Approval of Half Yearly Report 2022

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by LifeStar Insurance plc ("the Company") pursuant to the Capital Markets Rules issued by the Malta Financial Services Authority.

QUOTE

The Company announces that the Board of Directors met today, 29 August 2022, and approved the unaudited Half-Yearly Financial Report of the Company for the six-month period ended 30 June 2022.

A copy of the approved Half-Yearly Financial Report is attached to this announcement and is also available for viewing on the Company's website at http://lifestarinsurance.com/wp-

content/uploads/2022/08/LSI-2022.pdf

UNQUOTE

By Order of the Board.

29 August 2022

LifeStar Insurance p.l.c. Interim Report and Interim Condensed Consolidated Financial Statements - 30 June 2022

Interim Directors' Report

The following statements relate to the consolidated position of LifeStar Insurance plc (the "Company") and its immediate subsidiary LifeStar Health Limited ("LifeStar Health"). The consolidated loss after tax for the six months ended 30 June 2022 totalled €4,527,489 compared to the prior period consolidated profit after taxation of €2,086,433.

LifeStar Insurance plc

The life insurance business saw its gross written premium increase to €7.2 million, representing an 8% uplift over the same period last year. The Company saw its loss before taxation increase to €4.4 million from a prior year loss for the same period of €2.1 million. The life business incurred unrealised losses on the investment portfolio of €3.1 million which was mainly driven by reductions in both local and foreign sovereign bonds, local bonds, and both local and foreign equities. Surrenders and maturities have increased closing off the six-month period at €6.6 million. The total technical income saw a healthy increase of €615,790 to close of the six-month period at €7.5 million compared to the same period in 2021 of €6.9 million. Total technical charges for the period under review closed at €11.1 million compared to €8.7 million. Value of in- Force business also grew during these six months by a further €440k meaning that the Company has continued to write very profitable business. The LifeStar Insurance plc has a healthy Solvency Capital Ratio of 180.1% (Dec 2021: 164.5%). This has predominantly come about through a more efficient cash retention policy and a reduction in our Market Equity risk.

LifeStar Health Ltd

LifeStar Health's business commission income from normal operations increased by 9% when compared to the first six months of 2021 due to the near returning to normality of those business sectors that were adversely impacted by the COVID-19 measures implemented by the various governments around the globe. Profit commission increased by 38% when compared to the same period last year. Total commissions receivable increased by 12% when compared to last year.

Total costs increased by 16.6% over last year mainly due to higher salary costs due to increased level of business and also due to the Talent Retention strategy implemented at the very beginning of 2022. The composite effect being that the health insurance business registered a profit before tax of €432,382 compared to €412,432 in 2021, an increase of 4.8%.

COVID-19

The operations of both businesses were adversely impacted by various quarantined staff members and as a company, we believe that the virus will be with us in the short to medium term. We continue to urge both our customers and staff to exercise basic hygiene measures. With the exception of surrenders, the respective levels of operation are returning to the pre-pandemic levels.

Achieving long term financial stability

The Directors look towards the next half of this year with cautious optimism. There are various global factors at play mainly the Ukraine conflict, the high inflation rates prevailing across all economies and the uncertainty in financial investments. We are also seeing an increased pace in increases in the various base rates of various countries including the European Union. The Board and Management are very conscious of these challenges and remain focused on improving operational efficiencies, customer satisfaction and retention and overall increased shareholder returns.

The Directors do not recommend the payment of an interim dividend. By order of the Board.

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LifeStar Insurance p.l.c. Interim Report and Interim Condensed Consolidated Financial Statements - 30 June 2022

Directors' Statement pursuant to the Capital Markets Rule 5.75.3 Issued by the Malta Financial Services Authority

We confirm that to the best of our knowledge:

• The condensed interim financial information give a true and fair view of the financial position of the Group as at 30 June 2022 and of its financial performance and its cash flows for the period ended in accordance with International Financial Reporting Standards as adopted by the EU applicable to Interim Financial Reporting (IAS 34).
• The Interim Directors' Report includes a fair review of the information required in terms of Capital Markets Rules 5.81 to 5.84.

Signed on behalf of the Board by:

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