DIRECTORS' REPORT

The Directors are pleased to present the 26^th Annual Report of SBI Life Insurance Company Limited ("SBI Life" or "the
Company") along with the audited financial statements for the financial year ended March 31,2026.

The Company has once again delivered a resilient and consistent performance during the year, reinforcing its leadership
position across both individual and overall business segments. Despite a dynamic macroeconomic and industry
environment, the Company continued to demonstrate strong operational execution, customer focus and financial
discipline. The Company continues to remain committed to creating sustainable long-term value for all stakeholders
while upholding the highest standards of governance, transparency and customer service excellence.

1. Financial Performance and State of Company's Affairs

T he Company witnessed a growth and consistent performance in FY 2026. The key parameters of the Company
are as follows:

T he Company has maintained its private market leadership in New Business Premium (NBP) and Individual NBP
with private market share of 21.4% and 25.5% respectively.

I ndividual Rated premium (IRP) has increased by 113.2% to f 219.0 billion and APE has increased by 13.3% to
f 242.7 billion. ¹

• The operating expense has increased by 38.6%
and GWP has increased by 19.2% resulting an
increase in operating expense ratio (Operating
Expense to GWP) from 5.3% to 6.1%.

• Improvement in individual death claim
settlement ratio from 98.3% to 98.6%
and overall death claim settlement ratio
stands constant at 99.4%.

• Solvency ratio of the Company stands at 1.90
as against the regulatory requirement of 1.50
indicating the strong and stable financial health
of the Company.

• 13^th month persistency ratio stands at 87.9%
with growth of 53 bps. Further, the 25^th month
and 49^th month persistency (based on premium
considering Regular Premium/Limited Premium
payment under individual category) has shown
growth of 27 bps and 107 bps respectively
due to our focus on improving the quality of
business and customer retention.

• Distribution network

The distribution network refers to the extent
and variety of channel through which the
Company sells its products and services to the
customers. The robust distribution network
plays pivotal role in success of the Company as
it ensures that products and services provided
by the Company reaches target customers in
the cost-efficient manner. The Company aims
to strike optimum balance among various
distribution channels and we expect to grow by
leveraging these multiple drivers and further
strengthen our distribution network.

The Company aims at targeting underpenetrated
market through expansion of its distribution

reach by opening up of new offices, quality
recruitments and new business partnerships.

As at March 31, 2026, the Company has 1,230
offices, 2,82,001 Insurance Advisors (IAs) and
59,321 Certified Insurance Facilitators (CIFs)
across the country.

• Distribution Mix

During the year, the Company has collected
NBP of ? 425.5 billion, comprising of ? 212.2
billion from 'Bancassurance' which represents
company's largest distribution network, ? 84.3
billion from Retail Agency and ? 129.0 billion
from other distribution channel which includes
direct sales, sales by corporate agents, brokers,
micro agents, common service centres (CSC),
insurance marketing firms (IMFs), Point of Sale
Person (POSPs) and Web aggregators.

The Company's direct sales primarily
comprise sale of group products, as well as
standardised individual products sold through
online offerings.

2. Industry and Company Outlook

The global economy continued to navigate a
challenging environment during FY26, marked by
geopolitical uncertainties, evolving trade dynamics,
persistent inflationary pressures in key advanced
economies and heightened volatility across
global financial markets. Despite these external
headwinds, India continued to demonstrate strong
macroeconomic resilience and remained among
the fastest-growing major economies globally.
According to the latest estimates released by
the National Statistics Office (NSO), India's real
GDP is estimated to have grown by 7.7% in FY26.
Looking ahead, the Reserve Bank of India (RBI)

has projected India's GDP growth at around 6.6%
for FY27, reflecting a normalisation in growth
momentum while continuing to be supported by
strong domestic fundamentals.

India's long-term growth prospects remain
underpinned by favourable demographics, rising
urbanisation, increasing economic formalisation,
rapid digital adoption and expanding financial
inclusion. These structural drivers continue to
strengthen financial awareness and are expected to
drive sustained demand for protection, retirement
and long-term savings solutions, thereby reinforcing
the growth potential of the life insurance sector.

Against this backdrop, the Indian life insurance
industry maintained healthy growth momentum
during FY26, supported by improving customer
awareness, greater adoption of digital distribution
channels and progressive regulatory reforms.
The industry witnessed growth in new business
premiums by 15.7%, driven by strong demand
across protection, savings and retirement-oriented
products. Total sum assured grew by 23.6% further
reflected increasing customer awareness of the
need for adequate financial protection, reinforcing
the sector's role in enhancing financial security.

During the year, the GST reforms introduced by
the government represent a significant shift in
the insurance landscape, aiming to make life and
health insurance more affordable and encourage
broader coverage among the population.
These measures are aligned with the long-term
objective of expanding insurance coverage across
the country and support the Insurance Regulatory
and Development Authority of India's (IRDAI) vision
of "Insurance for All by 2047". The sector also
continued to benefit from other key regulatory
initiatives, including the transition towards a
Risk-Based Capital framework and the ongoing
development of the Bima Sugam digital platform.
Collectively, these reforms are expected to enhance
accessibility, improve transparency, strengthen
operational efficiency and support the long-term
growth and resilience of the insurance sector.

Key areas on which Insurers need to focus to
become future-ready

1. Digital Transformation and Technology
Integration: Insurers need to accelerate
adoption of Artificial Intelligence (AI),
automation, advanced analytics and digital
platforms to enhance operational efficiency,

improve customer engagement and enable
faster, data-driven decision-making across
underwriting, claims and servicing processes.

2. Cyber Security and Data Privacy: As digital
adoption increases, insurers are exposed
to growing cybersecurity risks involving
sensitive customer and financial information.
Strengthening cybersecurity infrastructure,
enhancing real-time monitoring, investing in
secure technologies and promoting employee
awareness are critical to safeguarding data,
ensuring operational resilience and maintaining
customer trust and regulatory compliance.

3. Sustainability and Climate Change: The

insurance industry is increasingly prioritizing
sustainability and climate resilience within its
business strategies. Beyond providing financial
protection, insurers are expected to support
risk prevention and mitigation related to climate
change by developing sustainable insurance
solutions and collaborating with stakeholders to
promote environmentally responsible practices

4. Customer-Centric Business Models:

Insurers are increasingly shifting toward
customer-centric operating models focused
on delivering seamless, personalized
and relationship-driven experiences.
Leveraging technology and data analytics to
better understand evolving customer needs
will be essential to enhancing engagement,
strengthening trust and improving long-term
customer retention and satisfaction.

The insurance industry is undergoing a significant
transformation driven by evolving customer
expectations, rapid technological advancements,
regulatory developments and increasing focus
on sustainability. As the sector adapts to a more
digital and interconnected environment, insurers
will need to strengthen cybersecurity frameworks,
enhance customer-centric capabilities and
integrate sustainable business practices into their
long-term strategies.

Thus, the future of life insurance seems promising,
and as a Company, we are prepared to seize the
opportunities that lie ahead. We remain committed
to deepening customer engagement, enhancing
insurance accessibility, accelerating technology
investments and developing innovative solutions
that address the evolving financial protection and
savings needs of our customers.

Regulatory update:

IRDAI (Insurance Fraud Monitoring
Framework) Guidelines, 2025 - Key
highlights

• Anti-Fraud Policy to include additional
requirements such as red flag indicators for
detection of fraud, investigation process,
mechanism for appropriate action in case of
non-compliance, due diligence for vendors
engagement, etc.

• External Fraud and Affinity/Complex Fraud
(involving collusion among fraud perpetrators)
are added under Fraud categories.

• New provisions introduced in relation to Cyber
or New Age Fraud.

• Establish Fraud Monitoring Committee (FMC)
for operationalizing the Fraud risk management
framework. Composition of FMC is prescribed,
which shall be headed by KMP.

• FMC made responsible for reporting to
Board, RMC and Audit Committee as per
prescribed timeline.

• Establish Fraud Monitoring Unit (FMU),
independent from internal audit, to support
FMC in discharging its functions and effective
implementation of measures by FMC.

