LIBERTY LIFE INSURANCE PUBLIC COMPANY LIMITED

INTERIM MANAGEMENT STATEMENT – FIST HALF 2016

Liberty Life Insurance Public Company Limited presents the Interim Management Statement for the first six months of 2016. The Interim Management Statement has been prepared pursuant to the provisions of article 11 of the Transparency Requirements Law 2007 and has not been audited by the external auditors of the Company.

1.       ECONOMIC ANALYSIS OF THE RESULTS

For a more detailed review it should be read in conjunction with the Audited Annual Report of 2015. The Net assets as at 31/12/2015 were€7.389.326 compared to €6.560.159 as at 31.12.2014. The above amounts include α deposit from the principal shareholder amounting to € 5.000.000 for issuing future capital.

2.       COMPARATIVE ANALYSIS

In 2015 the Company showed profit € 829.167 compared to a profit of €447.740 in 2014. Premium income for 2015 was € 2.831.237 compared to € 4.224.335 in 2014. The decrease is due to the fact that the main insurance sector of the Company, the Life Insurance is in «Run-off» status and the Company cannot undertake new Life Insurance policies, however it can only accept insurance premiums from existing policies.

3.       EVENTS AFFECTING 2016

As explained above the status of «Run-off» in Life Insurance business significantly affects the development of the Company. For this reason, the Company is making efforts to find a satisfactory solution that will provide the removal of the «Run-off».

However, it should be noted that the Company has filed lawsuits at the Nicosia District Court on 18/06/2015 to secure compensation amounting to € 9.6 million to cover the losses suffered by the devaluation to zero of securities held by the Company at the Bank of Cyprus and Marfin Laiki Bank. The legal advisors of the company in a written advice state that the “result of these court actions will be successful for the amounts equal to the loss suffered by Liberty which is around €9,6 million”. If this is achieved then it will result in the termination of the status of «Run-off» and therefore the Company will have significant improvement in its development.

4.       TARGETS AND POSPECTS FOR 2016

It is difficult to make and predictions and forecasts for the year 2016 due to the fact that the court actions stated above will not be examined soon.

5.       MAIN RISKS AND UNCERTAINTIES

For a detailed description of the main risks and uncertainties, which the company faces today, we refer you to the audited accounts for the year 2015

Nicosia, June 9, 2016