The Phoenix Holdings Ltd.

27.2.2022

-Convenience Translation Only

("the Company")

The Securities Authority The Tel Aviv Stock Exchange Ltd.

Re: Reinsurance Transaction - Impact on the Solvency Ratio of The Phoenix Insurance Company Ltd.

The Company is pleased to report that on February 24, 2022, the Company's subsidiary, The Phoenix Insurance Company Ltd. (hereinafter: "Phoenix Insurance") completed inspections and procedures, including with the Capital Market Insurance and Savings Authority, required for the recognition under the economic solvency regime, of a proportional reinsurance transaction on existing disability insurance business (hereinafter: "the transaction"), with a reinsurer internationally rated AA-.

According to initial estimation performed by Phoenix Insurance, based upon unaudited and unreviewed results by the company's auditors, of the Solvency Ratio for 30 June 2021 (for more details see paragraph 2 in the Board of Directors Report of 30 September 2021 (see disclosure report dated 30.11.2021, Reference Number: 2021-01-173703 (this information is a general reference))), the transaction may improve the Economic Solvency Ratio of Phoenix Insurance as of 31 December 2021 by approximately 5% to 7% (without taking into account transitional measures for technical provisions (TMTP) over the transitional period, and without adjustments to equity scenario). The stated estimation is subject, inter alia, to market conditions, insurance portfolio structure, and actuarial assumptions as of December 31, 2021, the date in which the transaction first came into effect. It is noted that the stated improvement in the Solvency Ratio is with respect to this transaction only. At this stage, the Company is unable to assess the change in the solvency ratio as of December 31, 2021 compared to the last solvency ratio published as of June 30, 2021 (including the ratio without taking into account transitional measures for technical provisions over the transitional period, and without adjustments to equity scenario) due to other factors such as: interest rate changes, investment results, change in amount of deduction (TMTP), actuarial studies, etc. Beyond what has been stated, this transaction is not expected to have a material effect on the financial results of the Company and Phoenix Insurance in their financial statements.

For details regarding the sensitivity test for a change in the interest rate, on Solvency ratio see section 2.1.5 in the Board of Directors' report in the financial statements as of September 30, 2021.

The aforementioned information is forward-looking information as defined in the Securities Law, 1968 and is based on the Company's information and assessments as of this date. Such information and estimates may not be realized including the manner in which, inter alia, the results of Phoenix Insurance's solvency ratio may differ, as reflected in the estimate presented in this report, as a result of Phoenix Insurance's solvency improvement forecasts, in whole or in part, may not be realized or will be realized differently than predicted, inter alia, with respect to the actuarial assumptions, expected capital requirements and so on.

-Convenience Translation Only The Hebrew immediate report is the binding report-

Respectfully,