IRDAI (Actuarial, Finance and Investment
Functions of Insurers), (Amendment)
Regulations, 2026 - Key highlights

• Amendments mandate the preparation and

presentation of Financial Statements by

Insurers in accordance with applicable Indian
Accounting Standards (Ind AS), with effect from
1^st April 2026.

• Introduction of Ind AS aims to enhance

consistency, transparency, and comparability in
financial reporting across the insurance sector,
in alignment with globally accepted standards.

• Regulatory framework governing the

recognition, measurement, presentation and
disclosure of financial statements under Ind AS
has been prescribed.

• Parallel reporting of Financial Statements is
required for a period of two years, comprising
financial statements prepared in accordance
with Ind AS alongside financial information
under the existing accounting framework.

• A provision has been made to grant one-year
forbearance by IRDAI to insurers that are unable
to prepare and present financial statements in
compliance with Indian Accounting Standards.

Sabka Bima Sabki Raksha (Amendment of
Insurance Laws) Act 2025

• Permitted aggregate foreign investment under
automatic route, including foreign portfolio
investors, in an Indian insurance company up
to 100% of its paid-up equity capital, subject to
prescribed conditions.

• Share transfer restrictions have been eased, as
prior approval of IRDAI is now required only for
any transfer or issuance of shares exceeding 5%
of Insurer's paid- up capital (as opposed to 1%
under erstwhile regime).

• Omits section, which includes a prohibition on
investment in private companies by Insurers.

• IRDAI may in the interest of the policyholders,
specify the limits of any commission,
remuneration or reward payable to an insurance
agent or an insurance intermediary including
the manner of such payment, disclosures, etc.

Digital Personal Data Protection Rules, 2025

• Privacy Notices: To contain detailed, plain
language notices in multiple Indian languages
with a specific description of personal
data and purposes.

• Consent flows: Have in place valid consent
mechanisms, easy withdrawal and separate
flows for children and Person with Disability
(PwDs). Consent management related
stipulations shall come into effect
after 12 months.

• Security safeguards: Implement appropriate
security measures, access controls, monitoring
and mandatory log retention.

• Any personal data processed to be resident
within Indian territory and shall not be
transferred outside India by Data Fiduciary.

• Substantive obligations will take effect
after 18 months.

3. Dividend and Reserves

The Board of Directors of the Company at its meeting
held on February 25, 2026 has declared an interim
dividend of ? 2.70 per equity share with face value
of ? 10 each (previous year ended March 31, 2025,
interim dividend of ? 2.70 per equity share with
face value of ? 10 each). The total interim dividend
pay-out amounts to ? 2.71 billion. No final dividend
is recommended for the year ended March 31,2026
and the said interim dividend declared is to be
confirmed as final dividend.

During the year ended March 31, 2026, the
Company has earned Profit after tax of ? 24.7 billion.

The accumulated reserves of the Company as at
March 31,2026 was ? 178.3 billion.

In terms of Regulation 43A of Securities and
Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 ("Listing
Regulations") the Dividend Distribution Policy of
the Company is disclosed on the websitehttps://
www.sbilife.co.in/en/about-us/investor-relations

The Company has uploaded the details of unpaid
and unclaimed dividend on the Company's
website: https://www.sbilife.co.in/en/about-us/

investor-relations

4. Capital and Shareholding

During the year there was no fresh capital infusion
by the promoters in the Company. The authorized
share capital and paid-up share capital of the
Company stands at ? 20.00 billion and ? 10.03 billion
respectively. The shareholding pattern during the
year under review is in compliance with the statutory
requirement. The shareholding pattern is provided
as a part of Form No. MGT-9 which is annexed to this
Report and under Schedule - 5A which forms part of
the Financial Statement.

During the year, the Company has allotted 9,57,038
Equity Shares on exercise of certain stock options
granted under SBI Life Employees Stock Option
Scheme 2018 ('the Scheme' or 'ESOS 2018').

5. Deposits

During the year under review, the Company has
not accepted any deposits from the public as per
Section 73 of the Companies Act, 2013 read with
the Companies (Acceptance of Deposits) Rules,
2014 (as amended).

6. Awards & Recognitions

The Company has received various awards during
the year across brand management, technology,
CSR initiatives etc. Brief highlight of some of the
major awards are mentioned below:

• Won Silver Shield in Category - Life Insurance
Sector at the ICAI Awards for Excellence in
Financial Reporting 2025

• Awarded the Insurer of the Year - Best
Operating Performance (Life Category) at the
FICCI Insurance Industry Awards 2024

• Won the "Best Life Insurance Company -
India" at the 6^th edition of ICC Emerging Asia
Conclave & Awards 2026

• Won the Smart Insurer - Life Insurance (Large
Category) at the ET Now Insurance Summit 2025

• Awarded at the Indian Social Impact Awards
2025 for "Best 3 Healthcare CSR Initiative of
the year - 2025"

• Won the award 'AI Pioneer - Learning Champion'
at the LinkedIn Talent Awards 2025

• Recognised as "Best Risk Management Strategy
of the Year (India)" by ICC in 6^th Emerging Asia
Insurance Awards 2026

• Recognised as "Best Enterprise Risk

Management Program" at Bharat Credit Risk,
Fraud and Compliance Summit 2026

The awards demonstrate the Company's

commitment to achieve excellence, across all
spheres of its activities and operations.

7. Products

SBI Life has a wide range of products/riders catering
to various customer needs in the life, health, pension
& micro-insurance segments. These products/riders
are customer centric, simple to understand and
have competitive features.

5 new products were launched to strengthen the
product offerings by the company

1. SBI Life - Smart Shield Plus

2. SBI Life - Smart Money Back Plus

3. SBI Life - Smart Money Back Saver

4. SBI Life - Smart Platina Advantage

5. SBI Life - Group Pension Plus

Considering the focus on protection and
participating business, the Company has launched
SBI Life - Smart Shield Plus which is a new pure term
insurance product with the plan options of level
cover, Increasing cover and level cover with future
proofing benefit.

Further, the Company has also launched two new
Participating Moneyback products, SBI Life - Smart
Money Back Plus, which is a limited premium
payment product and SBI Life - Smart Money Back
Saver, which is a regular premium payment product.
These products cater the need of the customers
where a fixed percentage of the Sum Assured is paid
as Survival Benefit at the end of specific policy years
during the policy term.

With the addition of a new premium payment term
and policy term combinations, SBI Life - Smart
Platina Advantage seamlessly steps in, to replace SBI
Life - Smart Platina Assure.

SBI Life - Group Pension Plus is Group, Unit-Linked
product which offers various options of funds
to Master policyholder who are managing
Superannuation fund for their employees.

In addition to the launch of new products, below
mentioned products were modified for change in
product features:

1. SBI Life - eShield Insta

2. SBI Life - Smart Shield Premier

3. SBI Life - Smart Annuity Income

4. SBI Life - Smart Money Back Plus

Also, Interest rate movements are being
continuously monitored and interest rate sensitive
savings products including annuity products are
re-priced, if required.

8. Processes refinement and optimization

At SBI Life, the focus during the year remained on
shaping a future defined by quality, innovation and
sustained progress. The Company continued to
embed a culture of disciplined innovation, enabling
it to remain agile and responsive to evolving market
dynamics. Strategic emphasis was placed on
leveraging technology to drive smarter operations,
enhance decision-making and strengthen customer
engagement, thereby supporting consistent
performance and long-term value creation.

Digital transformation and automation formed
the cornerstone of the Company's operating
strategy. Through a digital first approach and the
adoption of advanced technologies such as Artificial
Intelligence and Robotic Process Automation,
SBI Life reimagined key processes to improve
efficiency, scalability and execution. These initiatives
reduced manual intervention, enabled faster and
more accurate processing and enhanced overall
operational resilience, positioning the Company
to compete effectively in an increasingly digital
insurance landscape.

