LifeStar Insurance p.l.c. - 213800RJG2OCEN9KIW48

Chairman and CEO Statement - LifeStar Insurance plc

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Prof. Paolo Catalfamo – Executive Chairman Jonathan Camilleri – LifeStar Insurance plc CEO

Introduction

The year 2025 was a transformative period for LifeStar Insurance plc—marked by solid premium growth, strategic expansion, strengthened governance, and accelerated progress across our digitalisation agenda. Despite a rapidly shifting economic and regulatory landscape, LifeStar continued to deliver value for customers and stakeholders while building the capabilities required for long-term sustainable growth.

As we present the financial statements for the year ended 31 December 2025, we highlight the achievements that shaped our progress, acknowledge the challenges we navigated, and outline our forward-looking priorities.

Business Performance & Strategic Growth

In 2025, LifeStar delivered encouraging results supported by disciplined execution, product innovation, and targeted market expansion. A key milestone was the launch of two tranches of LifeStar Select for the Malta market and the successful passporting and sale of life protection products in Italy and San Marino, marking the beginning of LifeStar’s evolution from a Malta-focused insurer into a regional operator.

In 2025 this passporting initiative generated slightly more than €2 million in annualised premium and 1,245 life policies, demonstrating strong market receptivity and validating our cross-border strategy. This marks the first stage of a broader, multi-year plan to expand our European footprint to other EU jurisdictions.

The following map illustrates the number of policies either in the process of being concluded or sold between 1 September 2024 to 31 December 2025, resulting in actual annualised premium for this period amounting to circa €2.3 million and a total of 1,448 life covers.

Chairman and CEO Statement - LifeStar Insurance plc (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Business Performance & Strategic Growth (continued)

Concurrently, we advanced in our long-term digitalisation journey, including the multi-year partnership with Vermeg Ltd, aimed at modernising our core systems and enabling a more agile, customer-centric operating model. This digital shift also included a restructuring and strengthening of our IT team, ensuring the appropriate competencies and governance structures are in place to support future growth and regulatory requirements. We will also rationalise our processes to enhance our customer’s experience as well as that of our employees and distribution channels whilst also aiming on reducing unnecessary costs. Through an AI strategy focused on automating processes thus ensuring higher efficiencies and an overall better experience.

Across the Group, our key performance indicators remained robust:

Gross written premiums increased by 31% to €33.52 million.

Insurance revenue grew by 47%.

Net insurance financial result improved by 9%.

Total policyholders reached 41,732.

Total assets increased by 5%, to €169 million.

LifeStar Health Limited contributed positively, with €1.1 million in premium commissions—a 3% year-on-year increase.

Chairman and CEO Statement - LifeStar Insurance plc (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Together, these results underline our resilience in a competitive and dynamic environment.

Despite the positive commercial momentum achieved during the year, the Group reported a loss for 2025, of €1,155,982 primarily driven by cost overruns associated with our strategic expansion initiatives and increased regulatory compliance demands. The launch of cross border protection business in Italy and San Marino required significant upfront investment in distribution, operational readiness, and market entry activities, while ongoing supervisory requirements — including enhanced risk management, governance, and digital resilience obligations — led to higher compliance related expenditure. These costs, while impacting short term profitability, represent deliberate and necessary investments that strengthen LifeStar’s long term positioning, operational scalability, and regulatory robustness.

Regulatory Compliance & Corporate Governance

Compliance and governance remained central to our agenda. In a year shaped by increased supervisory scrutiny across Europe, we continued to work constructively with the Malta Financial Services Authority to ensure full alignment with regulatory expectations. We maintained a proactive stance on emerging requirements, particularly in relation to Solvency II, conduct supervision, and with the Digital Operational Resilience Act (DORA), which raises the bar for cybersecurity, operational continuity, and third-party risk management.

Strengthening our governance frameworks ensures we remain a trusted and transparent operator, both locally and internationally.

Additionally, we addressed key regulatory reviews reaffirming our commitment to ethical business practices and financial prudence. Our leadership team worked closely with the Regulatory Authorities to ensure full compliance, demonstrating our proactive approach to risk management and corporate responsibility.

Economic & Market Environment

The global economic environment in 2025–2026 has become increasingly fragile, shaped by a combination of persistent inflationary pressures, shifting global monetary policies, and escalating geopolitical tensions. While relative high interest rates and uneven post pandemic recovery have already contributed to slower global growth, the intensification of conflict in the Middle East has introduced a new layer of uncertainty with potential repercussions across interest rates, energy markets, global trade routes, and investor sentiment.

The escalation of hostilities in the region has raised concerns about oil supply disruptions, shipping route instability, and broader geopolitical fragmentation. These dynamics risk fuelling renewed inflationary pressures worldwide, particularly in energy dependent economies, and may prompt central banks to reconsider or delay previously anticipated interest rate cuts. A prolonged conflict could therefore lead to higher-for-longer interest rate environments, placing additional pressure on borrowing costs, corporate investment, and asset valuations.

Within Europe, economic activity remains subdued, influenced by tight monetary conditions and softening manufacturing output. Nonetheless, Malta continues to show relative resilience, supported by strong domestic consumption and the performance of services industries. However, like all open economies, Malta is not insulated from global developments. Any sustained increase in inflation or volatility in financial markets may impact household purchasing power, business confidence, and long-term investment flows.

In this complex environment, LifeStar continues to adopt a prudent and forward-looking approach within its risk, capital, and investment frameworks. We closely monitor global and regional developments, stress-test potential adverse scenarios, and maintain robust liquidity and solvency positions to ensure resilience and stability for our policyholders and stakeholders.

Chairman and CEO Statement - LifeStar Insurance plc (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Additionally, Malta's labour market is increasingly reliant on third-country nationals, who are essential to maintaining economic momentum. Overall foreign workers make up 38.6% of the total workforce of which 11.2% are within the EU. This dependency underscores the need for comprehensive migration policies to ensure these workers are properly integrated and treated fairly.

As an organisation operating within this dynamic environment, we continue to adapt our strategic planning, financial modelling, and risk assessment frameworks to mitigate potential economic pressures.

People, Culture & Community

Our people remain our greatest asset. In 2025, we intensified investment in professional development, including sponsorships for Chartered Insurance Institute (CII) qualifications and expanded internship and trainee programmes. We continued to promote diversity and inclusion, contributing to stronger female representation in management roles.

Beyond our internal commitments, LifeStar continued to support the community through initiatives in healthcare, sports, education, and charitable causes. Our support for Puttinu, local sports partnerships, mainly the Malta Marathon and the player of the month of the Malta Premier League , and contributions to entities such as the Marigold Foundation highlight our dedication to meaningful social impact.

At international level, LifeStar was again a sponsor of the National Italian American Foundation in Washington DC and of Investopia, in the UAE and Milan, where our Chairman was a keynote speaker.

Board & Leadership Developments

We extend our gratitude to the entire Board, whose guidance, vision, and leadership have been instrumental in steering through regulatory changes, technological advancements, and market expansion efforts.

We would like to welcome Mr. Jonathan Camilleri as the new CEO. Mr. Camilleri has been with the group for almost 12 years and held various senior positions mainly the Chief Operations Officer of the group.

Looking Ahead: Our Vision for Innovation & Sustainable Growth

With the progress achieved in 2025, LifeStar is well positioned for the next stage of its strategic journey. Our priorities for the years ahead include:

1. Expanding Our Regional Footprint

We will build on the initial success of passporting into Italy and San Marino by deepening distribution channels, enhancing market responsiveness, and identifying additional European opportunities that align with our risk appetite and capital strategy.

2. Accelerating Digital Transformation

Our partnership with Vermeg and the revamp of our IT capabilities will enable:

•More efficient and automated core processes

•Enhanced customer experience and service delivery

•Scalable infrastructure for cross border operations

•Stronger resilience aligned with DORA requirements

Technology will remain the engine of operational excellence.

3. Strengthening Customer Value

We will continue to refine our product portfolio, ensuring offerings remain relevant, flexible, and aligned with long-term consumer needs, especially in areas such as savings, retirement planning, and health protection.

Chairman and CEO Statement - LifeStar Insurance plc (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

4. Enhancing Risk, Compliance & Governance

Ongoing investment in risk management will ensure LifeStar remains ahead of regulatory expectations and resilient in times of uncertainty.

5. Developing Our People & Culture

We remain committed to building a high-performing, inclusive workplace where talent thrives and innovation flourishes.

Conclusion

2025 has been a pivotal year for LifeStar, strengthening the Company’s foundations, expanding its strategic horizon, and reinforcing its resilience. The Board extends its sincere appreciation to all employees, customers, shareholders, and business partners for their continued trust, commitment, and support.

The Company remains committed to building a sustainable future, underpinned by prudent management, innovation, and disciplined growth, while continuing to deliver long-term value to its stakeholders.

Managing Director’s Report - LifeStar Health Limited

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

I am pleased to report that LifeStar Health Limited has experienced another steady and successful year. As reflected in the high-level results presented below, 2025 has been a strong year for the Company.

I am both proud of and grateful to our team for their continued dedication and performance, which have been instrumental in achieving these positive outcomes.

This marks the third consecutive year in which total commissions earned from normal operations have exceeded the €1 million threshold, reflecting a 3.1% increase over the previous year. Total commissions receivable, including profit commission, remained broadly in line with last year, registering a marginal increase of 0.1%. This stability was primarily influenced by higher claims levels during the year. We have also observed a notable rise in the value of claims, driven in part by an increasing number of clients seeking treatment for serious conditions, including cancer. This trend appears to be consistent across the health insurance market in 2025, with several policyholders of Bupa Malta requiring treatment abroad for procedures not readily available locally. Gross contribution also recorded a slight increase of 0.03% compared to the same period last year.

Earnings before interest, tax, company recharges and amortisation for 2025 decreased by 20% to €496K, compared to €668K in the previous year. Profit before tax declined by €183K compared to the same period last year. This reduction was primarily driven by a number of one-off Group recharges, together with a decrease in profit commission of €68K relative to 2024.

LifeStar Health Limited once again declared a gross interim dividend of €308K. This marks the fifth consecutive year in which a dividend has been paid to LifeStar Insurance plc. Over the past five years, LifeStar Health has distributed a total of €3,361K in gross dividends, representing a strong and consistent return to its shareholder.

The Company’s own funds surplus remains above the regulatory requirement. Required own funds have been calculated at €372K, while actual own funds stood at €393K after accounting for an interim gross dividend of €308K, in accordance with the provisions set out in Chapter 4 of the Insurance Distribution Rules.

Total Lives

-4.08%

Year-on-Year

Commission Receivable

Normal Operations

+5.27%

Year-on-Year

Gross Written Premium

+3.70%

Year-on-Year

Managing Director’s Report - LifeStar Health Limited (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

We approach 2026 with cautious optimism. The expectation for 2026 was originally thought to be that of easing inflation and further rate cuts. The recent developments in the Middle East seem to have disrupted this line of thought. We have seen oil break the $100 per barrel mark in recent weeks which will probably lead to global inflation. Although Malta remains relatively resilient—supported by strong labour-market fundamentals and government energy subsidies—higher import and transport costs are likely to tighten household budgets, potentially forcing household to revisit their budgets.

We expect the cost of medical treatment to continue rising, albeit at a more moderate pace than that experienced in 2025.

Our primary focus remains our clients. We are committed to delivering an exceptional level of service and supporting our members in leading longer, healthier, and happier lives.

I would like to extend my sincere thanks to the entire team and my fellow Board Members for their dedication and hard work throughout the year. Their continued commitment is the foundation of our success.

Adriana Zarb Adami

Managing Director of LifeStar Health Limited

08 April 2026

Directors’ report

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

The Directors present the annual report and the consolidated audited financial statements of LifeStar Insurance p.l.c. (the “Company” or “LSI”) and its subsidiary, LifeStar Health Limited (“LifeStar Health”) for the year ended 31 December 2025. The Company and LifeStar Health shall hereinafter jointly be referred to as the “Group” or “Insurance Group”.

Principal activities

The Company and LifeStar Health are licensed by the Malta Financial Services Authority (“MFSA”) to carry out long term business of insurance under the Insurance Business Act and the Insurance Distribution Act respectively.

Review of business

The Insurance Group – Consolidated results

The financial year under review was a challenging one for the Company, primarily due to a sustained increase in operating and input costs. Rising expenses across key areas placed pressure on margins and required careful cost management and strategic adjustments. Despite these challenges, the Company achieved strong operational results, with premiums increasing by 30.7% compared to the previous year. Pension-related products grew by 22%, protection policies increased by 49%, and with-profit policies rose by 65%. During 2024, the Group commenced the sale of protection policies in Italy, and in 2025 expanded further by passporting protection policies into San Marino. These initiatives performed strongly throughout 2025, generating €1,562K in gross written premium and attracting 1,491 policyholders. Enhancements to our product suite improved competitiveness and marketability, contributing to these positive results. Additionally, two new with-profit products—LifeStar Select I and LifeStar Select II—were launched in 2025, receiving strong market acceptance and generating gross written premiums of over €4.6 million. LifeStar Health has again distributed a gross dividend to LifeStar Insurance plc of €308K (Net €200K) and registered a profit before tax of €197K (2024: €380K). The Insurance Group registered a loss before tax of €821K compared to a restated loss before tax in 2024 of €422K.

LifeStar Insurance p.l.c.

The financial statements being presented are under IFRS 17 which came into effect on 01 January 2023.

LSI registered a loss before tax of €821K compared to a restated loss before tax of €422K in 2024. The financial outcome reflects the combined effect of higher insurance revenue, which increased by €2.8 million (47%) compared to the previous year, alongside a 54% increase in insurance service expenses of €1.7 million. The Insurance Service Result from Insurance Contracts Issued amounted to €3.8 million, up from €2.7 million in 2024, while the overall Insurance Service Results closed at €2.11 million, slightly higher than €2.08 million in the prior year. Net Insurance Financial Results totaled €2.1 million, up 9% versus 2024, driven by adverse investment contract liabilities, the introduction of financial reinsurance liabilities, and a net positive effect from investment and insurance finance income/expense.

In 2025 LifeStar Health declared a gross interim dividend of €308K, equivalent to a net dividend of €200K (2024: gross €583K / net €440K). Over the past five years, LifeStar Health has distributed a total of €3,361k in gross dividends to its immediate parent, LifeStar Insurance plc.

Total assets of LSI increased by €7.6 million compared to the restated previous year, closing at €169 million, while total liabilities increased by €7.7 million. This increase is largely due to a €6.8 million increase in investment contract liabilities and due to the introduction of the financial reinsurance liability which stands at €4.1 million. Total equity decreased by €72K.

The Board of Directors approved a 2025 bonus declaration of 3.5% for Money Plus policies (2024: 3.5%) and 1.50% (2024: 1.0%) for all other interest sensitive products. The Company also announced a bonus rate of 0.5% (2024: 0.5%) for paid up policies & a Terminal Bonus of 1.00% for policies maturing in 2026 (2024: 0.30%) for all interest sensitive policies excluding Money Plus policies.

Chairman and CEO Statement - LifeStar Insurance plc (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

LifeStar Health Limited

This marks the third consecutive year in which total commissions earned from normal operations have exceeded the €1 million threshold, reflecting a 3.1% increase over the previous year. Total commissions receivable, including profit commission, remained broadly in line with last year, registering a marginal increase of 0.1%. This stability was primarily influenced by higher claims levels during the year. We have also observed a notable rise in the value of claims, driven in part by an increasing number of clients seeking treatment for serious conditions, including cancer. This trend appears to be consistent across the health insurance market in 2025, with several policyholders of Bupa Malta requiring treatment abroad for procedures. Gross contribution also recorded a slight increase of 0.03% compared to the same period last year.

Total assets decreased by €124K, closing at €1.3 million compared to €1.4 million in 2024, primarily due to a reduction in cash and cash equivalents. Total equity increased by €54K to €841K (2024: €787K), mainly reflecting the impact of dividend distributions. Total liabilities decreased by €179K, closing at €474K, largely due to a reduction in trade and other payables.

LifeStar Health is required to comply with the own funds requirement as set by the Malta Financial Services Authority. The minimum capital requirements (defined as “the capital resource requirements”) must be maintained at all times throughout the year. LifeStar Health monitors its capital level through detailed reports compiled with management accounts. Any transactions that may potentially affect LifeStar Health’s regulatory position are immediately reported to the Directors for resolution prior to notifying the Malta Financial Services Authority. LifeStar Health always exceeded the required minimum capital requirements during the year under review.

Future outlook

The Directors intend to continue to operate in line with the Group’s current business plan.

Principal risks and uncertainties

The Group’s principal risks and uncertainties are further disclosed in Note 1 – Critical accounting estimates and judgements, Note 2 – Management of insurance and financial risk, Note 14 – Investment property disclosing the significant observable inputs, and Note 15 - Investments in group undertakings.

Financial risk management

Note 2 to the financial statements provides details in connection with the Group’s use of financial instruments, its financial risk management objectives and policies and the financial risks to which it is exposed.

Results and dividends

The statement of comprehensive income sets out the results of the Group and the Company (on a stand-alone basis). The loss for the year after taxation was €512K (2024 restated: loss of €127K). No dividends were declared during the year under review (2024: Nil) at the Company level, however a net dividend of €200K was declared by LifeStar Health Limited.

Chairman and CEO Statement - LifeStar Insurance plc (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Events after the reporting date

As we progress through 2026, certain events which might have the potential of impacting the results of the holding company and the group are possible repercussions from the conflicts in the Middle-East and in Ukraine on the European and, more generally, on the world economy as well as fluctuating inflation and stock market uncertainty. investment conditions remained quite volatile, with interest rates reducing, though not at the pace we would have expected and inflationary pressures. Current geopolitical risks remain elevated, driven by overlapping global tensions and structural shifts in the international system. Ongoing conflicts, particularly in the Middle East and the continued impact of Russia’s invasion of Ukraine, are contributing to energy market volatility and supply chain disruptions. At the same time, strategic rivalry between major powers such as United States and China is accelerating economic fragmentation through trade restrictions and technological competition. These pressures are compounded by political instability in several regions and increasing competition over

critical resources, creating a more uncertain and less predictable global environment for economic and business activity.

The recent escalation on the Middle-East has led to increases in the price of oil. The Malta Government has indicated that it will continue to support the economy to avoid any form of shock.

To date, we have not observed any impact on the level of business being written with us. Our next priority is to further increase operational efficiency to mitigate the effects of rising costs, while also supporting environmental sustainability in line with national targets and the initiatives undertaken by the industry and our peers.

We are not otherwise aware of any further events that could possibly have an effect on the operations of the Insurance Group.

Going concern

The Directors, as required by Capital Markets Rule 5.62, have considered the Group’s operating performance, the statement of financial position at year end, as well as the business plan for the coming year, and they have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Directors

The Directors of the Company who held office during the period were:

Prof. Paolo Catalfamo

Mr. Andreas Shakallis

Mr. Jean Paul Fabri

Mr. Joseph C. Schembri

Mr. Mark J. Bamber

In terms of Article 117 of the Articles of Association, the term of appointment of the Directors still in office expires at the end of the forthcoming Annual General Meeting.

The Directors are required in terms of the Company’s Articles of Association to retire at the forthcoming Annual General Meeting and shall be automatically eligible for re-election by the Company in general meeting, without the need for nomination.

Statement of directors’ responsibilities

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Remuneration Committee and corporate governance

The Board of Directors has set up an Audit and Risk Committee, as well as a Remuneration and Nominations Committee. The Board of the Company will be submitting to the Shareholders at the next Annual General Meeting the Remuneration Report for the financial year ending 31 December 2025 (the “Reporting Period”). The Remuneration Report is drawn up in accordance with, and in fulfilment of the provisions of Chapter 12 of the Capital Markets Rules issued by the Malta Financial Services Authority (“Capital Markets Rules”) relating to the Remuneration Report and Section 8A of the Code of Principles of Good Corporate Governance (Appendix 5.1 of the Capital Market Rules) regarding the Remuneration Statement.

The Directors are required by the Insurance Business Act (Cap. 403 of the Laws of Malta) and the Companies Act (Cap. 386 of the Laws of Malta) to prepare financial statements which give a true and fair view of the state of affairs of the Group as at the end of each financial year and of the profit or loss for that year.

In preparing the financial statements, the Directors are responsible for:

•ensuring that the financial statements have been drawn up in accordance with International Financial Reporting Standards (IFRS’s) as adopted by the EU;

•selecting and applying appropriate accounting policies;

•making accounting estimates that are reasonable in the circumstances;

•ensuring that the financial statements are prepared on the going concern basis unless it is inappropriate to presume that the Group will continue in business as a going concern; and

•reporting comparative figures corresponding to those of the preceding accounting year.

The Directors are also responsible for designing, implementing and maintaining internal controls relevant to the preparation and the fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error, and that comply with the Insurance Business Act (Cap. 403 of the Laws of Malta) and the Companies Act (Cap. 386 of the Laws of Malta). They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In addition, the Directors are required to ensure that the Company has, at all times, complied with and observed the various requirements of the Insurance Business Act (Cap. 403 of the Laws of Malta) and that LifeStar Health Limited has, at all times, complied with and observed the various requirements of the Insurance Distribution Act (Cap. 487 of the Law of Malta).

Information provided in accordance with Capital Markets Rule 5.70.1

There were no material contracts to which the Company, or its subsidiary was a party, and in which anyone of the Company’s Directors was directly or indirectly interested.

Auditors

Grant Thornton have intimated their willingness to continue in office.

A resolution to reappoint Grant Thornton as auditor of the Company will be proposed at the forthcoming annual general meeting.

Information provided in accordance with Capital Markets Rule 5.64

The authorised share capital of the Company is fifty million and fourteen Euro and seventy-three cents (€50,000,014.73) divided into three hundred and fifty-three million, four hundred and eleven thousand, nine hundred and forty-two (353,411,942) ordinary shares of zero point one four one four seven eight Euro (€0.141478) each share.

The issued share capital of the Company is nine million, one hundred and sixty-nine thousand, eight hundred and seventy Euro and sixty-eight cents (€9,169,870.68) divided into sixty-four million, eight

Statement of directors’ responsibilities (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Information provided in accordance with Capital Markets Rule 5.64 (continued)

hundred and fourteen thousand, eight hundred and seventeen (64,814,817) ordinary shares of zero point one four one four seven eight Euro (€0.141478) each share, which have been subscribed for and allotted fully paid-up.

The issued shares of the Company consist of one (1) class of ordinary shares with equal voting rights attached. The shares carry equal rights to participate in any distribution of dividends declared by the

Company. Each share shall be entitled to one (1) vote at the meetings of the shareholders. The shares are freely transferable in accordance with the rules and regulations of the Malta Stock Exchange, as applicable from time to time, and in terms of the provisions of the Articles of Association of the Company.

The Directors confirm that as at 31 December 2025, LifeStar Holding p.l.c., and LifeStar Asset Management Limited (as nominee for client accounts), held a shareholding in excess of 5% of the total issued share capital in the Company.

The Remuneration and Nominations Committee of the Board of Directors currently consists solely of Non-Executive Directors. It has the responsibility to assist and advise the Board of Directors on matters relating to the remuneration of the Board of Directors and senior management, in order to motivate and retain executives and ensure that the Company is able to attract the best talents in the market in order to maximise shareholder value.

The rules governing the appointment and replacement of the Company’s Directors are contained in Articles 107 to 124 of the Company’s Articles of Association. Directors of the Company are elected on an individual basis by ordinary resolution of the Company in general meeting. The order of priority of the said ordinary resolutions shall be determined and decided by lot. The Company may, in accordance with article 140 of the Companies Act (Cap. 386 of the Laws of Malta) remove a Director by ordinary resolution taken at a general meeting at any time prior to the expiration of his term of office, if any.

The powers vested in the Company’s Directors are confirmed in Articles 132 to 142 of the Company’s Articles of Association.

It is hereby declared that as at 31 December 2025, the information required under Capital Markets Rules 5.64.4, 5.64.5, 5.64.6, 5.64.7, 5.64.10 and 5.64.11 is not applicable to the Company.

Information pursuant to Capital Markets Rule 5.70.2

The Company Secretary is Dr Clinton Calleja and the registered office is LifeStar Insurance p.l.c., LifeStar,Testaferrata Street, Ta’ Xbiex, Malta.

Statement by the Directors pursuant to Capital Markets Rule 5.68

We, the undersigned, declare that to the best of our knowledge, the financial statements prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and its subsidiaries included in the consolidation taken as a whole, and that this Director’s report includes a fair review of the performance of the business and the position of the Company and its subsidiaries included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

Signed on behalf of the Board of Directors on 15 April 2026 by Prof Paolo Catalfamo (Chairman) and Mr. Joseph C Schembri (Director) as per the Directors' Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Financial Report.

Corporate Governance - Statement of compliance

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Introduction

Pursuant to the Capital Markets Rules issued by the Malta Financial Services Authority, the Company whose equity securities are listed on a regulated market should endeavour to adopt the Code of Principles of Good Corporate Governance (“the Code”) as contained in Appendix 5.1 to Chapter 5 of the Capital Markets Rules. In terms of the Capital Markets Rules, the Company is hereby reporting on the extent of its adoption of the Code.

The Company acknowledges that the Code does not prescribe mandatory rules but recommends principles so as to provide proper incentives for the Board of Directors (“the Board”) and the Company’s management to pursue objectives that are in the interests of the Company and its shareholders. Good corporate governance is the responsibility of the Board, and in this regard the Board has carried out a review of the Company’s compliance with the Code during the period under review, and hereby provides its report thereon.

As demonstrated by the information set out in this statement, the Company believes that during the reporting period, it has been in full compliance with the Code.

Compliance with the Code

Principles One and Four: The Board

The Directors report that for the financial year under review, they have provided the necessary leadership in the overall direction of the Company and have performed their responsibilities for the efficient and smooth running of the Company with honesty, competence and integrity. The Company is committed to the highest standards of business conduct and seeks to maintain these standards across all of its operations.

Directors, individually and collectively, are of appropriate calibre, with the necessary skill and experience to assist them in providing leadership, integrity and judgement in directing the Company towards the maximisation of shareholder value and to make an effective contribution to the leadership and decision-making processes of the Company as reflected by the Company’s strategy and policies. In fact, the Board comprises of a number of individuals, with extensive knowledge of insurance. Members of the Board are selected on the basis of their core competencies and professional background in the industry so as to ensure the continued success of the Company.

All the members of the Board are fully aware of, and conversant with, the statutory and regulatory requirements connected to the business of the Company, and allocate sufficient time to perform their responsibilities. The Board is accountable for its performance and that of its delegates to shareholders and other relevant stakeholders. Its responsibilities also involve the oversight of the Company’s internal control procedures and financial performance, and the review of business risks facing the Company, ensuring that these are adequately identified, evaluated, managed and minimised. The activities of the Board are exercised in a manner designed to ensure that it can effectively supervise the operations of the Company and protect the interests of the shareholders and all relevant stakeholders.

The Company has a structure that ensures a mix of executive and non-executive Directors and that enables the Board to have direct information about the Company’s performance and business activities.

Corporate Governance - Statement of compliance (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Principles One and Four: The Board (continued)

All Directors are required to:

•Exercise prudent and effective controls which enable risk to be assessed and managed in order to achieve continued prosperity to the Company;

•Be accountable for all actions or non-actions arising from discussion and actions taken by them or their delegates;

•Determine the Company’s strategic aims and the organisational structure;

•Regularly review management performance and ensure that the Company has the appropriate mix of financial and human resources to meet its objectives and improve the economic and commercial prosperity of the Company;

•Acquire a broad knowledge of the business of the Company;

•Be aware of and be conversant with the statutory and regulatory requirements connected to the business of the Company;

•Allocate sufficient time to perform their responsibilities; and

•Regularly attend meetings of the board

In terms of the Capital Markets Rules 5.117 – 5.134 the Board has established an Audit Committee to monitor the Company’s present and future operations, threats and risks in the external environment and current and future strengths and weaknesses. The Audit Committee ensures that the Company has the appropriate policies and procedures in place to ensure that the Company and its employees maintain the highest standards of corporate conduct, including compliance with applicable laws, regulations, business and ethical standards. The Audit Committee has a direct link to the Board, and is composed of three non-executive Directors.

Principle Two: Chairman and Chief Executive Officer

In compliance with the provisions of this Principle, the functions of the Executive Chairman and the CEO of the Company are segregated from one another. Prof. Paolo Catalfamo occupies the post of Executive Chairman. Under the financial year ended 31st December 2025, Mr. Roberto Apap Bologna occupied the post of Acting Chief Executive Officer, until the appointment of Mr. Alessio Germani with effect from 20 March 2025 (date of departure 4 September 2025). Following Mr. Germani’s departure, Mr. Jonathan Camilleri was appointed Chief Executive Officer of the Company.

The responsibilities and roles of the Executive Chairman and the Chief Executive Officer are clearly established and agreed to by the Board of Directors.

The Chairman is responsible to:

•Lead the board and set its agenda;

•Ensure that the Directors of the board receive precise, timely and objective information so that they can take sound decisions and effectively monitor the performance of the company;

•Ensure effective communication with shareholders; and

•Lead and pursue initiatives to consolidate and growing the organisation, including internationally;

•Encourage active engagement by all members of the board for discussion of complex or contentious issues.

Principle Three: Composition of the Board

In accordance with the provisions of the Company’s Articles of Association, the appointment of Directors to the Board is exclusively reserved to the Company’s shareholders, except in so far as appointment is made to fill a casual vacancy on the Board, and which appointment would expire at the Company’s Annual General Meeting following appointment. Any vacancy among the Directors may be filled by the co-option of another person to fill such vacancy. Such co-option shall be made by the Board of Directors.

Corporate Governance - Statement of compliance (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Principle Three: Composition of the Board (continued)

The Board has the overall responsibility for the activities carried out within the Company and the Group and thus decides on the nature, direction, strategy and framework of the activities and sets the objectives for the activities.

The Board is composed of five (5) Directors (one (1) of whom is the Executive Chairman), with four (4) being non-executive. The present mix of executive and non-executive Directors is considered to create a healthy balance and serves to unite all stakeholders’ interests, whilst providing direction to the Company’s management to help maintain a sustainable organisation. The Board is also composed of members who, as a whole, have the required diversity of knowledge, judgment and experience to properly complete their tasks.

The non-executive Directors constitute a majority on the Board and their main functions are to monitor the operations of the Chief Executive Officer and the performance of the occupier of the role. For the purpose of Capital Markets Rules 5.118 and 5.119, Mr Mark J Bamber, Mr Joseph C Schembri, Mr Andreas Shakallis and Mr Jean Paul Fabri are the non-executive Directors which are deemed independent. Each director is mindful of maintaining independence, professionalism and integrity in carrying out his duties, responsibilities and providing judgement as a director of the Company.

The Board considers that none of the independent Directors of the Company:

•Are or have been employed in any capacity by the Company;

•Have or have had, over the past three years, a significant business relationship with the Company;

•Have received or receives significant additional remuneration from the Company in addition to its director’s fee;

•Have close family ties with any of the Company’s executive Directors or senior employees; and

•Have been within the last three years an engagement partner or a member of the audit team or past external auditor of the Company.

Each of the Directors hereby declares that he undertakes to:

•Maintain in all circumstances his independence of analysis, decision and action;

•Not to seek or accept any unreasonable advantages that could be considered as compromising his independence; and

•Clearly express his opposition in the event that he finds that a decision of the board may harm the company.

The Board of Directors is currently chaired by Prof. Paolo Catalfamo. The Company Secretary (Dr. Clinton Calleja) attends all meetings and takes minutes. Under the direction of the Executive Chairman, the Company Secretary’s responsibilities include ensuring good information flows between the Board of Directors and its Committees and between senior management and the Directors, as well as ensuring that the Board of Directors’ procedures are followed. The Company’s Articles of Association also provide for adequate controls and procedures in so far as the treatment of conflicts of interest during Board of Directors meetings is concerned.

The Articles of Association of the Company clearly set out the procedures to be followed in the appointment of Directors. The following Directors served on the Board during the period under review:

Prof. Paolo Catalfamo

Executive Director / Chairman

Mr. Joseph C. Schembri

Independent, Non-executive Director

Mr. Mark J. Bamber

Independent, Non-executive Director

Mr. Andreas Shakallis

Independent, Non-executive Director

Mr. Jean Paul Fabri

Independent Non-Executive Director

Corporate Governance - Statement of compliance (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Principle Five: Board Meetings

The Directors meet regularly to dispatch the business of the Board. The Directors are notified of forthcoming meetings by the Company Secretary with the issue of an agenda and supporting Board papers, which are circulated in advance of the meeting. Board Meetings are also convened at short notice, from time-to-time, depending on the urgency, with which the items of the agenda would require Board discussion. Minutes are prepared during the Board meetings recording inter alia attendance, and resolutions taken at the meeting. The Chairman ensures that all relevant issues are on the agenda supported by all available information, whilst encouraging the presentation of views pertinent to the subject matter and giving all Directors every opportunity to contribute to relevant issues on the agenda. The agenda for the meeting seeks to achieve a balance between long-term strategic and short-term performance issues.

The Board of Directors meets in accordance with a regular schedule of meetings and reviews and evaluates the Group’s strategy, major operational and financial plans, as well as new material initiatives to be undertaken by the Group. The Board of Directors meets formally at least once every quarter and at other times on an ‘as and when’ required basis.

