IndiaFirst Life Insurance Company Limited IPO

Any termination of, or adverse change in, its bancassurance arrangements, and in particular the insurance company bancassurance agreement with one of its Promoters, Bank of Baroda, or a decline in performance standards of its bancassurance partners, may have a material adverse effect on the insurance company business, results of operations and financial condition.

Adverse persistency metrics or an adverse variation in persistency metrics could have a material adverse effect on its financial condition, results of operations and cash flows.

The insurance Company is subject to complex regulatory requirements and if its fail to comply with these regulatory requirements, its operations could be disrupted or its may become subject to significant penalties.

If actual claims experienced and other parameters are different from the assumptions used by the insurance company in pricing and setting reserves for its products, it could have a material adverse effect on its business, financial condition and results of operations.

The COVID-19 pandemic, and similar events, could adversely affect all aspects of its business, including: (i)restricting the insurance company ability to sell its products; (ii) significantly increasing its expenses due to changes in laws and regulations and investing in new methodologies to overcome the restrictions brought in to address the spread of COVID-19 and the adverse changes in population mortality/morbidity or utilization behaviours; (iii) adversely affecting its investment portfolio; and adversely affecting the insurance company operational effectiveness overall.

The occurrence of natural or man-made disasters and catastrophes, could materially increase the insurance company liabilities for claims by policyholders and result in losses in its investment portfolios, which could in turn have a material adverse effect on its financial condition results of operations and cash flows.

Interest rate fluctuations may materially and adversely affect its profitability. In addition, there are limited amounts and types of long-term fixed income products in the Indian capital markets. The legal and regulatory requirements on the types of investment and amount of investment assets that insurance entities are permitted to make could limit the insurance company ability to closely match the duration of its assets and liabilities.

There is significant technical complexity involved in embedded value calculations and the estimates used in the Embedded Value Reports could vary materially if key assumptions are changed or if the insurance company experience differs from its assumptions used to calculate the insurance company Embedded Value. In addition, there may be a risk that the model used to calculate Embedded Value itself may not be appropriate despite taking due care to ensure that models are appropriate. Its VNB may vary as future experience may be different from the assumptions used in calculating the insurance company VNB and may not be comparable to similar information reported by its peers.

Any inability to verify the accuracy and completeness of information provided by or on behalf of the insurance company customers and counterparties for pricing and the underwriting of its insurance policies, handling claims and maximizing automation may subject its to fraud, misrepresentation and other similar risks, which could adversely affect its business, financial condition and results of operations. The insurance company is obliged to collect certain information in relation to its customers and counterparties and depend on the accuracy and completeness of information provided by or on behalf of such persons.

The insurance Company is subject to periodic inspections by the IRDAI. Inspection by the IRDAI is a regular exercise for all insurance companies and its may be subject to inspections from the IRDAI in the future. Non-compliance with the IRDAI's observations could adversely affect its business, financial condition, results of operations and cash flows.