The Company also advanced its commitment to
environmentally responsible growth by promoting
digital adoption across customer acquisition and
servicing processes, leading to a meaningful
reduction in paper usage. Strong operational
performance during the year reflected the
continued focus on service excellence, process
efficiency and customer satisfaction. The successful
retention of quality certifications across operations
further reinforced SBI Life's commitment to high
standards of governance, operational excellence
and sustainable growth.

a) Enhancing Operational Capabilities &
Process Efficiency

FY 2026 witnessed highest transaction volumes
across New Business, Renewals, Policy Servicing
& Living Benefits handled with utmost efficiency.

• 22.2 lakhs Individual Policies and 2.6 Lakh
Group Credit Life lives issued in FY 2026.

• Benefits paid (net) of more than ? 53,000
Cr was paid to more than 42 lakhs
policyholders/ claimants in FY 2026.

• Over 18.3 Lakh Inbound calls were handled
on the Customer Care Toll free number in
FY 26 with 16.7% increase in calls received
over the last year.

• Renewal Premium collection of more than
? 58,000 Cr with 18.9% growth over the
last year. Further, 13M Persistency has
increased from 87.4% in FY 2025 to 87.9% in
FY 2026 and 49M Persistency has increased
from 68.0% in FY 2025 to 69.1% in FY 2026.

• Individual policy issuance Non-Medical TAT
(days) has reduced from 2.0 days in FY 2024
to 1.7 days in FY 2026 Whereas medical TAT
for individual policies has reduced from 9.0
days in FY 2024 to 8.5 days in FY 2026.

• Death Claim Settlement ratio (individual
and group) has increased from 99.2% in FY
2024 to 99.4% in FY 2026.

• Mis-selling ratio has reduced from 0.03% in
FY 2024 to 0.02% in FY 2026.

• Net Promoter Score (NPS) has improved
significantly from 72 in FY 2024
to 86 in FY 2026.

b) Customer Engagement, Retention &
Persistency Management

Customer retention and renewal premium
collections remain critical to the Company's
long-term profitability and financial stability.
Persistency, which reflects the proportion of
policies remaining in force over time, serves as
a key indicator of customer satisfaction, trust
and engagement. Strong renewal performance
underscores customers' confidence in the
Company's brand, products and service
delivery, and contributes to sustained growth
and profitability.

The Company continuously monitors
persistency trends to gain insights into
customer behaviour and expectations, as well
as the effectiveness of its product offerings
and service standards. Improved renewal
collections signal positive customer experience

and support predictable cash flows, while also
providing visibility on customer tenure and
long-term relationship strength.

To enhance customer stickiness, loyalty and
persistency, the Company remains focused
on deepening customer engagement,
strengthening renewal premium collections
and persistency, and proactively managing
exits through effective surrender and lapse
control mechanisms.

Customer Engagement

Customer engagement remained a key focus
area during the year, with the Company
undertaking multiple initiatives to strengthen
long-term relationships and enhance overall
customer experience. Proactive engagement
mechanisms were deployed at key policy
milestones to reinforce product understanding,
highlight the importance of timely premium
payments and communicate the longterm value
of insurance. Customer communications were
further standardised and simplified across the
policy lifecycle to ensure clarity, transparency
and consistency.

The Company also undertook structured
customer awareness initiatives across
multiple communication channels to educate
policyholders on policy features, servicing
norms and available digital service touchpoints.
These initiatives aimed at empowering
customers through timely and relevant
information, encouraging self-service adoption
and building greater confidence and trust.
The use of personalised, policy-specific digital
content further enhanced transparency,
reduced grievances and supported informed
decision-making by customers.

In parallel, the Company continued to
strengthen governance around customer
protection. All mis-selling complaints were
subjected to detailed internal review, with
cases requiring further scrutiny referred for
investigation and appropriate action taken in
line with internal conduct policies. Insights from
complaint analysis were regularly shared with
leadership, distribution, product and training
teams to enable continuous improvement and
reinforce a customer-centric culture across
the organisation.

Renewal collections & Persistency
Management

During the financial year 2025-26, the Company
achieved renewal premium collections of
?58,734.8 crore registering a year-on-year
growth of 18.9%. This improvement in renewal

collections was supported by sustained
customer engagement initiatives and
translated into improved persistency levels.
The 13^th-month persistency for regular premium
policies increased to 87.9% (YoY improvement
of 0.5%), while the 25^th-month persistency
improved to 78.0% (YoY improvement of 0.3%),
reflecting stronger customer retention across
the policy tenure.

The Company continued to focus on enhancing
renewal efficiency through increased adoption
of auto-debit and digital payment mechanisms.
Auto-debit mandates were registered for 65.2%
of new policies issued during the year, supported
by early and proactive customer outreach.
Over 98% of premium collections were received
through digital and alternate payment modes
during the year, with collections through physical
instruments further declining. Additionally,
focused retention and revival initiatives resulted
in the revival of over 1.34 lakh lapsed policies
during the year, generating renewal premium
of ?888 crore. These outcomes underscore the
effectiveness of the Company's data-driven
engagement strategies, digital enablement
and targeted customer communication
framework, strengthening renewal collections
and persistency on a sustainable basis.

Surrender Prevention

To mitigate policy surrenders, the Company
further strengthened its surrender retention
efforts during the year by expanding the
Surrender Prevention Tool, increasing its
coverage to 91% of surrenderable policies
through integration of newer products. The tool
provides a concise, personalized retention
note to policyholders intending to surrender,
explaining key decision drivers in a simple and
transparent manner, including comparisons of
returns realized and projected over different
time horizons, and highlighting the benefits of
continued disciplined savings and rupee-cost
averaging. The note also enables frontline teams
to engage constructively and objectively with
policyholders to address surrender concerns
and support informed decision-making. As a
result of these initiatives, surrender retention
improved to 35% in FY 2025-26 compared to
33% in the previous year, with the tool covering
18 products across 11 versions as at year end.

:) Customer Support & Service Delivery

The Company continued to strengthen customer
support and service delivery capabilities
during the year by optimising servicing
touchpoints and expanding digital and assisted
service channels. The 24x7 inbound contact

centre, supported by multilingual voicebot
capabilities and dedicated desks for HNI and
NRI customers, handled significantly higher
customer interactions with strong customer
satisfaction outcomes. Self-service channels,
including missed call services, the Smart Care
mobile application, WhatsApp and AI enabled
chatbots, enabled customers to access a wide
range of policy servicing, payment, renewal,
revival and information services in a seamless
and digital manner, leading to high adoption
across key policy alterations and transactions.
Further, integration of Smart Care with the
Smart Advisor platform enhanced intermediary
assisted and operations assisted servicing,
enabling efficient digital support for renewals,
revivals and KYC related activities, thereby
improving service accessibility, turnaround
times and overall customer experience.

d) Process Quality Excellence & Risk
Mitigation

Robust Quality assurance framework has
been put in place to monitor the quality of
data and processes across the spectrum of
functions and transactional systems to ensure
accuracy alongside mitigating operational
risks. The process quality includes monitoring
key financial transactions, operational
and automated processes, data quality,
development of automated and tech tools
to improve the efficiency, effectiveness and
scalability of the quality monitoring processes.

The key initiatives involves automated system
for realtime validation of benefit payments
independent check on the quality and
accuracy of the payouts made to customers to
mitigate risk, prevent financial loss & improve
compliance and automated UAT for faster
product launches and improved operational
efficiency. Automation has enabled reduced
testing cycles, enhanced quality and accelatated
time to market.

e) Grievance Redressal

Grievance handling is not just about resolving
complaints; it is about building trust, reinforcing
our brand promise, and demonstrating
our commitment to every policyholder.
Each interaction is an opportunity to turn a
dissatisfied customer into a brand advocate
provided we respond with empathy, efficiency,
and accountability.

We have taken multiple steps to enhance
our systems and empower the employees to
improve the quality of resolutions of customer's

grievances. The key initiatives undertaken
includes robust Customer Relationship
Management (CRM) system, designed to
streamline the entire grievance lifecycle,
integration of CRM with the 'Bima Bharosa'
Portal (IRDAI) on real time basis. Through these
initiatives, we continue to strengthen our
service delivery with a focus on responsiveness,
compliance, and customer-centricity.