During the period under review, the Board of Directors met twenty-one (21) times. The following Directors attended Board meetings as follows:

Meetings

Prof. Paolo Catalfamo21

Mr Joseph C. Schembri21

Mr. Mark J. Bamber16

Mr. Andreas Shakallis 21

Mr. Jean Paul Fabri 17

Principle Six: Information and Professional Development

The Company ensures that it provides Directors with relevant information to enable them to effectively contribute to Board decisions. The Company Secretary ensures effective information flows within the Board, committees and between senior management and Directors, as well as facilitating professional development. The Company Secretary advises the Board through the Chairman on all governance matters.

Directors may, in the course of their duties, take independent professional advice on any matter at the Company’s expense. The Company will provide for additional individual Directors' training on a requirements basis.

The Chief Executive Officer ensures that systems are in place:

1.to provide for the development and training of the management and employees generally so that the Company remains competitive;

2.to provide additional training for individual Directors where necessary;

3.to monitor management and staff morale; and

4.to establish a succession plan for senior management.

Corporate Governance - Statement of compliance (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Principle Seven: Evaluation of the Board’s Performance

The Chairman of the Board informally evaluates the performance of the Board members, which assessment is followed by discussions within the Board. Through this process, the activities and working methods of the Board and each committee member are evaluated. Amongst the matters examined by the Chairman through his assessment are the following: how to improve the work of the Board further, whether or not each individual member takes an active part in the discussions of the Board and the committees; whether they contribute independent opinions and whether the meeting atmosphere facilitates open discussions. Under the present circumstances the Board does not consider it necessary to appoint a committee to carry out a performance evaluation of its role as the Board’s performance is furthermore also under the scrutiny of the shareholders. On the other hand, the performance of the Chairman is evaluated by the Board of Directors of the ultimate controlling shareholder, taking into account the manner in which the Chairman is appointed. The non-executive Directors are also responsible for the evaluation of the Chairman’s performance.

Principle Eight: Committees

Audit and Risk Committee

The Board of Directors delegates certain responsibilities to the Audit & Risk Committee (“A&R”), the terms of reference of which reflect the requirements stipulated in the Capital Markets Rules. As part of its terms of reference, the A&R has the responsibility to vet, approve, monitor and scrutinise any related party transactions falling within the ambits of the Capital Markets Rules, and to make its recommendations to the Board of Directors on any such proposed related party transactions. The A&R also assists the Board of Directors in monitoring and reviewing the Group’s financial statements, accounting policies and internal control mechanisms in accordance with the Committee’s terms of reference.

The primary purpose of the A&R is to protect the interests of the Company’s shareholders and assist the Directors in conducting their role effectively so that the Company’s decision-making capability and the accuracy of its reporting and financial results are maintained at a high level at all times. In the performance of its duties the A&R calls upon any person it requires to attend meetings. The external auditors of the Company are invited to attend relevant meetings in order to report on key matters arising from the audit. The internal auditors are also invited to attend certain meetings of the A&R, as necessary, in order to report directly any findings of their audit process. The head of legal and compliance, as well as the compliance officers of the regulated subsidiaries are also invited to participate during meetings of the A&R to present their compliance reports. In addition, the A&R invites the Acting Chief Financial Officer and other members of management to attend A&R meetings on a regular basis and as deemed appropriate.

The A&R also approves and reviews the Group’s Compliance Plan and Internal Audit Plan prior to the commencement of every financial year and monitors the implementation of these plans.

The A&R is directly responsible and accountable to the Board. During the financial year under review, the A&R undertook the below mentioned number of meetings:

Members Committee meetings attended

Mr. Andreas Shakallis15

Mr. Joseph Schembri 15

Mr. Mark J. Bamber 11

Corporate Governance - Statement of compliance (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Principle Eight: Committees (continued)

Audit and Risk Committee (continued)

The A&R is chaired by Mr Andreas Shakallis (appointed 31 January 2025) , who has served in different actuarial, risk management, insurance operations and general management roles and is considered to be an independent non-executive member possessing the necessary competence as required in terms of the Capital Markets Rules. All the members that served on the A&R were deemed by the Board of Directors to be Independent Non-Executive Directors, and the Board of Directors felt that as a whole the A&R had the necessary skills, qualifications and experience in satisfaction of the Capital Markets Rules. Joseph Schembri previously has served as Chairman of the A&R since 2021. Mr. Schembri remained a member of the Committee and alongside Mr Shakallis and Mr. Bamber, he is also a member of the Committee that possesses competency in accounting.

The terms of reference of the A&R include, inter alia, its support to the Board of the Company in its responsibilities in dealing with issues of risk management, control and governance and associated assurance. The Board has set formal terms that establish the composition, role, function, the parameters of the A&R’ s remit as well as the basis for the processes that it is required to comply with. The Terms of Reference of the A&R, which were approved by the Malta Financial Services Authority, are modelled on the principles set out in the Capital Markets Rules themselves.

Principally, the A&R deals with and advises the Board on the following matters:

•its monitoring responsibility over the financial reporting processes, financial policies and internal control structures;

•monitoring the performance of the entity or entities borrowing funds (the subsidiaries) from the Company;

•maintaining communications on such matters between the Board, management and the independent auditors;

•facilitating the independence of the external audit process and addressing issues arising from the audit process; and

•preserving the Company’s assets by understanding the risk environment and determining how to deal with those risks.

In addition, the A&R has the role and function of scrutinising and evaluating any proposed transaction prior to be entered into by the Company and a related party, to ensure that the execution of any such transaction is at arm's length and on a commercial basis and ultimately in the best interests of the Company. The A&R oversees the financial reporting of the Company and ensures the process takes place in a timely manner. The Committee is free to question the Board of Directors on any information that may seem unclear.

Remuneration and Nominations Committee

The Board of Directors has appointed a Remuneration and Nominations Committee (“REMNOM”), which fulfils the joint-function of a Nominations Committee as well as a Remuneration Committee. In fulfilling the nominations’ function, the REMNOM Committee is responsible for recommending Directors for election by shareholders at the Annual General Meeting, for planning the structure, size, performance and composition of the Group’s subsidiary boards, for the appointment of senior executives and management and for the development of a succession plan for senior executives and management.

During the financial year under review, the REMNOM Committee met seven (7) times and was composed of Mr. Mark Bamber, as chairman, Mr. Joseph C. Schembri and Mr. Jean Paul Fabri as members.

Corporate Governance - Statement of compliance (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Principle Eight: Committees (continued)

Remuneration Function

The REMNOM Committee monitors, reviews, and advises on the Company’s remuneration policy as well as approves the remuneration packages of senior executives and management. The main activities of the REMNOM Committee include devising appropriate policies and remuneration packages to attract, retain, and motivate Directors and senior management of a high calibre in order to well position the Group within the insurance market and its areas of business.

In the fulfilment of its remuneration matters oversight, the REMNOM Committee monitors, reviews and advises on the Group’s Remuneration Policy, as well as approves the remuneration packages of senior executives and Management.

Nominations Function

The REMNOM Committee is also responsible for making recommendations for appointment to the Board and for reviewing in order to ensure that appointments to the Board of Directors are conducted in a systematic, objective and consistent manner. It is also responsible for the review of performance of the Company’s Board members and committees, the appointment of senior executives and management and the development of a succession plan for senior executives and management. Additionally, this committee monitors, reviews and advises on the Company’s remuneration policy as well as approves the remuneration packages of senior executives and management.

Executive Management Committee

The Executive Management Committee manages the Group’s day-to-day business and the implementation of the strategy established by the Board of Directors. The Executive Management Committee as at 31 December 2025 was composed as follows:

Members

Role

Roberto Apap Bologna

Group Chief Executive Officer

Jonathan Camilleri

Chief Executive Officer

Amanda Mifsud

Chief Financial Officer

Lorraine Zerafa Newstead

Deputy Chief Financial Officer

Mehdi Ben Amor

Chief Information Officer

Christopher Chetcuti

Head of Sales

Jonathan Portelli

Head of Life Operations

Enrico Depasquale

Edward Duncan

John Bezzina

Compliance Manager

MLRO & Finance Crime

Head of Human Resources

Peer Paquee

Maria Michaelides

Dimitris Dimitriou

Business and Projects Manager

Actuarial Function

Head of Risk

Corporate Governance - Statement of compliance (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Principle Eight: Committees (continued)

Internal controls

The Board is ultimately responsible for the Company’s system of internal controls and for reviewing its effectiveness. The Company has an appropriate organisational structure for planning, executing, controlling and monitoring business operations in order to achieve its objectives.

The Group encompasses different licensed activities regulated by the MFSA. These activities include the carrying on of long-term business of insurance under the Insurance Business Act (Cap. 403 of the Laws of Malta); acting as an agent for sickness and accident insurance in terms of the Insurance Distribution Act (Cap. 487 of the Laws of Malta); and the provision of investment services and advice in terms of the Investment Services Act (Cap. 370 of the Laws of Malta). The Board of Directors has continued to ensure that effective internal controls and processes are maintained to support sound operations. The regulated subsidiaries have also set up Committees to further enhance internal controls and processes. These include the setting up of an Executive Committee, Asset and Liability Committee and the Risk Management Committee at Company level. Policies such as Risk Compliance Monitoring Programmes, Risk Management, Complaints, Data Protection, Internal Audit and Anti-Money Laundering Policies and Procedures as well as a Conflict of Interest Policy have been adopted.

The Directors are aware that internal control systems are designed to manage, rather than eliminate, the risk of failure to achieve business objectives, and can only provide reasonable, and not absolute, assurance against normal business risks. During the financial year under review the Company operated a system of internal controls which provided reasonable assurance of effective and efficient operations covering all controls, including financial and operational controls and compliance with laws and regulations. Processes are in place for identifying, evaluating and managing the significant risks facing the Company.

The Company has implemented control procedures designed to ensure complete and accurate accounting for financial transactions and to limit the potential exposure to loss of assets or fraud. Measures taken include physical controls, segregation of duties and reviews by management, internal audit and the external auditors. The A&R also approves and reviews the Group’s Compliance Plan and Internal Audit Plan prior to the commencement of every financial year and monitors the implementation of these plans. The Internal Audit Department monitors and reviews the Group’s compliance with policies, standards and best practice in accordance with an Internal Audit Plan approved by the Audit Committee. BDO Malta fulfil the functions of internal auditors of the Company.

Principle Nine and Ten: Relations with Shareholders and with the Market, and Institutional Shareholders

The Company recognises the importance of maintaining a dialogue with its shareholders and of keeping the market informed to ensure that its strategies and performance are well understood. During the period under review, the Company has maintained an effective communication with the market through a number of channels, including Company announcements and Circulars.

The Company shall also communicate with its shareholders through the Company’s Annual General Meeting (“AGM”) to be held later in 2026, which will include resolutions such as the approval of the Annual Report and Audited Financial Statements for the year ended 31 December 2025, the re-election of Directors, the determination of the maximum aggregate emoluments that may be paid to Directors, the appointment of auditors and the authorisation of the Directors to set the auditors’ remuneration, the approval of the Company’s remuneration policy, as well as any other resolution as may necessary in terms of law, the Capital Markets Rules, or as required by the Company. In terms of Rule 12.26L of the Capital Markets Rules, an annual general meeting shall have the right to hold an advisory vote on the remuneration report of the most recent financial year. Both the Chairman of the Board and the Chairman of the Audit Committee will be available to answer shareholder questions, which may be put forward in terms of Rule 12.24 of the Capital Markets Rules. The Board is ultimately responsible for the Company’s system of internal controls and for reviewing its effectiveness. The Company has an appropriate organisational structure for planning, executing, controlling and monitoring business operations in order to achieve its objectives.

Corporate Governance - Statement of compliance (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Principle Nine and Ten: Relations with Shareholders and with the Market, and Institutional Shareholders (continued)

Apart from the AGM, the Group communicates and shall communicate with its shareholders through the publication of its Annual Report and Financial Statements, the publication of interim results, updates and articles on the Group’s website, the publication of announcements and press releases.

The Office of the Company Secretary is also available to act as a liaison of communication between the Company and its investors. Individual shareholders can raise matters relating to their shareholdings and the business of the Company at any time throughout the year, and are given the opportunity to ask questions at the AGM or to submit written questions in advance.

As provided by the Companies Act (Cap. 386), minority shareholders may convene Extraordinary General Meetings.

Apart from the AGM, the Group communicates and shall communicate with its shareholders through the publication of its Annual Report and Financial Statements, the publication of interim results, updates and articles on the Company’s website, the publication of announcements and press releases.

Principle Eleven: Conflicts of Interest

The Directors are fully aware of their responsibility always to act in the best interests of the Company and its shareholders as a whole irrespective of whoever appointed or elected them to serve on the Board.

On joining the Board and regularly thereafter, the Directors are informed of their obligations on dealing in securities of the Company within the parameters of law, including the Capital Markets Rules, and Directors follow the required notification procedures.

Directors’ direct interest in the shareholding of the Company:

Number of shares held directly

as at 31 December 2025

Prof. Paolo Catalfamo Nil

Mr. Joseph Schembri Nil

Mr. Mark J. Bamber Nil

Mr. Andreas ShakallisNil

Mr. Jean Paul Fabri Nil

With the exception of Prof. Paolo Catalfamo, none of the Directors of the Company have any interest in the shares of the Company’s subsidiaries or investees or any disclosable interest in any contracts or arrangements either subsisting at the end of the last financial year or entered into during this financial year. No other changes in the Directors’ direct interest in the shareholding of the Company between year-end and the audit date of the approval of the financial statements.

Prof. Paolo Catalfamo holds shares in the Company indirectly through his shareholding in Investar plc which is the Company’s ultimate holding company as disclosed in Note 32.

Remuneration report

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Remuneration Committee

The remuneration functions of the Remuneration and Nominations Committee were performed by Mark Bamber as Chairman, and Joseph C. Schembri and Jean-Paul Fabri as members.

Remuneration policy

The Company’s remuneration of its Directors and senior executives is based on the remuneration policy adopted and approved by the shareholders of the Company at the annual general meeting. The Remuneration Policy of the Company is available for inspection on the Company’s website. During the latest general meeting held on 24 June 2025 the meeting approved the Remuneration Statement published as part of the annual report of the Company for the financial year ended 31 December 2025. The Remuneration Policy of the Company shall be submitted to a vote at the forthcoming AGM in accordance with Rule 12.26I of the Capital Markets Rules.

The Remuneration Policy of the Company is intended to provide an over-arching framework that establishes the principles and parameters to be applied in determining the remuneration to be paid to any member of the Board of Directors, and the senior executives. The policy describes the components of such remuneration and how this contributes to the Company’s business strategy, in the context of its long-term sustainable value creation. This remuneration policy is divided into five (5) parts distinguishing between Directors, senior management, employees, intermediaries and service providers.

Remuneration payable to Directors

Fixed remuneration

The remuneration payable to Directors not serving in an executive capacity is fixed and does not have any incentive programmes and such Directors will therefore not receive any performance-based remuneration. None of the Directors, in their capacity as Directors of the Company, is entitled to profit-sharing, share options or pension benefits.

In addition to fixed remuneration in respect of their position as members of the Board of Directors of the Company, individual Directors who are also appointed to chair, or to sit as members of, one or more committees or sub-committees of the Company, or its subsidiaries, are entitled to receive additional remuneration as may be determined by the Board of Directors from time to time. Any such additional remuneration shall, however, form part of the aggregate emoluments of the Directors as approved by the General Meeting of the Company. The basis upon which such additional remuneration is paid shall take into account the skills, competencies and technical knowledge that members of such committees require and the respective functions, duties and responsibilities attaching to membership of such committees.

Other entitlements

The Company may also pay out fringe benefits, comprising of medical and life insurance.

Remuneration payable to executives

With effect from 25th August 2023. Mr Roberto Apap Bologna, Chief Executive Officer of LifeStar Holding plc was appointed as Interim Chief Executive Officer of the Company however he was not appointed as a Board Member. Mr. Apap Bologna served in such role until the appointment of Mr. Alessio Germani as Chief Executive Officer of the Company on 20 March 2025. With effect from the 04th September 2025, Mr Germani no longer served as Chief Executive Officer of the Company. Mr. Jonathan Camilleri was appointed to serve the function of Chief Executive Officer.

Remuneration report (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Remuneration payable to executives (continued)

-Chief Executive Officer: The remuneration of the Chief Executive Officer will consist of a salary, and any performance related bonuses and any fringe benefits will be at the sole discretion of the Chairman and submitted for approval of the Remuneration and Nominations Committee. The Chairman (directly or through the Chief Finance Officer) will forward any recommendations for any changes to the remuneration of the Chief Executive Officers for the consideration of the Remuneration and Nominations Committee which will in turn review any such request and forward any request to the Board for the Board’s final approval;

-Head/Senior Manager: The remuneration of the Head / Senior Managers will be at the sole discretion of the Chairman and/or the Chief Executive Officer without the need to refer to the Remuneration and Nominations Committee or the Board of Directors subject that the remuneration does not exceed a yearly remuneration of Fifty Thousand Euros (€50,000). Any amount over this threshold will require the endorsement of the Remuneration Committee.

Senior executive service contracts

All senior executive contracts are of an indefinite duration and subject to the termination notice periods prescribed by law.

Remuneration Report

In terms of Rule 12.26K of the Capital Markets Rules, the Company is also required to draw up an annual remuneration report (the “Remuneration Report”), which report is to:

i.provide an overview of the remuneration, including benefits in whatever form, awarded or due to members of the Board of Directors and the CEO during the financial year under review; and

ii.explain whether any deviations have been made from the Remuneration Policy of the Company.

In this respect, the Company is hereby producing its remuneration report following the approval and entry into effectiveness, in June 2022, of the Remuneration Policy described in the preceding sections.

Remuneration paid to Directors

All remuneration for Directors was in conformity with this policy. The remuneration paid to individual Directors during the year under review was as follows:

Name

Position

2025

2024

€

Paolo Catalfamo

Executive Director and Chairman

120,000

200,000

Joseph C Schembri

Independent Non-Executive Director

22,737

28,840

Mark J Bamber

Independent Non-Executive Director

29,500

23,000

Jean-Paul Fabri

Independent Non-Executive Director

23,000

Andreas Shakallis

Independent Non-Executive Director

31,000

23,000

Remuneration report (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Remuneration paid to Directors (continued)

The remuneration paid to the Directors covers both their role as Directors of Company and their role as members of chairpersons or members of any sub-committees of the Company, as well as their position as Directors of subsidiaries forming part of the Company.

It is the shareholders, in terms of the memorandum and articles of association of the Company, who determine the maximum annual aggregate emoluments of the Directors by resolution at the annual general meeting of the Company. Remuneration payable to Directors (in their capacity as Directors) is reviewed as and when necessary and is not linked to the share price or the company’s performance. These are benchmarked against market practice for major local companies of similar size and complexity.

The aggregate amount fixed for this purpose during the last annual general meeting of the Company was €450,000. A maximum annual aggregate emolument of the Directors of the Company shall be fixed at the upcoming Annual General Meeting.

The aggregate emoluments of the Directors in respect of their role as Directors of the Company and, where applicable, as members of sub-committees of the Board of Directors of the Company and non-executive Directors of LifeStar Health Limited, amounted to €94,426. No variable remuneration is paid to Directors in their capacity as Directors of the Company. The Directors do not expect the abovementioned maximum aggregate remuneration limit of €450,000 to be exceeded during the financial year ending 31 December 2025.

The Remuneration Committee is satisfied that the fixed remuneration for the year under review is in line with the core principles of the Remuneration Policy applicable during the year under review, including giving due regard to market conditions and remuneration rates offered by comparable organisations for comparable roles.

Remuneration paid to Senior Management

Remuneration paid to Senior Management amounts to €749,619 and excludes the fringe benefit for health insurance and life cover as described above.

Decision-making with respect to the Remuneration Policy

Whereas the Board of Directors is responsible for determining the Remuneration Policy of the Company, the Remuneration and Nominations Committee, acting in its function as the Remuneration Committee, is, in turn, responsible for overseeing and monitoring its implementation and ongoing review thereof. This policy is to be reviewed annually by the Remuneration and Nominations Committee of the Company. The annual review will ensure that the policy remains relevant for the Company and that any improvements by way of amendments are indeed affected.

In evaluating whether it is necessary or beneficial to supplement or otherwise alter the Remuneration Policy of the Company, the Remuneration Committee have regard to, inter alia, best industry and market practice on remuneration, the remuneration policies adopted by companies operating in the same industry sectors, as well as legal and, or statutory rules, recommendations or guidelines on remuneration, including but not limited to the Code of Principles of Good Corporate Governance contained in Appendix 5.1 of the Capital Markets Rules of the Malta Financial Services Authority.

Whilst members of the Remuneration Committee may be present while his/her remuneration as a Director or other officer of the Company and, or of any other company forming part of the Group, is being discussed at a meeting of such Committee, any decision taken by the Committee in this respect shall be subject to the approval of the Board of Directors. At a meeting of the Board of Directors, no Director may be present while his/her remuneration as a Director or other officer of the Company and, or of any other company forming part of the Group, is being discussed.

Remuneration report (continued)

For the Financial Year Ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Other information on remuneration in terms of Appendix 12.1 of the Capital Markets Rules

In terms of the requirements within Appendix 12.1 of the Capital Market Rules, the following table presents the annual change of remuneration, of the company’s performance, and of average remuneration on a full-time equivalent basis of the company’s employees (other than Directors) over the two most recent financial years. The Company’s non-executive Directors have been excluded from the table below since they have a fixed fee as described above.

Position

2025

2024

Change

€

Annual aggregate employee remuneration

1,951,764

1,744,825

Employee remuneration (excluding CEO)

1,846,762

1,668,219

Company performance, loss after tax

(restated balance)

(512,018)

(127,035)

303

Average employee remuneration

(excluding CEO) – full-time equivalent

32,399

29,790

The contents of the Remuneration Report have been reviewed by the external auditor to ensure that the information required in terms of Appendix 12.1 to Chapter 12 of the Capital Markets rules have been included.

Statement of profit or loss and other comprehensive income

For the year ended 31 December

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Consolidated

Company

Notes

2025

2024

2025

2024

(Restated)

€

Insurance revenue

3.1

8,703,067

5,935,707

8,703,067

5,935,707

Insurance service expense

3.2

(4,915,138)

(3,201,372)

(4,915,138)

(3,201,372)

Insurance service result from insurance contracts issued

3,787,929

2,734,335

3,787,929

2,734,335

Allocation of reinsurance premiums paid

3.3

(2,768,711)

(2,260,570)

(2,768,711)

(2,260,570)

Amounts recovered from reinsurers

3.3

1,091,493

1,610,853

1,091,493

1,610,853

Net expense from reinsurance contracts held

(1,677,218)

(649,717)

(1,677,218)

(649,717)

Insurance service result

2,110,711

2,084,618

2,110,711

2,084,618

Net investment income

5,402,044

13,658,290

6,571,042

14,357,469

Interest income on financial asset at amortised cost

706,469

652,066

706,469

652,066

Net movement in provision for expected credit losses

206,870

(206,870)

206,870

(206,870)

Financial reinsurance expense

3.7

(266,118)

Insurance finance income/ expense from insurance contracts issued

3.4

(4,091,434)

(12,293,918)

(4,091,434)

(12,293,918)

Reinsurance finance income/ expense from reinsurance contracts held

3.4

125,867

149,394

125,867

149,394

Movement in investments contract liabilities

3.6

(1,164,280)

(741,674)

(1,164,280)

(741,674)

Net insurance financial result

919,418

1,217,288

2,088,416

1,916,467

Commissions and fees receivable

2,112,388

1,759,510

Other income

801,945

1,082,789

782,797

1,063,077

Administrative and other expenses

(7,477,532)

(6,975,713)

(5,705,874)

(5,388,722)

Finance cost

(97,252)

Loss before tax

(1,630,322)

(928,760)

(821,202)

(421,812)

Income tax credit

474,340

302,396

309,185

294,777

Loss for the year

(1,155,982)

(626,364)

(512,017)

(127,035)

Loss per share (cents)

(0.02)

(0.01)

(0.02)

(0.01)

Statement of profit or loss and other comprehensive income (continued)

For the year ended 31 December

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Consolidated

Company

Notes

2025

2024

2025

2024 (Restated)

€

Loss for the year

(1,155,982)

(626,364)

(512,017)

(127,035)

Other comprehensive income for the year

Items that will not be reclassified to profit or loss

Revaluation of property (Note 13)

440,109

Total other comprehensive income

440,109

Total comprehensive loss for the year

(715,873)

(626,364)

(71,908)

(127,035)

The accounting policies and explanatory notes form an integral part of the financial statements.

Statement of financial position

As at 31 December

LifeStar Insurance p.l.c. – Annual Financial Report 2025

		Consolidated		Company
	Notes	31 Dec 2025	31 Dec 2024	31 Dec 2025	31 Dec 2024 (Restated)	1 Jan 2024(Restated)
		€	€	€	€	€
Assets
Intangible assets	11	4,092,892	4,108,499	3,780,486	3,756,839	3,216,534
Right-of-use asset	12	12,591	1,847	12,591	1,847	9,925
Property, plant and equipment	13	6,051,576	5,726,199	6,038,141	5,716,727	3,588,201
Investment property	14	12,889,273	13,691,547	12,889,273	13,691,547	15,851,439
Investment in group undertakings	15	-	-	6,972,000	6,110,695	5,994,686
Other investments	16	115,103,001	108,576,141	115,103,001	108,576,141	96,977,456
Other assets	17	1,020,890	198,680	1,020,890	198,680	-
Taxation receivable		-	-	-	-	321,899
Deferred tax asset	22	2,043,741	1,705,968	1,912,770	1,718,809	1,475,265
Reinsurance contract assets	3.5	2,820,283	3,571,127	2,820,283	3,571,127	2,565,601
Receivables:
-Trade and other receivables	18	13,028,300	13,081,698	13,058,982	13,244,907	12,847,431
-Prepayments and accrued income	18	4,215,327	3,792,489	3,766,197	3,285,294	2,939,699
Cash and cash equivalents	26	1,546,263	1,619,726	1,144,026	1,013,287	3,497,079
Total assets		162,824,137	156,073,921	168,518,640	160,885,900	149,285,215

Statement of financial position (continued)

As at 31 December

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Consolidated

Company

Notes

31 Dec 2025

31 Dec 2024

31 Dec 2025

31 Dec 2024 (Restated)

1 Jan 2024

(Restated)

€

Liabilities

Insurance contract liabilities

3.5

113,443,517

115,645,938

113,443,517

115,645,938

105,163,291

Investment contract liabilities

3.6

15,399,647

8,619,624

15,399,647

8,619,624

6,705,671

Financial reinsurance liability

3.7

4,140,733

Lease liability

12,161

1,924

12,161

1,924

9,457

Taxation payable

1,167,380

2,354,403

1,224,807

2,319,486

3,316,125

Deferred tax liability

1,429,870

1,618,869

1,429,869

1,618,869

1,487,190

Debt securities in issue

2,243,151

2,221,035

2,243,151

2,221,035

2,182,945

Payables:

-Payables due to immediate parent undertaking

8,068

3,161

-Other payables

154,672

307,490

130,081

119,683

54,413

Accruals and deferred income

1,177,167

937,833

664,416

437,174

336,921

Total liabilities

139,176,366

131,710,277

138,688,382

130,983,733

119,256,013

Capital and reserves

Share capital

9,169,870

Other reserves

2,013,097

1,572,988

1,849,916

1,409,807

Capital redemption reserve

800,000

Retained earnings

11,664,804

12,820,786

18,010,472

18,522,490

18,649,525

Total equity

23,647,771

24,363,644

29,830,258

29,902,167

30,029,202

Total equity and liabilities

162,824,137

156,073,921

168,518,640

160,885,900

149,285,215

The accompanying notes are an integral part of these financial statements.

The financial statements were approved and authorised for issue by the Board of Directors on 15th of April 2026. The financial statements were signed on behalf of the Board of Directors by Prof. Paolo Catalfamo (Director) and Mr Joseph Schembri (Director) as per the Directors' Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Financial Report.

Statement of changes in equity

For the year ended 31 December 2025

LifeStar Insurance p.l.c. – Annual Financial Report 2025

The Group

	Share capital	Other reserves	Capital redemption reserve	Retained earnings	Total
	€	€	€	€	€
Balance as at 1 January 2025	9,169,870	1,572,988	800,000	12,820,786	24,363,644
Loss for the year	-	-	-	(1,155,982)	(1,155,982)
Other comprehensive gain for the year	-	440,109	-	-	440,109
Total comprehensive loss for the year	-	440,109	-	(1,155,982)	(715,873)
Balance as at 31 December 2025	9,169,870	2,013,097	800,000	11,664,804	23,647,771

Statement of changes in equity (continued)

For the year ended 31 December

LifeStar Insurance p.l.c. – Annual Financial Report 2025

The Group (continued)

	Share capital	Other reserves	Capital redemption reserve	Retained earnings	Total
	€	€	€	€	€
Balance as at 1 January 2024	9,169,870	1,572,988	800,000	13,447,150	24,990,008
Loss for the year	-	-	-	(626,364)	(626,364)
Total comprehensive loss for the year	-	-	-	(626,364)	(626,364)
Balance as at 31 December 2024	9,169,870	1,572,988	800,000	12,820,786	24,363,644

Statement of changes in equity (continued)

For the year ended 31 December

LifeStar Insurance p.l.c. – Annual Financial Report 2025

The Company

Share capital

Other reserves

Capital redemption reserve

Retained earnings

Total

€

Balance as at 1 January 2025

9,169,870

1,409,807

800,000

18,522,490

29,902,167

Loss for the year

(512,018)

Other comprehensive income for the year

440,109

Total comprehensive loss for the year

440,109

(512,018)

(71,909)

Dividend declared

Balance as at 31 December 2025

9,169,870

1,849,916

800,000

18,010,472

29,830,258

Statement of changes in equity (continued)

For the year ended 31 December

LifeStar Insurance p.l.c. – Annual Financial Report 2025

The Company (continued)

Share capital

Other reserves

Capital redemption reserve

Retained earnings

Total

€

Balance as at 1 January 2024 (as previously reported)

9,169,870

1,409,807

800,000

13,703,057

25,082,734

Restatement due to change in accounting policy (Note 31)

4,946,468

Balance as at 1 January 2024 (as restated)

9,169,870

1,409,807

800,000

18,649,525

30,029,202

Loss for the year (as previously reported)

(243,044)

Restatement due to change in accounting policy (Note 31)

116,009

Total comprehensive loss for the year

(as restated)

(127,035)

Balance as at 31 December 2024

9,169,870

1,409,807

800,000

18,522,490

29,902,167

The accounting policies and explanatory notes form an integral part of these financial statements.

Statement of cash flows

For the year ended 31 December

LifeStar Insurance p.l.c. – Annual Financial Report 2025

		Consolidated		Company
	Notes	2025	2024	2025	2024 (Restated)
		€	€	€	€
Cash flows generated from operations	25	(227,019)	9,654,049	(409,583)	9,835,762
Dividends received from FVTPL investments		728,089	785,185	728,089	785,185
Interest received		523,652	664,550	523,652	664,550
Tax paid		(1,347,148)	(541,261)	(1,168,452)	(353,631)
Net cash flows generated from operating activities		(322,426)	10,562,523	(326,294)	10,931,866
Cash flows used in investing activities
Dividends received from subsidiary		-	-	200,000	440,000
Purchase of intangible assets	11	(1,540,312)	(1,485,159)	(1,539,439)	(1,485,159)
Purchase of property, plant and equipment	13	(64,650)	(175,007)	(57,453)	(166,567)
Purchase of investment property	14	(65,836)	-	(65,836)	-
Purchase of investments at fair value through profit or loss	16	(22,174,098)	(14,434,840)	(22,174,099)	(14,434,840)
Purchase of other assets		-	(61,538)	-	(61,538)
Net proceeds from other investments - loans and receivables		16,885	(14,036)	16,886	(14,036)
Proceeds on disposal of investments at fair value through profit or loss	16	22,105,769	2,711,510	22,105,769	2,711,510
Net investment on term deposits	16	(2,700,000)	(300,000)	(2,700,000)	(300,000)
Proceeds on disposal of investment property	14	900,001	-	900,001	-
Net cash flows used in investing activities		(3,522,241)	(13,759,071)	(3,314,171)	(13,310,630)

Statement of cash flows (continued)

For the year ended 31 December

LifeStar Insurance p.l.c. – Annual Financial Report 2025

		Consolidated		Company
	Notes	2025	2024	2025	2024(Restated)
		€	€	€	€
Cash flows used in financing activities
Interest paid on bonds		(97,252)	(97,252)	(97,252)	(97,252)
Payment of lease liability		(5,754)	(7,533)	(5,754)	(7,533)
Interest paid on leasing arrangements		(405)	(243)	(405)	(243)
Amounts received from financial insurance treaty		3,874,615	-	3,874,615	-
Net cash flows used in financing activities		3,771,204	(105,028)	3,771,204	(105,028)
Net movement in cash and cash equivalents		(73,463)	(3,301,576)	130,739	(2,483,792)
Cash and cash equivalents as at the beginning of the year		1,619,726	4,921,302	1,013,287	3,497,079
Cash and cash equivalents as at the end of the year	26	1,546,263	1,619,726	1,144,026	1,013,287

The accounting policies and explanatory notes form an integral part of the financial statements.

Material accounting policies

LifeStar Insurance p.l.c. – Annual Financial Report 2025

The material accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented.

The consolidated financial statements have been prepared from the financial statements of the companies comprising the group as detailed in notes to the consolidated financial statements.

1.Basis of preparation

LifeStar Insurance p.l.c. was incorporated on 21 December 2001 as an insurance company. The registered address and principal place of business of the company is LifeStar, Testaferrata Street, Ta’ Xbiex.

These financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU (EU IFRS’s), the Insurance Business Act (Cap. 403 of the Laws of Malta) and the Companies Act (Cap. 386). The financial statements are prepared under the historical cost convention, as modified by the fair valuation of investment property and financial assets and financial liabilities at fair value through profit or loss.

The preparation of financial statements in conformity with EU IFRS’s requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies of the company and the subsidiary (the Group). The areas involving a higher degree of judgement or complexity are disclosed in Note 1 to these financial statements.

The Group’s statement of financial position is presented in increasing order of liquidity, with additional disclosures on the current or non-current nature of the Group’s assets and liabilities provided within the notes to the financial statements.

LifeStar Insurance p.l.c.’s intermediate parent company (Note 32) prepares consolidated financial statements in accordance with the Companies Act (Cap. 386 of the Laws of Malta). LifeStar Insurance p.l.c. also prepares consolidated financial statements which include the results of the Group, which comprises the Company and its subsidiary as disclosed in Note 15.

These financial statements for the Company include a restatement of the comparative figures as at 31 December 2024 to retrospectively adjust for a change in accounting policy in accordance with IAS 8, Basis of Preparation of Financial Statements as disclosed in Note 31.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

For financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

-Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

-Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

-Level 3 inputs are unobservable inputs for the asset or liability.

For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the Group determines when transfers are deemed to have occurred between Levels in the hierarchy at the end of each reporting period.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

1.Basis of preparation (continued)

Appropriateness of going concern assumption in the preparation of the financial statements

The geopolitical arena and volatility in the financial markets had a significant impact on the Group’s financial performance for the financial year ending 31 December 2025, and will continue to impact its performance going forward. The Group is continually assessing the situation and undertaking mitigating tactics to minimize the impact. Furthermore, an analysis was carried out on the credit rating of the main counterparties and no significant downgrades were noted since 31 December 2025. Such analysis was also extended to analyse the effect on the Solvency Capital Requirements (the “SCR”) of the Group by reference to stressed scenarios in the latest Own Risk and Solvency Assessment (ORSA) report prepared by the Group. Taking into consideration the current laws and regulations and the result from the aforementioned stressed scenarios. However, the Group continues to explore any and all ways possible to strengthen its capital base.

Having concluded this assessment the Directors expect that the Group will be able to sustain its operations over the next twelve months and in the foreseeable future and consider the going concern assumption in the preparation of the Group’s financial statements as appropriate as at the date of authorisation for issue of these financial statements.

Standards, interpretations and amendments to published standards as endorsed by the EU that are effective in the current year

In the current year, the Group and the Company has applied an amendment to IFRS Standards issued by the International Accounting Standards Board (IASB) and adopted by the EU that is mandatorily effective in the EU for an accounting period that begins on or after 1 January 2025. The adoption does not have any material impact on the disclosures or on the amounts reported in these financial statements.

Lack of Exchangeability (Amendments to IAS 21)

The amendments specify when a currency is exchangeable into another currency and when it is not and how an entity determines the exchange rate to apply when a currency is not exchangeable. The amendments also introduce new disclosure requirements when a currency is not exchangeable.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

1.Basis of preparation (continued)

Standards, amendments and interpretations to existing Standards that are not yet effective and have not been adopted early by the Group

At the date of authorisation of these consolidated financial statements, several new, but not yet effective, Standards and amendments to existing Standards, and Interpretations have been published by the IASB or IFRIC. None of these Standards or amendment to existing Standards have been adopted early by the Group and no Interpretations have been issued that are applicable and need to be taken into consideration by the Group at either reporting date.

Standards and amendments that are not yet effective and have not been adopted early by the Group include:

•Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and 7)

•Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)

•Annual Improvements to IFRS Accounting Standards—Volume 11

•IFRS 19 ‘Subsidiaries without Public Accountability: Disclosures’

•Amendments to IFRS 19 ‘Subsidiaries without Public Accountability: Disclosures’

These Standards and amendments are not expected to have a significant impact on the financial statements in the period of initial application and therefore no disclosures have been made.

Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the effective date of the pronouncement.

In April 2024, the IASB issued IFRS 18, which replaces IAS 1 ‘Presentation of Financial Statements’. The adoption of IFRS 18 ‘Presentation and Disclosure in financial statements’, effective for periods commencing on or after 1 January 2027, is expected to have a material impact on the presentation of the financial Statements, and therefore relevant disclosures are included below.

Although IFRS 18 includes many of the requirements of IAS 1, it introduces new requirements

to better structure financial statements and to provide more detailed and useful information to

investors, including:

•two new subtotals defined in the statement of profit or loss, namely (1) operating profit and (2) profit or loss before financing and income taxes

•the classification of all income and expenses within the statement of profit or loss in one of five categories

•a new requirement to disclose performance measures defined by management, and

•an improvement in the principles related to the aggregation and disaggregation of information in the financial statements and accompanying notes.

IFRS 18 will be applied retrospectively with specific transitional provisions.

The Group is currently working to identify all of the impacts that IFRS 18 will have on the primary financial statements and notes to the financial statements.

Other new standards, amendments and interpretations not adopted in the current year have not been disclosed as they are not expected to have a material impact on the consolidated financial statements.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts

For presentation in the statement of financial position, the Group aggregates portfolios of insurance contracts issued (including investment contracts with discretionary participation features), and reinsurance contracts held and presents separately:

•Portfolios of insurance contracts issued that are assets;

•Portfolios of reinsurance contracts held that are assets;

•Portfolios of insurance contracts issued that are liabilities;

•Portfolios of reinsurance contracts held that are liabilities.

The portfolios referred to above are those established at initial recognition in accordance with the IFRS 17 Insurance Contracts requirements, which has been initially applied from 1 January 2023.

The line item descriptions on the statement of profit or loss and other comprehensive income are aligned with the requirements of IFRS 17, leading to the separate presentation of:

•Insurance revenue.

•Insurance service expense.

•Allocation of reinsurance premiums.

•Amounts recoverable from reinsurers for incurred claims.

•Insurance finance income or expenses.

•Reinsurance finance income or expenses.

The Group provides disaggregated qualitative and quantitative information in the notes to the financial statements about:

•Amounts recognised in its financial statements from insurance contracts.

•Significant judgements, and changes in those judgements, when applying the standard.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.1Insurance contracts – Product lines

The following table summarises the characteristics of the Group’s insurance contracts that are measured under IFRS 17 and the measurement methods.

IFRS 17 Product line	Contracts issued	Measurement Method	Insurance finance income and expense
Participating	Direct participating insurance contracts and investment contracts with discretionary participation features where the Company shares the performance of underlying items with policyholders. Guaranteed returns may also be offered.	Variable Fee Approach	Profit or loss
Savings	Investment-linked insurance policies which have a life insurance coverage and an investment account balance. These contracts also include individual and group pension plans which are based on life insurance unit-linked policies.	Variable Fee Approach	Profit or loss
Other life	Group life and non-participating individual life insurance contracts. Individual insurance contracts include Term, Endowment and Whole of Life insurance contracts.	Premium Allocation ApproachGeneral Measurement Model	Profit or loss
Sickness & Accident	Individual insurance contracts providing coverage for health and personal accidents.	General Measurement Model	Profit or loss

In addition to issuing insurance contracts, the Group holds reinsurance contracts to mitigate certain risk exposures.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.2Aggregation basis

The following table summarises the characteristics of the Company’s reinsurance contracts held and the measurement methods.

IFRS 17 Product line	Reinsurance contracts held (underlying risk covered)	Measurement Method	Insurance finance income and expense
Life	Life risk reinsurance contracts with underlying Unit Linked, Term, Endowment and Whole life insurance contracts.	General Measurement Model	Profit or loss
	Reinsurance treaties with underlying group life insurance contracts.	Premium Allocation Approach	Profit or loss
	Catastrophe cover reinsurance contract covering the aggregate risk of the underlying contracts arising from catastrophic events.	Premium Allocation Approach	Profit or loss

2.3Definition and classification of insurance and reinsurance contracts

Insurance contracts are contracts under which the Company accepts significant insurance risk from a policyholder by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder.

In making this assessment, all substantive rights and obligations, including those arising from law or regulation, are considered on a contract-by-contract basis at the contract issue date. The Company uses judgement to assess whether a contract transfers insurance risk (that is, if there is a scenario with commercial substance in which the Company has the possibility of a loss on a present value basis) and whether the accepted insurance risk is significant.

The Company determines whether it has significant insurance risk, by comparing benefits payable after an insured event with benefits payable if the insured event had not occurred.

The Company issues contracts under which it accepts significant insurance risk from its policyholders, which are classified as insurance contracts.

Some investment contracts contain discretionary participation features (“DPF”), whereby the investor has the right and is expected to receive, as a supplement to the amount not subject to the Company’s discretion, potentially significant additional benefits based on the return of specified pools of investment assets.

The Company issues investment contracts with DPF which are linked to the same pool of assets as insurance contracts and have economic characteristics similar to those of insurance contracts. The Company shall account for these contracts applying IFRS 17. Contracts are classified as direct participating contracts or contracts without direct participation features.

A Contract with direct participation features is defined as one which, at inception, meets the following criteria:

•the contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items;

•the Company expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items; and

•the Company expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.3Definition and classification of insurance and reinsurance contracts (continued)

These criteria are assessed at the individual contract level based on the Company’s expectations at the contract’s inception, and they are not reassessed in subsequent periods, unless the contract is modified. The variability in the cash flows is assessed over the expected duration of a contract. The duration of a contract takes into account all cash flows within the boundary.

The savings and pensions (unit linked) contracts as well as the profit sharing contracts held within the run-off portfolio of the Company will be classified as direct participating contracts.

Such contracts allow policyholders to participate in investment returns with the Company, in addition to compensation for losses from insured risk. These contracts are substantially investment service-related contracts where the return on the underlying items is shared with policyholders. Underlying items comprise specified portfolios of investment assets that determine amounts payable to policyholders.

In addition to issuing insurance contracts, the Company holds reinsurance contracts to mitigate certain risk exposures. A reinsurance contract is an insurance contract issued by a reinsurer to compensate the Company for claims arising from one or more insurance contracts issued by the Company. These are quota share and excess of loss reinsurance contracts. For reinsurance contracts held by the Company, even if they do not expose the issuer (the reinsurer) to the possibility of a significant loss they would still be deemed to transfer significant insurance risk if they transfer substantially all of the insurance risk relating to the reinsured portions of the underlying insurance contracts to the reinsurer.

2.4Separating components from insurance contracts

At inception, the Company separates the following components from an insurance contract and accounts for them as if they were stand-alone financial instruments:

•derivatives embedded in the contract whose economic characteristics and risks are not closely related to those of the host contract, and whose terms would not meet the definition of an insurance contract as a stand-alone instrument; and

•distinct investment components i.e. investment components that are not highly inter-related with the insurance components and for which contracts with equivalent terms are sold, or could be sold, separately in the same market or the same jurisdiction.

The Company issues certain contracts which include a promise to transfer a good or non-insurance service. These transfers of a good or non-insurance service are not distinct and therefore are not separated from the contracts.

An investment component comprises of the amounts that an insurance contract requires the Company to repay to a policyholder in all circumstances, regardless of whether an insured event occurs. Investment components which are highly interrelated with the insurance contract of which they form a part are considered non-distinct and are not separately accounted for.

The Company assesses its insurance contracts to determine whether they contain any derivatives or investment components or promises to transfer to policyholders distinct goods or services other than insurance coverage and investment services which must be accounted for under a different IFRS than IFRS 17. The Company applies IFRS 17 to all remaining components of the host insurance contract.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.4Separating components from insurance contracts (continued)

After separating any embedded derivatives or distinct investment components, the Company separates any promises to transfer to policyholders distinct goods or services other than insurance coverage and investment services and accounts for them as separate contracts with customers (i.e. not as insurance contracts). A good or service is distinct if the policyholder can benefit from it either on its own or with other resources that are readily available to the policyholder. A good or service is not distinct and is accounted for together with the insurance component if the cash flows and risks associated with the good or service are highly inter-related with the cash flows and risks associated with the insurance component, and the Company provides a significant service of integrating the good or service with the insurance component.

The Company issues some contracts which include an embedded derivative (surrender option) and/or investment component (account balance) under which the surrender value is paid to the policyholder on maturity or earlier lapse of the contract. These components have been assessed to meet the definition of a highly related and/or non-distinct component. The surrender option is interrelated with the value of the insurance contract and as such, is not separated. Concerning the account balance, the Company is unable to measure the investment component separately from the contract and the policyholder is unable to benefit from the investment component unless the insurance component is also present and as such they are not separated.

Once the embedded derivatives and investment components and the goods and services components are separated, the Company assesses whether the contract should be separated into several insurance components that, in substance, should be treated as separate contracts.

To determine whether a single legal contract does not reflect the substance of the transaction and its insurance components recognised and measured separately instead, the Company considers whether there is an interdependency between the different risks covered, whether components can lapse independently of each other and whether the components can be priced and sold separately.

When the Company enters into one legal contract with different insurance components operating independently of each other, insurance components are recognised and measured separately applying IFRS 17.

Concerning the contracts with supplementary benefits (riders) the Company has determined that the legal contract reflects the substance of the transaction and as such the insurance components are not separated.

The reinsurance contracts held by the Company, despite the fact that they may cover more than one types of risk exposures, reflect single contracts in substance and are treated as one single accounting contract for IFRS 17.

2.5Aggregation level

The Company identifies portfolios by aggregating insurance contracts that are subject to similar risks and managed together. The Company expects that all contracts within each product line, as defined for management purposes, have similar risks and, therefore, would represent a portfolio of contracts when they are managed together. Reinsurance contracts held have been grouped into portfolios taking into consideration the nature of the risk and the type of reinsurance cover.

Each portfolio is sub-divided into groups of contracts to which the recognition and measurement requirements of IFRS 17 are applied. At initial recognition, the Company segregates contracts based on when they were issued. A portfolio contains all contracts that were issued within a 12-month period.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.5Aggregation level (continued)

Each annual cohort is then further disaggregated into three groups of contracts:

•any contracts that are onerous on initial recognition;

•any contracts that, on initial recognition, have no significant possibility of becoming onerous subsequently; and

•any remaining contracts in the portfolio.

Portfolios of reinsurance contracts held are assessed for aggregation separately from portfolios of insurance contracts issued. Applying the grouping requirements to reinsurance contracts held, the Company aggregates reinsurance contracts held into groups of:

•contracts for which there is a net gain at initial recognition, if any;

•contracts for which, at initial recognition, there is no significant possibility of a net gain arising subsequently; and

•remaining contracts in the portfolio, if any.

The Company makes an evaluation of whether a set of contracts can be treated together in making the profitability assessment based on reasonable and supportable information. In the absence of such information the Company assesses each contract individually.

If insurance contracts within a portfolio would fall into different groups only because law or regulation specifically constrains the Company’s practical ability to set a different price or level of benefits for policyholders with different characteristics, the Company may include those contracts in the same group.

The determination of whether a contract or a group of insurance contracts issued is onerous is based on the expectations as at the date of initial recognition, with fulfilment cash flow expectations determined on a probability-weighted basis. The Company determines the appropriate level at which reasonable and supportable information is available to assess whether the contracts are onerous at initial recognition and whether the contracts not onerous at initial recognition have a significant possibility of becoming onerous subsequently.

A similar assessment is done for reinsurance contracts held to determine the contracts for which there is a net gain at initial recognition or whether contracts for which there is not a net gain at initial recognition have a significant possibility of a net gain subsequently.

For contracts applying the Premium Allocation Approach (“PAA”) the Company assumes that contracts are not onerous (for reinsurance contracts there is not a net gain) on initial recognition unless there are facts and circumstances indicating otherwise. The Company assesses the likelihood of changes in applicable facts and circumstances to determine whether contracts not onerous (for reinsurance contracts there is not a net gain) at initial recognition belong to a group with no significant possibility of becoming onerous (for reinsurance contracts no significant possibility of a net gain) in the future.

The composition of groups established at initial recognition is not subsequently reassessed.

2.6Initial recognition

The Company recognises groups of insurance contracts that it issues from the earliest of the following:

•The beginning of the coverage period of the group of contracts;

•The date when the first payment from a policyholder in the group is due, or when the first payment is received if there is no due date;

•When the Company determines that a group of contracts becomes onerous.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.6Initial recognition (continued)

Concerning onerous contracts such contracts expected on initial recognition to be loss-making are grouped together and such groups are measured and presented separately. Once contracts are allocated to a group, they are not re-allocated to another group, unless they are substantively modified.

The Company recognises a group of reinsurance contracts held:

•If the reinsurance contracts provide proportionate coverage, at the later of the beginning of the coverage period of the group, or the initial recognition of any underlying contract;

•In all other cases, from the beginning of the coverage period of the first contract in the group.

If the Company entered into the reinsurance contract held at or before the date when an onerous group of underlying contracts is recognised prior to the beginning of the coverage period of the group of reinsurance contracts held, the reinsurance contract held is recognised at the same time as the group of underlying insurance contracts is recognised.

The Company adds new contracts to the group when they meet the recognition criteria.

2.7Contract boundaries

Insurance contracts

The Company includes in the measurement of a group of insurance contracts all the future cash flows within the boundary of each contract in the group.

Cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations that exist during the reporting period in which the Company can compel the policyholder to pay the premiums, or in which the Company has a substantive obligation to provide the policyholder with services.

Cash flows within the boundary of an insurance contract are those that relate directly to the fulfilment of the contract, including cash flows for which the Company has discretion over the amount or timing.

A substantive obligation to provide services ends when:

•The Company has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price or level of benefits that fully reflects those risks; or

•Both of the following criteria are satisfied:

-The Company has the practical ability to reassess the risks of the portfolio of insurance contracts that contain the contract and, as a result, can set a price or level of benefits that fully reflects the risk of that portfolio;

-The pricing of the premiums for coverage up to the date when the risks are reassessed does not take into account the risks that relate to periods after the reassessment date.

In determining whether all the risks have been reflected either in the premium or in the level of benefits, the Company considers all risks that policyholders would transfer had it issued the contracts (or portfolio of contracts) at the reassessment date. Similarly, the Company concludes on its practical ability to set a price that fully reflects the risks in the contract or portfolio at a renewal date by considering all the risks that it would assess when underwriting equivalent contracts on the renewal date for the remaining service.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.7Contract boundaries (continued)

Insurance contracts (continued)

The assessment on the Company’s practical ability to reprice existing contracts takes into account all contractual, legal and regulatory restrictions. In doing so, the Company disregards restrictions that have no commercial substance. The Company also considers the impact of market competitiveness and commercial considerations on its practical ability to price new contracts and repricing existing contracts. Judgement is required to decide whether such commercial considerations are relevant in concluding as to whether the practical ability exists at the reporting date.

The Company issues contracts that include an option to add insurance coverage at a future date so that the Company is obligated to provide additional coverage if the policyholder exercises the option. The Company has no right to compel the policyholder to pay premiums and the option to add insurance coverage at a future date is an insurance component that is not measured separately from the insurance contract.

When the insurance option is not in substance a separate contract and the terms are guaranteed by the Company, the cash flows arising from the option are within the boundary of the contract. If the option is not a separate contract and the terms are not guaranteed by the Company, the cash flows arising from the option might be either within or outside the contract boundary, depending on whether the Company has the practical ability to set a price that fully reflects the reassessed risks of the whole contract. In case where the Company does not have the practical ability to reprice the whole contract when the policyholder exercises the option to add coverage, the expected cash flows arising from the additional premiums after the option exercise date would be within the original contract boundary.

In estimating expected future cash flows of the group of contracts the Company applies its judgement in assessing future policyholder behaviour surrounding the exercise of options available to them such as surrenders options, and other options falling within the contract boundary.

The Company assesses the contract boundary at initial recognition and at each subsequent reporting date to include the effect of changes in circumstances on the Company’s substantive rights and obligations.

Reinsurance contracts

For groups of reinsurance contracts held, cash flows are within the contract boundary if they arise from substantive rights and obligations of the cedant that exist during the reporting period in which the Company is compelled to pay amounts to the reinsurer or has a substantive right to receive insurance contract services from the reinsurer.

A substantive right to receive services from the reinsurer ends when the reinsurer:

•has the practical ability to reassess the risks transfer to it and can set a price or level of benefits that fully reflects those reassessed risks; or

•has a substantive right to terminate the coverage.

The boundary of a reinsurance contract held includes cash flows resulting from the underlying contracts covered by the reinsurance contract. This includes cash flows from insurance contracts that are expected to be issued by the Company in the future if these contracts are expected to be issued within the boundary of the reinsurance contract held.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.7Contract boundaries (continued)

Reinsurance contracts (continued)

The Company holds proportional life reinsurance contracts which have an unlimited duration but which allow both the reinsurer and the Company to terminate the contract at three months’ notice for new business ceded. The Company includes within the contracts boundary only cash flows arising from such three months’ notice period because it does not have substantive rights or obligations beyond that point. Therefore, on initial recognition, the cash flows within the reinsurance contract boundary are determined to be those arising from underlying contracts that the Company expects to issue and cede under the reinsurance contract within the next three months. Subsequently, expected cash flows beyond the end of this initial notice period are considered cash flows of new reinsurance contracts and are recognised, separately from the initial contract, as they fall within the rolling three-month notice period. Other life reinsurance agreements have a cancellability clause for new business with three months’ notice but this being effective at the next annual renewal of the agreement and hence, in this case, on initial recognition the cash flows within the reinsurance contract boundary are determined to be those arising from underlying contracts that the Company expects to issue and cede under the reinsurance contract within the year. The Company treats all the above mentioned reinsurance contracts as a series of contracts that form an annual group and cover underlying business issued within a year.

The Company holds proportional group life reinsurance contracts that have a short-term boundary and cover short-term underlying contracts issued within the term on a risk-attaching basis. All cash flows arising from claims incurred and expected to be incurred during the life of the underlying contracts are included in the measurement.

Finally, the Company’s non-proportional, excess of loss reinsurance contracts held, have an annual term and provide coverage for claims incurred during an accident year (i.e. loss occurring). Thus, all cash flows arising from claims incurred and expected to be incurred in the accident year are included in the measurement of the reinsurance contracts held.

2.8Insurance acquisition cashflows

Insurance acquisition cash flows arise from the costs of selling, underwriting and starting a group of insurance contracts (issued or expected to be issued) that are directly attributable to the portfolio of insurance contracts to which the group belongs. Such cash flows include cash flows that are not directly attributable to individual contracts or groups of insurance contracts within the portfolio. Costs which are not directly attributable are recognised in the profit and loss account immediately.

Insurance acquisition cash flows that are directly attributable to a group of insurance contracts are allocated to that group and to renewal groups of insurance contracts using a systematic and rational method and considering, in an unbiased way, all reasonable and supportable information that is available without undue cost or effort.

A systematic and rational method is also used to allocate insurance acquisition cash flows directly attributable to a portfolio but not to groups of contracts to such groups in the portfolio.

Insurance acquisition cash flows arising before the recognition of the related group of contracts are recognised as an asset. Insurance acquisition cash flows arise when they are paid or when a liability is required to be recognised under a standard other than IFRS 17. Such an asset is recognised for each group of contracts to which the insurance acquisition cash flows are allocated. The asset is derecognised, fully or partially, when the insurance acquisition cash flows are included in the measurement of the group of contracts.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.8Insurance acquisition cashflows (continued)

At each reporting date, the Company revises the amounts allocated to groups to reflect any changes in assumptions that determine the inputs to the allocation method used. Amounts allocated to a group are not revised once all contracts have been added to the group.

The Company reverses any impairment losses in profit or loss and increases the carrying amount of the asset to the extent that the impairment conditions have improved.

2.9Measurement of insurance contracts issued

The liability for remaining coverage (“LRC”) represents the Company’s obligation to investigate and pay valid claims under existing contracts for insured events that have not yet occurred (i.e. the obligation that relates to the unexpired portion of the coverage period), comprising (a) fulfilment cash flows relating to future service and (b) the contractual service margin yet to be earned.

The liability for incurred claims (“LIC”) includes the Company’s liability to pay valid claims for insured events that have already incurred, other incurred insurance expenses arising from past coverage service and it includes the Company’s liability to pay amounts the Company is obliged to pay the policyholder under the contract, including repayment of investment components, when a contract is derecognised. The current estimate of LIC comprises the fulfilment cash flows related to current and past service allocated to the group at the reporting date.

The carrying amount of a group of insurance contracts at each reporting date is the sum of the LRC and the LIC.

2.9.1Measurement on initial recognition of contracts not measured under the PAA

Under the GM the Company measures a group of contracts on initial recognition as the sum of the expected fulfilment cash flows within the contract boundary and the contractual service margin representing the unearned profit in the contracts relating to services that will be provided under the contracts.

Fulfilment Cashflows (“FCF”)

FCF comprise unbiased and probability-weighted estimates of future cash flows, an adjustment to reflect the time value of money and the financial risks related to the future cash flows, to the extent that the financial risks are not included in the estimates of the future cash flows, plus a risk adjustment for non-financial risk.

The Company’s objective in estimating future cash flows is to determine the expected value, or the probability weighted mean, of the full range of possible outcomes, considering all reasonable and supportable information available at the reporting date without undue cost or effort, that reflect the timing and uncertainty of those future cash flows.

The Company estimates future cash flows considering a range of scenarios which have commercial substance and give a good representation of possible outcomes. The cash flows from each scenario are probability-weighted and discounted using current assumptions.

The Company estimates certain FCF at the portfolio level or higher and then allocates such estimates to groups of contracts.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.9Measurement of insurance contracts issued (continued)

2.9.1Measurement on initial recognition of contracts not measured under the PAA

(continued)

Fulfilment Cashflows (“FCF”) (continued)

When estimating future cash flows, the Company includes all cash flows that are within the contract boundary including:

•Premiums and related cash flows;

•Claims and benefits, including reported claims not yet paid, incurred claims not yet reported and expected future claims;

•Payments to policyholders resulting from embedded surrender value options;

•An allocation of insurance acquisition cash flows attributable to the portfolio to which the contract belongs;

•Claims handling costs;

•Policy administration and maintenance costs;

•An allocation of fixed and variable overheads directly attributable to fulfilling insurance contracts;

•Transaction-based taxes;

•Costs incurred for performing investment activities that enhance insurance coverage benefits for the policyholder;

•Costs incurred for providing investment-related service to policyholders.

The cash flow estimates include both market variables, which are consistent with observable market prices, and non-market variables, which are not contradictory with market information and based on internally and externally derived data.

The Company updates its estimates at the end of each reporting period using all newly available, as well as historic evidence and information about trends. The Company determines its current expectations of probabilities of future events occurring at the end of the reporting period. In developing new estimates, the Company considers the most recent experience and earlier experience, as well as other information.

Risk of the Company’s non-performance is not included in the measurement of groups of insurance contracts issued.

Risk Adjustment (“RA”)

The risk adjustment for non-financial risk for a group of insurance contracts, determined separately from the other estimates, is the compensation required for bearing uncertainty about the amount and timing of the cash flows that arises from non-financial risk to fulfill insurance contracts.

The risk adjustment also reflects the degree of diversification benefit the Company includes when determining the compensation it requires for bearing that risk; and both favourable and unfavourable outcomes, in a way that reflects the Company’s degree of risk aversion.

The Company uses a Risk-based capital approach based on which the risk adjustment can be determined at the chosen level of confidence.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.9Measurement of insurance contracts issued (continued)

2.9.1Measurement on initial recognition of contracts not measured under the PAA

(continued)

Time value of money and financial risks

The Company adjusts the estimates of future cash flows to reflect the time value of money and the financial risks related to those cash flows, to the extent that the financial risks are not included in the estimates of cash flows. The discount rates applied to the estimates of the future cash flows:

•reflect the time value of money, the characteristics of the cash flows and the liquidity characteristics of the insurance contracts;

•are consistent with observable current market prices (if any) for financial instruments with cash flows whose characteristics are consistent with those of the insurance contracts, in terms of, for example, timing, currency and liquidity; and

•exclude the effect of factors that influence such observable market prices but do not affect the future cash flows of the insurance contracts.

In determining discount rates for cash flows that do not vary based on the returns of underlying items, the Company uses the ‘bottom-up approach’ to estimate discount rates.

Contractual Service Margin (“CSM”)

The CSM is a component of the overall carrying amount of a group of insurance contracts representing unearned profit the Company will recognise as it provides insurance contract services over the coverage period.

On initial recognition of a group of insurance contracts, if the total of (a) the fulfilment cash flows, (b) any cash flows arising at that date and (c) any amount arising from the derecognition of any assets or liabilities previously recognised for cash flows related to the group (including assets for insurance acquisition cash flows) is a net inflow, the CSM is measured as the equal and opposite amount of the net inflow, which results in no gain no loss, arising on initial recognition.

If the total is a net outflow, then the group is onerous. In this case, the net outflow is recognised as a loss in profit or loss. A loss component is created to depict the amount of the net cash outflow, which determines the amounts that are subsequently presented in profit or loss as reversals of losses on onerous contracts and are excluded from insurance revenue.

The Company determines, at initial recognition, the group’s coverage units and allocates the group’s CSM based on the coverage units provided in the period.

2.9.2Subsequent measurement of contracts not measured under the PAA

Changes in fulfilment cash flows

At the end of each reporting period, the Company will update the fulfilment cash flows for both LIC and LRC to reflect the current estimates of the amounts, timing and uncertainty of future cash flows, as well as discount rates and other financial variables.

Experience adjustments would be the difference between:

•The expected cash flow estimate at the beginning of the period and the actual cash flows for premiums received in the period (and any related cash flows paid such as insurance acquisition cash flows);

•The expected cash flow estimate at the beginning of the period and the actual incurred amounts of insurance service expenses in the period (excluding insurance acquisition expenses).

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.9Measurement of insurance contracts issued (continued)

2.9.2Subsequent measurement of contracts not measured under the PAA (continued)

Changes in fulfilment cash flows (continued)

Experience adjustments relating to current or past service will be recognized in profit or loss. For incurred claims (including incurred but not reported) and other incurred insurance service expenses, experience adjustments would always relate to current or past service. They would be included in profit or loss as part of insurance service expenses. Experience adjustments relating to future service will be included in the LRC by adjusting the CSM.

Adjustments to the CSM - Insurance contracts without direct participation features

For a group of insurance contracts, the carrying amount of the CSM of the group at the end of the reporting period equals the carrying amount at the beginning of the reporting period adjusted, as follows:

•The effect of any new contracts added to the group in the reporting period;

•Interest accreted on the carrying amount of the CSM during the reporting period, measured at the discount rates at initial recognition;

•The changes in fulfilment cash flows relating to future service, except to the extent that:

-Such increases in the fulfilment cash flows exceed the carrying amount of the CSM, giving rise to a loss; or

-Such decreases in the fulfilment cash flows are allocated to the loss component of the liability for remaining coverage;

•The effect of any currency exchange differences on the CSM;

•The amount recognised as insurance revenue because of the transfer of services in the period, determined by the allocation of the CSM remaining at the end of the reporting period (before any allocation) over the current and remaining coverage period.

The locked-in discount rate is the weighted average of the rates applicable at the date of initial recognition of contracts that joined a group over a 12-month period.

The changes in fulfilment cash flows relating to future service that adjust the CSM comprise of:

•Experience adjustments that arise from the difference between the premium receipts (and any related cash flows such as insurance acquisition cash flows) and the estimate, at the beginning of the period, of the amounts expected.

•Changes in estimates of the present value of future cash flows in the liability for remaining coverage, except those relating to the time value of money and changes in financial risk (recognised in the statement of profit or loss and other comprehensive income rather than adjusting the CSM)

•Differences between:

-any investment component expected to become payable in the year, determined as the payment expected at the start of the year plus any insurance finance income or expenses related to that expected payment before it becomes payable; and

-the actual amount that becomes payable in the year

•Changes in the risk adjustment for non-financial risk that relate to future service

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.9Measurement of insurance contracts issued (continued)

2.9.2Subsequent measurement of contracts not measured under the PAA (continued)

Adjustments to the CSM - Insurance contracts without direct participation features (continued)

Except for changes in the risk adjustment, adjustments to the CSM noted above are measured at discount rates that reflect the characteristics of the cash flows of the group of insurance contracts at initial recognition.

The CSM at the end of the reporting period represents the profit in the group of insurance contracts that has not yet been recognised in profit or loss, because it relates to future service.

An amount of the CSM is released to profit or loss in each period during which the insurance contract services are provided.

In determining the amount of the CSM to be released in each period, the Company follows three steps:

•determines the total number of coverage units in the group. The amount of coverage units in the group is determined by considering for each contract the quantity of benefits provided under the contract and the expected coverage period;

•allocates the CSM at the end of the period (before any of it is released to profit or loss to reflect the insurance contract services provided in the period) equally to each of the coverage units provided in the current period and expected to be provided in the future;

•recognises in profit or loss the amount of CSM allocated to the coverage units provided during the period.

The number of coverage units changes as insurance contract services are provided, contracts expire, lapse or surrender and new contracts are added into the group. The total number of coverage units depends on the expected duration of the obligations that the Company has from its contracts, which can differ from the legal contract maturity because of the impact of policyholder behaviour and the uncertainty surrounding future insured events. In determining a number of coverage units, the Company exercises judgement in estimating the likelihood of insured events occurring and policyholder behaviours to the extent that they affect expected period of coverage in the group, the different levels of service offered across periods and the ‘quantity of benefits’ provided under a contract.

The Company does not issue insurance contracts generating cash flows in a foreign currency that is different from the functional currency of the Company.

