City Insurance wins in court against the abusive decisionss of the Italian Insurance Supervisory Authority

On April 11, 2018, the Supreme Court of Administrative Law of the Italian
Republic (Consilio Di Stato) ordered the cancellation of the I.V.A.S.S decisions (The
Insurance Supervisory and Regulatory Authorit – equivalent of the Romanian FSA)
no. 51.14.00300 of 28 February 2014.

The Italian court held the abuse of the Italian supervisory authority in the period
2012 – 2018 and cancelled by a final judgment the penalty by which the
Insurance-Reinsurance Company City Insurance had got a ban with regard to the
right to conclude isnurance contracts on the territory of the Italian Republic. This
way, the unlawful interference in the business of Ciy Insurance has been
confirmed, as well as in the activity of FSA Romania, the sole supervisory and
regulatory authority of the insurance market, the duties of which have not been
respected.

I.V.A.S.S. actions caused serious damage to City Insuranceʹs image and finances.
The Company reserves its right to go on with the motions in court, in order to
fully repair the effects of the abusive decisions adopted by the Italian authority.