The Net Promoter Score (NPS) is one of our
key measures of customer satisfaction and
improving the overall response rates and
effective looping of the feedbacks to address
the process gaps is our key focus area. We have
improved our overall NPS Score to "86" in FY 26
as compared to "82" in FY 25.

The ratio of customer grievances to new policies
issued stands at 0.22% in FY26. Additionally, the
mis-selling complaints ratio remained constant
at 0.02% over the same period.

f) Continual Process Improvement

Many process improvements and simplifications
were rolled out during the year to enhance
efficiency and effectiveness, as well as to
mitigate risks and costs, as part of our continual
improvement cycle. This cycle involves
constantly looking beyond our boundaries,
assessing external competition, and
continuously benchmarking ourselves to drive
improvement and innovation.

Some important changes made during the
financial year are highlighted below:

i. Underwriting

Authority limits have been updated to
strengthen operational efficiency and
decision-making. Regional Underwriting
Units (RUU) have been granted enhanced
authority to enable faster processing of
proposals. Limits have been increased
across auto-underwriting as well as for
RUU and CPC underwriters to support
improved turnaround times.

The Underwriting First Framework has been
developed to optimize risk management
while enabling faster and more efficient
issuance of policies.

ii. New Business & On boarding

The key initiatives in new business and
on-boarding process are as below:

• Premium Standardization for Rinn
Raksha
instant request logging, and improved
historical tracking and trend analysis.

v. Group operations

The following initiatives were undertaken
to focus on Digitization, support

continuous Process improvements &
Enhanced Customer Experience.

• Enhancement in Smart Group
Care to view and download Master
Policy Document, Premium Receipt,
Endorsements & Credit notes.

• RPA process implemented under
GTI to enhance process efficiency,
accuracy & Customer servicing

• Implemented multiple deduplication
checks during on-boarding to
enhance efficiency.

• Group Products deployed on an
enhanced CRM Next UI/UX platform
for quicker and easier access to
customer and policy information.

vi. Robotic Process Automation

We are leveraging the power of Robotic
process automation (RPA) to build
capacity, reduce errors and processing
times by automating high-volume and
repetitive tasks.

• 470 BOTs deployed across 385
processes using RPA, freeing up
critical manpower to focus on more
productive and value added work.

• During the year, RPA Bots did a total
of 28,000 man-hours of work and
handled over 1.47 Billion transactions

• The automation using RPA has
been performed in various business
processes such as new business,
underwriting, renewals, policy
servicing, group operations claims etc.

9. Information Technology

SBI Life is continuously implementing the latest
technologies which are relevant for the Life
Insurance industry, in addition to addressing various
requirements of regulators from time to time.
Cyber Security continues to remain the topmost
priority for the Company, with sustained focus on
strengthening security frameworks, monitoring
capabilities, and resilience against emerging threats.

The Company has further expanded its footprint
in the area of Artificial Intelligence (AI) and
Generative AI (GenAI) across customer service,
distributor enablement, underwriting, claims, and
operational processes. These initiatives are focused

on enhancing customer experience, improving
operational efficiency, and enabling data-driven
decision-making.

In addition, the Company is accelerating its digital
transformation journey through adoption of
cloud technologies, advanced data platforms, and
analytics capabilities, thereby building scalable,
agile, and future-ready technology infrastructure.

Some of the notable improvements implemented
during the year under review are listed below:

Business Initiatives & Operational
Efficiency

• Enhanced mConnect was launched with
Aadhaar Based Face Authentication which
was Industry first initiative, integration with
DigiLocker, and liveliness check.

• Implemented Insta Loan and loan-repayment
modules in Smart Care, enabling customers
to avail loans on their policies with fast and
convenient processing as well as easy and
seamless loan repayments.

Strategic Initiatives & Innovation

• DRISHTI - Data Reengineering Insights for
Strategic Transformation Initiatives: SBI Life
has embarked on a data driven transformation
journey which will culminate with the
formation of a Data Lake House consisting
of both structured and unstructured data
in a hybrid mode.

• Reimagined Distribution - AI-first Sales
Enablement Platform, SPARK (first in industry),
a WhatsApp-based AI conversational bot, is
live assisting distributors with customized
collaterals, Pay & Get statements, product
pitches, and comparisons.

• Key partnerships for Sovereign AI - Strategic
partnerships are forged with AI partners
like Sarvam and BharatGen a section 8
company, in the fields of AI projects, to retain
competitive advantage.

• Litigation Management System - A new

SaaS-based Litigation Management System
was launched in February 2026 to streamline
litigation management through seamless
integrations with Indian judicial systems, thereby
improving efficiency and case monitoring.

Tech Modernization (Application & Infra)

• Introduction of SSO / IDAM

• Next Gen Security Operation Center (SOC)
to improve security incidence and event
management (SIEM)

• Endpoints Technology Refresh

• Application upgrades

• Enhanced Employee Onboarding Experience

• Enhancing Security

• Augmentation of hosting capacity of Data
Center (DC) and Disaster Recovery (DR) Centers

10. Investments

Indian equity markets delivered negative returns
during FY 2025-26, with the Nifty ending the year
at a decline of 5.05%. While midcap indices posted
modest positive returns of 1.89%, smallcap indices
declined by 5.54% over the year.

The yield on the 10-year Government of India bond
hardened by 45 basis points during the year, rising
from 6.58% in March 2025 to 7.03% in March 2026.
This movement occurred despite cumulative policy
rate cuts of 125 basis points by the RBI during
the cycle, largely driven by a change in the RBI's
policy stance, a sharp increase in crude oil prices
from USD 74 per barrel to USD 118 per barrel,
and significant depreciation of the Indian Rupee.
Bond yields globally also hardened amid heightened
geopolitical uncertainties.

The Assets under Management (AuM) of the
Company has increased by 8.7% from ' 4,480.39
billion as on March 31, 2025 to ' 4,871.63 billion as
on March 31, 2026. The debt equity mix of the AuM
as on March 31, 2026 is 62:38. The AuM was made
up of ' 2,282.19 billion of traditional funds (including
shareholders') and ' 2,589.44 billion of unit linked
funds. The unit linked portfolio majorly comprises of
equity funds, bond funds and NAV guaranteed funds.

11. Persistency

Persistency remains a key indicator of business
sustainability and brand strength. During FY
2025-26, the Company recorded a 18.9% growth
in renewal premium collections to ?587.3 billion,
contributing 58.0% of the Gross Written Premium.
Continued focus on renewals and targeted initiatives
to strengthen policyholder engagement resulted
in improved collection efficiency and persistency
outcomes. The 13^th month regular premium
persistency for individual policies improved by 53
basis points to 87.9%, while the 49^th month regular
premium persistency improved by 107 basis points
to 69.1%, demonstrating the effectiveness of the
Company's customer retention and engagement
strategies. The independent Renewal Vertical
continues to focus on renewal premium collections
and policyholder servicing, with the Company
according sustained priority to this critical area.

12. Particulars of Employees

SBI Life, one of the most trusted Life insurance
companies has successfully completed 25 years
of business operations and is market leader in
the private Life insurance industry. This milestone
reflect the Company's commitment to excellence,
sustained growth and enhanced customer and
employee experience.

At SBI Life, we strongly believe that our employees
are our most valuable assets. To maintain our
competitive advantage in the industry, we proactively
foster a progressive work environment marked by
adaptability, collaboration and inclusivity.

We remain committed to continuously enhancing
our workplace policies and practices while cultivating
a strong, resilient work culture to attract, engage,
upskill and retain quality talent.

During the year, the Company took several
initiatives aimed at enhancing employee experience.
The Company also reinforced its commitment to
employee well-being through various initiatives,
including enhanced group mediclaim policy,
preventive health check-ups and wellness programs.

The employee strength of the company has increased
by 11.3% i.e. from 26,355 as on 31^st March 2025 to
29,344 as on 31^st March 2026. The average age of
employees at SBI Life is around 36 years and 8 months
and the average tenure is 5 years and 3 months.