Adjustments to the CSM - Insurance contracts with direct participation features

Direct participating contracts are contracts under which the Company’s obligation to the policyholder is the net of:

•the obligation to pay the policyholder an amount equal to the fair value of the underlying items; and

•a variable fee in exchange for future services provided by the contracts, being the amount of the Company’s share of the fair value of the underlying items less fulfilment cash flows that do not vary based on the returns on underlying items.

When measuring a group of direct participating contracts, the Company adjusts the fulfilment cash flows for the whole of the changes in the obligation to pay policyholders an amount equal to the fair value of the underlying items. These changes do not relate to future services and are recognised in profit or loss. The Company then adjusts any CSM for changes in the amount of the Company’s share of the fair value of the underlying items which relate to future services.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.9Measurement of insurance contracts issued (continued)

2.9.2Subsequent measurement of contracts not measured under the PAA (continued)

Adjustments to the CSM - Insurance contracts with direct participation features (continued)

Hence, the carrying amount of the CSM at each reporting date is the carrying amount at the start of the year, adjusted for:

•the CSM of any new contracts that are added to the group in the year;

•the change in the amount of the Company’s share of the fair value of the underlying items and changes in fulfilment cash flows that relate to future services, except to the extent that:

-a decrease in the amount of the Company’s share of the fair value of the underlying items, or an increase in the fulfilment cash flows that relate to future services, exceeds the carrying amount of the CSM, giving rise to a loss in profit or loss (included in insurance service expenses) and creating a loss component; or

-an increase in the amount of the Company’s share of the fair value of the underlying items, or a decrease in the fulfilment cash flows that relate to future services, is allocated to the loss component, reversing losses previously recognised in profit or loss (included in insurance service expenses);

•the effect of any currency exchange differences on the CSM; and

•the amount recognised as insurance revenue because of the services provided in the year.

Changes in fulfilment cash flows that relate to future services include the changes relating to future services specified above for contracts without direct participation features (measured at current discount rates) and changes in the effect of the time value of money and financial risks that do not arise from underlying items – e.g. the effect of financial guarantees.

Onerous Contracts

After the loss component is recognised, the Company allocates any subsequent changes in fulfilment cash flows of the LRC on a systematic basis between ‘loss component’ and ‘LRC excluding the loss component’.

The subsequent changes in the fulfilment cash flows of the LRC to be allocated are:

•insurance finance income or expense;

•changes in risk adjustment for non-financial risk recognised in profit or loss representing release from risk in the period; and

•estimates of the present value of future cash flows for claims and expenses released from the LRC because of incurred insurance service expense in the period.

The Company determines the systematic allocation of insurance service expenses incurred based on the percentage of loss component to the total outflows included in the LRC, excluding any investment component amount.

Any subsequent decreases relating to future service in fulfilment cash flows allocated to the group arising from changes in estimates of future cash flows and the risk adjustments for non-financial risk are allocated first only to the loss component, until it is exhausted. Once it is exhausted, any further decreases in fulfilment cash flows relating to future service create the group’s CSM.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.9Measurement of insurance contracts issued (continued)

2.9.2Subsequent measurement of contracts not measured under the PAA (continued)

Measurement of contracts under the PAA

On initial recognition the Company applies the PAA:

•When the coverage period of each insurance contract in the group is one year or less;

•For groups of insurance contracts including contracts with a coverage period extending beyond one year the Company reasonably expects that such simplification would produce a measurement of the LRC for the group that would not differ materially from the one that would be produced applying the requirements of the general measurement model.

On initial recognition, the Company measures the LRC at the amount of premiums received in cash. As all the issued insurance contracts to which the PAA is applied have coverage of a year or less, the Company has elected the policy of expensing insurance acquisition cash flows as they are incurred.

On initial recognition of each group of contracts, the Company expects that the time between providing each part of the services and the related premium due date is no more than a year. Accordingly, the Company has chosen not to adjust the liability for remaining coverage to reflect the time value of money and the effect of financial risk.

There are no investment components within insurance contracts issued that are measured under the PAA.

The carrying amount of a group of insurance contracts issued at the end of each reporting period is the sum of (a) the LRC and (b) the LIC, comprising the FCF related to past service allocated to the group at the reporting date.

The carrying amount of the LRC for subsequent measurement purposes is increased by any premiums received and decreased by the amount recognised as insurance revenue for services provided.

The LIC is measured similarly to the LIC’s measurement under the GMM. The liability equals the amount of the fulfilment cash flows relating to incurred claims. For claims that the Company expects to be paid within one year or less from the date of incurring the Company does not adjust future cash flows for the time value of money and the effect of financial risk. However, claims expected to take more than one year to settle are discounted.

If facts and circumstances indicate that a group of insurance contracts measured under the PAA is onerous on initial recognition or becomes onerous subsequently, the Company increases the carrying amount of the LRC to the amount of the FCF determined under the GMM with the amount of such an increase recognised in insurance service expenses, and a loss component is established for the amount of the loss recognised. The fulfilment cash flows are discounted at current rates, as the liability for incurred claims is also discounted.

2.10Measurement of reinsurance contracts held

The same accounting policies will be applied as for insurance contracts issued to measure a group of reinsurance contracts held, adapted where necessary to reflect features that differ from those of insurance contracts.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.10Measurement of reinsurance contracts held (continued)

2.10.1Measurement of the asset for remaining coverage (“ARC”)

Reinsurance contracts measured under the general model

The measurement of reinsurance contracts held follows the same principles as those for insurance contracts issued, with the exception of the following:

•Measurement of the cash flows include an allowance on a probability-weighted basis for the effect of any non-performance by the reinsurers, including the effects of collateral and losses from disputes;

•The Company determines the risk adjustment for non-financial risk so that it represents the amount of risk being transferred to the reinsurer;

•The Company recognises both day 1 gains and day 1 losses at initial recognition in the statement of financial position as a CSM and releases this to profit or loss as the reinsurer renders services, except for any portion of a day 1 loss that relates to events before initial recognition as described below;

•Changes in the fulfilment cash flows are recognised in profit or loss if the related changes arising from the underlying ceded contracts have been recognised in profit or loss. Alternatively, changes in the fulfilment cash flows adjust the CSM.

The Company measures the estimates of the present value of future cash flows using assumptions that are consistent with those used to measure the estimates of the present value of future cash flows for the underlying insurance contracts.

On initial recognition, the CSM of a group of reinsurance contracts represents a net cost or net gain on purchasing reinsurance. It is measured as the equal and opposite amount of the total of (a) the fulfilment cash flows, (b) any amount arising from the derecognition of any assets or liabilities previously recognised for cash flows related to the group, (c) any cash flows arising at that date and (d) any income recognised in profit or loss because of onerous underlying contracts recognised at that date.

However, if any net cost on purchasing reinsurance coverage relates to insured events that occurred before the purchase of the group, then the Company recognises the cost immediately in profit or loss as an expense.

The carrying amount of the CSM at each reporting date is the carrying amount at the start of the year, adjusted for:

•the CSM of any new contracts that are added to the group in the year;

•interest accreted on the carrying amount of the CSM during the year, measured at the discount rates determined on initial recognition;

•income recognised in profit or loss in the year on initial recognition of onerous underlying contracts;

•reversals of a loss-recovery component to the extent that they are not changes in the fulfilment cash flows of the group of reinsurance contracts;

•changes in fulfilment cash flows that relate to future services, measured at the discount rates determined on initial recognition, unless they result from changes in fulfilment cash flows of onerous underlying contracts, in which case they are recognised in profit or loss and create or adjust a loss-recovery component;

•the effect of any currency exchange differences on the CSM; and

•the amount recognised in profit or loss because of the services received in the year.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.10Measurement of reinsurance contracts held (continued)

2.10.1Measurement of the asset for remaining coverage (“ARC”) (continued)

Reinsurance contracts measured under the general model (continued)

For a group of reinsurance contracts covering onerous underlying contracts, the Company establishes a loss-recovery component of the asset for remaining coverage, adjusts the CSM and as a result recognises income when it recognises a loss on initial recognition of onerous underlying contracts, if the reinsurance contract is entered into before or at the same time as the onerous underlying contracts are recognised. The adjustment to the CSM is determined by multiplying:

•the amount of the loss that relates to the underlying contracts; and

•the percentage of claims on the underlying contracts that the Company expects to recover from the reinsurance contracts.

The loss-recovery component is adjusted for changes in FCFs of the group of reinsurance contracts relating to future services that result from changes in FCFs of the onerous underlying contracts. If the reinsurance contract covers only some of the insurance contracts included in an onerous group of contracts, then the Company uses a systematic and rational method to determine the portion of losses recognised on the onerous group of contracts that relates to underlying contracts covered by the reinsurance contract.

The loss-recovery component determines the amounts that are subsequently presented in profit or loss as reversals of recoveries of losses from the reinsurance contracts and are excluded from the allocation of reinsurance premiums paid. It is adjusted to reflect changes in the loss component of the onerous group of underlying contracts, but it cannot exceed the portion of the loss component of the onerous group of underlying contracts that the Company expects to recover from the reinsurance contracts.

Reinsurance contracts measured under the Premium Allocation Approach

The Company applies the PAA to measure a group of reinsurance contracts using the same accounting policies to the insurance contracts, as adapted where necessary to reflect the features of reinsurance contracts.

The Company applies the PAA to reinsurance contracts that it holds, as follows:

•to groups of reinsurance contracts that it holds which at the inception of the group the effective coverage period of each contract in the group of reinsurance contracts held is one year or less;

•to groups of reinsurance contracts that it holds including contracts with a coverage period extending beyond one year when the Company reasonably expects that such simplification would produce a measurement of the asset for remaining coverage for the group that would not differ materially from the one that would be produced applying the requirements of the general measurement model.

Under the PAA, the initial measurement of the asset equals the reinsurance premium paid. The Company measures the amount relating to remaining service by allocating the amount of expected reinsurance premium payments over the coverage period of receiving services for the group. For all reinsurance contracts held the allocation is based on the passage of time.

On initial recognition of each group of reinsurance contracts held, the Company expects that the time between receiving each part of the services and the related reinsurance premium due date is no more than a year. Accordingly, the Company has chosen not to adjust the asset for remaining coverage to reflect the time value of money and the effect of financial risk.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.10Measurement of reinsurance contracts held (continued)

2.10.1Measurement of the asset for remaining coverage (“ARC”) (continued)

Reinsurance contracts measured under the Premium Allocation Approach (continued)

Where the reinsurance contracts held cover a group of onerous underlying insurance contracts, the Company adjusts the carrying amount of the asset for remaining coverage and recognises a gain when, in the same period, it reports a loss on initial recognition of an onerous group of underlying insurance contracts or on additional loss from an already onerous group of underlying insurance contracts. The recognition of this gain results in the accounting for the loss recovery component of the asset for the remaining coverage of a group of reinsurance contracts held. The loss-recovery component is adjusted to reflect changes in the loss component of the onerous group of underlying contracts, but it cannot exceed the portion of the loss component of the onerous group of underlying contracts that the Company expects to recover from the reinsurance contracts.

2.10.2Measurement of the asset for incurred claims (“AIC”)

The Company uses consistent assumptions to measure the estimates of the present value of future cash flows for the group of reinsurance contracts held and the estimates of the present value of future cash flows for the group(s) of underlying insurance contracts. The Company includes in the estimates of the present value of the future cash flows for the group of reinsurance contracts held the effect of any risk of non-performance by the issuer of the reinsurance contract, including the effects of collateral and losses from disputes.

The risk adjustment for non-financial risk for reinsurance contracts held represents the amount of risk being transferred by the Company to the reinsurer.

2.11Insurance contracts – modification and derecognition

The Company derecognises insurance contracts when, and only when:

•The rights and obligations relating to the contract are extinguished (i.e., discharged, cancelled or expired); or

•The contract is modified such that the modification results in:

-the contract being outside the scope of IFRS 17;

-a different insurance contract due to separating components from the host contract;

-a substantially different contract boundary;

-the contract being included in a different group of contracts.

If any of the modification criteria described above are met, the Company derecognises the initial contract and recognises the modified contract as a new contract.

On derecognition of a contract from within a group of contracts:

•the fulfilment cash flows allocated to the group are adjusted to eliminate those that relate to the rights and obligations derecognised;

•the CSM of the group is adjusted for the change in the fulfilment cash flows, except where such changes are allocated to a loss component; and

•the number of coverage units for the expected remaining services is adjusted to reflect the coverage units derecognised from the group.

If a contract is derecognised because it is transferred to a third party, then the CSM is also adjusted for the premium charged by the third party, unless the group is onerous.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.11Insurance contracts – modification and derecognition (continued)

If a contract is derecognised because its terms are modified, then the CSM is also adjusted for the premium that would have been charged had the Company entered into a contract with the new contract’s terms at the date of modification, less any additional premium charged for the modification. The new contract recognised is measured assuming that, at the date of modification, the Company received the premium that it would have charged less any additional premium charged for the modification.

If the contract modification does not meet the above conditions the Company treats the effect of the modification as changes in the estimates of fulfilment cash flows.

For insurance contracts accounted for applying the PAA the Company adjusts insurance revenue prospectively from the time of the contract modification.

2.12Investment contracts with discretionary participation features

The Company recognises investment contracts with DPF at the date when the Company becomes a party to the contract. The investment contracts with DPF are aggregated in the same manner as insurance contracts. The Company identified portfolios of such investment contracts with DPF. Within that portfolio, the Company aggregated them based on three expected profitability levels (groups of onerous contracts, groups of contracts that have no significant possibility of becoming onerous subsequently, and groups that are neither onerous nor have no significant possibility of becoming onerous subsequently). Groups comprise of contracts issued not more than a year apart.

At initial recognition, similar to insurance contracts, the Company estimates the fulfilment cash flows based on the present value of expected future cash flows and a risk adjustment for non-financial risk. Any expected net inflows are accounted for as the initial CSM.

In estimating future cash flows, the Company considers the contract boundary which only includes cash flows if they result from a substantive obligation of the Company to deliver cash at a present or future date.

In estimating the risk adjustment for non-financial risk for investment contracts with DPF, the Company considers other non-financial risks, such as the risks arising from the contract holder behaviour, e.g. lapse risk and expense risk.

The Company discounts cash flows using discount rates that reflect the characteristics of the fulfilment cash flows, including the extent of their dependency on the fair value of the underlying items.

The Company allocates the CSM over the group’s whole duration period in a systematic way reflecting the transfer of investment services under a contract. The Company measures investment contracts with DPF at initial recognition as detailed in “Measurement on initial recognition of contracts not measured under the PAA” and at subsequent measurement in accordance to “Subsequent measurement of contracts not measured under PAA” and “Adjustments to the CSM – Insurance contracts with direct participation features”.

2.13Presentation

The Company presents separately, in the statement of financial position, the carrying amount of portfolios of:

1.insurance contracts and investment contracts with DPF issued that are assets;

2.insurance contracts and investment contracts with DPF issued that are liabilities;

3.reinsurance contracts held that are assets;

4.reinsurance contracts held that are liabilities.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.13Presentation (continued)

Any assets or liabilities for insurance acquisition cash flows recognised before the corresponding insurance contracts are included in the carrying amount of the related portfolio of contracts.

The Company disaggregates the total amount recognised in the statement of profit or loss and other comprehensive income into an insurance service result, comprising insurance revenue and insurance service expense, and insurance finance income or expenses.

The Company does not disaggregate the change in risk adjustment for non-financial risk between a financial and non-financial portion and includes the entire change as part of the insurance service result.

The Company separately presents income or expenses from reinsurance contracts held from the expenses or income from insurance contracts and investments contracts with DPF issued.

2.13.1Insurance Service Revenue

Contracts not measured under the PAA

The Company’s insurance revenue depicts the provision of coverage and other services arising from a group of insurance contracts and investment contracts with DPF at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. Insurance revenue from a group of insurance contracts and a group of investment contracts with DPF is therefore the relevant portion for the period of the total consideration for the contracts, (i.e., the amount of premiums paid to the Company adjusted for financing effect (the time value of money) and excluding any investment components).

The total consideration for a group of contracts covers amounts related to the provision of services and is comprised of:

•Insurance service expenses, excluding any amounts allocated to the loss component of the liability for remaining coverage;

•The risk adjustment for non-financial risk related to current service, excluding any amounts allocated to the loss component of the liability for remaining coverage;

•The CSM release measured based on coverage units provided.

In addition, the Company allocates a portion of premiums that relate to recovering insurance acquisition cash flows to each period in a systematic way based on the passage of time. The Company recognises the allocated amount, as insurance service revenue and an equal amount as insurance service expenses.

The amount of the CSM of a group of insurance contracts and a group of investment contracts with DPF that is recognised as insurance revenue in each year is determined by identifying the coverage units in the group, allocating the CSM remaining at the end of the year (before any allocation) equally to each coverage unit provided in the year and expected to be provided in future years, and recognising in profit or loss the amount of the CSM allocated to coverage units provided in the year. The number of coverage units is the quantity of services provided by the contracts in the group, determined by considering for each contract the quantity of benefits provided and its expected coverage period. The coverage units are reviewed and updated at each reporting date.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.13Presentation (continued)

2.13.1Insurance Service Revenue (continued)

Contracts not measured under the PAA (continued)

Services provided by insurance contracts include insurance coverage and, for all direct participating contracts, investment services for managing underlying items on behalf of policyholders. In addition, some contracts without direct participating features may also provide investment services for generating an investment return for the policyholder, if and only if:

•an investment component exists or the policyholder has a right to withdraw an amount (e.g. the policyholder’s right to receive a surrender value on cancellation of a contract);

•the investment component or withdrawal amount is expected to include an investment return; and

•the Company expects to perform investment activities to generate that investment return.

The expected coverage period reflects expectations of lapses and cancellations of contracts, as well as the likelihood of insured events occurring to the extent that they would affect the expected coverage period. The period of investment services ends no later than the date on which all amounts due to current policyholders relating to those services have been paid.

Contracts measured under the PAA

For contracts measured under the PAA, the insurance revenue for each period is the amount of expected premium receipts for providing services in the period. The Company recognises such insurance revenue based on the passage of time by allocating premium receipts including premium experience adjustments to each period of service.

2.13.2Loss Component

The Company groups contracts that are onerous at initial recognition separately from contracts in the same portfolio that are not onerous at initial recognition. Groups that were not onerous at initial recognition can also subsequently become onerous if assumptions and experience changes. The Company has established a loss component of the liability for remaining coverage for any onerous group depicting the future losses recognised.

2.13.3Insurance Service Expenses

Insurance service expenses arising from insurance contracts and investments contracts with DPF are recognised in profit or loss generally as they are incurred. They exclude repayments of investment components and comprise of:

-Incurred claims and other insurance service expenses: For some life risk contracts, incurred claims also include premiums waived on detection of critical illness;

-Amortisation of insurance acquisition cash flows: For contracts not measured under the PAA, this is equal to the amount of insurance revenue recognised in the year that relates to recovering insurance acquisition cash flows. For contracts measured under the PAA, the Company has elected to expense insurance acquisition cash flows as incurred;

-Losses on onerous contracts and reversals of such losses;

-Adjustments to the liabilities for incurred claims that do not arise from the effects of the time value of money, financial risk and changes therein.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.13Presentation (continued)

2.13.4Insurance finance income and expense

Insurance finance income or expenses comprise the change in the carrying amount of the group of insurance contracts and investment contracts with DPF arising from:

•The effect of the time value of money and changes in the time value of money;

•The effect of financial risk and changes in financial risk.

For contracts without direct participation features, insurance finance income or expenses reflect interest accreted on the future cash flows and the CSM and the effect of changes in interest rates and other financial assumptions.

For contracts with direct participation features, insurance finance income or expenses comprise changes in the measurement of the groups of contracts caused by changes in the value of underlying items (excluding additions and withdrawals), interest accreted and the effect of changes in interest rated on future cash flows that do not vary with returns on underlying items.

For contracts measured under the PAA insurance finance or expenses reflect interest accreted on the future cash flows under the LIC and the effect of changes in interest rates and other financial assumptions.

The Company does not disaggregate changes in the risk adjustment for non-financial risk between insurance service result and insurance financial income or expenses.

The Company has an accounting policy choice to either present all of the period’s insurance finance income or expenses in profit or loss or to split the amount between profit or loss and other comprehensive income (OCI). The accounting policy choice is applied on a portfolio-by-portfolio basis. The Company will include all insurance finance income or expenses for the reporting period in profit or loss for all its portfolios.

2.13.5Net income or expense from reinsurance contracts held

Net expenses from reinsurance contracts comprise an allocation of reinsurance premiums paid less amounts recovered from reinsurers.

The Company presents separately on the face of the statement of profit or loss and other comprehensive income the amounts expected to be recovered from reinsurers, and an allocation of the reinsurance premiums paid.

The Company treats reinsurance cash flows that are contingent on claims on the underlying contracts as part of the claims that are expected to be reimbursed under the reinsurance contract held. Ceding commissions that are not contingent on claims of the underlying contracts are presented as a deduction in the premiums to be paid to the reinsurer which is then allocated to profit or loss.

2.14Financial reinsurance liability

The Company enters into financing treaties with third-party reinsurers to secure upfront funding for the acquisition costs of specific underlying insurance contracts. These treaties do not transfer significant insurance risk and therefore do not meet the definition of reinsurance contracts held under IFRS 17 'Insurance Contracts'. As these treaties are not specifically addressed by other IFRS Accounting Standards, the Company applies judgement in accordance with IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors' to account for such transactions in its financial statements. Management has determined that the recognition and measurement principles for reinsurance contracts held under IFRS 17 provide the most relevant and reliable framework, and consequently, these principles are applied by analogy to these financing treaties.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Insurance contracts (continued)

2.14Financial reinsurance liability (continued)

Initial Recognition

Upon initial recognition, the Company's obligation arising from these financing treaties is recognised as a financial reinsurance liability represented by:

•The present value of expected advances and repayments from the financing treaties.

•The cost of financing of the financing treaties.

Subsequent Measurement

As the initial valuation, the subsequent measurement follows the IFRS 17 principles for reinsurance contracts held, applied by analogy. This incorporates changes in the present value of expected advances and repayments and to the cost of financing based on the Company’s expectations at the end of each reporting period. Advances received and repayments paid are recognised directly in the statement of financial position. The cost of financing is recognised in profit or loss in a manner consistent with the release of the IFRS 17 Contractual Service Margin (CSM). Gains arising from the waiver of repayment, as per treaty terms, are also recognised in profit or loss.

Disclosures

While IFRS 17 measurement principles are applied by analogy, disclosures for these financing treaties are made in accordance with IAS 1 'Presentation of Financial Statements' and IAS 8. This ensures that the related balances and transactions are presented distinctly from contracts that fall within the scope of IFRS 17.

2.15Transition to IFRS 17

On transition to IFRS 17, the Company has applied the full retrospective approach to all insurance contracts issued and reinsurance contracts held measured under the PAA. For all groups of insurance contracts, investment contracts with DPF and reinsurance contracts not measured under the PAA the Company applied the fair value transition approach as it was impracticable to apply the full retrospective approach.

3Basis of consolidation

Subsidiaries are all entities over which the Group has control. The Group controls an investee when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The existence and effect of potential voting rights that are when those rights give the Group the current ability to direct the relevant activities are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

4Business combinations

The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.

The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognised in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values.

5Acquisition of subsidiaries

The acquisition of subsidiaries that are not under common control is accounted for by applying the acquisition method. The consideration is measured as the aggregate of the fair values, at the date of exchange of assets given, liabilities incurred or assumed, and equity instruments issued by the acquirer in exchange for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred, except for costs to issue debt or equity securities.

The acquiree’s identifiable assets and liabilities that meet the conditions for recognition are recognised at their fair values at the acquisition date, except as specifically required by other International Financial Reporting Standards as adopted by the EU. A contingent liability assumed in a business combination is recognised at the acquisition date if there is a present obligation that arises from past events and its fair value can be measured reliably.

The results of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Where necessary, in preparing these consolidated financial statements, appropriate adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with those used by group entities. Intra-group balances, transactions, income and expenses are eliminated on consolidation.

6Intangible assets

(a)Computer software

Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised using the straight-line method over their estimated useful lives (between five and thirteen years). Costs associated with developing or maintaining computer software programmes are recognised as an expense as incurred.

(b)Goodwill

Goodwill arising in a business combination that is accounted for using the acquisition method is recognised as an asset at the date that control is acquired. Goodwill is measured as the excess of (a) the aggregate of: (i) the consideration transferred; (ii) the amount of any non-controlling interests in the acquiree; and (iii) in a business combination achieved in stages, the acquisition-date fair value of the acquirer’s previously held equity interest in the acquiree; and (b) the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. Any gain on a bargain purchase, after reassessment, is recognised immediately in profit or loss.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

6.Intangible assets (continued)

(c)Passporting assets

Separately acquired passporting assets are shown at historical cost, which represent their acquisition price. Passporting assets are considered to have a useful life of five years, as management assesses that this period reflects the expected duration over which the assets will generate net cash inflows for the Group.

An impairment loss is recognised on intangible assets when the carrying amount exceeds the recoverable amount, being the higher of fair value less costs of disposal and value in use, and is recognised in profit or loss. Such losses, other than those relating to goodwill, are reviewed at each reporting date and reversed where appropriate.

7.Property, plant and equipment

Property, plant and equipment comprising land and buildings and office furniture, fittings and equipment are initially recorded at cost, and are subsequently shown at cost less accumulated depreciation and impairment losses, with the exception of land which is shown at cost. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount, or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

Depreciation is calculated using the straight-line method to allocate the cost of the assets to their residual values over their estimated useful lives using the following depreciation rates:

	%
Buildings	2-20
Office furniture, fittings and equipment	20-25

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each report period. Gains and losses on disposals of plant and equipment are determined by comparing proceeds with the carrying amount, and are taken into account in determining operating profit. Where the carrying amount of an asset is greater than its estimated recoverable amount, an impairment loss is recognised where it is written down immediately to its recoverable amount.

Property is revalued at regular intervals. After revaluation date, property is recognised at revalued amount less accumulated depreciation and impairment losses.

A revaluation surplus is recorded in OCI and credited to the asset revaluation surplus on equity. However, to the extent that it reverses a revaluation deficit of the same asset previously recognised in profit or loss, the increase is recognised in profit and loss. A revaluation deficit is recognised in the statement of profit or loss, except to the extent that it offsets an existing surplus on the same asset recognised in the revaluation surplus.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

7.Property, plant and equipment (continued)

An annual transfer from the asset revaluation surplus to retained earnings is made for the difference between depreciation based on the revalued carrying amount of the asset and depreciation based on the asset’s original cost. Additionally, accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any revaluation surplus relating to the particular asset being sold is transferred to retained earnings.

8.Investment property

Freehold and leasehold properties treated as investments principally comprise buildings that are held for long term rental yields or capital appreciation or both, and that are not occupied by the Group. Investment property is initially measured at cost including related transaction costs. Investment property is subsequently carried at fair value, representing open market value determined annually by external valuers or by virtue of a directors’ valuation. It is the Group’s policy to engage the services of an external expert valuer every two years at a minimum. Fair value is based on active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset.

If this information is not available, the Group uses alternative valuation methods such as recent prices on less active markets or discounted cash flow projections. The fair value of investment property reflects, among other things, rental income from current leases and assumptions about rental income from future leases in the light of current market conditions.

Subsequent expenditure is charged to the asset’s carrying amount only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the profit and loss account during the financial period in which they are incurred.

Unrealised gains and losses arising from changes in fair value (net of deferred taxation) are initially recognised in profit or loss.

9.Other financial instruments

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially recognised at their fair value, except for trade receivables that do not have a significant financing component which are measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets and financial liabilities are off-set and the net amount presented in the statement of financial position when the Group has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or when the entity transfers the financial asset and the transfer qualifies for derecognition.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

9.Other financial instruments (continued)

Financial liabilities are derecognised when they are extinguished. This occurs when the obligation specified in the contract is discharged, cancelled or expires.

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Financial assets

All recognised financial assets are measured subsequently in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Classification of financial assets

Debt instruments that meet the following conditions are measured subsequently at amortised cost:

•The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows;

•The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.Debt instruments that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVTOCI):

•The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets;

•The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL).

Despite the foregoing, the Group may make the following irrevocable election / designation at initial recognition of a financial asset:

•The Group may irrevocably elect to present subsequent changes in fair value of an equity investment in other comprehensive income if certain criteria are met; and

•The Group may irrevocably designate a debt investment that meets the amortised cost or FVTOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch.

Regular way purchases or sales of financial assets are recognised and derecognised on trade date.

An assessment of business models for managing financial assets is fundamental to the classification of a financial asset. The Group determines the business models at a level that reflects how groups of financial assets are managed together to achieve a particular business objective.

The Group’s business model does not depend on management’s intentions for an individual instrument, therefore the business model assessment is performed at a higher level of aggregation rather than on an instrument-by-instrument basis. The information considered includes: (a) the stated policies and objectives for the portfolio and the operation of those policies in practice; (b) how the performance of the portfolio is evaluated and reported to the Company’s management; (c) the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed; (d) how managers of the business are compensated; and (e) the frequency, value and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

The Group classifies its financial assets into the following two categories: a) financial assets at fair value through profit or loss, and b) financial assets at amortised cost.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

9.Other financial instruments (continued)

Financial assets (continued)

Debt instruments measured at amortised cost

The following financial assets are classified within this category – trade receivables, cash at bank, intercompany balances.

Appropriate allowances for expected credit losses (‘ECLs’) are recognised in profit or loss in accordance with the Group’s accounting policy on ECLs.

The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortised cost of a financial asset before adjusting for any loss allowance.

Changes in the carrying amount as a result of foreign exchange gains or losses, impairment gains or losses and interest income are recognised in profit or loss. On derecognition, any difference between the carrying amount and the consideration received is recognised in profit or loss and is presented separately in the line item ‘Gains and losses arising from the derecognition of financial assets measured at amortised cost’.

Interest income is recognised using the effective interest method and is included in the line item ‘Investment income’.

Trade receivables which do not have a significant financing component are initially measured at their transaction price and are subsequently stated at their nominal value less any loss allowance for ECLs.

Financial assets at FVTPL

Financial assets that do not meet the criteria for being measured at amortised cost or FVTOCI are measured at FVTPL, specifically:

-investments in equity instruments are classified as at FVTPL. However, a Group may designate an equity investment that is neither held for trading nor a contingent consideration arising from a business combination as at FVTOCI on initial recognition;

-debt instruments that do not meet the amortised cost criteria or the FVTOCI criteria are classified as at FVTPL.

In addition, debt instruments that meet either the amortised cost criteria or the FVTOCI criteria may be designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognising the gains and losses on them on different bases.

Financial assets measured at FVTPL are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses including foreign exchange gains and losses, recognised in profit or loss.

Where applicable, dividend income is recognised with other dividend income, if any, arising on other financial assets within the line item ‘Investment income’. Where applicable, interest income is disclosed within the line item ‘Investment income’. Fair value gains and losses are recognised within the line items ‘Investment income’ and ‘Investment losses’ respectively.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

9.Other financial instruments (continued)

Financial assets (continued)

Interest income using the effective interest method

Interest income is recognised using the effective interest method for debt instruments measured subsequently at amortised cost.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. For financial instruments other than purchased or originated credit-impaired financial assets, the effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) excluding ECLs, through the expected life of the debt instrument, or where appropriate, a shorter period, to the gross carrying amount of the debt instrument on initial recognition.

Expected Credit Losses

The Group recognises a loss allowance for ECLs on, debt instruments measured at amortised cost, intercompany receivables, trade receivables and cash at bank.

The amount of ECL is updated at each reporting date to reflect changes in credit risk since the initial recognition.

For trade receivables that do not contain a significant financing component (or for which the IFRS 15 practical expedient for contracts that are one year or less is applied), the Group applies the simplified approach and recognises lifetime ECL.

Where a collective basis is applied (see the Accounting Policy entitled ‘Collective basis’ below), the ECLs on these financial assets are estimated using a provision matrix based on the Company’s historical credit loss experience based on the past due status of the debtors, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date.

For all other financial instruments, the Group uses the general approach and recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL (‘12m ECL’). The assessment of whether lifetime ECL should be recognised is based on significant increases in the likelihood or risk of a default occurring since initial recognition instead of on evidence of a financial asset being credit-impaired at the reporting date or an actual default occurring.

Lifetime ECL represents the ECLs that will result from all possible default events over the expected life of a financial instrument. In contrast, 12m ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

If the Group has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in the previous reporting period, but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the Group measures the loss allowance at an amount equal to 12m ECL at the current reporting date.

The Group recognises an impairment gain or loss in profit or loss for all financial assets with a corresponding adjustment to their carrying amount.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

9.Other financial instruments (continued)

Financial assets (continued)

Significant increase in credit risk

In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Group and Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group and Company considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort and, where applicable, the financial position of the counterparties.

The Group and Company regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due.

Forward-looking information considered includes the future prospects of the industries in which the Group and Company’s debtors operate as obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and similar organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the Company’s core operations.

Irrespective of the outcome of the above assessment, the Group and Company presumes that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, unless the Group and Company has reasonable and supportable information, that is available without undue cost or effort, that demonstrates otherwise.

The Group and Company considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that receivables that meet either of the following criteria are generally not recoverable:

-when there is a breach of financial covenants by the counterparty; or

-information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group and Company, in full (without taking into account any collateral held by the Group and Company).

Irrespective of the above analysis, the Group and Company considers that default has occurred when a financial asset is more than 90 days past due unless the Group and Company has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

9.Other financial instruments (continued)

Financial assets (continued)

Credit-impaired financial assets

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred.

