. This increase was primarily due to an overall increase in the investment book size.

iii. Liquidity and Capital Resources

The following table sets forth, for the periods indicated, a summary of cash flows from the restated summary statement of receipts and payments account.

Cash flow summary

Particulars	Fiscal 2023	Fiscal 2024
Net cash flow from (used in) operating activities (A)	22.90	24.07
Net cash flow from (used in) investing activities (B)	(16.85)	(19.21)
Net cash flow from (used in) financing activities (C)	(6.95)	(3.55)
Net increase / (decrease) in cash and cash equivalents (A)+(B)+(C)	(0.90)	1.31
Cash & Cash equivalents at the beginning of the year	2.93	2.03
Cash & Cash equivalents at the end of the year	2.03	3.34

Cash from operating activities

Net cash flows from operating activities increased to Rs. 24.07 billion for fiscal 2024 fromRs. 22.90 billion for fiscal 2023. This increase was primarily due to increase in premium received from policyholders including premium received in advance on account of upfront premium received from long term motor policies, partially offset by an increase in the payment of claims, commissions and taxes.

Cash from investing activities

Net cash flows (used in) investing activities increased to Rs. (19.21) billion for fiscal 2024 fromRs. (16.85) billion for fiscal 2023. This was primarily due to increase in funds generated from operating activities.

Cash from financing activities

Net cash flows (used in) financing activities reduced to Rs. (3.55) billion for fiscal 2024 from Rs. (6.95) billion for fiscal 2023.

iv. Contingent Liabilities

The Statement of contingent liabilities is provided below.

Contingent Liability

Particulars	At March 31, 2023	At March 31, 2024
Partly-paid up investments	-	-
Claims, other than those under policies, not acknowledged as debt	-	-
Underwriting commitments outstanding	NA	NA
Guarantees given by or on behalf of the Company	-	-
Particulars	At March 31, 2023	At March 31, 2024
Statutory demands/ liabilities in dispute, not provided for (Refer note- 1, 2 & 3 below)	4.80	5.54
Reinsurance obligations to the extent not provided for in accounts	-	-
Others : (Refer note-4 below)	0.05	0.01

Note:

(1) The Company has disputed the demand raised by Income Tax Authorities of Rs. 1.19 billion (previous year: Rs. 0.83 billion), the appeals of which are pending before the appropriate Authorities.

This excludes, a) Assessment Years 2006-07 in respect of which the Company has received favorable appellate order, which are pending for effect to be given by the Assessing Authority.

b) Assessment Years 2002-03, 2003-04, 2005-06, 2007-08, 2008-09, 2009-10 and 2010-11, for which the Company has received intimation from the Income Tax

Department, for appeal filed with High

Court, against favorable Appellate Orders.

(2) Includes disputed refund / demand (including interest and penalty) of Rs. 4.36 billion (previous year: Rs. 3.96 Billion) from Service Tax Authorities / Goods & Service Tax Authorities / Jammu and Kashmir Sales Tax, the appeals of which are pending / in the process of being filed before the appropriate Authorities. Further, Rs. 0.09 billion (previous year: Rs. 0.17 Bn) has been paid at the time of filing CESTAT/Commissioner Appeal as per the provisions of the Finance Act, 1994/ GST Act.

(3) During the year the Company has received an Order along with Notice of Demand dated May 29, 2023 for FY 2014-15 (A.Y. 2015-16) for Rs. 0.94 billion (including interest) on account of denial of exemptions (for interest, dividend income and long-term capital gains) claimed under Sections 10 of the Income Tax Act, 1961. The same has been included in contingent liability. The Company has filed an appeal with the Commissioner of Income Tax (Appeal) against the said Order on June 27, 2023. The matter relates to an industry wide issue of claiming exemption under Section 10 by insurance companies and is not specific to the practices of the Company.

(4) Others include:

Particulars	At March 31, 2023	At March 31, 2024
Relating to penalty / penal interest towards non- meeting operational guidelines (OG) of Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme.	0.01	0.01
Relating to property tax (including interest)	0.04	-
Total	0.05	0.01

(5) Excludes, payment of Rs. 1.04 billion under protest pursuant to a GST proceeding on account of alleged ineligible input tax credit claim and applicability of GST on salvage adjusted on motor claims settled during the period from July 2017 to March 2022. The Company has been advised that its tax position on both the matters is legally valid and that the Company should not be liable to pay the said amounts. Accordingly, the Company has treated the amount paid as deposit under "Advances and Other Assets" as at March 31, 2024. Further, the

Company will file refund for these amounts in due course.

(6) Excludes, GST of Rs. 0.5 billion deposited under protest during an ongoing proceeding evaluating Input Tax Credit entitlement on certain marketing expenses for the period from July 2017. The Company has not received a

Show Cause Notice in the matter; however, the

Company believes that the adopted tax position is legally tenable. Accordingly, the Company has treated the amount paid as deposit under "Advances and Other Assets" as on March 31, 2024.

v. Borrowings

As of March 31, 2024, Borrowings stood at Rs. 0.35 billion, total net worth was at Rs. 119.60 billion and a total debt to net worth ratio was 0.003 times.