Our focused approach on improving our Gender
diversity has resulted in increase of our women
employees from 5,940 to 7,034 i.e. a growth of 18.41 %
over the last year. Therefore, women representation
in the workforce has improved to 24.0% as against
22.5% during last year.

13. Employees Stock Option Scheme

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

The maximum number of stock options granted to
eligible employees in accordance with ESOP 2018
shall not exceed 30,000,000 shares. During any
one year, no Employee shall be granted Options
equal to or exceeding 1 % of the issued share capital
of the Company at the time of Grant of Options
unless an approval from the Shareholders is taken

by way of special resolution in a General Meeting.
Further, the maximum number of Options in
aggregate granted to an employee under this Plan
shall not exceed 10,000,000 Options. The Exercise
Price shall be determined by the Board Nomination
& Remuneration Committee in concurrence with
the Board of Directors of the Company on the
date the Options are granted and provided in the
letter of grant.

During the year ended March 31, 2026 the NRC
has approved the grant of 8,30,000 Employee
Stock Options ('Options or ESOPs') to the eligible
employees under ESOS 2018.

No employee was granted options during one
year amounting to five percent or more of options
granted during that year. Similarly, no employee
was granted options during any one year, equal to
or exceeding one percent of the issued capital of the
Company at the time of grant.

During the year ended March 31,2026, the Company
has not granted any loan to its employees for
purchasing shares of the Company.

The Company's ESOP Scheme is in compliance
with the Securities and Exchange Board of India
(Share Based Employee Benefits and Sweat
Equity) Regulations, 2021 (SEBI SBEB Regulations).
The Members, at the Annual General Meeting held
on August 29, 2025, approved an amendment to
the ESOP Plan in respect of employees retiring on
superannuation. The disclosures required under
the SEBI SBEB Regulations have been placed on
the Company athttps://www.sbilife.co.in/about-us/
investor-relations.

The disclosures pursuant to SEBI SBEB Regulations,
Guidance Note on accounting for employee
share-based payments, disclosure of diluted EPS in
accordance with 'Accounting Standard 20 - Earnings
Per Share' issued by ICAI or any other relevant
accounting standard have been disclosed in the
Notes to Accounts which form part of financial
statements in the Annual Report.

14. Prevention of Sexual Harassment of Women
at the Workplace

The Company has an Internal Committee (IC) to
investigate and inquire into sexual harassment
complaints in line with The Sexual Harassment of
Women at Workplace (Prevention, Prohibition &
Redressal) Act, 2013. The Company has in place a
policy for Prevention of Sexual Harassment, which
reflects the Company's zero-tolerance approach
towards any form of prejudice, gender bias and
sexual harassment at the workplace.

For FY 2026, the Company had organized workshops
and awareness programs for the members of IC to
equip them for effectively dealing with investigation,
inquiry and disciplinary proceedings in connection
with sexual harassment complaints as per policy
and to develop skills necessary for enquiries and
documentation procedures while dealing with such
cases. Further, the Company's Policy on Prevention
of Sexual Harassment of Women at Workplace
along with the details of Internal Committee at
each Region is accessible to all employees on the
Company's intranet, e-bandhan. During the FY
2026 under review, 23 sexual harassment cases
were filed. 29 cases were disposed-off during the
year including 7 cases of previous year FY 2025 and
appropriate actions were taken within timelines in
FY 2026, remaining 1 case was disposed by IC in
current FY 2026 - 27. Having an adept POSH policy
has enabled us in employer branding by creating
employee value proposition, permeating a sense of
safety amongst employees, retaining vital talent and
promoting inclusively. The details are mentioned in
the Corporate Governance Report, which is annexed
to this Directors' Report.

The details are mentioned in the Business
Responsibility and Sustainability Report, which
is hosted on the Company's web-link:https://
www.sbilife.co.in/en/about-us/investor-relations

15. Compliance with the Maternity Benefit Act,
1961

The Company is in compliance with the applicable
provisions of the Maternity Benefit Act, 1961, and
provides maternity leave and related benefits to
eligible female employees in accordance with the Act.

16. Risk Management

SBI Life has implemented robust Corporate
Governance structure and has a strong risk aware
culture by which the company is directed and
controlled in the interest of shareholders and other
stakeholders to sustain and enhance the value.
Risk Management at SBI Life is an integral part of
the responsibilities of management and covers all
aspects, including strategic planning. Risk Strategy
and Risk Vision of the Company is outlined in the Risk
Management Policy. The Risk Management policy
specifies the process of identification, assessment,
and analysis of the Company's risk exposures,
develop risk mitigation strategies and its monitoring.

Risk appetite statements at the corporate level are
reviewed and monitored by the Risk Management
Committee of the Board. Further assessment
of Key Risks of the Company is conducted
annually and submitted to the Risk Management
Committee of the Board.

SBI Life has a robust enterprise risk management
framework, which includes Governance, Operational
Risk Management, Fraud Monitoring, Data
Protection, Information Security, Business Continuity
Management, Third Party Risk Management and
Regional Risk Unit, to drive the enhanced risk culture
across the organisation.

The Company also carries out an ICAAP (Internal
Capital Adequacy Assessment Process) activity,
which details the assessment of material risks,
estimation of capital requirement and adequacy for
maintaining solvency requirements.

Risk Management at SBI Life is certified/aligned with
the following ISO Standards:

1. Enterprise Risk Management - ISO 31000:2018
(Statement of Compliance)

2. Business Continuity Management System
(BCMS) - ISO 22301:2019 (Certified)

3. Information Security Management System
(ISMS) - ISO 27001:2022 (Certified)

Sound risk management practices and business
continuity management practises followed by the
Company enables it to continue core business
operations at an acceptable level in case of any crisis.

SBI Life Risk Management has won the following
accolades and awards:

1. SBI Life recognised as "Best Risk Management
Strategy of the Year (India)" by ICC in 6^th
Emerging Asia Insurance Awards 2026

2. SBI Life recognised as "Best Enterprise Risk
Management Program" at Bharat Credit Risk,
Fraud and Compliance Summit 2026

More information on the risk management
practices adopted by the Company is available in
the 'Enterprise Risk Management' section appended
to this report and 'Management Report' section of
the Annual report.

17. Internal Audit and Compliance Framework
Internal Audit:

The Company has in place a robust internal audit
framework. The Internal Audit Department (IAD)
undertakes risk-based audit approach and it
commensurate with the nature of the business
and the size of its operations. The internal audit
plan covers Information System Audit, Third Party
Vendor audits, different process audit as well as
transaction-based audits at the Head office and
Regional Offices, administrative aspects across
various branches of the Company.

The audits are carried out by the in-house internal
audit team of the Company and by the outsourced
audit firms also. The approach of the audit is to
verify compliance with the regulatory, operational
and system related controls. Key audit observations
and recommendations are reported to the
Audit Committee of the Board of the Company.
Implementation of the recommendations is
actively monitored.

IAD has designed offsite monitoring system (OMS)
with an objective to identify deviations at an early
stage and sharing the same with concerned process
owners for immediate corrective action. Exception
reports are developed and operational for around
100 scenarios. The frequency to extract and analyse
a particular set of data through these exception
reports is based on the criticality of the process.
Frequency is defined as quarterly, half yearly and
yearly for various processes. The OMS review
enables the process owners to identify gaps, if any,
at an early stage, ensuring timely resolution of the
issues. The utility is also shared with the users on
need basis for a proactive and real time assessment
at user level, itself.

The branch inspection checklist was rationalized to
match with the scope of current roles of Branches.
The policy transactions with critical functions such
as New Business Quality is reviewed at half yearly
frequency, underwriting process and policy service
transactions are reviewed at half yearly frequency,
through offsite data analytics.