Evidence that a financial asset is credit-impaired includes observable data about the following events:

(i)significant financial difficulty of the issuer or the borrower;

(ii)a breach of contract, such as a default or past due event;

(iii)the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;

(iv)it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or

(v)the disappearance of an active market for that financial asset because of financial difficulties.

Write-off policy

The Group and Company writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, for example when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings, whichever occurs sooner.

Financial assets written off may still be subject to enforcement activities under the Group and Company’s recovery procedures, taking into account legal advice where appropriate. Recoveries made are recognised in profit or loss as impairment gains.

Measurement and recognition of ECLs

For financial assets, the credit loss is the difference between all contractual cash flows that are due to the Group and Company in accordance with the contract and all the cash flows that the Group and Company expects to receive, discounted at the original effective interest rate. ECLs represent the weighted average of credit losses with the respective risks of a default occurring as the weights.

The measurement of ECLs is a function of:

-the probability of default, which is an estimate of the likelihood of default over a given time horizon estimated at a point in time;

-the loss given default, which is an estimate of the loss arising on default, taking into into consideration the cash flows expected from collateral and other credit enhancements that are part of the contractual terms and are not recognised separately;

-the exposure at default, which is an estimate of the exposure at a future default date, taking into account expected changes in the exposure after the reporting date that are permitted by the current contractual terms, including amortisation profiles and early repayment or overpayment.

The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information, where applicable. Where applicable, the financial position of the counterparties is also taken into consideration.

Where applicable, forward-looking information considered includes the future prospects of the industries in which the Group and Company’s debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the Group and Company’s core operations.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

9.Other financial instruments (continued)

Financial assets (continued)

Collective basis

If evidence of a significant increase in credit risk at the individual instrument level is not yet available, the Group and Company performs the assessment of significant increases in credit risk on a collective basis by considering information on, for example, a group or sub-group of financial instruments.

Where the Group and Company does not have reasonable and supportable information that is available without undue cost or effort to measure lifetime ECL on an individual instrument basis, lifetime ECL is measured on a collective basis.

In such instances, the financial instruments are grouped on the basis of shared credit risk characteristics, as follows:

-Nature of financial instruments;

-Past-due status;

-Nature, size and industry of debtors;

-Nature of collaterals for finance lease receivables;

-External credit ratings where available;

-Date of initial recognition;

-Remaining term to maturity;

-Geographical location of the borrower;

-The value of collateral relative to the financial asset if it has an impact on the probability of default occurring (for example, loan-to-value ratios).

The grouping is regularly reviewed by management to ensure the constituents of each group continue to share similar credit risk characteristics.

Financial liabilities and equity

Trade payables are classified with current liabilities and are stated at their amortised cost using the EIR method.

Ordinary shares issued by the Group are classified as equity instruments.

10.Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, demand deposits and time deposits maturing within three months from the end of the reporting period.

11.Dividend distribution

Dividend distribution to the Group’s shareholders is recognised as a liability in the Group’s financial statements in the period in which the dividends are declared by the directors in the case of interim dividends or are approved by the shareholders in the case of final dividends.

12.Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

13.Revenue recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.

Revenue also includes interest, dividend and rental income and is recognised as follows:

a)Rendering of services

Premium recognition, dealing with insurance contracts and investments contracts with DPF is described in accounting policy 10. Revenue arising from the issue of investment contracts without DPF is recognised in the accounting period in which the services are rendered.

b)Insurance agency commissions

Insurance agency commissions earned on policies sold are taken to the income statement in full, irrespective of the period covered by the policy.

c)Dividend income

Dividend income is recognised when the Group’s right to receive payment is established.

d)Interest income

Interest income from financial assets not classified as fair value through profit or loss is recognised using the effective interest method.

e)Rental income

Rental income from the leasing of immovable property is recognised on a straight-line basis over the lease term.

14.Investment return

Investment return includes dividend income, net fair value movements on financial assets at fair value through profit or loss (including interest income from financial assets classified as fair value through profit or loss), interest income from financial assets not classified as fair value through profit or loss, rental receivable, net fair value movements on investment property and is net of investment expenses, charges, and interest.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

15.Foreign currencies

a)Functional and presentation currency

Items included in the financial statements of the Group are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The financial statements are presented in €, which is the Group’s functional and presentation currency.

b)Transactions and balances

Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss. Non-monetary assets and liabilities denominated in currencies other than the functional currency that are measured at fair value are re-translated using the exchange rate ruling on the date the fair value was measured. Non-monetary assets and liabilities denominated in currencies other than the functional currency that are measured in terms of historical cost are not re-translated. Exchange differences arising on the translation of non-monetary items carried at fair value are included in profit or loss for the period, except for differences arising on the re-translation of non-monetary items in respect of which gains and losses are recognised in other comprehensive income. For such non-monetary items, any exchange component of that gain or loss is also recognised in other comprehensive income.

16.Leases

(i)Group as a lessor

To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

The Group recognises lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘rental income’ – Note 4.

(ii)Group as a lessee

A lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments.

Right-of-use asset

The Group recognises a right-of-use asset at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

16.Leases (continued)

(ii)Group as a lessee (continued)

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset of the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The Group presents right-of-use asset that do not meet the definition of investment property as ‘Right-of-use assets’.

Lease liability

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Estimating the incremental borrowing rate

The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate ("IBR") to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional currency). The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.

Lease payments included in the measurement of the lease liability comprise the following:

-fixed payments (including payments which are essentially fixed), minus any incentive to lease to be paid;

-the price for exercising a purchase option which the lessee is reasonably certain to exercise; and

-payments for early cancellation.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

Material accounting policies (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

17.Taxation

Current tax is recognised in profit or loss, except when it relates to items recognised in other comprehensive income or directly in equity, in which case the current tax is also dealt with in other comprehensive income or in equity, as appropriate. Current tax is based on the taxable result for the period. The taxable result for the period differs from the result as reported in profit or loss because it excludes items which are non-assessable or disallowed and it further excludes items which are taxable or deductible in other periods. It is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is provided using the liability method for all temporary differences arising between the tax bases of assets and liabilities and their carrying values for financial reporting purposes. Currently enacted tax rates are used in the determination of deferred income tax. Deferred tax assets are recognised only to the extent that future taxable profit will be available such that realisation of the related tax benefit is probable.

18.Investment in group undertakings

In the Company’s financial statements, shares in group undertakings are accounted for at fair value through profit and loss (FVTPL). The Company accounts for the investment at FVTPL and did not make the irrevocable election to account for it at fair value through other comprehensive income (FVOCI).

The dividend income from such investments is included in profit or loss in the accounting year in which the Company’s right to receive payment of any dividend is established.

Notes to the financial statements

LifeStar Insurance p.l.c. – Annual Financial Report 2025

1.Critical accounting estimates and judgements

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. Estimates and judgements are continually evaluated and based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances.

Except for the areas specified hereunder, in the opinion of the Directors, the accounting estimates and judgements made in the course of preparing these financial statements are not subjective or complex to a degree which would warrant their description as critical in terms of the requirements of IAS 1 (revised).

(a)Insurance contracts

Definition and classification

The Company has applied judgement to determine whether contracts are within the scope of IFRS 17 and, for contracts determined to be within the scope of IFRS 17, what measurement model is applicable, as explained below.

•The Company issues certain contracts that do not transfer significant insurance risk and classifies such contracts as investment contracts with DPF. In assessing whether these are within the scope of IFRS 17, the Company assessed if the discretionary amount is a significant amount of the total benefits;

•Contracts determined to be within the scope of IFRS 17 are assessed on whether they meet the definition of an insurance contract with direct participation features (subject to IFRS 17 criteria). The savings (unit-linked), the non-linked contracts with profit sharing and the investment contracts with DPF issued by the Company are classified as direct participation contracts;

•For the proportional group life reinsurance contracts on a risk-attaching basis the Company elects to apply the PAA if at the inception of the group the Company reasonably expects that it will provide a liability/asset for remaining coverage that would not differ materially from the general model. The Company applies its judgement in determining whether the PAA eligibility criteria are met at initial recognition.

Insurance contracts unit of account

The Company is required to aggregate insurance contracts issued on initial recognition into groups of onerous contracts, groups of contracts with no significant possibility of becoming onerous, and groups of other contracts. Concerning the life long-term contracts, the Company has applied its judgment on initial recognition to distinguish between non-onerous contracts (those having no significant possibility of becoming onerous) and other contracts by assessing the likelihood of adverse changes in assumptions that might result in contracts becoming onerous.

For short-term group life contracts measured under the PAA, management judgement is required to assess whether facts and circumstances indicate that a group of contracts is onerous at initial recognition or has become onerous subsequently and whether any loss component measurement is required. In 2025 and 2024, the Company did not identify any facts or circumstances that might have indicated that a group of contracts measured under the PAA had become onerous.

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

1.Critical accounting estimates and judgements (continued)

(a)Insurance contracts (continued)

Measurement of future cash flows

The measurement of a group of insurance contracts includes all the future cash flows arising within the contract boundary. In determining which cash flows fall within a contract boundary, the Company considers its substantive rights and obligations arising from the terms of the contract, and also from applicable law and regulation. Cash flows are considered to be outside of the contract boundary if the Company has the practical ability to reprice existing contracts to reflect their reassessed risks and if the contract’s pricing for coverage up to the date of reassessment considers only the risks till that next reassessment date.

The following assumptions were used when estimating future cash flows:

•Mortality and morbidity rates

Mortality and morbidity risks are inherent in most lines of business. The Company performs an investigation, at least on an annual basis, to ensure the validity of the mortality assumptions, and when deemed necessary the assumptions are adjusted accordingly. The assumptions are set based on the internal experience of the Company when there are sufficient volumes of data to support a credible investigation. When internal experience is not sufficient, the assumptions are set with reference to industry experience and commonly used mortality tables.

•Expenses

Assessment of directly attributable cash flows

The Company applies judgement in assessing whether cash flows are directly attributable to a specific portfolio of insurance contracts. Insurance acquisition cash flows are included in the measurement of a group of insurance contracts only if they are directly attributable to either the individual contracts in a group, or to the group itself, or the portfolio of insurance contracts to which the group belongs. The Company also considers as attributable cash flows fixed and variable overheads directly attributable to the fulfilment of insurance contracts.

Expense basis for cashflow projections

The Company performs a detailed expense investigation, at least on an annual basis, to determine the expense assumptions used in the cashflow projections. The expense basis is set in accordance with the budgeted attributable expenses and the projected volumes of business. The Company also determines an assumption for the future expense inflation.

•Lapse and surrender rates

Lapse and surrenders assumptions relate to the rate by which policyholders cancel/surrender their policies. The assumptions are set in line with recent Company experience, by adjusting for expected improvements/deteriorations where necessary. The rates vary by product and duration in force.

Discount rates

Life insurance contract liabilities are calculated by discounting expected future cash flows. The Company uses the bottom-up approach in determining the discount rates and hence uses a risk-free rate, plus an illiquidity premium. Risk free rates are determined by reference to the European Insurance and Occupational Pensions Authority (EIOPA) yields and the illiquidity premium is determined by the volatility adjustment as published by EIOPA.

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

1.Critical accounting estimates and judgements (continued)

(a)Insurance contracts (continued)

Discount rates (continued)

The discount rates that were used to discount the estimates of future cash flows of the life insurance contracts issued and reinsurance contracts held are based on the EUR risk-free rate with volatility adjustment, as these are published by EIOPA. EIOPA annual spot rates are presented in the below table:

1 year		3 years		5 years		10 years		20 years
2024	2025	2024	2025	2024	2025	2024	2025	2024	2025
2.466%	2.216%	2.323%	2.423%	2.372%	2.619%	2.497%	3.003%	2.489%	3.349%

Risk adjustment for non-financial risk

The risk adjustment for non-financial risk is determined to reflect the compensation that the Company requires for bearing non-financial risk and its degree of risk aversion. The risk adjustment is determined using a confidence level technique and specifically a Risk-based capital approach with its target confidence level set at 80 percent, over a one year period, which represents the Company’s degree of risk aversion.

CSM amortisation

The CSM of a group of contracts is recognised in profit or loss to reflect services provided in each year, by identifying the coverage units in the group, allocating the CSM remaining at the end of the year (before any allocation) equally to each coverage unit provided in the year and expected to be provided in future years, and recognising in profit or loss the amount of the CSM allocated to coverage units provided in the year. The number of coverage units is the quantity of services provided by the contracts in the Company, determined by considering for each contract the quantity of the benefits provided and its expected coverage period. The coverage units will be reviewed and updated at each reporting date. The Company determined the coverage units for its insurance contracts and investment contracts with DPF on the basis of their quantity of benefits (sum insured), including any investment components, and the respective expected durations of each contract.

For reinsurance contracts held, the CSM amortisation reflects the level of service received and depends on the number of underlying contracts in-force.

(b)Fair valuation of investment property

The determination of the fair value of investment property at the year-end requires the use of significant management estimates. Details of key assumptions are disclosed in Note 14 to the financial statements.

(c)Valuation of Level 3 Investments

The valuation of Level 3 investments requires significant judgement and management estimates. Uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the assets in the future. Details of key judgements, estimates and assumptions relating to Level 3 investments are disclosed in Note 16 and 27 to the financial statements.

(d)Investment in group undertakings

The fair value of the investment in LifeStar Health Limited has been determined with reference to a valuation performed by an independent third-party valuer, determined based on the discounted cash flow method, using observable and unobservable inputs as appropriate. These investments are classified as Level 3 in the fair value hierarchy due to management assumptions forming a significant part of the valuation of the investment. Further detail in this regard is provided in Notes 15 and 31 to the financial statements.

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk

The Group issues contracts that transfer insurance risk or financial risk or both. This section summarises these risks and the way the Group manages them.

Insurance risk

The risk under any one insurance contract is the possibility that the insured event occurs and the uncertainty of the amount of the resulting claim. By the very nature of an insurance contract, this risk is random and therefore unpredictable.

For a portfolio of insurance contracts where the theory of probability is applied to pricing and provisioning, the principal risk that the Group faces under its insurance contracts is that the actual claims and benefit payments exceed the carrying amount of the insurance liabilities. This could occur because the frequency or severity of claims and benefits are greater than estimated. Insurance events are random and the actual number and amount of claims and benefits will vary from year to year from the estimate established using statistical techniques.

Experience shows that the larger the portfolio of similar insurance contracts, the smaller the relative variability about the expected outcome will be. In addition, a more diversified portfolio is less likely to be affected across the board by a change in any subset of the portfolio. The Group has developed its insurance underwriting strategy to diversify the type of insurance risk accepted and within each of these categories to achieve a sufficiently large population of risks to reduce the variability of the expected outcome.

Factors that aggravate insurance risk include lack of risk diversification in terms of type and amount of risk and geographical location.

The geographical concentration of the Company’s insurance contract liabilities and reinsurance contract assets is noted below. The disclosure is based on the countries where the business is written:

	2025		2024
	Insurance contract issued – Net Liabilities	Reinsurance contracts held – Net Assets	Insurance contract issued – Net Liabilities	Reinsurance contracts held – Net Assets
Italy	(4,587,197)	(253,185)	(473,416)	3,764
Malta	(108,856,320)	3,073,470	(115,172,522)	3,567,363
	(113,443,517)	2,820,285	(115,645,938)	3,571,127

(a)Frequency and severity of claims

For contracts where death is the insured risk, the most significant factors that could increase the overall frequency of claims are epidemics or widespread changes in lifestyle, resulting in earlier or more claims than expected.

At present, these risks do not vary significantly in relation to the location of the risk insured by the Group. However, undue concentration by amounts could have an impact on the severity of benefit payments on a portfolio basis.

For contracts with fixed and guaranteed benefits and fixed future premiums, there are no mitigating terms and conditions that reduce the insurance risk accepted. Investment contracts with DPF (“Discretionary participation feature”) carry negligible insurance risk.

The Group manages these risks through its underwriting strategy and reinsurance agreements. The underwriting strategy is intended to ensure that the risks underwritten are well diversified in terms of type of risk and the level of insured benefits. Medical selection is also included in the Group’s underwriting procedures with premiums varied to reflect the health condition and lifestyle of the applicants.

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Insurance risk (continued)

(a)Frequency and severity of claims (continued)

The Group has retention limits on any single life assured for term business or risk premium business. The Group reinsures the excess of the insured benefits over approved retention limits under a treaty reinsurance arrangement. Short term insurance contracts are also protected through a combination of selective quota share and surplus reinsurance. Further, the Group has a “CAT XL” reinsurance arrangement to cover its exposure in the case of an event affecting more than three lives.

In general, all large sums assured are facultatively reinsured on terms that substantially limit the Group’s maximum net exposure. The Directors consider that all other business is adequately protected through treaty reinsurance with a reasonable spread of benefits payable according to the age of the insured, and the size of the sum assured. The Group is largely exposed to insurance risk in Malta and Italy. Single event exposure is capped through the “CAT XL” reinsurance arrangement as referred above.

(b)Lapse and surrender rates

Lapses relate to the termination of policies due to non–payment of premiums. Surrenders relate to the voluntary termination of policies by policyholders. Policy termination assumptions are determined using statistical measures based on the Group’s experience and vary by product type, policy duration and sales trends.

An increase in lapse rates early in the life of the policy would tend to reduce profits for shareholders, but later increases are broadly neutral in effect.

(c)Policy maintenance expenses

Operating expenses assumptions reflect the projected costs of maintaining and servicing in–force policies and associated overhead expenses. The current level of expenses is taken as an appropriate expense base, adjusted for expected expense inflation if appropriate.

An increase in the level of expenses would result in an increase in expenditure, thereby reducing profits for the shareholders.

(d)Discount rates and investment return

Life insurance liabilities are determined as the sum of the discounted value of the expected benefits and future administration expenses directly related to the contract, less the discounted value of the expected theoretical premiums that would be required to meet these future cash outflows. Discount rates are based on current industry risk rates as these are published by EIOPA.

Consistent rates are used also as investment return assumptions to ensure a risk neutral valuation basis.

A change in interest rates will impact the value of the insurance liability and therefore affect the profits for the shareholders.

(e)Sources of uncertainty in the estimation of future benefit payments and premium receipts

Uncertainty in the estimation of future benefit payments and premium receipts for long term insurance contracts arises from the unpredictability of long-term changes in overall levels of mortality and the variability in contract holder behaviour. The Group uses appropriate base tables of standard mortality according to the type of contract being written.

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Insurance risk (continued)

(e)Sources of uncertainty in the estimation of future benefit payments and premium receipts (continued)

Sensitivity analysis

Life business

The tables below analyse how the CSM, profit or loss and equity would have increased (decreased) if changes in underwriting risk variables that were reasonably possible at the reporting date had occurred. This analysis presents the sensitivities both gross and net of reinsurance held and is based on a change in one risk variable with all other variables held constant. Sensitivity analysis assumes that changes to variables can be made independently, which is very unlikely to occur in practice.

Key assumption	Change in assumption	Impact on CSM€	Impact on profit€	Impact on equity€
Year ended 2025
Insurance contract liabilities
Mortality rates	+10%	(1,872,396)	(218,961)	(142,325)
Mortality rates	-10%	2,272,487	232,975	151,434
Expenses	+10%	(1,507,384)	(399,648)	(259,771)
Expenses	-10%	1,784,570	122,462	79,600
Lapse rates	+10%	(854,477)	(199,572)	(129,722)
Lapse rates	-10%	1,054,025	97,889	63,628
Reinsurance contract assets
Mortality rates	+10%	1,708,467	179,047	116,381
Mortality rates	-10%	(1,716,797)	(179,814)	(116,879)
Lapse rates	+10%	(130,705)	(18,407)	(11,964)
Lapse rates	-10%	151,494	21,366	13,888

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Insurance risk (continued)

(e)Sources of uncertainty in the estimation of future benefit payments and premium receipts (continued)

Sensitivity analysis (continued)

Life business (continued)

Key assumption	Change in assumption	Impact on CSM€	Impact on profit€	Impact on equity€
Year ended 2024
Insurance contract liabilities
Mortality rates	+10%	(1,948,180)	(300,264)	(195,172)
Mortality rates	-10%	2,144,009	117,959	76,673
Expenses	+10%	(1,249,963)	(174,756)	(113,591)
Expenses	-10%	1,363,472	61,247	39,811
Lapse rates	+10%	(851,944)	(146,886)	(95,476)
Lapse rates	-10%	1,062,765	76,219	49,542
Reinsurance contract assets
Mortality rates	+10%	1,449,424	168,762	109,695
Mortality rates	-10%	(1,456,175)	(169,544)	(110,204)
Lapse rates	+10%	(331,187)	(35,161)	(22,854)
Lapse rates	-10%	393,408	41,699	27,104

Financial risk

The Group is exposed to financial risk through its financial assets and liabilities, reinsurance assets, and insurance liabilities. In particular, the key financial risk is that the proceeds from its financial assets are not sufficient to fund the obligations arising from its insurance and investment contracts with DPF. The most important components of financial risk are market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

These risks partly arise from open positions in interest rate, currency, debt and equity products, all of which are exposed to general and specific market movements. The Group manages these positions through adherence to an investment policy. The policy adopted is modelled to take into account actuarial recommendations and is developed to achieve long term investment returns in excess of its obligations under insurance and investment contracts with DPF. The principal technique underlying the Group’s framework is to broadly match assets to the liabilities arising from insurance and investment contracts with DPF by reference to the type of benefits payable to contract holders, and the recommended portfolio mix as advised by the approved actuary.

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Financial risk (continued)

The Group’s investment policy is formally approved by the Board of Directors. Portfolio review processes and investment decisions are generally delegated to a dedicated Sub-Investment Committee or the Chief Executive Officer. Transactions in excess of pre-established parameters are subject to Board approval. The procedures consider, inter alia, a recommended portfolio structure, authorisation parameters, asset and counterparty limits and currency restrictions. Management reports to the Investment Committee on a regular basis. The Committee meets regularly to consider, inter alia, investment prospects, liquidity, the performance of the portfolio and the overall framework of the Group’s investment strategy. Solvency considerations as regulated by the relevant Authority are also taken into account as appropriate.

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument, insurance contract issued or reinsurance contract held will fluctuate because of changes in market prices.

Market risk comprises three types of risk:

(a)Foreign exchange rates currency risk;

(b)Market interest rates; and

(c)Market prices risk.

(a)Foreign exchange rates currency risk

The Company's and Group’s exposure to foreign exchange risk arises primarily from investments that are denominated in currencies other than the Euro. As at 31 December 2025, the Company’s and Group’s exposure to foreign currency investments (principally comprising a mix of US Dollar and UK pound) represented 4.3% (2024: 5.7%) of the Group’s total investments excluding the term deposits.

An amount equivalent to 8% (2024: 0.9%) of the Group’s cash and cash equivalents and term deposits, at 31 December 2025, are denominated in foreign currency (principally comprising a mix of US Dollar and UK pound). The Group’s corresponding proportion of cash and cash equivalents and term deposits which are denominated in foreign currency is 5.9% (2024: 0.6%).

The risk arising from foreign currency transactions is managed by regular monitoring of the relevant exchange rates and management’s reaction to material movements thereto.

For financial instruments held or issued, a sensitivity analysis technique that measures the change in the fair value and the cash flows of the Group’s financial instruments at the reporting date for hypothetical changes in exchange rates has been used. The amounts generated from the sensitivity analysis are forward-looking estimates of market risk assuming certain market conditions. Actual results in the future may differ materially from those projected results due to the inherent uncertainty of global financial markets. The sensitivity analysis is for illustrative purposes only, as in practice market rates rarely change in isolation and are likely to be inter-dependent.

Should exchange rates at the end of the reporting period differ by +/-10% (2024: +/-10%), with all other variables held constant, the impact on the Company’s and the Group’s pre-tax profit would be +/- €499,484 (2024: +/- €620,916).

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Market risk (continued)

(b)Market interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument or insurance contract or reinsurance contract will fluctuate because of changes in market interest rates.

(c)Market prices risk

The Group is exposed to market price risk arising from the uncertainty about the future prices of investments held that are classified in the statement of financial position as at fair value through profit or loss and as available-for-sale. This risk is mitigated through the adherence to an investment policy geared towards diversification as described earlier.

The total assets subject to equity price risk are the following:

	Consolidated and Company
	2025	2024
	€	€
Other investments (Note 16)	12,008,354	21,024,952

The sensitivity analysis for price risk illustrates how changes in the fair value of equity securities will fluctuate because of changes in market prices, whether these changes are caused by factors specific to the individual equity issuer, or factors affecting all similar equity securities traded in the market. The Group is principally exposed to price risk in respect of equity investments. Approximately 31% (2024: 34%) of equity securities held at fair value through profit or loss in Note 16 relate to holdings in one (2024: three) local banks. The remaining equity securities held at fair value through profit or loss are mainly held in equities in the Telecommunication Services, Property and Information Technology sectors.

The sensitivity analysis measures the change in the fair value of the instruments for a hypothetical change of 10% in the market price. The amounts generated from the sensitivity analysis are forward-looking estimates of market risk assuming certain market conditions. Actual results in the future may differ materially from those projected results due to the inherent uncertainty of global financial markets. Should market prices at the end of the reporting period increase/decrease by 10%, with all other variables held constant, the impact on the Group’s pre-tax profit would be +/- €1,200,835 (2024: +/- €2,102,495). This sensitivity analysis is based on a change in an assumption while holding all other assumptions constant and does not consider, for example, the mitigating impact of the DPF element on policyholder liabilities for contracts with a DPF.

			2025			2024
	Change	I	Impact on profit before tax	Impact on equity		Impact on profit before tax	Impact on equity
			€	€		€	€
Insurance contract liabilities	+10%	-	10,523,150	41,174,610	-	11,026,773	36,404,284
Insurance contract liabilities	-10%	-	12,165,554	18,485,906	-	12,102,415	13,275,096

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Credit risk

The Group has exposure to credit risk, which is the risk that a counterparty will be unable to pay amounts in full when due. Financial assets that potentially subject the Group to concentrations of credit risk consist principally of:

-other investments;

-reinsurers’ contract assets;

-amounts due from insurance policy holders and intermediaries associated with future premium inflows from insurance contracts issued;

-cash and cash equivalents; and

-amounts due from group undertakings.

The Group structures the levels of credit risk it accepts by placing limits on its exposure to a single counterparty, or group of counterparties. Limits on the level of credit risk by category are defined within the Group’s investment policy as described earlier. This policy also considers regulatory restrictions on asset and counterparty exposures. Further detail on the content of the Group’s investment portfolio is provided in Note 16 to these financial statements.

The Group is exposed to credit risk in respect of receivables from group undertakings. Management assesses the respective group undertaking’s ability to repay balances due to the Group periodically and makes provisions for balances which it believes may not be recoverable.

Credit risk in respect of other receivables is not deemed to be significant after considering the range of underlying receivables, and their creditworthiness. Receivables are stated net of impairment. Further detail in this regard is provided in Note 18 to the financial statements.

Reinsurance is used to manage insurance risk. This does not, however, discharge the Company’s liability as primary insurer. If a reinsurer fails to pay a claim for any reason, the Company remains liable for payment to the policyholder. The creditworthiness of reinsurers is considered on an ongoing basis and by reviewing their financial strength prior to finalisation of any contract. The Company’s reinsurer retained its Standard & Poor’s rating of AAA to AA+ bracket as at 31 December 2025.

The following table illustrates the assets that expose the Group to credit risk as at the end of the reporting period and includes the Standard & Poor’s, Moody’s and ARC composite rating for debt securities at fair value through profit or loss, when available, and the default rating for deposits with banks and cash and cash equivalents, when available.

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Credit risk (continued)

Assets bearing credit risk at the end of the reporting period are analysed as follows:

		Consolidated
		As at 31 December 2025
		AAA to AA		A		BBB to B		Below B to unrated		Total
		€		€		€		€		€
Investments
Debt securities at fair value through profit or loss		279,046		3,566,998		5,901,751		1,361,617		11,109,412
		279,046		3,566,998		5,901,751		1,361,617		11,109,412
Loans and receivables
Loans secured on policies		-	-	-	-	-		133,348		133,348
Other loans and receivables		-		3,113,003		-		-		3,113,003
Trade and other receivables		-		-		-		102,021		102,021
Amounts due from group undertakings		-		-		-		12,926,280		12,926,280
Term deposits	-	-		-		-		3,000,000	3	3,000,000
Cash and cash equivalents		434,627		-		1,006,043		105,593		1,546,263
		434,627		3,113,003		1,006,043		16,267,242		20,820,915
Reinsurance Contract Assets		2,820,285		-		-	-	-		2,820,285
Total assets bearing credit risk		3,533,958		6,680,001		6,907,794		17,628,859		34,750,612

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Credit risk (continued)

	Consolidated
	As at 31 December 2024
	AAA to AA	A	BBB to B	Below B to unrated	Total
	€	€	€	€	€
Investments
Debt securities at fair value through profit or loss	279,006	3,657,194	6,723,297	3,642,025	14,301,522
	279,006	3,657,194	6,723,297	3,642,025	14,301,522
Loans and receivables
Loans secured on policies	-	-	-	22,487	22,487
Other loans and receivables	-	3,276,016	-	-	3,276,016
Trade and other receivables	-	-	-	468,874	468,874
Amounts due from group undertakings	-	-	-	12,612,825	12,612,825
Term deposits	-	-	300,000	-	300,000
Cash and cash equivalents	47,820	-	1,571,906	-	1,619,726
	47,820	3,276,016	1,871,906	13,104,186	18,299,928
Reinsurance Contract Assets	3,571,127	-	-	-	3,571,127
Total assets bearing credit risk	3,897,953	6,933,210	8,595,203	16,746,211	36,172,577

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Credit risk (continued)

Company

As at 31 December 2025

AAA to AA

BBB to B

Below B to unrated

Total

€

Investments

Debt securities at fair value through profit or loss

279,046

3,566,998

5,901,751

1,361,617

11,109,412

279,046

3,566,998

5,901,751

1,361,617

11,109,412

Loans and receivables

Loans secured on policies

(Note 16b)

5,602

Other loans and receivables

(Note 16b)

3,113,003

Trade and Other receivables

(Note 18)

102,020

Amounts due from group undertakings

(Note 18)

12,956,962

Term Deposits (Note 16c)

3,000,000

Cash and cash equivalents

(Note 26)

77,695

960,739

105,593

1,144,027

77,695

3,113,003

960,739

16,170,177

20,321,614

Reinsurance Contract Assets

2,820,285

Total assets bearing credit risk

3,177,026

6,680,001

6,862,490

17,531,794

34,251,311

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Credit risk (continued)

Company

As at 31 December 2024

AAA to AA

BBB to B

Below B to unrated

Total

€

Investments

Debt securities at fair value through profit or loss

279,006

3,657,194

6,723,297

3,642,025

14,301,522

279,006

3,657,194

6,723,297

3,642,025

14,301,522

Loans and receivables

Loans secured on policies

22,487

Other loans and receivables

3,276,016

Trade and other receivables

468,874

Amounts due from group undertakings

12,776,033

Term Deposits

300,000

Cash and cash equivalents

47,820

965,467

1,013,287

47,820

3,276,016

1,265,467

13,267,394

17,856,697

Reinsurance Contract Assets

3,571,127

Total assets bearing credit risk

3,897,953

6,933,210

7,988,764

16,909,419

35,729,346

Unrated financial assets principally comprise locally traded corporate bonds on the Malta Stock Exchange, amounts due from group companies, trade and other receivables, loans secured on policies and certain deposits with local bank institutions for which no international rating is available.

As at 31 December 2025 and 2024 the Group had an exposure with the Government of Malta through investments in debt securities. In 2025 these were equivalent to 3% (2024: 3%) of the Group’s total investments.

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Liquidity risk

Liquidity is the risk that cash may not be available to pay obligations when due at a reasonable cost. The Group adopts a prudent liquidity risk management approach by maintaining a sufficient proportion of its assets in cash and marketable securities through the ability to close out market positions. Senior management is updated on a regular basis on the cash position of the Group illustrating, inter alia, actual cash balance net of operational commitments falling due in the short term as well as investment commitments falling due in the medium and long term.

The Group is exposed to daily calls on its available cash resources in order to meet its obligations, including claims arising from contracts in issue by the Company. Other financial liabilities which expose the Group to liquidity risk mainly comprise trade and other payables. Liquidity is the risk that cash may not be available to pay obligations when due at a reasonable cost.

Maturity analysis for insurance liabilities

The following table summarizes the maturity profile of the Company’s portfolios of insurance contracts issued that are liabilities based on the remaining contractual undiscounted net cash flows expected to be paid out in the periods presented. Liabilities for remaining coverage measured under the PAA have been excluded from this analysis.

