Minerva Insurance Company Public LTD

Interim / Quarterly Report • May 20, 2016

MINERVA INSURANCE COMPANY PUBLIC LTD

INTERIM MANAGEMENT STATEMENT

At its meeting held on 19 May 2016, the Board of Directors of Minerva Insurance Company Public Ltd examined and approved, pursuant to Article 11 of the Transparency Requirements (Securities Admitted to Trading on a Regulated Market) Law of 2007 (Law No. 190(I) of 2007), the Interim Management Statement of the Group for the period from 01/01/2016 to 19/05/2016, which has not been audited by the external auditors of the Group.

Main activities of the Group

During the period under review from 1 January 2016 to 19 May 2016, the main activities of the Group remained the same as in 2015. The main activity of the Company consists in insurance operations in the General Branch and the management and service of its existing clients in the Life Branch. The main activities of its dependent companies include financing, investments in listed securities and the exploitation of immovable property.

General description of the Group's financial situation

From 1 January 2016 to 19 May 2016

The Group's profitability for the period from 1 January 2016 to 19 May 2016 has decreased compared to the corresponding period of 2015, mainly due to losses in investments.

First Quarter Results

The profit attributable to shareholders for the first quarter of 2016 stood at €208 thousand compared to a profit of €274 thousand in the corresponding quarter of 2015.

• (a) Insurance operations in the 1st quarter of 2016 recorded a profit of €340 thousand compared to a profit of €395 thousand in the corresponding quarter of 2015.
• (i) General Branch operations recorded a profit of €333 thousand compared to a profit of €266 thousand in the corresponding quarter of 2015.
• (ii) Life Branch operations recorded a profit of €7 thousand compared to a profit of €129 thousand in the corresponding term of 2015.
• (b) The financial, investment and property operations of the Group for the 1st quarter of 2016 registered losses of €132 thousand compared to losses of €121 thousand in the corresponding quarter of 2015.

Other material events

There are no other material events during the period under review.

Main risks

The main risks faced by the Group are the same as those described in the Annual Report for 2015.

Prospects for the remainder of 2016

The Board of Directors is following economic developments both in Cyprus and abroad. Its aim is to recognise and adapt to changes and new demands in time. It aims to maintain and strengthen the solvency of the Group but also continue to inspire trust to its clients and owners.

The company's risk acceptance is based on quality assessment and the increase in insurance premiums is not an end itself. Moreover, the Company uses technology which streamlines procedures, aimed at reducing the cost of service of its contracts. The ultimate aim is to continue to provide its customers with excellent service.

The Board of Directors of the Group considers that in 2016 the Cyprus economy will continue to face challenges, resulting in low growth rates, a slight increase in consumption and high unemployment.

Takis Antoniou Secretary

19 May 2016