Cosmos Insurance Company Public LTD

Share Issue/Capital Change • Sep 6, 2017

ANNOUNCEMENT

OF COSMOS INSURANCE PUBLIC COMPANY LTD ON THE RECAPITALISATION PROCESS IN THE CONTEXT OF SOLVENCY II

The Company announces that in view of meeting the requirements of the new Solvency II institutional framework concerning insurance companies, it is in the process of implementing its recapitalisation plan, aimed at substantially strengthening of the Company's capital base and therefore more than covering the requirements of the new framework.

Following previous decisions regarding its capital structure, the Company is already in the final stage of the recapitalisation process.

As already announced on 31 August 2017, an Extraordinary General Meeting of the Company has been convened for 25 September 2017, to approve a special resolution on the waiver of the rights to acquire new shares, in the context of the first phase of the plan for strengthening the Company's capital base.

The Company's comprehensive recapitalisation plan, which was approved by its Board of Directors, is included in a detailed Memorandum posted on its website and provides for the recapitalisation of the Company in two phases, as already announced on 31 August 2017.

The Company's capital needs based on the Solvency II institutional framework amount to approximately €2,372,000. Under the relevant law, the end date for meeting the requirements of Solvency II, subject to relevant instructions by the Superintendent of Insurance, is the 31st of December 2017.

Based on the expressed wish and intention of the Company's main shareholders, they will undertake the issuance of new share capital against a total amount of €2,930,000 to be made available by the main shareholders. This amount will more than cover the above capital requirements of Solvency II, as explained in the aforesaid Memorandum and the Company's previous announcement.

Through this recapitalisation process, the Company aims to raise a total of €4 million.

The company promotes all necessary procedures and actions with the competent authorities, and in particular the Insurance Companies Control Service of the Ministry of Finance and the Cyprus Securities and Exchange Commission, with whom it wishes to cooperate in view of completing the Company's recapitalisation. The Superintendent of Insurance has instructed that the recapitalisation be completed by the end of September 2017. Taking into consideration the necessary procedural arrangements and the required approvals of the competent authorities, a short extension will be requested, with the aim of completing the recapitalisation much earlier than the aforesaid date of 31st of December which is the date prescribed by the law.

For COSMOS INSURANCE PUBLIC COMPANY LTD

Andreas Tyllis Managing Director