Fosun : Further Expansion of Fosun’s Global Insurance Footprint

Further Expansion of Fosun's Global Insurance Footprint

Acquisition of a Leading Insurance Company in Israel

(Tel Aviv , June 21, 2015) Fosun International Limited ("Fosun", the "Group", the "Company", "our" or "we", HKEx stock code: 00656) today announced that t he Company has entered into a share purchase agreement (the "Agreement") for Fosun to acquire 52.31% of the issued and outstanding share capital of the Israeli insurer and financial services company Phoenix Holdings Ltd. ("Phoenix", TASE ticker: PHOE). Pursuant to the A greement and certain agreed adjustments , Fosun agreed to acquire from Delek Group Ltd . (the "Seller", TASE ticker: DLEKG ) its stake in Phoenix for a base consideration of NIS 1,763,204,090 (approximately USD461,571,751) subject to certain interest calculations and adjustments at closing. The Transaction (the "Transaction" or the "Acquisition") represents one of the largest cross-border investments in the Israeli insurance sector to date.

Fosun is committed to becoming a world-class investment group, underpinned by the twin drivers of "insurance-oriented comprehensive financial capability" and "global industrial integration capability taking roots in China" and actively seeks a variety of investment opportunities around the world. Israel is a highly attractive market that complements Fosun's global expansion strategy. Fosun's commitment to Israel is further reflected in its acquisition of the Israeli leading medical and cosmetic energy-based device manufacturer Alma Lasers in 2013. Israel has a population of 8.3 million inhabitants and a GDP per capita of USD 39,000. Israel has a stable and mature insurance market with an attractive mid-term growth outlook and a sound regulatory framework for both life (7% annual growth rate) and non-life (5% annual growth rate) insurance markets.

Guo Guangchang, Chairman of Fosun, said: "Phoenix Holdings Ltd. has a leading position in Israel and is a group with diversified and balanced operations in insurance, asset management, senior care, and other businesses. The company employs an excellent management team with an industry-leading level of profitability, and their insurance and asset management businesses have performed exceptionally well in Israel. We believe that this investment can further expand Fosun's overseas insurance and investment operations. Meanwhile, it can also bring synergies alongside our insurance and reinsurance businesses, as well as to strengthen the Group's capability to access high-quality long-term capital. In addition, Fosun can help Phoenix seize growth opportunities in Israel's insurance market and help them explore business in other markets. We fully believe in Phoenix's management team and are committed to continuing to support their long-term vision for the company."

Phoenix was founded in 1949 as a diversified financial holding company with activities in the insurance and financial services sectors. Phoenix Insurance Company Ltd., one of Israel's leading Insurance that provides life, n on- l ife, h ealth i nsurance and l ong- t erm s avings. Phoenix Insurance Company Ltd. has a 16% market share in life insurance and a 14% market share in non-life insurance and is ranked fourth and third in life and non-life insurance respectively. The Phoenix Investments and Finance Ltd., which manages its members' funds, Phoenix Insurance's portfolio, and holds 90% equity interest in Excellence Nessuah Investment House ("Excellence"), one of the largest securities houses in Israel. Phoenix has approximately NIS162 billion of assets (including those of Excellence) and is one of Israel's largest financial groups. As of 31 December 2014, Phoenix's assets under management amounted to approximately NIS160 billion (approximately USD41.88billion). Phoenix has shareholders' equity of NIS 3,805m (USD 987m), earned 12.1% return on equity and has total assets of NIS101.34bn (USD26. 53 bn6) with a staff body of 3,569 employees.

Fosun has always regarded insurance as a prime means of connecting Fosun's investment capabilities with high-quality long-term capital. Presently, insurance has already become Fosun's most important business sector, accounting for more than a third of Fosun's total assets. The Group's current portfolio of insurance entities include the largest insurance group in Portugal - Fidelidade , Yong'an P&C Insurance, Pramerica Fosun Life Insurance, Peak Reinsurance, Ironshore, and MIG. Fosun will continue to be committed to insurance as a core business and will hold insurance development as one of the main engines of growth for the Group. Fosun's total assets was RMB 324.8 billion by end-2014, after taking into account the total assets of Phoenix, Ironshore and MIG as of end-2014, Fosun's aggregated insurance assets will reach approximately RMB 27 0 billion, and the proportion of Fosun's aggregated insurance assets to the Group's aggregated total assets will increase from 35% to 49 %. The "insurance-oriented comprehensive financial capability' of Fosun will enhance significantly. The "insurance-oriented comprehensive financial capability' of Fosun will enhance significantly. The Acquisition of Phoenix marks a further step in implementing Fosun's investment model of "Combining China's Growth Momentum with Global Resources" and further expands Fosun's global footprint in the insurance market. This Acquisition not only will bring synergies alongside our insurance and reinsurance businesses, and will further optimize the Group's capital structure and lower its cost of funding on a consolidated level.

The Transaction is subject to the receipt of regulatory approvals and other customary closing conditions. Deutsche Bank acted as sole financial adviser to Fosun in relation to the Acquisition.