Concurrent Audit:

In accordance with Insurance Regulatory and
Development Authority of India (Investment)
Regulations, the Company has also engaged
professional chartered accountants' firm to carry
out concurrent audit of investment operation as
per IRDAI investment regulations / guidelines and
guidance note on Internal / Concurrent Audit of
Investment functions of Insurance Companies,
issued by the Institute of Chartered Accountants of
India (ICAI). Any significant findings in the concurrent
audit are presented to the Audit Committee and
reviewed by Board Investment Sub-Committee and
Board Investment Committee.

Compliance:

The Board Audit Committee of the Company
has laid down governing principles to oversee
the compliance framework of the Company.
The Committee discusses the level of compliance in
the Company and any associated risks and reports
the same to the Board. The Company has also
formulated various internal policies and procedures
to define framework for the working of various

functions to ensure compliance. The Compliance
function identifies and communicates regulatory
requirements to relevant functions in a timely
manner and monitors critical compliance risks based
on suitable monitoring mechanism. The Compliance
function works in liaison with the regulators and
provides clarifications to various functions on
applicable laws, regulations and circulars issued by
the regulatory authorities. A compliance certificate
signed by the Managing Director & CEO is placed at
the Board Audit Committee on a quarterly basis.

The Company has also formulated various internal
policies and procedures relating to working of
various functions to ensure compliance.

18. Internal Financial Controls

In accordance with the requirements of the
Companies Act, 2013 and Regulation 17(8) of
the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Company has
established adequate and effective internal financial
controls over financial reporting. The internal
financial control framework is aligned with a
globally accepted, risk-based COSO framework and
is designed to enhance transparency, accountability
and effective risk management. The framework
comprises entity-level controls through defined
policies and governance mechanisms, process-level
controls across key business and support
functions, and robust review mechanisms based
on the three-lines-of-defence model. The control
environment is supported by clearly defined
delegation of authority, standard operating
procedures, and periodic testing by statutory,
concurrent and internal auditors, ensuring the
effectiveness of internal financial controls.

The Company has a Chief Audit Officer with a
dedicated internal audit team which is commensurate
with the size, nature & complexity of operations
of the Company.

The Company also undergoes an independent
internal /concurrent audit by specialised third party
professional consultants to review function specific
regulatory compliances as well as internal controls.

The Audit Committee reviews reports submitted
by the Management and audit reports submitted
by the internal auditors and statutory auditors.
Suggestions for improvements are considered
and the Audit Committee follows up on corrective
actions. The Audit Committee also meets the
Company's Statutory Auditors to ascertain their
views on the adequacy of internal control systems
and keeps the board of directors informed of its
major observations, if any periodically.

The Company has complied with internal financial
controls (IFC) as per section 134(5) of Companies
Act, 2013 and regulation 17(8) of the Securities and
Exchange Board of India (SEBI) (Listing Obligations
and Disclosure Requirements) Regulations, 2015 in
terms of internal controls over financial reporting.

Auditor's Report

There were no qualifications, reservations, adverse,
remarks or disclaimers on Internal Financial Controls
made by the Statutory Auditors in their report for
the financial year ended March 31,2026.

19. Related Party Transactions

The Company has Policy on Materiality of Related
Party Transactions and on dealing with Related
Party Transactions to regulate the transactions with
its related parties. As per the policy, all related party
transactions require approval of the Board Audit
Committee. Further, as per Rule 6A of the Companies
(Meeting of Boards and its Powers) Rules 2014, the
Audit Committee may grant omnibus approval for
related party transaction proposed to be entered
into by the Company subject to terms and conditions
mentioned in the said Rule.

All the Related Party Transactions entered during
the financial year were on arm's length basis and
in ordinary course of business. All related party
transactions are placed before the Audit Committee
of the Board for its approval. During the year,
there were no material contracts or arrangements
or transactions with related parties that need
to be disclosed as per Section 188(1) of the
Companies Act, 2013.

M/s. K. S. Aiyar & Co., Chartered Accountants,
reviewed the related party transactions for the year
ended March 31,2026 and their certificate is placed
at the meeting of the Board Audit Committee, along
with details of such transactions.

All Related Party Transactions as required under
Accounting Standards AS-18 are reported in Note
43 of Schedule 16(C) - Notes to Accounts of the
Financial Statements of the Company.

The policy on materiality of Related Party
Transactions and on dealing with Related Party
Transactions, has been hosted on the website of the
Company can be viewed athttps://www.sbilife.co.in/
en/about-us/investor-relations

20. Ind AS Implementation

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 February 8, 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 March 3, 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 April 1,
2026. Thereafter, on March 30, 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 April 1,
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 has
finalized the technology solution provider for Ind
AS reporting and commenced vendor onboarding,
and implementation activities are currently
underway. In accordance with the Board-approved
implementation plan, the Company had sought a
one-year forbearance from IRDAI for FY 2026-27
to facilitate a controlled and regulator-aligned
transition to Ind AS. The Authority has granted the
requested forbearance for FY 2026-27.

Key Managerial Personnel's

Mr. Amit Jhingran, Managing Director & Chief
Executive Officer; Mr. Sangramjit Sarangi, President &
Chief Financial Officer and Mr. Girish Manik, Company
Secretary are designated as "Key Managerial
Personnel" of the Company, under the provisions of
Section 203 of the Companies Act, 2013.

Further, in accordance with IRDAI (Corporate
Governance for Insurers) Regulations, 2024 read
with Master Circular on Corporate Governance
for Insurers, 2024 ("IRDAI Corporate Governance
Regulations") issued by IRDAI, the Company has
Fourteen (14) Key Management Persons including
above mentioned Key Managerial Personnel as on
March 31, 2026. For more details of 14 KMP's, refer
to page no. 137 of the Corporate Governance report.

Declaration by Directors

All Independent Directors have submitted
declarations that they meet the criteria of
independence as laid down under Section 149(6)
of the Companies Act, 2013 along with Rules
framed thereunder and Regulation 16 of the
Listing Regulations. The Company has also received
declarations from all its Directors as per Section 164
of the Companies Act, 2013, confirming they are
not disqualified from being appointed as Directors
of the Company. There has been no change in the
circumstances affecting their status as Independent
Directors of the Company.

The Independent Directors have confirmed that
their names have been added in the data bank
maintained by the Indian Institute of Corporate
Affairs for Independent Directors, in accordance
with rule 6 of the Companies (Appointment and
Qualification of Directors) Rules, 2014. Pursuant to
Rule 6 of the said Rules, every Independent Director
whose name is included in the data bank shall
pass an online proficiency self-assessment test.
However, the Director who has fulfilled the criteria
prescribed in Rule 6(4) of the said Rules, is exempted
from passing the online proficiency self-assessment
test. In view of the same, none of the Independent
Directors were required to take the proficiency
self-assessment test.

The said declarations along with annual disclosures
were noted by the Board of Directors at its Meeting
held on April 22, 2026. Further, based on these
disclosures and confirmations, the Board is of
the opinion that the Directors of the Company
are distinguished persons with integrity and have
necessary expertise and experience to continue
to discharge their responsibilities as the Director
of the Company.

'Fit and Proper' criteria

In accordance with IRDAI (Corporate Governance
for Insurers) Regulations, 2024 issued by IRDAI,
the Directors of insurers have to meet the 'Fit and
Proper' criteria. Accordingly, all the Directors of the
Company have confirmed compliance with the 'Fit
and Proper' criteria, prescribed by IRDAI

Directors & Officers Liability Insurance

Regulation 25 (10) of the SEBI (Listing Obligations
& Disclosures Requirement) Regulations 2015
requires the Companies to take Directors & Officers
Liability Insurance (D & O Insurance) for all its
Independent Directors. The Company has taken D
& O Insurance for all its Board of Directors and Key
Management Persons for such quantum and risks as
determined by the Board.

Common Directorships

Pursuant to Section 48A of the Insurance Act, 1938
and Master Circular on Corporate Governance
for Insurers, 2024, the Company has obtained the
necessary approval from IRDAI for Directors having
common directorship with State Bank of India (being
corporate agent of the Company). The provision of
section 48A is exempt in case of director appointed
as a nominee of a promoter of the Insurer.
Further, Section 32A of the Insurance Act, 1938, was
amended through Section 25 of Sabka Bima Sabki
Raksha (Amendment of Insurance Laws) Act 2025,
which is pending to be notified in Official Gazette.

Meetings

During the year, eight Board Meetings were
convened and held, the details of which are given
in the report on Corporate Governance, which is

forming a part of this Board Report. The intervening
gap between the said Board Meetings was within the
period prescribed under the Companies Act, 2013.
The details of the Board and Committee Meetings,
and the attendance of Directors thereat, forms
part of the Corporate Governance Report, which is
annexed to this Directors' Report.

Secretarial Standards

During the FY 2025-26, the Company has complied
with all the applicable Secretarial Standards issued
by the Institute of Company Secretaries of India.

Remuneration Policy

The Company has adopted a Remuneration Policy
for the Directors, KMPs and employees in Senior
Management, pursuant to the provisions of Section
178 of the Companies Act, 2013, IRDAI Corporate
Governance Regulations on Remuneration of
Directors and Key Managerial Persons of Insurer
and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Remuneration
Policy was approved by the Board of Directors on
the recommendations of the Board Nomination &
Remuneration Committee in consultation with the
Board Risk Management Committee. Key features of
the policy are mentioned in detail in the Corporate
Governance Report. The detail of the said policy
is annexed as Annexure I which forms part
of this Report.

Annual Performance Evaluation of Board,
Committees and Directors

In terms of the provisions of the Companies Act,
2013 read with rules made thereunder, the IRDAI
Corporate Governance Regulations and Listing
Regulations, the Board of Directors on the
recommendation of the Board Nomination and
Remuneration Committee, have evaluated the
effectiveness of the Board. Accordingly, the
performance evaluation of the Board, each Director
(including Independent Director) and Committees
were carried out for the financial year ending
March 31, 2026. The details of the said Annual
Performance Evaluation forms part of Corporate
Governance report.

22. Corporate Governance

The Corporate Governance philosophy of the
Company is to comply with not only the statutory
requirements but also to voluntarily formulate and
adhere to a strong set of Corporate Governance
practices which includes code of business conduct,
corporate ethics, values, risk management, etc.

Through governance mechanism, the Board
along with its Committee discharge its fiduciary

responsibilities towards all its stakeholders by
ensuring transparency, accountability, fairness and
independence in its decision making.

Composition of Board Audit Committee and terms
of reference is mentioned in detail in Corporate
Governance Report. During the FY 2025-26,
there were no instances of any non-acceptance
of recommendation(s) of the Committee by the
Board of Directors.

The Report on Corporate Governance is annexed
and forms part of this Annual Report.

23. Details of Vigil Mechanism/ Whistle Blower
Policy

The Company has a Board approved Whistle Blower
Policy in place to enable its Directors, employees and
stakeholders to report their concerns about unethical
behaviour, actual or suspected fraud or violation of
the Company's Code of Conduct. The Policy provides
for adequate safeguards against victimization of
employees who avail of the mechanism and also
provides for direct access to the Chairperson of the
Board Audit Committee.

The Policy is available on the website of the
Company athttps://www.sbilife.co.in/en/about-us/
investor-relations

24. Corporate Social Responsibility

The Company constituted the Corporate Social
Responsibility Committee (CSR) of the Board of
Directors in accordance with the provisions of
Section 135 of the Companies Act 2013 read with
the Companies (Corporate Social Responsibility)
Rules 2014, which drives the CSR program of the
Company. Composition of Board Corporate Social
Responsibility Committee and terms of reference is
mentioned in detail in Corporate Governance Report.

The CSR Committee of the Board confirms that,
the implementation and monitoring of CSR policy,
is in compliance with CSR objectives and Policy
of the Company.

The brief outline of CSR Policy, including overview
of the program proposed to be undertaken, the
composition of the CSR Committee, average net
profits of the Company for the past three financial
years, prescribed CSR expenditure and details of
amount spent on CSR activities during the financial
year have been disclosed in Annexure II to this
report, as mandated under the said Rules. Further, the
Corporate Social Responsibility Policy of the Company
as approved by the Board has been hosted on the
website of the Company athttps://www.sbilife.co.in/
en/about-us/corporate-social-responsibility

25. Particulars of Loans, Guarantees or
Investment

In line with the clarification given by the Ministry of
Corporate Affairs under the Removal of Difficulty
Order dated February 13, 2015, the provisions of
Section 186 of the Companies Act 2013 relating to
loans, guarantees and investments do not apply
to the Company.

26. Subsidiary, Joint Ventures and Associate
Companies

The Company does not have any Subsidiary, Joint
Ventures or Associate Company.

27. Rural and Social Sector Obligations

The Company has issued 33.18% policies in the
rural sector which affirms the Company's approach
towards life insurance inclusion. Further, 25,19,507
new lives covered (9.87% of total new lives covered in
preceding year) by the Company are from the social
sector. Further, the Company has been allotted
2,238 Gram Panchayats (GPs) for covering rural
population. The Company has covered 22,24,899
lives in these GPs.

28. Management Report

Pursuant to the Regulation 10 of Schedule II, Part
I of the Insurance Regulatory and Development
Authority (Actuarial, Finance and Investment
Functions of Insurers) Regulations, 2024, the
Management Report is placed separately and forms
part of the Annual Report.

29. Statutory Auditors

In view of the applicability of Section 139 of the
Companies Act 2013, Comptroller and Auditor
General of India (C&AG) appoints Statutory Auditors
of the Company. Accordingly, C&AG appointed
M/s. K. S. Aiyar & Co., Chartered Accountants, and
M/s. J Singh & Associates, Chartered Accountants, as
joint statutory auditors of the Company for FY 2026.

Statutory Audit and other fees paid to Joint Statutory
Auditors for FY 2026 as below:

30. Statutory Auditors' Report

The Statutory Auditors' Report (including annexure
thereof) to the Members does not contain any
qualification, reservation, adverse remark, or
disclaimer hence do not call for any further
comments u/s 134 (3) (f) of the Companies Act 2013.

There were no reportable frauds identified by the
statutory auditors during the FY 2026.

31. Comments of the Comptroller and Auditor
General of India on the accounts of the
Company

The Comptroller & Auditor General of India (C&AG)
have conducted a supplementary audit u/s 143(6)
(b) of the Companies Act, 2013 of the accounts of
the Company for the year ended March 31, 2026.
The C&AG vide their report no. GA/ CA-I /Accounts
/SBI Life Insurance Co. Ltd./ 2025-26/01 dated
July 01, 2026 have stated that there is nothing
significant which would give rise to any comment
upon or supplement to Statutory Auditors' Report.
The Report of C&AG is being placed with the report
of Statutory Auditors of the Company.

32. Secretarial Auditors' Report

In terms of Section 204 of the Companies Act, 2013
read with Rule 9 of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules,
2014, the Company based on the recommendations
of Board Audit Committee and approval of Board
of Directors appointed M/s Aashish K. Bhatt &
Associates, Practicing Company Secretaries as the
Secretarial Auditor of the Company for a term of five
consecutive years from FY 2025-26 to FY 2029-30.

The Auditor has not made any qualification,
reservation or adverse remark or disclaimer in his
report for FY 2025-26. The Report of the Secretarial
Auditor for the FY 2025-26 is enclosed as Annexure
III to the Board Report.

33. Cost records and cost audit

Maintenance of cost records and requirement of
cost audit as prescribed under the provisions of
section 148(1) of the Companies Act, 2013 are not
applicable for the business activities carried out by
the Company as the Central Government has not
prescribed the maintenance of cost records under
Section 148 of the Act for the services rendered
by the Company.

34. Annual Return

Pursuant to Section 134(3)(a) and Section 92(3) of the
Companies Act 2013 (as amended by the Companies
(Amendment) Act, 2017), read with Rule 12 of the
Companies (Management and Administration) Rules,
2014, the draft of the Annual Return of the Company
for Financial Year ended on 31^st March, 2026 is
hosted on the website of the Company and can be
viewed athttps://www.sbilife.co.in/en/about-us/
investor-relationswith the information available
up to the date of this report, and shall be further

updated as soon as possible but no later than sixty
days from the date of the Annual General Meeting.