2025	Undiscounted net future cash flows
	1 year or less	1-2 years	2-3 years	3-4 years	4-5 years	More than 5 years	Total
	€	€	€	€	€	€	€
Insurance contracts
Participating	10,957,344	14,175,101	5,843,043	5,444,539	4,399,867	12,787,635	53,607,529
Other life	(2,966,024)	(2,998,259)	(2,464,878)	(1,951,239)	(1,205,658)	(1,964,547)	(13,550,605)
Savings	(4,902,166)	(4,079,045)	(2,653,871)	(1,538,015)	(172,926)	132,324,392	118,978,369
Sickness and Accident	(150,173)	(310,223)	(246,560)	(190,184)	(147,696)	(345,554)	(1,390,390)
Sub-Total	2,938,981	6,787,574	477,734	1,765,101	2,873,587	142,801,926	157,644,903
Life Reinsurance Contracts	(753,726)	(90,140)	(142,959)	(189,644)	(202,647)	(2,077,446)	(3,456,562)
Sub-Total	(753,726)	(90,140)	(142,959)	(189,644)	(202,647)	(2,077,446)	(3,456,562)
Total	2,185,255	6,697,433	334,776	1,575,457	2,670,941	140,724,480	154,188,342

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Liquidity risk (continued)

Maturity analysis for insurance liabilities (continued)

2024	Undiscounted net future cash flows
	1 year or less	1-2 years	2-3 years	3-4 years	4-5 years	More than 5 years	Total
	€	€	€	€	€	€	€
Insurance contracts
Participating	12,595,229	9,873,429	8,914,441	5,782,838	5,129,581	16,351,807	58,647,325
Other life	(1,197,836)	(1,560,839)	(1,321,505)	(1,138,223)	(897,443)	(1,589,640)	(7,705,486)
Sickness and Accident	(2,399,767)	(3,615,455)	(2,324,981)	(1,239,097)	(492,003)	94,590,842	84,519,539
Savings	(297,209)	(284,123)	(234,706)	(180,158)	(131,249)	(267,749)	(1,395,194)
Sub-Total	8,700,417	4,413,012	5,033,249	3,225,360	3,608,886	109,085,260	134,066,184
Life Reinsurance Contracts	(3,673,408)	(254,728)	(260,278)	(261,737)	(260,584)	(3,575,358)	(8,286,093)
Sub-Total	(3,673,408)	(254,728)	(260,278)	(261,737)	(260,584)	(3,575,358)	(8,286,093)
Total	5,027,009	4,158,284	4,772,971	2,963,623	3,348,302	105,509,902	125,780,091

The amounts of insurance contract liabilities that are repayable on demand are set out below.

2025	Amount payable on demand	Carrying amount
	€	€
Participating	40,885,999	48,102,934
Savings	73,587,455	64,753,840
Total	114,473,454	112,856,774
2024	Amount payable on demand	Carrying amount
	€	€
Participating	49,141,467	58,301,311
Savings	60,165,785	53,035,698
Total	109,307,252	111,337,009

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

2.Management of insurance and financial risk (continued)

Liquidity risk (continued)

Maturity analysis for financial assets

The following table summarises the maturity profile of financial assets of the Company based on remaining undiscounted contractual cash flows.

The tables below analyse the Group’s financial assets and reinsurance contract assets into relevant maturity groupings based on the remaining period between the end of the reporting period and the maturity date. The expected cash outflows for insurance and investment contracts do not consider the impact of early surrenders.

	Consolidated and Company
	Expected undiscounted cash inflows
Year ended 2025	Less than one year	Between one and five years	Between five and ten years	Between 10 and 20 years	Over 20 years	Total
	€	€	€	€	€	€
Assets	2,651,787	3,729,920	3,202,024	1,525,682	-	11,109,413

	Consolidated and Company
	Expected undiscounted cash inflows
Year ended 2024	Less than one year	Between one and five years	Between five and ten years	Between 10 and 20 years	Over 20 years	Total
	€	€	€	€	€	€
Assets	263,115	8,343,728	4,356,249	1,338,430	-	14,301,522

Regulatory compliance risk

The risk of non-compliance with legal and regulatory requirements as well as supervisory expectations which may result in administrative or disciplinary sanctions, or of material financial loss, due to failure to comply with the provisions governing the Company’s activities. By ensuring that these rules are observed, the Company works to protect its customers, shareholders, counterparties and employees. This is conducted in alignment with the Company’s strategy as operating a business model based on prudence, sound governance and integrity.

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business

3.1Insurance revenue

The following table present an analysis of the insurance revenue recognised in the period.

	Consolidated and Company
	2025	2024
	€	€
Contracts not measured under the PAA
Amounts relating to changes in liabilities for remaining coverage
-Expected incurred claims and other insurance service expenses	4,287,027	3,816,098
-Change in risk adjustment for non-financial risk for risk expired	337,499	161,626
-CSM recognised for services provided	2,452,421	971,210
Recovery of insurance acquisition cash flows	957,240	315,307
Contracts measured under the PAA	668,880	671,466
Total insurance revenue	8,703,067	5,935,707

3.2Insurance service expense

The table below shows an analysis of insurance service expense recognised in the period.

	Consolidated and Company
	2025	2024
	€	€
Incurred claims and other insurance service expenses	2,292,607	2,624,565
Changes that relate to future service: losses on onerous contracts and reversals of those losses	625,319	(6,593)
Changes that relate to past service: changes to liabilities for incurred claims	978,956	216,498
Amortisation of insurance acquisition cash flows	1,018,256	366,902
Total insurance service expenses	4,915,138	3,201,372

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.3Net expense from reinsurance contracts held

An analysis of allocation of reinsurance premiums paid and amounts recovered from reinsurers are presented in the tables below.

	Consolidated and Company
	2025	2024
	€	€
Amounts related to liabilities for remaining coverage
-Recoveries for expected incurred claims and other expenses	(2,062,206)	(1,764,422)
-Risk adjustment for the risk expired	(84,816)	(73,182)
-CSM for the service received	(309,368)	(126,569)
Contracts not measured under the PAA	(2,456,390)	(1,964,173)
Contracts measured under the PAA	(312,321)	(296,397)
Allocation of reinsurance paid	(2,768,711)	(2,260,570)
Recoveries for incurred claims and other expenses	395,327	1,333,493
Changes that relate to future service: recoveries for losses on onerous contracts and reversals of those losses	33,347	(2,386)
Changes that relate to past service: changes to recoveries of liabilities for incurred claims	662,819	279,746
Amounts recovered from reinsurers	1,091,493	1,610,853
Net expenses from reinsurance contracts held	(1,677,218)	(649,717)

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.4Investment income and net insurance financial result

The tables below present analysis of net investment income and net insurance finance income/(expenses) recognised in profit and loss and OCI in the period:

	Consolidated and Company
2025	NON-LINKED WITH PROFITS	PENSION	VARIABLE LIFE	PROTECTION	SICKNESS & ACCIDENT	PASSPORTING	TOTAL
	€	€	€	€	€	€	€
Insurance finance expenses/(income) from insurance contracts issued
Changes in fair value of underlying assets measured under VFA	1,159,064	1,094,550	2,207,580	-	-	-	4,461,194
Interest accreted	-	-	-	(83,114)	(17,997)	(71,853)	(172,964)
Effect of changes in interest rates and other financial assumptions	-	-	-	(77,634)	9,387	(186,690)	(254,937)
Effect of changes in free cash flow at current rates when CSM is unlocked at locked-in rates	-	-	-	188,005	(1,300)	(128,563)	58,142
Total insurance finance expenses/(income) from insurance contracts issued recognised in P&L	1,159,064	1,094,550	2,207,580	27,257	(9,910)	(387,106)	4,091,435
				LIFE REINSURANCE PROTECTION	LIFE REINSURANCEI INVESTMENT	LIFE REINSURANCE PASSPORTING	TOTAL
				€	€	€	€
Finance income/(expenses) from reinsurance contracts held
Interest accreted				45,898	15,844	(2,642)	59,100
Effect of changes in interest rates and other financial assumptions				(167,666)	(81,160)	144,643	(104,183)
Effect of changes in free cash flow at current rates when CSM is unlocked at locked-in rates				191,963	75,323	(96,334)	170,952
Total finance income from reinsurance contracts held recognised in P&L				70,195	10,007	45,667	125,869

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.4Investment income and net insurance financial result (continued)

The tables below present analysis of net investment income and net insurance finance income/(expenses) recognised in profit and loss and OCI in the period:

Consolidated and Company

2024	NON- LINKED WITH PROFITS	PENSION	VARIABLE LIFE	PROTECTION	SICKNESS & ACCIDENT	PASSPORTING	TOTAL
	€	€	€	€	€	€	€
Insurance finance expenses/(income) from insurance contracts issued
Changes in fair value of underlying assets measured under VFA	1,174,134	978,846	10,334,619	-	-	-	12,487,599
Interest accreted	-	-	-	(185,836)	(31,253)	(6,534)	(223,623)
Effect of changes in interest rates and other financial assumptions	-	-	-	30,253	2,941	7,716	40,910
Effect of changes in free cash flow at current rates when CSM is unlocked at locked-in rates	-	-	-	(9,881)	(1,087)	-	(10,968)
Total insurance finance expenses/(income) from insurance contracts issued recognised in P&L	1,174,134	978,846	10,334,619	(165,464)	(29,399)	1,182	12,293,918
				LIFE REINSURANCE PROTECTION	LIFE REINSURANCE INVESTMENT	LIFE REINSURANCE PASSPORTING	TOTAL
				€	€	€	€
Finance income/(expenses) from reinsurance contracts held
Interest accreted				75,449	28,264	(823)	102,890
Effect of changes in interest rates and other financial assumptions				8,630	8,775	(1,092)	16,313
Effect of changes in free cash flow at current rates when CSM is unlocked at locked-in rates				15,445	14,746	-	30,191
Total finance income/(expenses) from reinsurance contracts held recognised in P&L				99,524	51,785	(1,915)	149,394

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts

The table below sets out the carrying amounts of groups of insurance and reinsurance contracts assets and liabilities at the end of reporting date.

	2025			2024
	Assets	Liabilities	Net	Assets	Liabilities	Net
	€	€	€	€	€	€
Total insurance contracts issued	-	(118,919,672)	(118,919,672)	-	(115,645,938)	(115,645,938)
Total reinsurance contracts held	2,820,283	-	2,820,283	3,571,127	-	3,571,127

Notes to the financial statements (continued)

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.1Reconciliation of changes in insurance contracts by remaining coverage and incurred claims

The tables below represent the reconciliation from the opening to the closing balances of the liabilities for the remaining coverage and the liabilities for incurred claims for insurance contracts

Consolidated and Company

2025	Liabilities for remaining coverage		Liabilities for incurred claims			Total
	Excluding loss component	Loss component	Contracts not under PAA	Contracts under PAA
	Excluding loss component	Loss component	Contracts not under PAA	Estimates of present value of future cash flows	Risk adjustment for non-financial risk
	€	€	€	€	€	€
Opening assets	(1,613,431)	(6,467)	(2,300)	-	-	(1,622,198)
Opening liabilities	113,583,341	945,047	2,605,314	140,435	-	117,274,137
Net opening balance	111,969,910	938,580	2,603,014	140,435	-	115,651,939
Changes in the statement of comprehensive income
Contracts under fair value approach	(8,703,067)	-	-	-	-	(8,703,067)
Other contracts	-	-	-	-	-	-
Insurance revenue	(8,703,067)					(8,703,067)

Notes to the financial statements (continued)

100

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.1Reconciliation of changes in insurance contracts by remaining coverage and incurred claims (continued)

2025	Liabilities for remaining coverage		Liabilities for incurred claims			Total
	Excluding loss component	Loss component	Contracts not under PAA	Contracts under PAA
	Excluding loss component	Loss component	Contracts not under PAA	Estimates of present value of future cash flows	Risk adjustment for non-financial risk
	€	€	€	€	€	€
Incurred claims and other insurance service expenses	-	(46,445)	2,339,051	-	-	2,292,606
Acquisition expenses	1,018,257	-	-	-	-	1,018,257
Losses and reversal of losses on onerous contracts	-	625,319	-	-	-	625,319
Adjustments to liabilities for incurred claims	-	-	978,956	-	-	978,956
Insurance service expenses	1,018,257	578,874	3,318,007	-	-	4,915,138
Investment components	(15,873,022)	-	15,873,022	-	-	-
Insurance service results	(23,557,832)	578,874	19,191,029	-	-	(3,787,929)
Insurance finance income / expense	4,073,696	17,739	-	-	-	4,091,435
Total changes in the statement of comprehensive income	(19,484,136)	596,613	19,191,029	-	-	303,506

Notes to the financial statements (continued)

101

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.1Reconciliation of changes in insurance contracts by remaining coverage and incurred claims (continued)

Consolidated and Company

2025	Liabilities for remaining coverage		Liabilities for incurred claims			Total
	Excluding loss component	Loss component	Contracts not under PAA	Contracts under PAA
	Excluding loss component	Loss component	Contracts not under PAA	Estimates of present value of future cash flows	Risk adjustment for non-financial risk
	€	€	€	€	€	€
Cash flows
Premium received	26,405,377	13,472	-	-	-	26,418,849
Claims and other insurance service expenses paid, including investment components	-	-	(19,767,068)	(140,435)	-	(19,907,503)
Insurance acquisition cash flows	(9,023,273)	-	-	-	-	(9,023,273)
Total cash flows	17,382,104	13,472	(19,767,068)	(140,435)	-	(2,511,927)
Net closing balance	109,867,877	1,548,665	2,026,975	-	-	113,443,517
Closing assets	(5,822,750)	58,028	288,566	-	-	(5,476,156)
Closing liabilities	115,690,627	1,490,637	1,738,410	-	-	118,919,674
Net closing balance	109,867,876	1,548,665	2,026,976	-	-	113,443,517

Notes to the financial statements (continued)

102

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.1Reconciliation of changes in insurance contracts by remaining coverage and incurred claims (continued)

2024	Liabilities for remaining coverage		Liabilities for incurred claims			Total
	Excluding loss component	Loss component	Contracts not under PAA	Contracts under PAA
	Excluding loss component	Loss component	Contracts not under PAA	Estimates of present value of future cash flows	Risk adjustment for non-financial risk
	€	€	€	€	€	€
Opening assets	(1,231,272)	(18,713)	304,200	-	-	(945,785)
Opening liabilities	103,372,703	1,037,978	1,620,423	77,972	-	106,109,076
Net opening balance	102,141,431	1,019,265	1,924,623	77,972	-	105,163,291
Changes in the statement of comprehensive income
Contracts under fair value approach	-	-	-	-	-	-
Other contracts	-	-	-	-	-	-
Insurance revenue	(5,935,707)	-	-	-	-	(5,935,707)

Notes to the financial statements (continued)

103

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.1Reconciliation of changes in insurance contracts by remaining coverage and incurred claims (continued)

2024	Liabilities for remaining coverage		Liabilities for incurred claims			Total
	Excluding loss component	Loss component	Contracts not under PAA	Contracts under PAA
	Excluding loss component	Loss component	Contracts not under PAA	Estimates of present value of future cash flows	Risk adjustment for non-financial risk
	€	€	€	€	€	€
Incurred claims and other insurance service expenses	-	(58,615)	2,267,143	416,037	-	2,624,565
Acquisition expenses	366,902	-	-	-	-	366,902
Losses and reversal of losses on onerous contracts	-	(6,593)	-	-	-	(6,593)
Adjustments to liabilities for incurred claims	-	-	216,498	-	-	216,498
Insurance service expenses	366,902	(65,208)	2,483,641	416,037	-	3,201,372
Investment components	(15,273,291)	-	15,273,291	-	-	-
Insurance service results	(20,842,096)	(65,208)	17,756,932	416,037	-	(2,734,335)
Insurance finance income / expense	12,309,396	(15,478)	-	-	-	12,293,918
Total changes in the statement of comprehensive income	(8,532,700)	(80,686)	17,756,932	416,037	-	9,559,583

Notes to the financial statements (continued)

104

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.1Reconciliation of changes in insurance contracts by remaining coverage and incurred claims (continued)

Consolidated and Company

2024	Liabilities for remaining coverage		Liabilities for incurred claims			Total
	Excluding loss component	Loss component	Contracts not under PAA	Contracts under PAA
	Excluding loss component	Loss component	Contracts not under PAA	Estimates of present value of future cash flows	Risk adjustment for non-financial risk
	€	€	€	€	€	€
Cash flows
Premium received	22,635,313	-	-	-	-	22,635,313
Claims and other insurance service expenses paid, including investment components	-	-	(17,078,542)	(353,574)	-	(17,432,115)
Insurance acquisition cash flows	(4,274,133)	-	-	-	-	(4,274,133)
Total cash flows	18,361,180	-	(17,078,542)	(353,574)	-	929,065
Net closing balance	111,969,910	938,579	2,603,014	140,435	-	115,651,938
Closing assets	(1,613,431)	(6,467)	(2,300)	-	-	(1,622,199)
Closing liabilities	113,583,341	945,047	2,605,314	140,435	-	117,274,137
Net closing balance	111,969,910	938,579	2,603,014	140,435	-	115,651,938

Notes to the financial statements (continued)

105

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.2Reconciliation of measurement components of insurance contracts not measured under the PAA

The tables below represent the reconciliation from the opening to the closing balances for each measurement component of insurance contracts (other than those measured under the PAA).

Consolidated and Company

2025	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	Contractual Service Margin	Total
	€	€	€	€
Opening assets	(4,774,918)	320,536	2,832,183	(1,622,199)
Opening liabilities	98,199,358	1,885,361	16,599,364	116,684,083
Net opening balance	93,424,440	2,205,897	19,431,547	115,061,884
Changes in the statement of comprehensive income
Changes that relate to current services
CSM recognised for services provided	6,005	-	2,438,948	2,444,953
Risk adjustment recognised for the risk expired	-	337,764	-	337,764
Experience adjustments - expected	1,994,155	-	-	1,994,155
Experience adjustments - actual	-	-	-	-

Notes to the financial statements (continued)

106

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.2Reconciliation of measurement components of insurance contracts not measured under the PAA (continued)

Consolidated and Company

2025	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	Contractual Service Margin	Total
	€	€	€	€
Changes that relate to future services
Contracts initially recognised in the period	7,398,729	(768,151)	(6,792,433)	(161,855)
Changes in estimates that adjust the CSM	(4,089,327)	(344,946)	4,434,273	-
Changes in estimates that result in losses and reversal of losses on onerous contracts	(450,697)	(12,766)	-	(463,463)
Changes that relate to past services
Adjustments to liabilities for incurred claims	(978,956)	-	-	(978,956)
Insurance service result	3,879,909	(788,100)	80,788	3,172,597
Insurance finance expenses	(3,859,312)	-	(232,122)	(4,091,434)
Total changes in the statement of comprehensive income	20,597	(788,100)	(151,334)	(918,837)
Cash flows	2,907,691	-	-	2,907,691
Net closing balance	(90,496,153)	(2,993,997)	(19,582,881)	(113,073,031)
Closing assets	12,498,790	(1,114,475)	(5,908,160)	5,476,155
Closing liabilities	(102,994,943)	(1,879,521)	(13,674,720)	(118,549,184)
Net closing balance	(90,496,153)	(2,993,996)	(19,582,880)	(113,073,029)

Notes to the financial statements (continued)

107

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.2Reconciliation of measurement components of insurance contracts not measured under the PAA (continued)

Consolidated and Company

2024	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	Contractual Service Margin	Total
	€	€	€	€
Opening assets	(3,186,466)	337,280	1,903,401	(945,785)
Opening liabilities	90,323,446	1,445,164	14,002,338	105,770,948
Net opening balance	87,136,980	1,782,444	15,905,739	104,825,163
Changes in the statement of comprehensive income
Changes that relate to current services
CSM recognised for services provided
Risk adjustment recognised for the risk expired	-	-	(971,211)	(971,211)
Experience adjustments - expected	-	(162,224)	-	(162,224)
Experience adjustments - actual	(1,606,971)	-	-	(1,606,971)

Notes to the financial statements (continued)

108

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.2Reconciliation of measurement components of insurance contracts not measured under the PAA (continued)

Consolidated and Company

2024	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	Contractual Service Margin	Total
	€	€	€	€
Changes that relate to future services
Contracts initially recognised in the period	(3,691,430)	444,269	3,426,695	179,534
Changes in estimates that adjust the CSM	(1,066,667)	117,461	949,206	-
Changes in estimates that result in losses and reversal of losses on onerous contracts	(210,074)	23,949	-	(186,125)
Changes that relate to past services
Adjustments to liabilities for incurred claims	216,497	-	-	216,497
Insurance service result	(6,358,645)	423,455	3,404,690	(2,530,500)
Insurance finance expenses	12,172,800	-	121,118	12,293,918
Total changes in the statement of comprehensive income	5,814,155	423,455	3,525,808	9,763,416
Cash flows	473,306	-	-	473,306
Net closing balance	93,424,440	2,205,899	19,431,547	115,061,884
Closing assets	(4,774,918)	320,536	2,832,183	(1,622,199)
Closing liabilities	98,199,358	1,885,361	16,599,364	116,684,083
Net closing balance	93,424,440	2,205,897	19,431,547	115,061,884

Notes to the financial statements (continued)

109

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.3Reconciliation of changes in reinsurance contracts held by remaining coverage and incurred claims

The tables below represent the reconciliation from the opening to the closing balances of the assets for the remaining coverage and the assets for incurred claims for reinsurance contracts held.

Consolidated and Company

2025	Liabilities for remaining coverage		Amounts recoverable for incurred claims			Total
	Remaining coverage component	Loss-recovery component	Contracts not under PAA	Contracts under PAA
	Remaining coverage component	Loss-recovery component	Contracts not under PAA	Estimates of present value of future cash flows	Risk adjustment for non-financial risk
	€	€	€	€	€	€
Opening assets	4,847,011	19,444	(1,288,462)	98,305	-	3,676,298
Opening liabilities	(99,472)	(5,702)	-	-	-	(105,174)
Net opening balance	4,747,539	13,742	(1,288,462)	98,305	-	3,571,124
Changes in the statement of profit or loss
Allocation of reinsurance premiums	(2,768,711)	-	-	-	-	(2,768,711)
Amounts recovered from reinsurers	-	33,347	669,622	388,525	-	1,091,494
Recoveries for incurred claims and other expenses	-	-	6,803	388,525	-	395,328

Notes to the financial statements (continued)

110

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.3Reconciliation of changes in reinsurance contracts held by remaining coverage and incurred claims (continued)

2025	Liabilities for remaining coverage		Amounts recoverable for incurred claims			Total
	Remaining coverage component	Loss-recovery component	Contracts not under PAA	Contracts under PAA
	Remaining coverage component	Loss-recovery component	Contracts not under PAA	Estimates of present value of future cash flows	Risk adjustment for non-financial risk
	€	€	€	€	€	€
Changes in the statement of profit or loss (continued)
Changes that relate to future service: recoveries for losses on onerous contracts and reversals of those losses	-	33,347	-	-	-	33,347
Changes that relate to past service: changes to recoveries of liabilities for incurred claims	-	-	662,819	-	-	662,819
Net expenses from reinsurance contracts	(2,768,711)	33,347	669,622	388,525	-	(1,677,217)
Finance income from reinsurance contracts held recognised in P&L	125,485	383	-	-	-	125,868
Total changes in the statement of comprehensive income	(2,643,226)	33,730	669,622	388,525	-	(1,551,349)

Notes to the financial statements (continued)

111

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.3Reconciliation of changes in reinsurance contracts held by remaining coverage and incurred claims (continued)

2025	Liabilities for remaining coverage		Amounts recoverable for incurred claims			Total
	Remaining coverage component	Loss-recovery component	Contracts not under PAA	Contracts under PAA
	Remaining coverage component	Loss-recovery component	Contracts not under PAA	Estimates of present value of future cash flows	Risk adjustment for non-financial risk
	€	€	€	€	€	€
Cash flows
Premiums paid	2,660,928	-	-	-	-	2,660,928
Amounts received	-	-	(1,373,591)	(486,830)	-	(1,860,421)
Total cash flows	2,660,928	-	(1,373,591)	(486,830)	-	800,507
Net closing balance	4,765,242	47,472	(1,992,431)	-	-	2,820,283
Closing assets	4,862,924	50,240	(1,992,431)	-	-	2,920,733
Closing liabilities	(97,682)	(2,768)	-	-	-	(100,450)
Net closing balance	4,765,242	47,472	(1,992,431)	-	-	2,820,283

Notes to the financial statements (continued)

112

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.3Reconciliation of changes in reinsurance contracts held by remaining coverage and incurred claims (continued)

2024	Liabilities for remaining coverage		Amounts recoverable for incurred claims			Total
	Remaining coverage component	Loss-recovery component	Contracts not under PAA	Contracts under PAA
	Remaining coverage component	Loss-recovery component	Contracts not under PAA	Estimates of present value of future cash flows	Risk adjustment for non-financial risk
	€	€	€	€	€	€
Opening assets	4,846,380	25,908	(2,175,416)	54,581	-	2,751,453
Opening liabilities	(175,245)	(10,607)	-	-	-	(185,852)
Net opening balance	4,671,135	15,301	(2,175,416)	54,581	-	2,565,601
Changes in the statement of profit or loss
Allocation of reinsurance premiums	(2,260,570)	-	-	-	-	(2,260,570)
Amounts recovered from reinsurers	-	(2,386)	1,038,736	574,503	-	1,610,853
Recoveries for incurred claims and other expenses	-	-	758,990	574,503	-	1,333,493

Notes to the financial statements (continued)

113

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.3Reconciliation of changes in reinsurance contracts held by remaining coverage and incurred claims (continued)

2024	Liabilities for remaining coverage		Amounts recoverable for incurred claims			Total
	Remaining coverage component	Loss-recovery component	Contracts not under PAA	Contracts under PAA
	Remaining coverage component	Loss-recovery component	Contracts not under PAA	Estimates of present value of future cash flows	Risk adjustment for non-financial risk
	€	€	€	€	€	€
Changes in the statement of profit or loss (continued)
Changes that relate to future service: recoveries for losses on onerous contracts and reversals of those losses	-	(2,386)	-	-	-	(2,386)
Changes that relate to past service: changes to recoveries of liabilities for incurred claims	-	-	279,746	-	-	279,746
Net expenses from reinsurance contracts	(2,260,570)	(2,386)	1,038,736	574,503	-	(649,717)
Finance income from reinsurance contracts held recognised in P&L	148,566	828	-	-	-	149,394
Total changes in the statement of comprehensive income	(2,112,004)	(1,558)	1,038,736	574,503	-	(500,323)

Notes to the financial statements (continued)

114

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.3Reconciliation of changes in reinsurance contracts held by remaining coverage and incurred claims (continued)

2024	Liabilities for remaining coverage		Amounts recoverable for incurred claims			Total
	Remaining coverage component	Loss-recovery component	Contracts not under PAA	Contracts under PAA
	Remaining coverage component	Loss-recovery component	Contracts not under PAA	Estimates of present value of future cash flows	Risk adjustment for non-financial risk
	€	€	€	€	€	€
Cash flows
Premiums paid	2,188,409	-	-	-	-	2,188,409
Amounts received	-	-	(151,782)	(530,779)	-	(682,561)
Total cash flows	2,188,409	-	(151,782)	(530,779)	-	1,505,848
Net closing balance	4,747,539	13,743	(1,288,462)	98,305	-	3,571,125
Closing assets	4,847,011	19,444	(1,288,462)	98,305	-	3,676,298
Closing liabilities	(99,472)	(5,702)	-	-	-	(105,174)
Net closing balance	4,747,539	13,742	(1,288,462)	98,305	-	3,571,124

Notes to the financial statements (continued)

115

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.4Reconciliation of measurement components of reinsurance contracts held not measured under the PAA

The table below represents the reconciliation from the opening to the closing balance for each measurement component of reinsurance contracts held (other than those measured under the PAA).

2025	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	Contractual Service Margin	Total
	€	€	€	€
Opening assets	1,392,130	643,392	1,372,112	3,407,634
Opening liabilities	485,523	180,838	(771,534)	(105,173)
Net opening balance	1,877,653	824,230	600,578	3,302,461
CSM recognised for services received	-	-	(309,368)	(309,368)
Risk adjustment recognised for the risk expired	-	(84,816)	-	(84,816)
Experience adjustments – expected	(2,055,403)	-	-	(2,055,403)

Notes to the financial statements (continued)

116

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.4Reconciliation of measurement components of reinsurance contracts held not measured under the PAA (continued)

2025	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	Contractual Service Margin	Total
	€	€	€	€
Changes that relate to future services
Contracts initially recognised in the period	(1,350,969)	204,691	1,146,278	-
Changes in estimates that adjust the CSM	(813,067)	(20,113)	833,180	-
Changes in the FCF that do not adjust the CSM for the group of underlying insurance contracts	-	-	33,347	33,347
Changes in recoveries of losses on onerous underlying contracts that adjust the CSM	-	-	-	-
Changes that relate to past services				-
Changes in amounts recoverable arising from changes in liability for incurred claims	662,819	-	-	662,819
Effect of changes in non-performance risk of reinsurers	-	-	-	-
Net expense from reinsurance contracts	(3,556,620)	99,762	1,703,436	(1,753,422)

Notes to the financial statements (continued)

117

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.4Reconciliation of measurement components of reinsurance contracts held not measured under the PAA (continued)

2025	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	Contractual Service Margin	Total
	€	€	€	€
Net finance income from reinsurance contracts	121,427	-	4,440	125,867
Total changes in the statement of comprehensive income	(3,435,193)	99,762	1,707,877	(1,627,554)
Cash flows	976,273	-	-	976,273
Net closing balance	(581,267)	923,992	2,308,455	2,651,180
Closing assets	(1,647,091)	657,001	3,741,720	2,751,630
Closing liabilities	1,065,824	266,991	(1,433,265)	(100,450)
Net closing balance	(581,267)	923,992	2,308,455	2,651,180

Notes to the financial statements (continued)

118

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.4Reconciliation of measurement components of reinsurance contracts held not measured under the PAA (continued)

2024	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	Contractual Service Margin	Total
	€	€	€	€
Opening assets	196,550	574,910	1,802,684	2,574,144
Opening liabilities	817,754	161,507	(1,165,113)	(185,852)
Net opening balance	1,014,304	736,417	637,571	2,388,292
CSM recognised for services received	-	-	(126,569)	(126,569)
Risk adjustment recognized for the risk expired	-	(73,182)	-	(73,182)
Experience adjustments	(1,005,432)	-	-	(1,005,432)

Notes to the financial statements (continued)

119

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.4Reconciliation of measurement components of reinsurance contracts held not measured under the PAA (continued)

2024	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	Contractual Service Margin	Total
	€	€	€	€
Changes that relate to future services
Contracts initially recognised in the period	277,432	130,230	(407,662)	-
Changes in estimates that adjust the CSM	(564,058)	30,765	533,293	-
Changes in the FCF that do not adjust the CSM for the group of underlying insurance contracts	-	-	(18,650)	(18,650)
Changes in recoveries of losses on onerous underlying contracts that adjust the CSM	-	-	16,264	16,264
Changes that relate to past services	-	-	-	-
Changes in amounts recoverable arising from changes in liability for incurred claims	279,746	-	-	279,746
Effect of changes in non-performance risk of reinsurers	-	-	-	-
Net expense from reinsurance contracts	(1,012,312)	87,813	(3,324)	(927,823)

Notes to the financial statements (continued)

120

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.4Reconciliation of measurement components of reinsurance contracts held not measured under the PAA (continued)

2024	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	Contractual Service Margin	Total
	€	€	€	€
Net finance income from reinsurance contracts	183,062	-	(33,669)	149,393
Total changes in the statement of comprehensive income	(829,250)	87,813	(36,993)	(778,430)
Cash flows	1,692,599	-	-	1,692,599
Net closing balance	1,877,653	824,230	600,578	3,302,461
Closing assets	1,392,130	643,392	1,372,112	3,407,634
Closing liabilities	485,523	180,838	(771,534)	(105,173)
Net closing balance	1,877,653	824,230	600,578	3,302,461

Notes to the financial statements (continued)

121

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5Insurance and reinsurance contracts (continued)

3.5.5Effect of contracts initially recognised in the period

	Profitable (non-onerous) contracts		Onerous Contracts
	2025	2024	2025	2024
	€	€	€	€
Insurance acquisition cash flows	6,755,207	2,065,226	182,112	169,613
Claims and other insurance service expenses payable	36,725,665	26,466,498	2,198,120	3,354,067
Estimates of present value of cash outflows	43,480,872	28,531,724	2,380,232	3,523,680
Estimates of present value of cash inflows	(51,036,398)	(32,384,607)	(2,223,436)	(3,362,226)
Risk adjustment for non-financial risk	763,092	426,190	5,059	18,079
Contractual Service Margin (CSM)	6,792,433	3,426,695	-	-
Losses recognised on initial recognition / Amount included in insurance contract liabilities for the period	-	-	161,855	179,533

Reinsurance contracts held	2025	2024
Reinsurance contracts held	€	€
Estimates of PV of future cash inflows	(6,501,338)	2,793,591
Estimates of PV of future cash outflows	7,852,307	(2,516,159)
Risk adjustment	(204,691)	130,230
Income recognised on initial recognition	-	-
CSM	(1,146,278)	407,662

Notes to the financial statements (continued)

122

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5.Insurance and reinsurance contracts (continued)

3.5.6Expected recognition of the contractual service margin

An analysis of the expected recognition of the CSM remaining at the end of reporting period in profit or loss is presented below.

