Cosmos Insurance Company Public LTD

Legal Proceedings Report • Mar 9, 2022

COSMOS INSURANCE

ΑNNOUNCEMENT

Restrictive measures of the Council of the European Union and other sanctions against Russia in response to the crisis in Ukraine / War in Ukraine – Economic consequences / risks and uncertainties

The Board of Directors and the Management of Cosmos Insurance Company Public Ltd (the "Company") are closely monitoring developments in the ongoing war in Ukraine following Russia's military operation.

It is noted that the European Union, together with other NATO countries and the US, have opposed Russia from the beginning, announcing a series of severe financial sanctions, considered to be the strictest ever imposed on a large country since the Second World War.

The consequences of both the above developments and the sanctions are impacting the economic environment, which is already vulnerable after two years of the Covid-19 pandemic. More specifically, the invasion in Ukraine has led to new increases in the prices of natural gas and oil, resulting in soaring energy prices and increased inflation. The inflationary trends and price increases in general are expected to be further aggravated by grain price increases, as Russia and Ukraine are Europe's granaries. These consequences may have an impact on the Cyprus economy and local businesses in general.

The major problem that the Cyprus economy is expected to face relates to tourism. The decision to stop flights from and to Russia as a result of the strict sanctions imposed by the EU countries is expected to be a huge blow for the tourist industry, as Russia and Ukraine make up a substantial share of Cypriot tourism.

The Company wishes to inform investors that the economic consequences of the current crisis on the global economy and overall business activity as a result of the military intervention of Russia in Ukraine cannot, at this stage, be assessed with reasonable certainty due to the ongoing military intervention and the high level of uncertainty arising from the failure to predict the outcome in a reliable manner. The current expectations and assessments of the Management may be different to the actual outcomes.

The Company's Management has examined the particular conditions and the risks to which the Company is exposed and has reached the conclusion that there is no significant impact on the Company's profitability at this stage.

It is, however, estimated that the Company's investment portfolio will record small losses because of the more general disruption caused to the international financial markets due to the new inflationary pressures arising from the sanctions against Russia.

The Company's Management is taking all necessary measures to maintain the Company's sustainability and develop its activities in the current business and economic environment.

In case of any changes, the Company will provide all necessary information.

For Cosmos Insurance Company Public Ltd

Kyriakos Tyllis General Manager