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AS LHV Group established the non-life insurance undertaking AS LHV Kindlustus

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Today, on 6 May 2020, AS LHV Group and Toveko Invest OÜ signed the foundation
resolution of non-life insurance undertaking AS LHV Kindlustus, and approved the
company's articles of association. The main business of the undertaking will be
offering non-life insurance products. Obtaining an activity licence from the
Financial Supervision Authority is still required to commence the operations of
the insurance undertaking.

The share capital of AS LHV Kindlustus is EUR 1,250,000, which has been divided
into 1,250,000 shares with a nominal value of EUR 1, in a way that 65% of all
shares of AS LHV Kindlustus (812,500 shares) belong to AS LHV Group, and 35%
(437,500 shares) belong to Toveko Invest OÜ. The new undertaking is a subsidiary
of AS LHV Group, and belongs to the LHV consolidation group. Pursuant to an
agreement of the shareholders, the share capital of AS LHV Kindlustus will be
increased to EUR 5,000,000 before obtaining the activity licence.

From the standpoint of LHV Group, the purpose of establishing a non-life
insurance undertaking is to provide additional value to LHV's retail clients,
and, more broadly, to improve insurance opportunities on the Estonian market
while acting profitably. Offering insurance protection to the clients of LHV and
Euronics will create a synergy that guarantees the insurance undertaking with
enough insurance premiums to cover damages and costs, and to achieve profitable
operation immediately upon the commencement of insurance operations.

AS LHV Kindlustus intends to apply for an activity licence during this year.
From establishing the company to receiving the activity licence, LHV Kindlustus
will bear the costs and generate a loss. LHV Group will publish the financial
forecast related to the subsidiary after receiving the activity licence.

The company's Supervisory Board includes four members: Madis Toomsalu
(Chairman), Erki Kilu, Jaan Koppel, and Veiko Poolgas. The first meeting of the
Supervisory Board of the company was also held today.

Tarmo Koll and Jaanus Seppa were appointed Members of the Management Board of AS
LHV Kindlustus. Tarmo Koll's powers as a Member of the Management Board come
into effect as of today. Jaanus Seppa will take his place as Member of the
Management Board as of 1 September 2020, also becoming the Chairman of the
Management Board. Members of the management of AS LHV Group do not have personal
interests in establishing AS LHV Kindlustus.

Tarmo Koll is a Member of the Management Board of AS LHV Kindlustus. Before
that, from 2014 to 2019, he was the Chief Financial Officer and Head of Estonian
Operations of the insurance company Ergo Balti, and was a Member of the
Management Board of Ergo Insurance SE and Ergo Life Insurance SE. Before that,
he operated as the responsible actuary and head of department in the same
company. Tarmo Koll is the owner and Member of the Management Board of
Aktuaarsed Lahendused OÜ, and he also belongs to the Management Board of the
Estonian Actuarial Society. Tarmo Koll holds 530 shares of AS LHV Group.

Jaanus Seppa was appointed Member of the Management Board of AS LHV Kindlustus;
his powers will commence on 1 September 2020. Previously, Seppa worked at the
Lithuanian non-life insurance undertaking Compensa Vienna Insurance Group ADB,
being a Member of the Management Board and the Head of the Estonian branch from
2015 to 2019. Jaanus Seppa holds 9248 shares of AS LHV Group.

Madis Toomsalu is the Head of AS LHV Group and the Chairman of the Supervisory
Boards of AS LHV Pank and AS LHV Varahaldus. As of today, he is also the
Chairman of the Supervisory Board of AS LHV Kindlustus. He is also Member of the
Management Board of MTÜ FinanceEstonia. Madis Toomsalu and the persons related
to him own 53,819 shares of AS LHV Group. Madis Toomsalu is entitled to a total
of 90,920 shares of AS LHV Group for the options issued in 2018, 2019 and 2020.

Erki Kilu has been the Chairman of the Management Board of AS LHV Pank since
2008. In addition, Mr Kilu serves as a Member of the Supervisory Board of AS LHV
Finance, AS LHV Varahaldus and AS LHV Kindlustus, and is the Chairman of the
Management Board of the Estonian Banking Association. Erki Kilu holds 133,200
shares of AS LHV Group. He has the opportunity to acquire 87,214 shares of AS
LHV Group for options issued in 2018, 2019 and 2020.

Jaan Koppel has been a member of the Supervisory Board of AS LHV Finance since
2013, and as of today, he is also a Member of the Supervisory Board of AS LHV
Kindlustus. Additionally, he serves as a member of the Management Board of OÜ
Toveko Invest, Sandman Grupi Aktsiaselts, Osaühing Raglor, Euronics Baltic OÜ,
OÜ Veicoland and SND Invest OÜ; he is the Chairman of the Management Board of
SIA "Euronics Latvia" and a Member of the Supervisory Board of aktsiaselts
METAAN and Aktsiaselts Antista. Jaan Koppel and the persons related to him do
not hold shares of AS LHV Group.

Veiko Poolgas has been a Member of the Supervisory Board of AS LHV Finance since
2013, and as of today, he is also a Member of the Supervisory Board of AS LHV
Kindlustus. Additionally, he is a Member of the Management Board of Sandman
Grupi Aktsiaselts, SIA "Euronics Latvia", Osaühing VP Invest & Holdings, and OÜ
Veicoland. Veiko Poolgas and the persons related to him do not hold shares of AS
LHV Group.

LHV announced its intention to establish an insurance company with the 18
February stock exchange announcement:
https://cns.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=922262&mes
sageId=1162155. Permission to consolidate was received from the Competition
Authority in April.

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. LHV
employs over 450 people. LHV's banking services are used by nearly 217,000
clients, and pension funds managed by LHV have nearly 178,000 active clients.


Priit Rum
Communication Manager
Phone: +372 502 0786
Email: [email protected] (mailto:[email protected])