On April 1, 2024, the Company exercised Call Option to redeem 10.5% 350 unsecured subordinated, fully paid-up, listed, redeemable and non-convertible debentures, each having a face value of Rs. 1,000,000 issued on April 30, 2019. The Company undertook repayment in full along with the final interest due on

April 30, 2024.

Disclosure of key changes in financial indicators:

Pursuant to SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, w.e.f. 01 April 2019, following details have been provided:

(a) Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in the key financial ratios, alongwith detailed explanations thereof:

Ratio	FY2023	FY2024	Change (FY2023 vs FY2024)	Reasons, if any
Gross Direct Premium Growth Rate	17%	18%	5%	Not Applicable
Gross Direct Premium to Net Worth Ratio	2.02	2.07	2%	Not Applicable
Growth rate of Net Worth	14%	15%	7%	Not Applicable
Net Retention Ratio	71%	71%	-1%	Not Applicable
Net Commission Ratio	3%	17%	460%	Refer Note 1
Expenses of Management to Gross Direct Premium				Not Applicable
Ratio	30%	30%	1%
Expenses of Management to Net Written Premium				Not Applicable
Ratio	40%	41%	2%
Net Incurred Claims to Net Earned Premium	72%	71%	-2%	Not Applicable
Combined Ratio	104%	103%	-1%	Not Applicable
Technical Reserves to Net Premium Ratio	2.29	2.22	-3%	Not Applicable
Underwriting balance ratio	-0.06	-0.06	-3%	Not Applicable
Operating profit ratio	16%	11%	-30%	Refer Note 2
Liquid Assets to Liabilities Ratio	11%	9%	-20%	Not Applicable
Net Earnings Ratio	12%	11%	-2%	Not Applicable
Solvency Ratio	2.51	2.62	4%	Not Applicable

Note 1: Net Commission Ratio is a function of net commission paid to net written premium during the year. The net commission paid increased in the fiscal 2024, as compared to fiscal 2023 pursuant to implementation of IRDAI Expenses of

Management (EOM) Regulations, 2023.

Note 2: Operating profit ratio is arrived at by dividing net premium earned, profit on sale/redemption of investments and other income forming part of the revenue account with total premium earned. The operating profit ratio has reduced on account of increase in incurred claims and net commission paidduring the fiscal 2024.

(b) Details of change in Return on Net Worth as compared to the immediately previous financial year alongwith detailed explanation thereof:

Return on Net Worth (RONW) is computed dividing the PAT by Net Worth (Share Capital + Reserves & Surpluses + Share application money received pending allotment). RONW stood at

6% 16.0%for for fiscal 2023. The increase in networth can be attributable to increase in PAT for the fiscal 2024

IV. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The internal controls of the Company are commensurate with the business requirements, its scale of operation and applicable statutes to ensure orderly and efficient conduct of business. These controls have been designed to provide a reasonable assurance with regard to maintaining proper accounting controls, safeguarding of resources, prevention and detection of frauds and errors, ensuring operating effectiveness, reliability of financial reporting and compliance with applicable regulations. In addition, internal audits are undertaken to review significant operational areas regularly. The audit reports submitted by internal auditors are reviewed by audit committee and corrective actions are initiated to strengthen the controls and enhance the effectiveness of the existing systems. Statutory and Internal auditors are also invited to the Audit Committee meetings to ascertain their views on the adequacy of internal control systems.

The management believes that strengthening of internal controls is a continuous process and it will therefore continue its efforts to keep pace with changing business needs and environment.

V. KE Y DEVELOPMENTS IN HUMAN

RESOURCES

On December 1, 2023, pursuant to the exit of his predecessor Mr. Bhargav Dasgupta, Mr. Sanjeev Mantri, who was formerly the Executive Director was appointed MD & CEO of the organisation.

The Company during the fiscal 2024 added net manpower of 805 employees. The Company started its DEI journey over 2 years ago with emphasis on gender diversity and building an inclusive organization. The Company since then is striving towards improving women representation in the workforce through build enabling policies and practices and drive awareness on inclusion to further the DEI agenda. The Company has also taken a target of improving women representation to 25.0% by fiscal 2025. These initiative led women representation to increase to 24.0% in fiscal 2024 from 21.6% in fiscal 2023.

VI. UPDATE ON IMPLEMENTATION OF INDIAN ACCOUNTING STANDARD (IND AS)

The Authority vide communication no. 100/2/Ind AS - mission mode/2022-23/1 dated July 14, 2022, advised the insurers to set up a Steering Committee to facilitate smooth transition to Ind AS. In compliance with the regulatory requirements, the Company has constituted a Steering

Committee headed by Chief Financial Officer to oversee the implementation of Ind AS. The Steering Committee consists of members of Management Committee and cross operational teams for appropriate representation. Periodic meetings of the Steering Committee are being held to review the progress made towards implementation, issues / challenges and course of action to mitigate the same. The Steering Committee is also updating the Audit Committee of the Board on the progress in preparedness towards Ind AS implementation process on a quarterly basis.