35. Material Events, Changes and Commitment
affecting Financial Position of the Company

No material events, changes and commitments
affecting the financial position of the Company
occurred between the end of the financial year to
which the financial statements relate and the date
of this report.

36. Other Events

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' investments/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.

Further, As advised by the Authority via letter
dated June 23, 2026, the Company will continue
to maintain separate books of accounts for SILIC
up to FY 2026-27. From FY 2027-28 onwards, the
impact of transactions pertaining to SILIC will be
reflected in the Company's financial statements
prepared under the Ind AS framework, with parallel
reporting maintained under the existing accounting
framework (IGAAP).

37. Significant and Material Orders Passed by
Regulators or Courts or Tribunals impacting
the Going Concern Status and Operations of
the Company

In FY 2026, no significant or material orders were
passed by the Regulators or Courts or Tribunals

which impact the going concern status and

Company's operation in future.

38. Director's Responsibility Statement

In terms of Section 134(3) (c) read with 134(5) of the

Companies Act, 2013 and the Corporate Governance

Guidelines, your Directors confirm that;

a) i n the preparation of the annual accounts for
the year ended March 31, 2026, the applicable
Accounting Standards have been followed
along with proper explanation relating to
material departures;

b) they have selected such accounting policies and
applied them consistently and made judgments
and estimates that are reasonable and prudent
so as to give a true and fair view of the state
of affairs of the Company as on March 31,2026
and of the profit of the Company for the year
ended on that date;

c) they have taken proper and sufficient care
for the maintenance of adequate accounting
records in accordance with the provisions of
the Companies Act, 2013 for safeguarding the
assets of the Company and for preventing and
detecting fraud and other irregularities;

d) they have prepared the accounts for the current
financial year ended March 31, 2026 on a
going concern basis;

e) they have laid down internal financial controls
to be followed by the Company and that such
internal financial controls are adequate and
were operating effectively; and

f) they have devised proper systems to ensure
compliance with the provisions of all applicable
laws and that such systems were adequate and
operating effectively.

39. Particulars of Conservation of Energy,
Technology Absorption, Foreign Exchange
Earnings and Outgo

A. Conservation of Energy

In view of the nature of business activity of
the Company, the information relating to the
conservation of energy, as required under
Section 134 (3) and Rule 8 (3) of Companies
(Accounts) Rules, 2014, is not applicable
to the Company.

40. Investor relations

The Company has always valued its customer
relationships and it is the Company's belief that
all stakeholders should have access to complete
information regarding its position to enable them to
accurately assess its future potential. The Company
disseminates information on its operations and
initiatives on a regular basis. The Company's website
(www.sbilife.co.in) serves as a key awareness
facility for all its stakeholders, allowing them to
access information at their convenience. It provides
comprehensive information on the Company's
strategy, financial performance, operational
performance and the latest press releases.

The Company publishes financials results on a
quarterly basis. The financial results of the Company
are prepared and posted on the website of the
Company for the current as well as previous years.
Further, the quarterly results and earnings update
are also posted on the website of the Company.
Every quarter, the Managing Director & CEO
along with the senior management officials of the
Company participate on a call with the analysts /
shareholders. The Company's investor relations
personnel respond to specific queries and play a
proactive role in disseminating information to both
analysts and investors. All information which could
have a material bearing on the Company's share price
is released through as per regulatory requirements.

41. Business Responsibility and Sustainability
Report

Business Responsibility & Sustainability Report
as stipulated under Regulation 34 of the Listing
Regulations form part of the Annual Report and has
been hosted on the website of the Companyhttps://
www.sbilife.co.in/en/about-us/investor-relations

42. Proceeding under Insolvency and
Bankruptcy Code, 2016

The Company has not filed any application or
no proceeding is pending against the Company
under the Insolvency and Bankruptcy Code, 2016,
during FY 2025-26

43. Details of difference between amount of
the valuation done at the time of one-time
settlement and the valuation done while
taking loan from the banks or financial
institutions along with the reasons thereof.

The Company has not taken any loans from the
banks or financial institutions, therefore, the same is
not applicable.

44. Integrated Reporting

The Company has prepared Integrated Report for FY
2026 which forms part of this Annual Report. The said

report encompasses both financial and non-financial
information to enable various stakeholders to have
a more holistic understanding of the Company's
long-term perspective.

45. IRDAI License

The Insurance Regulatory and Development
Authority of India (IRDAI) has renewed the annual
license of the Company to continue the Life
Insurance Business. The license is in force as on
March 31,2026.

46. Other Information

A. Economic Capital:

The annual assessment of Economic Capital of
SBI Life was carried out as on March 31, 2026.
As part of this exercise, we have quantified the
capital requirements relating to various risks
such as Insurance Risks (Mortality risk, Morbidity
Risk, Longevity Risk, Persistency Risk, Expense
Risk, Catastrophe Risk) and Non- Insurance
Risks (Market Risk, Operational Risk, Default
Risk). As at March 31, 2026, Solvency ratio on
Economic Basis is 3.20. The Solvency Ratio on
Economic Basis has been estimated as, the ratio
of excess of economic assets over economic
liability to Total Economic Capital Requirement.

B. Solvency Margin:

The Directors are pleased to report that the
assets of the Company are higher than the
liabilities of the Company and the assets are
more than sufficient to meet the minimum
solvency margin level of 1.50 times, as specified
in section 64 VA of the Insurance Act, 1938
read with the IRDAI (Actuarial, Finance and
Investment Functions of Insurers) Regulations,
2024. The Company has a strong solvency ratio
of 1.90 as on March 31, 2026 (Previous year
ended March 31, 2025: 1.96) as against the
Regulatory requirement of 1.50.

C. IRDAI Directions

a) 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 f 27,529
Lakhs (previous year ended March 31,
2025: f 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

(As at March 31,2025 administrative fees of
f 5,665 Lakhs and interest of f 2,299 Lakhs)
to the members of group insurance policy.

D. Appointed Actuary's Certificate

The certificate of the Appointed Actuary on
valuation and actuarial assumptions is enclosed
in the financial statements.

E. Certificate from Compliance Officer
(under the IRDAI Corporate Governance
Regulations)

A Compliance Certificate, for complying with
IRDAI (Corporate Governance for Insurers)
Regulations, 2024 and circular issued thereunder
by Compliance Officer, is enclosed and forms
part of the Corporate Governance Report.

47. Acknowledgements

The Board of Directors would like to express its
sincere thanks for the co-operation, support and
advice received from Insurance Regulatory and
Development Authority of India (IRDAI), Reserve
Bank of India (RBI), Comptroller and Auditor General
of India (C&AG), Securities and Exchange Board
of India (SEBI) and Government of India (GOI).
The Directors also take this opportunity to express
their gratitude for timely and valuable assistance
and support received from State Bank of India (SBI)
& to the valued customers and shareholders for
their trust and patronage.

The Directors also express their gratitude for the
advice, guidance and support received from time to
time, from the auditors, and statutory authorities.
The Directors expresses their deep sense of
appreciation to all the employees, insurance
advisors, corporate agents and brokers, distributors,
re-insurers, bankers and the Registrars who
continue to display outstanding professionalism
and commitment, enabling the organization to
retain market leadership in its business operations.
The Directors also wish to express their gratitude to
all stakeholders for their continued support and trust.

For and on behalf of the Board of Directors

Challa Sreenivasulu Setty

Chairman
DIN: 08335249

Place: Mumbai
Date: July 13, 2026

1

Assets under Management grew by 8.7% to f 4,871.6 billion with debt-equity mix of 62:38.

• The Company's profit after tax has increased by 2.4% to f 24.7 billion

• Indian Embedded Value stands at f 807.9 billion with growth of 15.0%

• Value of New Business grew by 12.0% to f 66.7 billion and Value of New Business Margin is at 27.5%.