Consolidated and Company

2025	Less than 1 year	1-2 years	2-3 years	3-4 years	4-5 years	5-10 years	>10 years	Total
	€	€	€	€	€	€	€	€
Insurance contracts
-Participating	773,959	643,437	550,796	470,129	402,574	1,294,775	1,120,824	5,256,494
-Other Life	1,222,115	1,115,298	1,012,095	915,446	825,944	3,006,407	3,066,976	11,164,281
-Savings	176,697	167,389	157,284	146,974	137,237	559,620	953,436	2,298,637
-Sickness & Accident	131,748	121,849	112,802	104,401	96,584	296,085	-	863,469
Total CSM for insurance contracts	2,304,519	2,047,973	1,832,977	1,636,950	1,462,339	5,156,887	5,141,236	19,582,881
Reinsurance contracts
-Life Reinsurance	(307,033)	(268,813)	(232,180)	(199,719)	(171,804)	(578,903)	(550,003)	(2,308,455)
Total CSM for reinsurance contracts held	(307,033)	(268,813)	(232,180)	(199,719)	(171,804)	(578,903)	(550,003)	(2,308,455)
Total CSM net of reinsurance	1,997,486	1,779,160	1,600,797	1,437,231	1,290,535	4,577,984	4,591,233	17,274,426

Notes to the financial statements (continued)

123

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.5.Insurance and reinsurance contracts (continued)

3.5.6Expected recognition of the contractual service margin (continued)

Consolidated and Company

2024	Less than 1 year	1-2 years	2-3 years	3-4 years	4-5 years	5-10 years	>10 years	Total
	€	€	€	€	€	€	€	€
Insurance contracts
-Participating	197,263	203,208	212,315	220,793	226,619	1,201,176	3,820,552	6,081,926
-Other Life	492,588	480,233	465,434	445,426	424,536	1,860,950	4,857,588	9,026,755
-Savings	239,198	233,573	226,263	218,006	209,512	916,961	1,710,126	3,753,639
-Sickness & Accident	89,607	82,668	75,313	67,925	61,330	192,384	-	569,227
Total CSM for insurance contracts	1,018,656	999,682	979,325	952,150	921,997	4,171,471	10,388,266	19,431,547
Reinsurance contracts
-Life Reinsurance	(104,000)	(88,573)	(73,361)	(59,051)	(46,868)	(126,067)	(102,658)	(600,578)
Total CSM for reinsurance contracts held	(104,000)	(88,573)	(73,361)	(59,051)	(46,868)	(126,067)	(102,658)	(600,578)
Total CSM net of reinsurance	914,656	911,109	905,964	893,099	875,129	4,045,404	10,285,608	18,830,969

Notes to the financial statements (continued)

124

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.6.Investment contract liabilities

The table shows a reconciliation of the opening to closing balance for the investment contract liabilities:

	Consolidated and Company	Consolidated and Company
	2025	2024
	€	€
At 1 January	8,619,624	6,705,671
Amounts recognised in profit or loss
Investment return from underlying assets	1,164,280	741,674
Recurring investment management fees deducted	(451,770)	(396,413)
Cash flows
Contribution received	6,992,200	2,432,547
Benefits paid	(924,687)	(863,855)
At 31 December	15,399,647	8,619,624

In the above reconciliation, the investment return from the underlying assets represents changes in the fair value of the Investment contact liabilities due to changes in the market conditions. Asset management services revenue of €712,509 (2024: €345,260) in the profit or loss also includes the asset management fees charged and income trailer fees.

The above liabilities are substantially non-current in nature.

Notes to the financial statements (continued)

125

LifeStar Insurance p.l.c. – Annual Financial Report 2025

3.Particulars of business (continued)

3.7 Financial reinsurance liability

The financial reinsurance liability is variable in nature and directly linked to the net position arising from the underlying reinsurance activity, calculated as premiums less commissions. Accordingly, movements in the liability balance are driven by the periodic net results of the arrangement, such that where premiums exceed commissions the liability decreases, and where commissions exceed premiums the liability increases.

In cases of significant volumes of lapses of the underlying business, the reinsurer writes off the remaining liabilities to the extent that they relate to the recovery of acquisition costs.

The movement for 2025, amounting to €4,140,733, comprises ceded premiums of €1,012,796, commissions received of €4,887,411, and the reinsurance expenses for the year amounting to €266,118. The net movement reflects the combined effect of these components in accordance with the mechanics described above.

	Consolidated and Company
	2025	2024
	€	€
Balance at 1 January	-	-
Amounts received	3,874,615	-
Financial reinsurance expense	266,118	-
Balance at 31 December	4,140,733	-

Notes to the financial statements (continued)

126

LifeStar Insurance p.l.c. – Annual Financial Report 2025

4.Investment return and fair value movements

	Consolidated		Company
	2025	2024	2025	2024(As Restated)
	€	€	€	€
Investment income
Rental income from investment property	104,455	149,760	104,455	149,760
Dividends received from:
-subsidiary	-	-	307,692	583,170
-investments at fair value through profit or loss	728,089	785,185	728,089	785,185
Interest income from investments at fair value through profit or loss	579,241	664,550	579,241	664,550
Other investment losses	(218,406)	93,147	(218,405)	93,147
	1,193,379	1,692,642	1,501,072	2,275,812

Movement in fair value
Net fair value (loss)/gain on investment property	31,891	(22,000)	31,891	(22,000)
Net fair value gain on investments – equity and collective investment schemes	4,176,774	11,987,648	5,038,079	12,103,657
	4,208,665	11,965,648	5,069,970	12,081,657
Net investment income	5,402,044	13,658,290	6,571,042	14,357,469

Notes to the financial statements (continued)

127

LifeStar Insurance p.l.c. – Annual Financial Report 2025

5.Commissions and fees receivable

Revenue represents the commissions receivable by LifeStar Health in respect of premia written relating to business generated during the year.

This includes profit commission earned during the year, which is determined on the basis of the estimated performance of business underwritten during the same period. This basis may change significantly once the insurance principal finalises its profit for the underwriting year under review. In view of this, the actual profit commission might be different from the estimated profit commission calculated as at the end of the reporting period.

	Consolidated
	2025	2024
	€	€
Commission and fees receivable	2,112,388	1,759,510

6.Interest income from financial assets at amortised cost

	Consolidated		Company
	2025	2024	2025	2024
	€	€	€	€
Interest receivable from:
-other loans and receivables	308,703	253,211	308,703	253,211
-related companies	397,766	398,855	397,766	398,855
Total interest income	706,469	652,066	706,469	652,066

Notes to the financial statements (continued)

128

LifeStar Insurance p.l.c. – Annual Financial Report 2025

7. Expenses by nature

	Consolidated		Company
	2025	2024	2025	2024
	€	€	€	€
Professional fees	1,606,978	1,230,662	1,562,310	1,225,979
Management fees (Note 28)	1,898,409	1,130,404	1,898,409	1,130,404
Amortisation of intangible assets (Note 11)	355,888	504,101	355,883	504,101
IT related expenses	397,435	479,143	290,517	376,198
Commission and direct marketing costs	8,886,774	2,974,587	8,766,148	2,855,221
Depreciation of plant and machinery (Note 13)	179,382	177,444	176,148	175,933
Other expenses	7,299,991	5,400,915	7,017,478	5,213,310
Bank charges	69,331	60,598	69,331	60,598
Licences and insurance	187,673	187,796	187,673	187,796
Office expense	97,952	142,155	97,952	142,155
Wages and salaries recharged from group undertaking	3,066,260	2,931,709	2,178,002	2,069,398
Investment management expense	296,468	286,732	-	-
Short-term leases	43,193	38,738	14,225	16,900
Provision for bad debt	57,433	-	57,433	-
Eliminations from application of IFRS 17	(12,050,497)	(5,367,899)	(12,050,497)	(5,367,899)
	12,392,670	10,177,085	10,621,012	8,590,094

	Consolidated		Company
	2025	2024	2025	2024
	€	€	€	€
Amounts attributed to insurance acquisition cash flows incurred during the year	(8,249,575)	(3,162,329)	(8,249,575)	(3,162,329)
Amortisation of insurance acquisition cash flows	1,018,257	366,902	1,018,257	366,902
Represented by:
Insurance service expense	4,915,138	3,201,372	4,915,138	3,201,372
Other operating expenses	7,477,532	6,975,713	5,705,874	5,388,722
Total	12,392,670	10,177,085	10,621,012	8,590,094

Notes to the financial statements (continued)

129

LifeStar Insurance p.l.c. – Annual Financial Report 2025

7.Expenses by nature (continued)

Auditor’s remuneration for the current financial year amounted to € 175,500 (2024: €164,500). Other fees payable to the auditor comprise €35,000 (2024: €32,500) for other assurance services and €2,580 (2024: €2,580) for tax services.

8.Finance costs

	Consolidated and Company
	2025	2024
	€	€
Interest expense on bonds	97,252	97,252

9.Income tax credit

	Consolidated		Company
	2025	2024	2025	2024 (Restated)
	€	€	€	€
Current tax expense	(52,422)	(6,525)	(73,763)	(17,967)
Current tax on IFRS17 implementation	-	201,164	-	201,164
Deferred tax charge (Note 22)	526,762	308,925	382,948	312,744
Deferred tax on IFRS17 implementation	-	(201,164)	-	(201,164)
Income tax credit	474,340	(302,396)	309,185	(294,777)

No deferred tax was recognised in other comprehensive income during 2025 (2024: NIL).

In 2024, following the issuance of Legal Notice L.N. 334 of 2024, an adjustment of €201,164 was required to the tax payable and deferred tax balances. The adoption of this legal notice necessitated an amendment to the tax computation for the year and resulted in certain updates to tax classifications. The effect of such change did not have an impact in the results of the company and the group, but merely a reclassification between tax liability as aforementioned.

Notes to the financial statements (continued)

130

LifeStar Insurance p.l.c. – Annual Financial Report 2025

9.Income tax credit (continued)

The tax on the Group’s loss before tax differs from the theoretical amount that would arise using the basic tax rate as follows:

	Consolidated		Company
	2025	2024	2025	2024 (Restated)
	€	€	€	€
Loss before tax	(1,630,322)	(928,760)	(821,202)	(421,812)
Theoretical tax credit at 35%	570,613	325,066	287,421	147,634
Tax effect of:
Income taxed at lower rates	(73,773)	(12,207)	(73,773)	(12,207)
Adjustment for income not subject to tax	748,749	70,698	1,050,206	111,301
Group loss claimed	119,198	-	119,198	-
Disallowable expenses for tax purposes	(1,069,864)	42,731	(1,351,968)	45,265
Prior period adjustment	145,650	-	-	-
Other	33,767	(123,892)	278,101	2,784
Tax credit	474,340	302,396	309,185	294,777

10.Directors’ emoluments

All directors’ emoluments are recharged by the intermediate parent company.

	Consolidated		Company
	2025	2024	2025	2024
	€	€	€	€
Directors' fees	239,783	269,840	226,238	259,073

Notes to the financial statements (continued)

131

LifeStar Insurance p.l.c. – Annual Financial Report 2025

11.Intangible assets

	Consolidated
	Goodwill	Computer software	Passporting asset	Total
	€	€	€	€
Year ended 31 December 2025
Opening carrying amount	311,538	3,336,819	460,141	4,108,498
Additions	-	1,352,531	187,781	1,540,312
Reclassification to other assets (Note 17)	-	(1,020,890)	-	(1,020,890)
Impairment	-	(179,140)	-	(179,140)
Amortisation charge (Note 7)	-	(244,164)	(111,724)	(355,888)
Closing carrying amount	311,538	3,245,156	536,198	4,092,892
At 31 December 2025
Cost	311,538	6,041,474	647,922	7,000,934
Accumulated amortisation	-	(2,756,197)	(111,724)	(2,867,921)
Accumulated impairment	-	(40,121)	-	(40,121)
Net book amount	311,538	3,245,156	536,198	4,092,892
Year ended 31 December 2024
Opening carrying amount	311,538	3,003,390	253,265	3,568,193
Additions	-	1,278,283	206,876	1,485,159
Reclassification to other assets (Note 17)	-	(137,142)	-	(137,142)
Impairment	-	(303,610)	-	(303,610)
Amortisation charge (Note 7)	-	(504,101)	-	(504,101)
Closing carrying amount	311,538	3,336,820	460,141	4,108,499
At 31 December 2024
Cost	311,538	6,152,463	460,141	6,924,142
Accumulated amortisation	-	(2,512,032)	-	(2,512,032)
Accumulated impairment	-	(303,611)	-	(303,611)
Net book amount	311,538	3,336,820	460,141	4,108,499

Notes to the financial statements (continued)

132

LifeStar Insurance p.l.c. – Annual Financial Report 2025

11.Intangible assets (continued)

Company

Computer software

Passporting asset

Total

€

Year ended 31 December 2025

Opening net book amount

3,296,698

460,141

3,756,839

Additions

1,351,658

187,781

1,539,439

Reclassification to other assets (Note 17)

(1,020,890)

Impairment

(139,019)

Amortisation charge (Note 7)

(244,159)

(111,724)

(355,883)

Net book amount

3,244,288

536,198

3,780,486

At 31 December 2025

Cost

5,980,344

647,922

6,628,266

Accumulated amortisation

(2,736,056)

(111,724)

(2,847,780)

Net book amount

3,244,288

536,198

3,780,486

Year ended 31 December 2024

Opening net book amount

2,963,269

253,265

3,216,534

Additions

1,278,283

206,876

1,485,159

Reclassification to other assets (Note 17)

(137,142)

Impairment

(303,611)

Amortisation charge (Note 7)

(504,101)

Net book amount

3,296,698

460,141

3,756,839

At 31 December 2024

Cost

6,092,206

460,141

6,552,347

Accumulated amortisation

(2,491,897)

Accumulated impairment

(303,611)

Net book amount

3,296,698

460,141

3,756,839

Notes to the financial statements (continued)

133

LifeStar Insurance p.l.c. – Annual Financial Report 2025

12.Leases

(a)Leases as the lessee (IFRS 16)

The Group leases property which generally run for a period of two years with the option to renew. Lease payments are subsequently renegotiated to reflect market rates.

(i)Right-of-use assets

Right-of-use asset related to leased properties that do not meet the definition of investment property are presented as a separate line item on the face of the Statement of Financial Position.

	Consolidated and Company
	2025	2024
	€	€
Balance on 1 January	1,847	9,925
Additions	15,991	-
Depreciation for the year	(5,247)	(8,078)
Balance on 31 December	12,591	1,847

(ii)Amounts recognised in profit or loss

	Consolidated and Company
	2025	2024
	€	€
Depreciation of right-of-use asset	5,247	8,078
Interest expense on lease liabilities	404	243

(iii)Amounts recognised in statement of cash flows

	Consolidated and Company
	2025	2024
	€	€
Total cash outflows for leases	6,157	7,776

(iv)Lease liability

The net value of the lease liability as at 31 December 2025 was €12,161 (2024: €1,924).

Notes to the financial statements (continued)

134

LifeStar Insurance p.l.c. – Annual Financial Report 2025

12.Leases (continued)

(a)Leases as the lessor (IFRS 16)

The Group leases out certain property. Note 14 sets out information about investment property. The Group has classified these leases as operating leases because they do not transfer substantially all the risks and rewards incidental to the ownership of the assets.

The following table sets out a maturity analysis of lease payments receivable, showing the undiscounted lease payments to be received after the reporting date.

Operating leases under IFRS 16

	Consolidated and Company
	2025	2024
	€	€
Less than one year	86,397	72,213
One to two years	36,868	-
Two to three years	-	-
	123,265	72,213

Notes to the financial statements (continued)

135

LifeStar Insurance p.l.c. – Annual Financial Report 2025

13.Property, plant and equipment

	Consolidated			Company
	Land and buildings	Office furniture, fittings and equipment	Total	Land and building	Office furniture, fittings and equipment	Total
	€	€	€	€	€	€
Year ended 31 December 2025
Opening net book amount	5,656,519	69,680	5,726,199	5,656,519	60,208	5,716,727
Additions	19,648	45,002	64,650	19,648	37,805	57,453
Revaluation for the year	440,109	-	440,109	440,109	-	440,109
Depreciation charge	(143,458)	(35,924)	(179,382)	(143,458)	(32,690)	(176,148)
Net book amount	5,972,818	78,758	6,051,576	5,972,818	65,323	6,038,141
At 31 December 2025
Revalued amount/Cost	6,893,839	1,771,116	8,664,955	6,893,839	1,706,749	8,600,588
Accumulated depreciation	(921,021)	(1,692,358)	(2,613,379)	(921,021)	(1,641,426)	(2,562,447)
Net book amount	5,972,818	78,758	6,051,576	5,972,818	65,323	6,038,141

Notes to the financial statements (continued)

136

LifeStar Insurance p.l.c. – Annual Financial Report 2025

13.Property, plant and equipment (continued)

	Consolidated			Company
	Land and buildings	Office furniture, fittings and equipment	Total	Land and building	Office furniture, fittings and equipment	Total
	€	€	€	€	€	€
Year ended 31 December 2024
Opening net book amount	3,537,015	53,729	3,590,744	3,537,015	51,186	3,588,201
Additions	121,596	53,411	175,007	121,596	44,971	166,567
Transfer from investment property	2,137,892	-	2,137,892	2,137,892	-	2,137,892
Depreciation charge	(139,984)	(37,460)	(177,444)	(139,984)	(35,949)	(175,933)
Net book amount	5,656,519	69,680	5,726,199	5,656,519	60,208	5,716,727

At 31 December 2024
Revalued amount/Cost	6,434,082	1,726,114	8,160,196	6,434,082	1,668,944	8,103,026
Accumulated depreciation	(777,563)	(1,656,434)	(2,433,997)	(777,563)	(1,608,736)	(2,386,299)
Net book amount	5,656,519	69,680	5,726,199	5,656,519	60,208	5,716,727

€1,984,515 (2024: €1,916,087) worth of office furniture, fittings and equipment assets are fully depreciated and are still in use.

During 2025, the Group and the Company have performed an external revaluation of property, plant and equipment. The Group and the Company have incurred an overall gain as the fair value was higher than the asset’s carrying amount. Further detail about the valuation technique to derive the fair value less cost to sell is set out in Note 14. During 2024 the Group did not obtain any valuations from an independent professionally qualified valuer but the Group did an impairment assessment on all the properties and concluded that impairment was not required.

137

LifeStar Insurance p.l.c. – Annual Financial Report 2025

14.Investment property

	Consolidated and Company
	€
Year ended 31 December 2025
Opening net book amount	13,691,547
Additions	65,836
Disposals	(900,001)
Increase in fair value	31,891
Closing net book amount	12,889,273
At 31 December 2025
Cost	2,086,790
Accumulated fair value gains	10,802,483
Net book amount	12,889,273
Year ended 31 December 2024
Opening net book amount	15,851,439
Reclassification to PPE	(2,137,892)
Decrease in fair value	(22,000)
Closing net book amount	13,691,547
At 31 December 2024
Cost	2,284,414
Accumulated fair value gains	11,407,133
Net book amount	13,691,547

Details about the Group’s investment properties and information about the fair value hierarchy at 31 December 2025 and 2024 are as follows:

	Consolidated and Company
	Fair value measurement at end of the reporting period using:
	Level 1	Level 2	Level 3	Total
	€	€	€	€
2025
Investment property:
Local property	-	-	12,889,273	12,889,273
Total	-	-	12,889,273	12,889,273

138

LifeStar Insurance p.l.c. – Annual Financial Report 2025

14.Investment property (continued)

	Consolidated and Company
	Fair value measurement at end of the reporting period using:
	Level 1	Level 2	Level 3	Total
	€	€	€	€
2024
Investment property:
Local property	-	-	13,691,547	13,691,547
Total	-	-	13,691,547	13,691,547

In estimating the fair value of the properties, the highest and best use of the properties is their current use. In accordance with the Group's accounting policy, the valuation of investment properties is assessed by the Board of Directors at the end of every reporting period. An impairment charge was approved by the Board of Directors and debited to profit or loss and is presented within ‘Investment return and fair value movements’.

During 2025, investment property amounting to nil (2024: €2,137,892) has been reclassified to property, plant and equipment to be used for own use.

During 2025, the Group revalued its investment property on the basis of valuations obtained from an independent professionally qualified valuer. The revaluation in relation to property classified for “own use” was credited to Other Comprehensive Income.

The table below includes further information about the Group’s Level 3 fair value measurements for local properties:

2025/2024	Significant unobservable input	Narrative sensitivity
Local properties	Rental value per square metre, ranging from €200 to €400 (2024: €200 to €400)	The higher the price per square metre, the higher the fair value
	Rent growth of 5% (2024: 5%) per annum	The higher the rent growth, the higher the fair value
	Discount rate of 3.01% (2024: 3.01%)	The higher the discount rate, the lower the fair value

139

LifeStar Insurance p.l.c. – Annual Financial Report 2025

14.Investment property (continued)

Operating leases relate to the investment property owned by the Group with lease terms of between 1 to 5 years. The lessee does not have an option to purchase the property at the expiry of the lease period. The rental income earned, under operating leases, amounted to €104,455 (2024: €149,760).

15.Investments in group undertakings

As at 31 December 2025 the consolidated financial statements include the following subsidiary undertaking:

Group undertaking	Registered office	Class of shares held	Percentage of shares held
			2025	2024
LifeStar Health Limited	Testaferrata Street, Ta Xbiex	Ordinary ‘A’	100%	100%

The principal activity of LifeStar Health Limited is to carry on business of an agent in all classes of health insurance, in terms of the Insurance Intermediaries Act (Cap. 487 of the Laws of Malta). LifeStar Health Limited has also issued non-profit participating ‘B’ shares to other subscribers. The subscribers of such ‘B’ shares are not entitled to a share of profits generated by LifeStar Health Limited, and hence the Company is deemed to have 100% of ownership interest. The distribution of dividends by LifeStar Health Limited is restricted by the own funds requirements of the Insurance Intermediaries Act (Cap. 487 of the Laws of Malta).

During the year under review, the Company elected to measure its Investments in group undertakings in accordance with IFRS 9 at fair value through profit or loss resulting in a change in accounting policy to be reflected in the separate financial statements of the Group. Previously, these investments were accounted for using the cost method. In estimating the fair value of the properties, the highest and best use of the properties is their current use. The Company adopted the Discounted Cash Flow (DCF) methodology.

The carrying amount of the Group’s investment in the separate financial statements amounted to €1,048,218 as at 31 December 2024 based on historical cost. Management believes that the fair value method provides more relevant and reliable information to users of the financial statements, particularly in assessing the performance and financial position of the Group’s investment in LifeStar Health Limited. The comparative figures for the year ended 31 December 2024 and 1 January 2024 have been restated accordingly.

LifeStar Health was valued using the DCF and Dividend Discount Model. The Company decided to use the DCF method due to the stability and predictability of its cash flows, resulting in a valuation of €5,994,686 as at 31 December 2023, €6,110,695 as at 31 December 2024 and €6,972,000 as at 31 December 2025. The same methodology will be used to value the Investments in Group Undertakings moving forward.

Details of the group’s investment in group undertakings and information about the fair value hierarchy as at the end of the reporting period are as follows:

	Level 1	Level 2	Level 3	Fair value as at 31/12/2025
	€	€	€	€
Investment in Group Undertakings	-	-	6,972,000	6,972,000

140

LifeStar Insurance p.l.c. – Annual Financial Report 2025

15.Investments in group undertakings (continued)

	Level 1	Level 2	Level 3	Fair value as at 31/12/2024
	€	€	€	€
Investment in Group Undertakings	-	-	6,110,695	6,110,695
	Level 1	Level 2	Level 3	Fair value as at 31/12/2023
	€	€	€	€
Investment in Group Undertakings	-	-	5,994,686	5,994,686

The valuation technique and key inputs, including sensitivity analysis in determining the fair value of LifeStar Health Limited is summarized in the table below.

Valuation technique(s) and key input(s)	Significant unobservable input(s)	Relationship and sensitivity of unobservable inputs to fair value
Income approach. In this approach, the discounted cash flow method was used to capture the present value of the expected future economic benefits to be derived from the ownership of these investees.	Long-term revenue growth rates, taking into account management’s experience and knowledge of market conditions of the specific industries, ranging from 4 to 10 percent (2024: 0-10 percent).	The higher the revenue growth rate, the higher the fair value. If the revenue growth was 1% percent higher/lower while all other variables were held constant, the carrying amount would increase/decrease by €1.2 million (2024: €1.2 million).
	Weighted average cost of capital, determined using a Capital Asset Pricing Model of 10 per cent (2024: 9.9).	The higher the weighted average cost of capital, the lower the fair value. If the weighted average cost of capital was one percent higher/lower while all other variables were held constant, the carrying amount would decrease/increase by €0.9 million (2024:€0.9 million).

The following table reconciles the movements for investments in group undertakings with fair value measurements classified as level 3:

Investment in group undertaking	€
Balance at 1 January 2024 (as previously stated)	1,048,218
Restatement due to change in accounting policy	4,946,468
Balance at 1 January 2024 (as restated)	5,994,686
Gains in profit or loss (as restated)	116,009
Balance at 31 December 2024 (as restated)	6,110,695
Gains in profit or loss	861,305
Balance at 31 December 2025	6,972,000

141

LifeStar Insurance p.l.c. – Annual Financial Report 2025

16.Other investments

The Group’s investments are summarised by measurement category in the table below:

	Consolidated and Company
	2025	2024
	€	€
Financial assets mandatorily at FVTPL	97,874,984	90,676,116
Financial assets designated at FVTPL	11,109,412	14,301,522
Loans and receivables	3,118,605	3,298,503
Term deposits	3,000,000	300,000
Total investments	115,103,001	108,576,141

(a)Investments at fair value through profit or loss

	Consolidated and Company
	2025	2024
	€	€
Equity securities and units in unit trusts:
Listed shares	11,871,814	21,024,952
Unlisted investments	3,074,796	3,242,035
Collective investment schemes	-	752,553
	14,946,610	25,019,540
Assets held to cover linked liabilities:
Collective investment schemes	82,928,374	65,656,576
Debt securities - fixed interest rate:
Government bonds	6,244,619	7,696,531
Corporate bonds	4,864,793	6,604,991
	11,109,412	14,301,522
Total investments at fair value through profit or loss	108,984,396	104,977,638

142

LifeStar Insurance p.l.c. – Annual Financial Report 2025

16.Other investments (continued)

(a)Investments at fair value through profit or loss (continued)

Maturity of fixed income debt securities classified as fair value through profit or loss.

	Consolidated and Company
	2025	2024
	€	€
Within 1 year	2,651,787	263,115
Between 1 and 2 years	1,001,407	2,930,011
Between 2 and 5 years	2,728,513	5,622,666
Over 5 years	4,727,705	5,485,730
	11,109,412	14,301,522
	Consolidated and Company
	%	%
Weighted average effective interest rate at the balance sheet date	5	6

All other securities classified at fair value through profit or loss are non-current in nature.

The movements in investments classified as fair value through profit or loss are summarised as follows:

	Consolidated and Company
	2025	2024
	€	€
Year ended 31 December
Balance at 1 January	104,977,638	93,843,285
Impact on initial application of IFRS 9		-
Additions	22,174,098	14,434,840
Disposals	(20,558,870)	(3,110,927)
Net fair value and foreign exchange movements	2,391,530	(189,560)
Balance at 31 December	108,984,396	104,977,638
At 31 December
Cost	99,753,816	98,138,588
Accumulated fair value and foreign exchange gains	9,230,580	6,839,050
Net book amount	108,984,396	104,977,638

143

LifeStar Insurance p.l.c. – Annual Financial Report 2025

16.Other investments (continued)

(a)Investments at fair value through profit or loss (continued)

The table below analyses debt securities classified at fair value through profit or loss by sector:

	Consolidated and Company
	2025	2024
	€	€
Banks	1,352,557	1,139,478
Energy	2,706,640	2,453,972
Government	6,244,619	7,696,532
Other	805,596	3,011,540
	11,109,412	14,301,522

(b)Loans and receivables

	Consolidated and Company
	2025	2024
	€	€
Loans secured on policies	5,602	22,487
Other loans and receivables	3,113,003	3,276,016
	3,118,605	3,298,503

Loans secured on policies are substantially non-current in nature. Other loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than those that the Group intends to sell in the short term. They are charged with interest at the rate of 12% (2024: 12%) per annum.

	Consolidated and Company
	2025	2024
	€	€
Year ended 31 December
Balance at 1 January	3,298,503	3,134,171
Additions	-	14,036
Disposals	(16,886)	-
Foreign exchange movement	(163,012)	150,296
Balance at 31 December	3,118,605	3,298,503

144

LifeStar Insurance p.l.c. – Annual Financial Report 2025

16.Other investments (continued)

(c)Term Deposits

	Consolidated and Company
	2025	2024
	€	€
Loans secured on policies	3,000,000	300,000
	3,000,000	300,000

	Consolidated and Company
	2025	2024
	€	€
Year ended 31 December
Balance at 1 January	300,000	-
Additions	3,000,000	400,000
Disposals	(300,000)	(100,000)
Balance at 31 December	3,000,000	300,000

Bank term deposits earn average interest of 7.75% per annum (2024: 7.75%). As at year end, their carrying amount approximated its fair value.

(d)Unlisted investments

LifeStar Insurance plc has two loan notes titled Stellium Equity Notes and Stellium Credit Notes (the “Stellium Notes”), totalling GBP4.2 million which matured on 31 July 2024 and 31 August 2024 respectively, both of which have been extended for the reasons explained below. These loan notes form part of a wider GBP30 million funding arrangement for a fintech startup business, Stellium Holdings Limited (UK Registration No 12130247), located in Newcastle, UK.

The principal holders of the loan notes are Apex Group Nominees 1 (UK) Limited acting as trustee on behalf of the ultimate controlling parties Tiger Infrastructure Associates GP II and Tiger Infrastructure GP II (Europe).

Eram Capital Advisors Luxembourg (“Eram”), in their capacity as the Calculation Agent, Advisor and Alternative Asset Manager of the Securitised Vehicles (SVs) linked to the Stellium Notes has confirmed that LifeStar’s held notes are valued at par as at 31 December 2025. In note 14 of the financial statements for the year ended 31 March 2025 of Stellium Holdings Limited, entitled “Post Balance Sheet Events”, it is reported that Stellium Datacentres Limited issued new preference shares amounting to GBP12.5 million to provide additional working capital and funding to assist in the purchase of Digital 9 Seaedge Limited, the owner of the long lease of the data centre at Cobalt Business Park. This transaction was concluded on 11 June 2025. LifeStar Insurance plc did not participate in this investment. Also, in December 2025, Stellium Holdings Limited and the Senior Loan Noteholder and the Junior Loan Noteholder agreed to extend the existing loan note agreements. The loans notes repayment date has been amended from 31 May 2026 to 28 December 2028. All other terms of the loan note agreements are unchanged. During the year, the Company has commissioned an independent third party to carry out a valuation of its investments in the SV’s, which valuation is still being finalized as at the date of the signing of these financial statements.

145

LifeStar Insurance p.l.c. – Annual Financial Report 2025

16.Other investments (continued)

(d)Unlisted investments (continued)

On the basis of the above, the Directors are of the opinion that the recent investment in Stellium Holdings Limited is a strong indication of its viability. In view of this, the extension of the existing loan note agreements and on the strength of the confirmations received from ERAM as the Calculation Agent of the SVs, the Stellium Notes are to continue being carried at their face value in these financial statements. In view of the substantial additional investment and also the extension of the notes to 28 December 2028, we do not envisage a material impact to the Solvency Capital Ratio (SCR) in the near future.

17.Other assets

	Consolidated and Company
	2025	2024
	€	€
Year ended 31 December
Balance at 1 January	198,680	-
Additions	-	61,538
Reclassification from intangible asset (Note 11)	1,020,890	137,142
Impairment	(198,680)	-
Balance at 31 December	1,020,890	198,680

Reclassification of € 1,020,890 from intangible assets during the year represents certain assets that have not been put into use. Such amount is stated net of total provision of € 442,630.

146

LifeStar Insurance p.l.c. – Annual Financial Report 2025

18.Receivables, prepayments and accrued income

	Consolidated		Company
	2025	2024	2025	2024
	€	€	€	€
Amounts due from intermediate parent (Note ii)	6,994,300	6,872,558	6,994,300	6,872,558
Amount receivable from subsidiary	-	-	291,952	440,000
Amounts due from related parties (Note iii)	5,931,980	5,740,266	5,670,710	5,463,475
Other receivables (Note i and iv)	102,020	468,874	102,020	468,874
	13,028,300	13,081,698	13,058,982	13,244,907

	Consolidated		Company
	2025	2024	2025	2024
	€	€	€	€
Prepayments and accrued income:
- Prepayments	237,749	191,000	197,136	137,618
- Accrued income	3,977,578	3,601,490	3,569,061	3,147,676
	4,215,327	3,792,490	3,766,197	3,285,294
At end of year	17,243,627	16,874,189	16,825,179	16,530,201

i.Interest-bearing automatic premium loans are classified as investments in Note 16 to the financial statements.

ii.Amounts due from intermediate parent are secured, bearing interest at 3% or 4.5% and expected to be repaid in 10 years’ time. The carrying amount is stated net of a provision of €146,748 (2024: €255,891).

The loans in question have been approved by the Malta Financial Services Authority.

The Directors are confident that such balances will be recovered within the stipulated time frame above.

iii.Amounts due from other related parties are secured and bear interest at 3% or 4.5% and as at 31 December 2025 the Directors expect these to be repaid in 5 and 10 years’ time in accordance with the agreements. The carrying amount is stated net of a provision of €46,280 (2024: €129,383). Such balance has been carried forward prior to 1 January 2017.

iv.Other receivables are unsecured, interest-free and repayable on demand. They are stated net of provision for impairment of €161,967 (2024: €30,042). The company has directly written off other receivables of €57,432 during the current year which is included within the administrative and other expense in the statement of comprehensive income (2024: €110,618).

Amounts due from intermediate parent and other related parties are non-current in nature, whilst the rest of the amounts are current in nature.

147

LifeStar Insurance p.l.c. – Annual Financial Report 2025

19.Share capital

	Consolidated and Company
		2025
	Authorised	Issued and called up
	€	€
353,411,942 ordinary shares of €0.141478 each,
64,814,817 of which were issued and called up	50,000,000	9,169,870
	50,000,000	9,169,870

	Consolidated and Company
		2024
	Authorised	Issued and called up
	€	€
353,411,942 ordinary shares of €0.141478 each,
64,814,817 of which were issued and called up	50,000,000	9,169,870
	50,000,000	9,169,870

Retained earnings

Retained earnings include the current and prior period results as disclosed in the statement of comprehensive income.

Capital management

The Group’s objectives when managing capital are:

(i)to comply with the insurance capital requirements required by the Maltese insurance regulator, the MFSA;

(ii)to safeguard the Group’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; and

(iii)to provide an adequate return to shareholders by pricing insurance contracts commensurate with the level of risk.

In order to maintain or adjust the capital structure, the Group may issue new shares or capitalise contributions received from its shareholders.

As of 1 January 2016, the Solvency II Directive (2009/138/EC) came into force with new regulatory requirements that ascertain the level of capital required on the basis of the risks the Company undertakes. Solvency II also outlines how the Own Funds shall be derived by converting the statement of financial position from an IFRS perspective to one where assets and liabilities are measured in line with their underlying economic value.

The Directors are actively involved in the implementation of the Solvency II rules and these are highly embedded in the Company’s operations and regular monitoring of the Solvency Capital Requirement (“SCR”) is considered crucial.

The Company is required to hold regulatory capital for its long term insurance business in compliance with the Solvency II Directive. The Solvency II Directive stipulates the Minimum Capital Requirement (“MCR”) and the SCR that the Company is required to hold. The MCR and SCR must be maintained at all times throughout the year.

148

LifeStar Insurance p.l.c. – Annual Financial Report 2025

19.Share capital (continued)

Capital management (continued)

Based on the audited SCR calculations as at 31 December 2025, the Company has complied with the capital and solvency requirements as stipulated in the rules issued by the MFSA. Going forward, the Company is also expected to continue meeting the Solvency II requirements, based on the projected SCR calculations included in the 2022 ORSA report. In the case of any solvency gap, the Directors have put in place a capital plan aimed to ensure that the Company will have adequate ‘Own Funds’ to meet the required SCR.

20.Dividends paid and declared

No dividend was paid or declared during the year (2024: €Nil) to ordinary shareholders.

21.Other reserves

	Consolidated
	Other unrealised gains	Property revaluation reserve	Total
	€	€	€
Year ended 31 December 2025
At beginning of year	418,600	1,154,387	1,572,987
Revaluation of property (Note 13)	-	440,109	440,109
At end of year	418,600	1,594,496	2,013,096
Year ended 31 December 2024
At beginning of year	418,600	1,154,388	1,572,988
At end of year	418,600	1,154,388	1,572,988

Company

Other unrealised gains

Property revaluation reserve

Total

€

Year ended 31 December 2025

At beginning of year

255,420

1,154,387

1,409,807

Revaluation of property (Note 13)

440,109

At end of year

255,420

1,594,496

1,849,916

Year ended 31 December 2024

At beginning of year

255,420

1,154,387

1,409,807

At end of year

255,420

1,154,387

1,409,807

The above reserves are not distributable.

149

LifeStar Insurance p.l.c. – Annual Financial Report 2025

22.Deferred income tax

Deferred taxes are calculated on temporary differences under the balance sheet liability method using a principal tax rate ranging between 8% and 35% (2024: 8% and 35%). In particular, temporary differences on investment properties situated in Malta that have been owned by the Group since 1 January 2004 are calculated under the liability method using a principal tax rate of 8% of the carrying amount, while investment properties situated in Malta that had been acquired by the Group before 1 January 2004 are calculated under the liability method using a principal tax rate of 10% of the carrying amount. Deferred tax on temporary differences on investment properties situated outside Malta has been calculated based on tax rates that have been enacted or substantively enacted at the end of the reporting period.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off a current tax asset against a current tax liability and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

The movement on the deferred tax asset account is as follows:

	Consolidated		Company
Year ended 31 December	2025	2024	2025	2024
	€	€	€	€
At the beginning of the year	1,705,968	1,466,243	1,718,809	1,475,265
Reclassification to deferred tax liability	96,826	(73,304)	111,594	(69,485)
Other movement	-	285	3	285
Debited to profit and loss account (Note 9)	240,947	312,744	82,364	312,744
At end of year	2,043,741	1,705,968	1,912,770	1,718,809

Deferred income taxes are calculated on temporary differences under the liability method using a principal tax rate of 35% (2024: 35%).

The movement on the deferred tax liability account is as follows:

	Consolidated		Company
Year ended 31 December	2025	2024	2025	2024
	€	€	€	€
At the beginning of the year	1,618,869	1,487,190	1,618,869	1,487,190
Reclassification to deferred tax assets	96,826	(73,304)	111,594	(69,485)
Other movement	(10)	-	(10)	-
(Debited)/Credited to profit and loss account (Note 9)	(285,815)	204,983	(300,584)	201,164
At end of year	1,429,870	1,618,869	1,429,869	1,618,869

150

LifeStar Insurance p.l.c. – Annual Financial Report 2025

22.Deferred income tax (continued)

The net deferred taxation at the year-end comprises the following temporary differences:

	Consolidated		Company
Year ended 31 December	2025	2024	2025	2024
	€	€	€	€
Fair value losses on investments	1,120,121	908,336	1,120,121	908,336
Temporary differences on:
-property, plant and equipment	72,936	181,255	87,705	194,096
-provisions	145,650	-	-	-
-investment property	(1,068,658)	(1,143,324)	(1,068,658)	(1,143,324)
-Deferred tax on reclass of investment property to PPE	(324,586)	(324,586)	(324,586)	(324,586)
-leases unutilised under IFRS 16	(36,626)	(35,744)	(36,626)	(35,744)
-unutilised tax losses and capital allowances	593,347	616,377	593,347	616,377
-other	111,687	(115,215)	111,595	(115,215)
Net deferred income tax asset/(liability)	613,871	87,099	482,898	99,940

The directors consider that the above temporary differences are substantially non-current in nature.

23.Debt securities in issue

	Consolidated		Company
Year ended 31 December	2025	2024	2025	2024
	€	€	€	€
4% Unsecured Subordinated Bonds Due 2026 – 2031	2,243,151	2,221,035	2,243,151	2,221,035

In May 2021, the company issued 100,000 4% unsecured subordinated bonds of a nominal value of €100 per bond. A total of 24,313 Subordinated Bonds (for a total value of €2,431,300) were received by the Company.

151

LifeStar Insurance p.l.c. – Annual Financial Report 2025

23.Debt securities in issue (continued)

The bonds are redeemable at their nominal value on 2 June 2031, unless redeemed early on any interest payment date in the year 2026 and 2031.

Interest on the bonds is due and payable annually on 2 June of each year.

The bonds are listed on the Official List of the Malta Stock Exchange. The carrying amount of the bonds is net of direct issue costs of €188,149 (2024: €222,599) which are being amortised over the life of the bonds and bond tax payable of €nil (2024: €12,334). The market value of debt securities on the last trading day before the statement of financial position date was €2,431,300 (2024: €2,431,300).

24.Payables, accruals and deferred income

	Consolidated		Company
	2025	2024	2025	2024
	€	€	€	€
Amounts due to group undertaking	8,068	3,161	-	-
Other payables	154,673	307,490	130,081	119,683
	162,741	310,651	130,081	119,683
Accruals and deferred income
- Accruals	775,514	532,558	601,245	370,381
- Bond interest accrued	56,220	56,220	56,221	56,220
- Deferred income	345,433	349,055	6,950	10,573
	1,177,167	937,833	664,416	437,174
At end of year	1,339,908	1,248,484	794,497	556,857

(i)Other payables are unsecured, non-interest bearing and fall due within the next twelve months;

(ii)Amounts owed to group are unsecured and bear no interest. These balances are repayable on demand.

152

LifeStar Insurance p.l.c. – Annual Financial Report 2025

25.Cash flows generated from operations

Reconciliation of profit before tax to cash generated from operations:

	Consolidated		Company
	2025	2024	2025	2024 (Restated)
	€	€	€	€
Cash flows generated from operating activities
Loss before tax	(1,630,322)	(928,760)	(821,202)	(421,812)
Adjustments for:
Amortisation on computer software (Note 11)	355,888	504,101	355,883	504,101
Impairment of intangible and other assets (Note 11 and 17)	377,821	303,611	337,699	303,611
Amortisation of lease (Note 12)	5,247	8,078	5,247	8,078
Lease interest expense	404	243	404	243
Depreciation of property, plant and equipment (Note 13)	179,382	177,444	176,148	175,933
Insurance finance expense	4,091,440	12,293,918	4,091,434	12,293,918
Finance cost on borrowings (Note 8)	97,252	97,252	97,252	97,252
Financial reinsurance expense (Note 3.7)	266,118	-	266,118	-
Net fair value movement on investment property (Note 14)	(31,891)	22,000	(31,891)	22,000
Net reversal of provision for bad debts (Note 16 and 18)	(22,210)	-	(30,279)	-
Net fair value & FX movement on FVTPL investments (Note 16)	(4,383,644)	438,681	(4,383,644)	438,681
Other non-cash movements	-	30,998		30,998
Interest income (Note 6)	(706,469)	(652,066)	(706,469)	(652,066)
Dividend from subsidiary	-	-	(307,692)	(583,170)
Reversal of gain/(loss) from investment in group undertaking	-	-	(861,305)	(116,009)

153

LifeStar Insurance p.l.c. – Annual Financial Report 2025

25.Cash generated from operations (continued)

	Consolidated			Company
	2025	2024		2025	2024 Restated
	€	€		€	€
Receivables written off	57,432	110,618		57,432	110,618
Dividends receivable from FVTPL investments	(729,089)	(785,185)	-	(729,089)	(785,185)
Interest income from investments at FVTPL	(579,241)	(664,550)		(579,241)	(664,550)
Movement in:
-Insurance and reinsurance contracts	(2,657,160)	(2,816,797)		(2,657,164)	(2,816,797)
-Trade and other receivables	340,022	(194,180)		548,619	(201,623)
-Investment contract liabilities	4,502,401	1,913,953		4,502,401	1,913,953
-Trade and other payables	239,600	(205,310)		259,746	177,588
Cash flows generated from operations	(227,019)	9,654,049		(409,583)	9,835,762

26.Cash and cash equivalents

For the purposes of the statement of cash flows, the year-end cash and cash equivalents comprise the following:

	Consolidated		Company
	2025	2024	2025	2024
	€	€	€	€
Cash at bank and on hand	1,546,263	1,619,726	1,144,026	1,013,287

Cash at bank earns interest on current deposits at floating rates.

154

LifeStar Insurance p.l.c. – Annual Financial Report 2025

27.Fair values of financial assets and financial liabilities

The group

The following table presents the assets measured in the statements of financial position at fair value by level of the following fair value measurement hierarchy at 31 December 2025 and 31 December 2024:

-Quoted prices(unadjusted) in active markets for identical assets or liabilities (Level 1);

-Inputs other than quoted prices included within Level 1 that are observable for the asset or liabilities, either directly (that is, as prices) or indirectly (that is, derived from prices (Level 2);

-Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs (Level 3)

The group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

The following table presents the assets and liabilities measured at fair value at 31 December 2025

	Consolidated and Company
	Fair value measurement at end of the reporting period using:
	Level 1	Level 2	Level 3	Total
	€	€	€	€
2025
Assets
Other Investments:
Financial assets at fair value through profit or loss	22,981,226	82,928,374	3,074,796	108,984,396
Financial assets at amortised cost	-	3,005,602	3,113,003	6,118,605
Total	22,981,226	85,933,976	6,187,799	115,103,001
Liabilities
Unit linked financial instruments	-	(15,399,647)	-	(15,399,647)

155

LifeStar Insurance p.l.c. – Annual Financial Report 2025

27.Fair values of financial assets and financial liabilities (continued)

The following table presents the assets and liabilities measured at fair value at 31 December 2024

	Consolidated and Company
	Fair value measurement at end of the reporting period using:
	Level 1	Level 2	Level 3	Total
	€	€	€	€
2024
Assets
Other Investments:
Financial assets at fair value through profit or loss	36,174,203	65,561,400	3,242,035	104,977,638
Financial assets at amortised cost	-	322,487	3,276,016	3,598,503
Total	36,174,203	65,883,887	6,518,051	108,576,141
Liabilities
Unit linked financial instruments	-	8,619,624	-	8,619,624

At 31 December 2025 and 2024 the carrying amounts of financial assets and current financial liabilities approximated their fair values except for investment contracts with DPF. It is impracticable to determine the fair value of equity investment and the investment contracts with DPF due to the lack of a reliable basis to measure the future discretionary return that is a material feature of these contracts.

Included in Level 3 investments for the years ended 31 December 2025 and 2024 are the Stellium Notes. Note 16 (d) explains the directors’ assessment of the value of these notes.

156

LifeStar Insurance p.l.c. – Annual Financial Report 2025

28.Related party transactions

All companies forming part of the LifeStar Group are considered by the directors to be related parties as these companies are also ultimately owned by LifeStar Holding p.l.c. Related parties that do not form part of the consolidated group include entities related by way of common directors and ultimate shareholders.

The following transactions were carried out by the Group with related parties:

	Consolidated		Company
Year ended 31 December	2025	2024	2025	2024
	€	€	€	€
Interest income from loans to the immediate parent	261,458	262,174	261,458	262,174
Interest income from loans to other related undertakings	136,308	136,681	136,308	136,681
Management fees charged by a related undertaking	604,686	360,000	404,600	360,000
Recharge of expense	1,852,922	430,000	1,463,809	430,000
Shared service expense	-	699,635	-	699,635
Dividends received	-	-	200,000	440,000

Key management personnel during 2025 and 2024 comprised of the Board of Directors and the Managing Director of the Group. Total remuneration paid by the Group to its key management personnel amounted to €749,619 (2024: €566,490).

Amounts owed by or to group undertakings and other related parties are disclosed in Notes 15, 18 and 24 to these financial statements.

The compensation to directors in 2025 and 2024 is disclosed in Note 10 to the financial statements.

157

LifeStar Insurance p.l.c. – Annual Financial Report 2025

29.Contingent liability

During 2020, the Company gave a guarantee in favour of Bank of Valletta for the amount of €3 million, to secure, jointly and severally with other related parties, a bank loan of the same amount granted by that bank to LifeStar Holding p.l.c.

At 31 December 2025, the balance outstanding on the loan in the books of LifeStar Holding p.l.c. amounted to €363,503 (2024: €961,483).

The directors assessed the impact of this guarantee and concluded that it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation and have therefore treated this as a contingent liability.

30.Litigation and regulatory matters

On 4 April 2022, the Company instituted a lawsuit before the First Hall Civil Court against the Malta Financial Services Authority (the “Authority”), Mazars Consulting Limited (“Mazars”) and Mr Keith Cutajar, a sub-contractor of Mazars.

The Company has taken such judicial action to safeguard its legal right to communications which are privileged at law. This action follows the appointment of Mazars, on 26 November 2021, as an inspector in connection with an investigation by the Authority relating to the Company’s business and operations, and, inter alia, the powers conferred on Mazars by the Authority, on 25 January 2022, in relation to the Company's information and documents, including its privileged communications.

While the Company continues to co-operate with the Authority in relation to the investigation of the Company, based on legal advice, it considers its right to privileged communications to be significantly prejudiced by the Authority’s actions. Accordingly, the Company intends to pursue all remedies available to it at law in this regard.

In June 2024, the Authority communicated the preliminary conclusions of its investigation to the Company. The Company considers that it has acted in compliance with its legal and regulatory obligations. The Company also confirmed to the Authority its intention to engage in without prejudice discussions with the aim of concluding the process in an unprotracted and non-contentious manner. In August 2024, the Company submitted its response to the Authority’s preliminary conclusions. As part of its response, the Company undertook to implement a number of measures to continue enhancing the governance, risk management and compliance functions within its group. The Company’s undertaking plan is in an advanced stage of implementation. In addition, without prejudice discussions with the Authority are in their final stages.

Nevertheless, it remains inherently difficult to predict the outcome of any judicial proceedings and regulatory investigation. There are many factors that may affect the range of outcomes, and the resulting impact, of these matters. As a result, it is not possible to predict or quantify a range of possible outcomes, or the timing thereof.

The Directors recognise the fact that the Company may be subject to reputational, legal and compliance risk due to the extent and complexity of its operations and its regulatory obligations. Given the increased levels of regulatory scrutiny experienced in recent years across the financial services industry, the level of inherent legal and compliance risk faced by the Company is expected to continue to remain high for the foreseeable future.

The Company employs a range of policies and practices to mitigate such inherent risks and ensure they remain within its risk tolerance limits. Furthermore, the Company remains committed to adhere to it legal and regulatory obligations to meet its compliance requirement on an on-going basis at all times.

158

LifeStar Insurance p.l.c. – Annual Financial Report 2025

31.Change in accounting policy

This fair value measurement basis for LifeStar Health Limited provides a more faithful representation of the investment’s economic value, particularly given recent strategic developments and current market conditions. The fair value method, with changes in fair value reflected on the profit and loss, shall therefore provide more relevant and reliable information.

This change in accounting policy has been applied retrospectively in accordance with IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ and IAS 34 ‘Interim Financial Reporting’. The comparative figures for the year ended 31 December 2024 of the Company have been restated accordingly:

Financial Impact

1 January 2024 (As previously reported)

Adjustment

1 January 2024 (As restated)

Statement of financial position

Investment in group undertaking

€1,048,218

€4,946,468

€5,994,686

Retained earnings

€13,703,057

€4,946,468

€18,649,525

Financial Impact

31 December 2024 (As previously reported)

Adjustment

31 Dec 2024 (As restated)

Statement of financial position

Investment in group undertaking

€1,048,218

€5,062,477

€6,110,695

Retained earnings

€13,460,013

€5,062,477

€18,522,490

Statement of profit or loss and other comprehensive income

Net investment income

€14,241,460

€116,009

€14,357,469

159

LifeStar Insurance p.l.c. – Annual Financial Report 2025

32.Statutory information

LifeStar Insurance p.l.c. is a public limited liability Group incorporated in Malta with registration number C29086. On 9 November 2020, Global Capital Life Insurance Limited was renamed and rebranded as LifeStar Insurance Limited. On 27 April 2021, the Company changed its status to a public limited liability company. The registered address of the Group is Testaferrata Street, Ta’ Xbiex. The parent company of LifeStar Insurance p.l.c. is LifeStar Holding p.l.c, a company registered in Malta, with its registered address at Testaferrata Street, Ta’ Xbiex.

At year end, the directors considered the ultimate controlling party to be Prof. Paolo Catalfamo who owns 99.99% (2024: 99.99%) of the issued share capital of Investar p.l.c., which is the single major shareholder owning directly 60.58% (2024: 60.58%) of the Company’s intermediate parent company, LifeStar Holding p.l.c, and indirectly through shares held by Lifestar Asset Management Limited (previously known as Global Capital Financial Management Limited) (C 30053) as nominee in the Company’s intermediate parent company, LifeStar Holding p.l.c, a further 30.81% (2024: 30.81%). LifeStar Holding p.l.c. owns directly 74.23% (2024: 74.15%) of LifeStar Insurance p.l.c. and is also the beneficial owner of 0.08% (2024: 0.08%) through shares held by LifeStar Asset Management Limited as nominee. Subsequent to year-end, the indirect shareholding of LifeStar Holding p.l.c. in the company increased to 75.40%.

Consolidated financial statements prepared by LifeStar Holding p.l.c. may be obtained from the Group’s registered office.

160

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Grant Thornton Malta

Fort Business Centre, Level 2

Triq L-Intornjatur, Zone 1

Central Business District

Birkirkara CBD1050 Malta

T +356 20931000

Independent auditor’s report

To the shareholders of LifeStar Insurance p.l.c.

Report on the audit of the financial statements

Opinion

We have audited the financial statements of LifeStar Insurance p.l.c. (the ‘Company’) and of the Group of which it is the parent, which comprise the statements of financial position as at 31 December 2025, and the statements of profit or loss and other comprehensive income, statements of changes in equity and statements of cash flows for the year then ended, and notes to the financial statements, including a summary of material accounting policies and other explanatory information.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company and the Group as at 31 December 2025, and of their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU), and have been properly prepared in accordance with the requirements of the Companies Act, Cap. 386 (the ‘Act’) and the Insurance Business Act, 1998, Cap. 403 (the ‘Insurance Business Act’).

Our opinion is consistent with our additional report to the audit committee.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements of the Accountancy Profession (Code of Ethics for Warrant Holders) Directive issued in terms of the Accountancy Profession Act, Cap. 281 that are relevant to our audit of the financial statements in Malta. We have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

In conducting our audit we have remained independent of the Company and the Group and have not provided any of the non-audit services prohibited by article 18A of the Accountancy Profession Act, Cap. 281. The non-audit services that we have provided to the Company and the Group during the year ended 31 December 2025 are disclosed in note 7 to the financial statements.

161

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Emphasis of matter

We draw attention to note 30 of the financial statements, which makes reference to an investigation by the Malta Financial Services Authority (MFSA) relating to the Company’s business and operations. Although the Company’s plan which was agreed with MFSA is in an advanced stage of implementation, it remains inherently difficult to predict the final outcome of the regulatory investigation at this stage. Our opinion is not modified in respect of this matter.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We summarise below the key audit matters, together with our response by way of the audit procedures we performed to address those matters in our audit.

Valuation of investments

Key audit matter

The carrying amounts of the Group’s investments at 31 December 2025 amounted to € 115.10 million. These are described and disclosed in section 9 of the material accounting policies and note 16 to the financial statements. These investments represent 70.69% of the total assets of the Group, and include a number of holdings which are unlisted, carried at € 9.19 million, and which therefore require a degree of judgement to be exercised when assessing their valuation.

How the key audit matter was addressed in our audit

We ensured that the value of listed investments is based on quoted prices obtained from independent sources.

For the Company’s and the Group’s unlisted investments we evaluated the appropriateness of the valuation methodology applied by management and reviewed and challenged the methodology applied and the underlying assumptions. Where applicable we also assessed the values of any assets underlying the investments and challenged management’s assumptions and judgements made.

Particular attention has been given to the Company’s and the Group’s unlisted holdings in two securitisation vehicles (SVs) registered in Luxembourg, which holdings are backed by investments which the SVs made in a UK data centre. At 31 December 2025, these investments were carried at € 4.91 million and are included with unlisted investments in note 16, together with accrued interest not yet received by the Company and the Group amounting to € 1.47 million and included with accrued income in note 18. The directors have exercised significant judgement in reaching a conclusion about the carrying amount of these investments.

We communicated with management and those charged with governance and noted that they were able to provide satisfactory responses to our questions.

162

LifeStar Insurance p.l.c. – Annual Financial Report 2025

We also assessed the adequacy of the disclosures made in note 16 to the financial statements relating to these investments. In particular we wish to draw attention to section 1(c) of the critical accounting estimates and judgements, and notes 16(d) and 27 to the financial statements, in which the directors explained the basis of their conclusion about the valuation of Company’s and the Group’s unlisted holdings in the SVs referred to above and about the uncertainty surrounding the valuation of these investments.

We have no other key observations to report, specific to this matter.

Valuation of insurance contract liabilities

Key audit matter

IFRS 17 sets out the requirements that an entity should apply in accounting for insurance contracts it issues, reinsurance contracts it holds and investment contracts with discretionary participating features it issues.

As at 31 December 2025, the Group and the Company recorded insurance contract liabilities of € 113.44 million.

As explained in section 2.9 of the material accounting policies, the Group and the Company’s insurance contract liabilities are measured as the total of fulfilment cash flows (comprising probability-weighted estimates of future cash flows and RA) and CSM, the determination of which required judgement and interpretation. This includes the selection of accounting policies and the use of complex methodologies. Management’s selection and application of appropriate methodologies requires significant professional judgement. The valuation also requires the determination of assumptions about future events, both internal and external to the business, giving rise to estimation uncertainty. The valuation of these liabilities is complex and sensitive to changes in assumptions.

We focused on this area due to its materiality and the subjectivity of the judgements made.

As part of our consideration of the entire set of assumptions, we focused particularly on expense assumptions and mortality and lapse assumptions as these are considered the most significant and judgmental. These are considered individually below.

Valuation of insurance contract liabilities

Insurance contract liabilities are sensitive to the choice of assumptions made by the Company. There is a risk that the assumptions are not appropriate given the variability in experience and the relatively small size of the Company’s business, given the pool of data from which to assess experience.

In setting the assumptions, management utilise the Company's own historic experience, supplemented with additional external data in the calculation of the appropriate assumptions. In doing so there is a risk that the assumptions are not appropriate.

Valuation of insurance contract liabilities - expense assumptions

The valuation of insurance contract liabilities includes estimated future expenses that are expected to be incurred in the administration and maintenance of the existing policies to their maturity and includes an allowance for future inflation. The assumptions used require judgement, particularly with respect to the allocation of expenses to future maintenance, the estimation of policy volumes and future cost inflation.

163

LifeStar Insurance p.l.c. – Annual Financial Report 2025

IFRS 17 brought about certain changes to the treatment of expenses, requiring the Company to analyse expenses between acquisition costs, directly attributable expenses and non-attributable (i.e. out of scope) expenses. The valuation of the insurance contract liabilities is sensitive to changes in allocations between categories and changes in assumptions.

How the key audit matter was addressed in our audit

We performed the following audit procedures to test the valuation of insurance contract liabilities (including estimate of liabilities, RA and CSM), using our IFRS 17 and actuarial specialist team members:

•Tested the design and, where applicable, operating effectiveness of the controls in place over the determination of the insurance contract liabilities, including those relating to model inputs, model operation and extraction of results from the actuarial model;

•Tested the design and, where applicable, the operating effectiveness of controls related to the completeness and accuracy of policyholder data used in the valuation of insurance contract liabilities;

•Tested the accuracy of the underlying data utilised for the purposes of measurement by reference to its source;

•Applied our industry knowledge and experience to assess the appropriateness of the methodology, model and assumptions used against recognised actuarial practices;

•Performed testing over the actuarial model calculations.

•Analysed the calculation methods for RA and CSM; and

•Ensured compliance of RA and CSM with IFRS17 standard.

In respect of the expense assumptions, we performed the following additional procedures:

•We have tested and challenged the appropriateness of the allocation between attributable and non-attributable expenses;

•We have reviewed, and where relevant, challenged the appropriateness of these cost allocations in the context of IFRS 17 requirements and actual costs incurred during the year and in the comparative period;

•We have assessed the impact of the current inflationary environment on the assumptions. In this respect, we understood and challenged the basis on which expenses are projected by reference to market observable data (inflation curve); and

•We have assessed the reasonableness of the policy volumes used in the expense calculation.

In respect of all the assumptions referred to above, we have assessed the assumptions’ appropriateness based on internal and external data (where available).

Based on the work performed, we found the valuation of insurance contract liabilities (including the estimate, RA and CSM) to be consistent with the explanations and evidence obtained.

164

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Fair value of investment properties

Key audit matter

The carrying amounts of the Group’s investment properties carried at fair value as at 31 December 2025 amounts to € 12.89 million. Management determined the fair values through internal assessments made by the directors by reference to external independent valuations made during the period. The fair value of investment properties was significant in our audit because the amounts are material to the financial statements of the Group.

The method used to determine the fair value of investment properties is fully described in note 14 to the financial statements.

How the key audit matter was addressed in our audit

We evaluated the suitability and appropriateness of the valuation methodology applied by management and reviewed and challenged the methodology applied and the underlying assumptions used by independent valuation expert. We also assessed the competency and objectivity of the independent valuation experts appointed by the directors. We also communicated with management and those charged with governance and noted that they were able to provide satisfactory responses to our questions.

We also assessed the adequacy of the disclosures made in note 14 to the financial statements relating to these properties.

We have no key observations to report, specific to this matter.

Recoverability of related party loans

Key audit matter

At balance sheet date, the Group had loans and receivables from the Company’s immediate parent company and other related companies amounting to € 6.99 million and € 5.93 million respectively. The accounting policy relating to impairment of these assets is described in section 9 of the material accounting policies and the amounts are disclosed in note 18 to the financial statements. The loans and receivables are principally due from asset holding companies, which is why we have given additional attention to this area.

How the key audit matter was addressed in our audit

We agreed the loans and receivables to the agreements covering the amounts involved and we assessed the financial position of the companies from which the amounts are due, including the valuations of those companies’ underlying assets. As part of these procedures, we have also reviewed the loan repayment plans which the immediate parent company prepared and the underlying assumptions.

We also assessed the adequacy of the disclosures made in note 18 to the financial statements relating to these related party loans.

We have no key observations to report, specific to this matter.

165

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Other information

The directors are responsible for the other information. The other information comprises (i) the Chairman and CEO Statement – LifeStar Insurance plc, (ii) the Managing Director’s Report - LifeStar Health Limited (iii) the Directors’ report and the Statement of directors’ responsibilities (iv) the Corporate Governance – Statement of Compliance and (v) the Remuneration Report which we obtained prior to the date of this auditor’s report, but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information, including the Directors’ report.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

With respect to the Directors’ report, we also considered whether the Directors’ report includes the disclosures required by Article 177 of the Act, and in the case of the Remuneration report included in the Corporate Governance – Statement of Compliance, whether this has been prepared in accordance with Chapter 12 of the Capital Market Rules issued by the Malta Financial Services Authority (the “Capital Market Rules”).

Based on the work we have performed, in our opinion:

•The information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements, and the Directors’ report has been prepared in accordance with the Act, and

•The Remuneration report has been properly prepared in accordance with the requirements of the Capital Markets Rules.

In addition, in light of the knowledge and understanding of the Company and the Group and their environment obtained in the course of the audit, we are required to report if we have identified material misstatements in the Directors’ report and other information that we obtained prior to the date of this auditor’s report. We have nothing to report in this regard.

Responsibilities of the directors those charged with governance for the financial statements

The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with IFRS as adopted by the EU and are properly prepared in accordance with the provisions of the Act and the Insurance Business Act, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company’s and the Group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s and the Group’s financial reporting process.

166

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

-Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

-Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s and Group’s internal control.

-Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

-Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s and Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company’s or the Group’s ability to continue as a going concern.

-Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

-Obtain sufficient appropriate evidence regarding the financial information of the entities or business activities within the Group to express and opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with the relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

167

LifeStar Insurance p.l.c. – Annual Financial Report 2025

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefit of such communication.

Reports on other legal and regulatory requirements

Report on compliance with the requirements of the European Single Electronic Format Regulatory Technical Standard (the “ESEF RTS”), by reference to Capital Markets Rule 5.55.6

We have undertaken a reasonable assurance engagement in accordance with the requirements of Directive 6 issued by the Accountancy Board in terms of the Accountancy Profession Act (Cap. 281) - the Accountancy Profession (European Single Electronic Format) Assurance Directive (the “ESEF Directive 6”) on the Report and Consolidated Financial Statements of LifeStar Insurance p.l.c. for the year ended 31 December 2025, entirely prepared in a single electronic reporting format.

Responsibilities of the directors

The directors are responsible for the preparation of the Report and Consolidated Financial Statements and the relevant mark-up requirements therein, by reference to Capital Markets Rule 5.56A, in accordance with the requirements of the ESEF RTS.

Our responsibilities

Our responsibility is to obtain reasonable assurance about whether the Report and Consolidated Financial Statements and the relevant electronic tagging therein, complies in all material respects with the ESEF RTS based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with the requirements of ESEF Directive 6.

Our procedures included:

-Obtaining an understanding of the entity's financial reporting process, including the preparation of the Annual Report and Consolidated Financial Statements, in accordance with the requirements of the ESEF RTS.

-Obtaining the Annual Report and Consolidated Financial Statements and performing validations to determine whether the Annual Report and Consolidated Financial Statements have been prepared in accordance with the requirements of the technical specifications of the ESEF RTS.

-Examining the information in the Annual Report and Consolidated Financial Statements to determine whether all the required taggings therein have been applied and whether, in all material respects, they are in accordance with the requirements of the ESEF RTS.

-We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, the Annual Report and Consolidated Financial Statements for the year ended 31 December 2025 has been prepared, in all material respects, in accordance with the requirements of the ESEF RTS.

168

LifeStar Insurance p.l.c. – Annual Financial Report 2025

Report on the Statement of Compliance with the Principles of Good Corporate Governance

The Capital Market Rules require the directors to prepare and include in their Annual Report a Statement of Compliance providing an explanation of the extent to which they have adopted the Code of Principles of Good Corporate Governance and the effective measures that they have taken to ensure compliance throughout the accounting period with those Principles.

The Capital Market Rules also require us, as the auditor of the Company, to include a report on the Statement of Compliance prepared by the directors.

We read the Statement of Compliance with the Code of Principles of Good Corporate Governance and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements included in the Annual Report. Our responsibilities do not extend to considering whether this statement is consistent with any other information included in the Annual Report.

We are not required to, and we do not, consider whether the Board’s statements on internal control included in the Statement of Compliance with the Code of Principles of Good Corporate Governance cover all risks and controls, or form an opinion on the effectiveness of the Company’s corporate governance procedures or its risk and control procedures.

In our opinion, the Corporate governance statement has been properly prepared in accordance with the requirements of the Capital Market Rules.

Other matters on which we are required to report by exception

We also have responsibilities

•under the Companies Act, Cap 386 to report to you if, in our opinion:

-adequate accounting records have not been kept, or that returns adequate for our audit have not been received from branches not visited by us

-the financial statements are not in agreement with the accounting records and returns

-we have not received all the information and explanations we require for our audit

-certain disclosures of directors’ remuneration specified by law are not made in the financial statements, giving the required particulars in our report.

•in terms of Capital Market Rules to review the statement made by the Directors that the business is a going concern together with supporting assumptions or qualifications as necessary.

We have nothing to report to you in respect of these responsibilities.