The International Accounting Standard Board (IASB) new standard for insurance contracts i.e. IFRS 17 is now effective for annual reporting beginning on or after January 1, 2023. Ministry of Corporate Affairs have still not notified the Ind AS 117. A draft of Ind AS 117 is available in public domain.

The Company has initiated steps to progress towards Ind AS convergence. The Company has appointed knowledge partner who is assisting the Company in implementation of Ind AS. The Steering Committee has detailed out phase wise approach for implementation and is in process of onboarding technology partner to assist in Ind AS convergence.

Independent Auditors Certificate

RELATED TO CERTAIN MATTERS STATED IN PARAGRAPH 3 AND 4 OF SCHEDULE C OF THE IRDAI FINANCIAL STATEMENT REGULATIONS

To The Members of ICICI Lombard General Insurance Company Limited

(Referred to in paragraph 1 of our Independent Auditors Report on Other Legal and Regulatory Requirements forming part of the Independent Auditors Report dated 17 April 2024)

1. This certificate is issued in accordance with the terms of our engagement letter dated July 08, 2023 with ICICI Lombard General Insurance Company Limited (the

"Company"), wherein we are requested to issue certificate for compliance with the provisions of paragraphs 3 and 4 of Schedule C read with regulation 3 of the Insurance Regulatory and Development Authority (Preparation of nancial Financial Statements and Auditors Report of Insurance Companies) Regulations 2002 (the "IRDA Financial Statements Regulations")

Management Responsibility

2. The Company management and Board of Directors are responsible for complying with the provisions of The Insurance Act, 1938 (amended by the Insurance Laws (Amendment) Act 2015) (the "Insurance Act"), the Insurance Regulatory and Development Authority Act, 1999 (the "IRDA Act"), the IRDA Financial Statements Regulations, orders/directions/circulars issued by the Insurance Regulatory and Development Authority of India (the "IRDAI") which includes (i) preparation of management report consistent with the financial statements; (ii) compliance with the terms and conditions of the registration stipulated by the Authority; (iii) maintenance and custody of cash balances and maintenance of investments with custody and depository; and (iv) ensuring that no part of the assets of the policyholders funds has been directly or indirectly applied in contravention of the provisions of the Insurance Act, relating to the application and investments of the Policyholders Funds. This includes collecting, collating and validating data and designing, implementing and monitoring of internal controls suitable for ensuring compliance as aforesaid and applying an appropriate basis of preparation; and making estimates and judgments that are reasonable in the circumstances.

Independent Auditors Responsibility

3. Pursuant to the requirement of paragraphs 3 and 4 of Schedule C of the IRDA Financial Statements Regulations, it is our responsibility to provide reasonable assurance and form an opinion based on our audit and examination of books of accounts and other records as to whether the Company has complied with the matters contained in paragraphs 3 and 4 of Schedule C, read with Regulation 3, to the IRDAI Financial Statement Regulations as of and for the year ended 31 March 2024

4. The Financial statements of the Company for the year ended 31 March 2024 have been audited jointly by us on which we have issued an unmodified audit opinion vide fi our report dated 17 April 2024. Our audit of these statements was conducted in accordance with the Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India (‘ICAI). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

5. We conducted our examination in accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) (the ‘Guidance Note) issued by the ICAI, which include the concepts of test checks and materiality. The Guidance Note requires that we comply with the ethical requirements of the Code of Ethics, issued by ICAI.

6. We have complied with the relevant applicable requirements of the Standard on Quality Control (‘SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services engagements.

Opinion

7. In accordance with information ,explanations and representations given to us and to the best of our knowledge and belief and based on our examination of the books of account and other records maintained by the Company for the year ended 31 March 2024, we certify that:

A. We have reviewed the Management Report attached to the financial statements for year ended 31 March 2024, and on the basis of our review, there is no apparent mistake or material inconsistencies with the financial statements;

B. Based on management representations and compliance certificates submitted to the Board of Directors by the officers of the Company charged with compliance and the same being noted by the Board of Directors, nothing has come to our attention that causes us to believe that the Company has not complied with the terms and conditions of registration as stipulated by the IRDAI, we certify that the Company has complied with the terms and conditions of registration stipulated by the IRDAI;

C. We have verified,

a. the cash balances, to the extent considered necessary by physical verification and/or obtaining certificates / confirmations from the concerned branches/Head Office personnel of the Company; and

b. securities relating to the Companys loans and investments as of 31 March 2024, by obtaining certificates / confirmations received from the Custodians and/or Depository Participants appointed by the Company.

D. The Company is not a trustee of any trust; and

E. No part of the assets of the Policyholders Funds has been directly or indirectly applied in contravention to the provisions of the Insurance Act, relating to the application and investments of the Policyholders Funds.

Restriction to use

8. This certificate is issued solely for inclusion in the annual accounts of the Company the purpose of complying with the IRDA Financial Statements Regulations and may not be suitable for any other purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose.