VIG.com: IR/Ad-hoc News

Vienna Insurance Group in the first half-year of 2010

Thu, 19 Aug 2010 08:00:00 +0200

Group premiums increased by approx. 8 percent to EUR 4.6 billion
Despite significant storm damages, profit (before taxes) rose by 11 percent to EUR 255.6 million
Strong growth in the life insurance segment – significant contribution of s Versicherung Group
Ukraine becomes a new core market – commitment to further consolidation of the leading position
Motor legal expenses insurance – new offer for customers in CEE
Restructuring of the Group completed successfully

“After its successful start into the year, Vienna Insurance Group also reports a sound result for the first six months of 2010. We continue growing consistently and profitably”, Günter Geyer, CEO of Vienna Insurance Group, explained the current business figures. “These figures indicate an interesting trend. Since the beginning of the year, we have observed our customers’ strong hesitancy in consumption, which is reflected in sluggish growth in the motor insurance segments. But at the same time, we benefit from this trend as the pronounced desire to save is leading to double-digit growth in life insurance. Thanks to the consequential increase in premiums – combined with the slight relaxation of the financial markets compared to last year –, we report an increase in profit (before taxes) of 11 percent despite the high expenses caused by natural disasters. Thus business in the current financial year is developing according to plan.“

I. OVERVIEW OF KEY GROUP DATA FOR THE FIRST SIX MONTHS OF 2010 (BASED ON IFRS)

With premiums written (consolidated) totaling EUR 4.6 billion in the first six months of 2010, Vienna Insurance Group achieved a plus of 7.9 percent compared to the same period of the previous year. The Group recorded an increase of 10.7 percent in net earned premiums.

In the first six months of 2010, the Group profit (before taxes, consolidated) amounted to EUR 255.6 million. Despite the natural disasters, a remarkable growth of 11.0 percent was achieved.

The combined ratio of the Group (net, i.e. after reinsurance, excluding investment income) remained below the 100-percent threshold. In the first half of 2010, it climbed to 98.3 percent due to the natural disasters of the current year. This damage (before reinsurance) – in particular in Austria, the Czech Republic, Poland and Romania – caused expenses of a total of about EUR 100 million.

In the first six months of 2010, the financial result of the Group totaled EUR 646.6 million, surging by 37.1 percent compared to the same period of the previous year due to the stabilisation of the capital markets.

The investments of the Group amounted to EUR 26.8 billion as at 30 June 2010; this corresponds to an increase by 3.6 percent compared to the year-end level of 2009.

II. GROUP DATA BY SEGMENTS FIRST SIX MONTHS OF 2010 (CONSOLIDATED)

Property/casualty insurance

In this segment, Vienna Insurance Group recorded premiums written of EUR 2.4 billion, achieving a plus of 1.3 percent. Net earned premiums in this segment grew by 4.7 percent.

In the CEE markets, the Vienna Insurance Group companies reported premiums written in property/casualty insurance of a total of EUR 1.4 billion, corresponding to a plus of 2.0 percent.

In the non-CEE countries, premiums in this segment increased slightly, totaling about EUR 1.0 billion. With EUR 966.2 million, premiums in Austria remained on the prior-year level. In Germany, premiums rose by 1.9 percent to EUR 37.6 million.

Life insurance

The Group companies of Vienna Insurance Group reported premiums written in this segment of a total of more than EUR 2.0 billion. s Versicherung Group made a major contribution to the strong growth of 17.5 percent.

In the CEE markets, the life insurance segment posted a substantial growth of 16.1 percent, increasing premiums written to EUR 728.4 million.

In non-CEE markets, premiums written amounted to EUR 1.3 billion; this corresponds to a plus of 18.2 percent compared to the same period of last year.

Health insurance

With premiums written of EUR 164.9 million, Vienna Insurance Group records a growth of 1.3 percent in this segment.

III. GROUP DATA BY REGIONS FIRST SIX MONTHS OF 2010 (CONSOLIDATED)

Austria

In the first six months of 2010, the Vienna Insurance Group companies reported premiums written of a total of EUR 2.3 billion in Austria, achieving an increase by 6.2 percent. In the property/casualty insurance segment, premiums written amounted to EUR 966.2 million. Growing by 12.2 percent, premiums in life insurance went up to EUR 1.2 billion.

Profit (before taxes) amounted to EUR 138.1 million in the first six months of 2010; compared to the same period of the previous year, a plus of 4.3 percent was achieved.

The combined ratio amounted to 95.1 percent.

Czech Republic

The Group companies of Vienna Insurance Group increased premiums written in the Czech Republic to a total of EUR 869.3 million; this corresponds to a plus of 11.9 percent.

In the non-life insurance segment, premiums written amounted to EUR 519.3 million, going up by 2.3 percent.

With a significant increase by 30.1 percent, premiums written in life insurance rose to EUR 350.0 million.

Profit (before taxes) increased by 20.1 percent to EUR 67.6 million compared to the same period of last year.

Despite damages paid due to storms, the combined ratio amounted to 95.7 percent in the first six months of 2010.

Slovakia

In Slovakia, the Group companies reported a total of premiums written of EUR 326.3 million (plus 0.6 percent). A clear increase by 5.8 percent was achieved by the Group in net earned premiums.

In the non-life insurance segment, premiums written of EUR 167.2 million were registered. Growing by 13.6 percent, premiums written in the life insurance segment climbed to a total of EUR 159.1 million.

Profit (before taxes) rose from EUR 7.7 million to EUR 12.9 million.

The combined ratio improved to 95.2 percent.

Poland

In Poland, the Vienna Insurance Group companies increased premiums written by 31.8 percent to EUR 346.5 million in the first half of the current year.

In the non-life insurance segment, Vienna Insurance Group achieved an increase by 59.0 percent to EUR 270.9 million.

With premiums of EUR 75.7 million, a decline of 18.2 percent was reported in life insurance, which can be attributed exclusively to the strong downward trend in the single premium business.

The combined ratio rose to more than 100 percent due to flood-related damage.

Profit (before taxes) amounted to EUR 10.2 million in the first half of the current year.

Romania

In the non-life insurance segment, premiums of EUR 225.7 million were written. Due to the revenue-oriented portfolio restructuring, a decline in premiums was reported.

In the life insurance segment, premiums went up by a remarkable 39.8 percent to a total of EUR 48.3 million. This significant increase is mainly due to the strong selling power of BCR life insurance.

In the first half of 2010, the Romanian Group companies achieved premiums written of a total of EUR 274.0 million (minus 12.5 percent).

Profit (before taxes) rose by 18.7 percent to EUR 14.3 million.

Due to the development of damages, the combined ratio exceeded 100 percent.

Other CEE markets

The segment “Other CEE markets“ comprises the Group companies of Vienna Insurance Group in the following countries: Albania, Bulgaria, Croatia, Macedonia, Serbia, Turkey, Ukraine, Hungary as well as the three Baltic states.

Premiums written totaled EUR 289.8 million, of which EUR 194.5 million were attributable to non-life insurance. In the life insurance segment, premiums of EUR 95.3 million correspond to a plus of 4.4 percent.

Profit (before taxes) amounted to EUR 3.6 million, compared to a loss of EUR 2.3 million in the first six months of 2009.

Other markets

In Germany and Liechtenstein, the Group companies succeeded in more than doubling their premiums, earning premiums written of a total of EUR 162.8 million.

Profit (before taxes) amounted to EUR 8.8 million.

IV. RESTRUCTURING OF THE GROUP COMPLETED SUCCESSFULLY

On 3 August 2010, the restructuring of Vienna Insurance Group took legal effect after approval by the Austrian Financial Market Supervisory Authority. Besides exercising the usual international control functions of a listed group, VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe is also active in the reinsurance and international wholesale insurance business.

“I was highly impressed by the general agreement to approve the Group’s new organisational structure, which was based on a unanimous resolution of the Annual General Meeting“, stated Günter Geyer. “I am particularly proud of the fact that restructuring was implemented quickly and efficiently thanks to the firm commitment of our entire staff.“

WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group – the Group’s largest individual company in Austria – will therefore continue to be active in the property/casualty, life and health insurance business.

V. LAUNCH OF THE MOTOR LEGAL EXPENSES INSURANCE IN CEE

Continuously expanding its product portfolio, Vienna Insurance Group will offer legal expenses insurance for motor vehicles in Poland, the Czech Republic as well as in Slovakia. The Group companies insure about 5 million vehicles in these three countries already now. On this sound basis, the Group envisages excellent opportunities to expand customer relations by introducing motor legal expenses insurance. This step paves the way for a significant growth potential in the future.

VI. NEW CORE MARKET UKRAINE

With more than 45 million inhabitants, Ukraine is one of the most heavily populated countries of the CEE region. Vienna Insurance Group has been active in the life insurance segment in this market already since 2004, in the year 2005 it expanded its portfolio also in the non-life insurance segment. One of the most important consequences of the take-over of the TBIH shares, was the inclusion of UIG in the Group. This fast-growing non-life insurer with a strong future potential has optimally taken advantage of the favourable economic trend recorded in Ukraine since spring 2010. In view of this economic dynamism, the management of Vienna Insurance Group decided to make Ukraine the tenth core market of the Group and seeks to improve its strong position as one of the leading insurance groups in this country.

“We are always looking for new business opportunities. To this end, we examine our portfolio on an ongoing basis and adjust it to the needs and to demand. We have realised that the time is ripe for motor legal expenses insurance in selected CEE markets and have therefore started to expand our range of products in line with customer requirements. In Ukraine, the economic setting has improved considerably, and by making this country one of our core markets, our Group aims at achieving a leading position also in this insurance market”, Günter Geyer explained the reasons for intensifying the engagement.

Vienna Insurance Group in the first half-year of 2010:

Thu, 19 Aug 2010 07:30:00 +0200

Group premiums increased by approx. 8 percent to EUR 4.6 billion
Despite significant storm damages, profit (before taxes) rose by 11 percent to EUR 255.6 million
Strong growth in the life insurance segment – significant contribution of s Versicherung Group
Ukraine becomes a new core market – commitment to further consolidation of the leading position
Motor legal expenses insurance – new offer for customers in CEE
Restructuring of the Group completed successfully

OVERVIEW OF KEY GROUP DATA FOR THE FIRST SIX MONTHS OF 2010 (BASED ON IFRS)
With premiums written (consolidated) totaling EUR 4.6 billion in the first six months of 2010, Vienna Insurance Group achieved a plus of 7.9 percent compared to the same period of the previous year. The Group recorded an increase of 10.7 percent in net earned premiums.

In the first six months of 2010, the Group profit (before taxes, consolidated) amounted to EUR 255.6 million. Despite the natural disasters, a remarkable growth of 11.0 percent was achieved.

The combined ratio of the Group (net, i.e. after reinsurance, excluding investment income) remained below the 100-percent threshold. In the first half of 2010, it climbed to 98.3 percent due to the natural disasters of the current year. This damage (before reinsurance) – in particular in Austria, the Czech Republic, Poland and Romania – caused expenses of a total of about EUR 100 million.

In the first six months of 2010, the financial result of the Group totaled EUR 646.6 million, surging by 37.1 percent compared to the same period of the previous year due to the stabilisation of the capital markets.

The investments of the Group amounted to EUR 26.8 billion as at 30 June 2010; this corresponds to an increase by 3.6 percent compared to the year-end level of 2009.
LAUNCH OF THE MOTOR LEGAL EXPENSES INSURANCE IN CEE

Continuously expanding its product portfolio, Vienna Insurance Group will offer legal expenses insurance for motor vehicles in Poland, the Czech Republic as well as in Slovakia. The Group companies insure about 5 million vehicles in these three countries already now. On this sound basis, the Group envisages excellent opportunities to expand customer relations by introducing motor legal expenses insurance. This step paves the way for a significant growth potential in the future.

NEW CORE MARKET UKRAINE

With more than 45 million inhabitants, Ukraine is one of the most heavily populated countries of the CEE region. Vienna Insurance Group has been active in the life insurance segment in this market already since 2004, in the year 2005 it expanded its portfolio also in the non-life insurance segment. One of the most important consequences of the take-over of the TBIH shares, was the inclusion of UIG in the Group. This fast-growing non-life insurer with a strong future potential has optimally taken advantage of the favourable economic trend recorded in Ukraine since spring 2010. In view of this economic dynamism, the management of Vienna Insurance Group decided to make Ukraine the tenth core market of the Group and seeks to improve its strong position as one of the leading insurance groups in this country.

VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe: New corporate structure implemented

Tue, 03 Aug 2010 09:30:00 +0200

Vienna Insurance Group incorporates control of the Group in Austria and Central and Eastern Europe into its holding function
As the largest single company, Wiener Städtische Versicherung is responsible for the operational core business in Austria

With effect from 3 August 2010 and following approval from the Austrian Financial Market Authority (FMA), the company's operational insurance business in Austria was legally segregated from the holding functions of the Group. WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group, as the largest single company, will therefore continue to handle the property/casualty, life and health insurance business in Austria. Robert Lasshofer takes over responsibility as General Manager of Wiener Städtische Versicherung.

As a listed Group holding company, the VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe focuses on transnational control tasks. Günter Geyer continues to head up the Group as the CEO.

The Vienna Insurance Group is the leading insurance group in Central and Eastern Europe and has approximately 24,000 employees in 23 countries across this region. In 2009, the Group generated a premium volume of more than EUR 8 billion.

"With this modern and forward-looking management structure, the Vienna Insurance Group can control its activities in Central and Eastern Europe even more efficiently. A seamless transition is ensured, as the relevant structures have already been put in place. This allows us to bring to bear the full force of our group and exploit all synergies and opportunities for growth," explains Vienna Insurance Group CEO Günter Geyer.

The Managing Board of VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe is comprised as follows:

General Manager Günter Geyer (Chairman of the Managing Board)
Deputy General Manager Peter Hagen
Member of the Managing Board Martin Simhandl (CFO)
Member of the Managing Board Martin Diviš
Member of the Managing Board Franz Fuchs
Member of the Managing Board Peter Höfinger

Deputy Members of the Managing Board

Franz Kosyna
Roland Gröll

With a market share of approximately 14 percent, the WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group is Austria's leading insurance company. The company has approximately 4,000 employees overall and generated a total premium volume of EUR 2.3 billion in 2009.

"With this new structure, Wiener Städtische Versicherung will be able to concentrate fully on the operational insurance business. Our innovative product portfolio combined with the highest level of advisory skills and strong distribution partnerships has made us the leading partner in Austria in both the private customer and the large corporate customer segments. We will continue to pursue this strategy in the future and we will use the opportunities brought about by the restructuring to further strengthen our position in the Austrian market," explains Wiener Städtische General Manager, Robert Lasshofer.

The Managing Board of WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group is comprised as follows:

General Manager Robert Lasshofer (Chairman of the Managing Board)
Member of the Managing Board Christine Dornaus
Member of the Managing Board Judit Havasi
Member of the Managing Board Erich Leiß
Member of the Managing Board Peter Höfinger

Vienna Insurance Group: Winner of the "Format Strategic Performance Test"

Fri, 30 Jul 2010 10:00:00 +0200

The Vienna Insurance Group was ranked 1st in the “Banks and Insurance Companies” category in the “Format Strategic Performance Test”, the results of which are announced in today’s edition of the news magazine Format. The Vienna Insurance Group heads the ranking in the 1 and 3 year assessments. The expert study has been compiled annually for the last 12 years by Contrast Management Consulting and uses a range of criteria, such as return on equity, annual growth and shareholder return. “The fantastic results of this independent study are really pleasing and confirm again that our safety-oriented and ambitious strategy of growth is accurate for us. It is our aim to achieve maximum value for our clients and shareholders by continuing with the positive development of the Vienna Insurance Group,” comments Günter Geyer, CEO of the Vienna Insurance Group.
The early entry into the CEE markets has formed the cornerstone for the continuing growth of the Vienna Insurance Group. Since 1990, the Group has had average annual growth rates of approximately 10 percent in terms of turnover and profit. The entry into further new markets enables growth to be achieved even in tough economic conditions, as has been the case in the last few years. In addition, early market entry leads to very efficient use of capital and substantiates the far-sightedness of the management’s CEE strategy. A key factor contributing to the growth of the Vienna Insurance Group is a broad and diversified distribution structure. For example, the expansion of sales via the bank counter, particularly in CEE, has contributed real dynamism. Good sales figures are achieved, particularly in the life insurance segment, via this sales channel. With the recently adopted structural reorganisation, the Vienna Insurance Group has created a clear and efficient basis for the management of its activities in line with growth. The new structure and good capitalisation form the basis for further expansion of the business. “I am convinced that we will continue to achieve good results in the future. Our recipe for success is stability combined with early recognition of opportunities. This is also evident in the human resources policies in place at the Vienna Insurance Group. We aim to provide good support at an early stage to our young talent and to consistently ensure that we are developing a new generation of management. This allows us to view the further development of the Vienna Insurance Group with confidence and to look far into the future”, adds Günter Geyer.

Vienna Insurance Group: Increase in TBIH holding to 100 percent

Fri, 23 Jul 2010 08:00:00 +0200

After taking over the operational control in TBIH Financial Services Group N.V (TBIH), Vienna Insurance Group and Kardan Financial Services B.V. have agreed on the purchase of the minority holding of 40 percent in TBIH held by Kardan Financial Services. This means that upon closing ot the transaction Vienna Insurance Group will holds 100 percent of the shares in TBIH. This step completes the steady increase in influence by Vienna Insurance Group on TBIH business operations. Vienna Insurance Group directly took over the holdings held by TBIH in insurance companies in Albania, Bulgaria, Croatia and Macedonia back in 2009.

Vienna Insurance Group's commitment to TBIH has been in place since 2006. The increased integration of TBIH insurance activities into Vienna Insurance Group enables the Group to better utilise its know-how for positioning itself on the respective insurance markets. Currently, TBIH maintains majority holdings in insurance companies in Turkey, Ukraine and Georgia.

The Turkish property/casualty insurance company Ray Sigorta generated a premium volume of approximately EUR 113 million in 2009. The Ukrainian insurance companies UIG and VAG Insurance are also active on the non-life market, and together generated premium volumes of around EUR 40 million in 2009. In Georgia, TBIH is the market leader, maintaining holdings in the insurance companies GPIH and IRAO, which generated premium volumes of approximately EUR 50 million in 2009. The transaction also includes the TBIH majority holding in Doverie Pension Fund AD, the leading Bulgarian pension fund.

The acquisition of the minority holding of 40 percent in TBIH is subject to official approvals.

Annual General Meeting 2010 made the following important decisions

Tue, 29 Jun 2010 08:12:00 +0200

• New company structure approved
• Dividends of EUR 0.90 per share
The 19th Annual General Meeting of Vienna Insurance Group Wiener Städtische Versicherung AG was held on 29 June 2010 in the Wiener Stadthalle. All resolutions at the Annual General Meeting were approved by the shareholders with a clear majority. The Annual General Meeting decided to spin off the entire insurance division as a 100 percent subsidiary, which will be called the “Wiener Städtische Versicherung AG Vienna Insurance Group“. The listed holding of the Group will bear the name “VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe” and will have significant transnational management responsibilities. This change will provide the Vienna Insurance Group with a modern, future-orientated management structure appropriate to the requirements of an international group. All preparations for the implementation of the resolutions have already been made by the management, guaranteeing a smooth transition. As the largest individual company of the Group and leading insurance company in Austria, the Wiener Städtische Versicherung AG Vienna Insurance Group will conduct its operational insurance business. The Vienna Insurance Group continued its stable development in 2009. Significantly influenced by the business development in CEE, the Group achieved profits (before tax) of over EUR 441 million and premiums of over EUR 8 billion. The Annual General Meeting approved the suggestion of management to pay out a dividend of EUR 0.90 per share for the previous financial year 2009. The dividend payment date and ex-day is 5 July 2010. The documents relating to the Annual General Meeting can be found online for download here. The remarks made by CEO Günter Geyer about the consolidated financial statement for 2009 at today's Annual General Meeting were recorded and will be available online after around 5 pm.

Vienna Insurance Group in Montenegro: Market entry going according to plan

Mon, 28 Jun 2010 12:00:00 +0200

Application submitted for life insurance licence The market entry of the Vienna Insurance Group in Montenegro is making good progress. Following the foundation of an appropriate company an application to the country’s supervisory authority for the granting of a life insurance licence for Wiener Städtische zivotno osiguranje Podgorica a.d., based in Podgorica, has been submitted. It is expected that approval will be granted in the 3rd quarter of 2010. “We are continuing our expansion and promote our market entry in Montenegro,” comments Günter Geyer, CEO of the Vienna Insurance Group about recent developments. “By expanding our geographical network in this way, we now add another market with long-term high growth potential to our Group’s portfolio.” The insurance market in Montenegro With just over 670,000 residents, the young country is among the smaller markets in this region. However, the insurance market in Montenegro shows high development potential. This is illustrated by the market data: The insurance density (annual premiums per capita) is around EUR 95, while the insurance penetration (share of the premiums in the BIP in percent) is around 1.8 percent. In comparison to this, the EU-15 states in 2008 had an insurance penetration of 8.7 percent and an insurance density of more than EUR 2,500 in this area.8.7 percent and an insurance density of more than 2,500 euros.

Vienna Insurance Group: Taking over operational control of TBIH

Thu, 10 Jun 2010 08:30:00 +0200

Back in 2009, the Vienna Insurance Group directly acquired shares held by TBIH Financial Services Group N.V (TBIH) in insurance companies in Albania, Bulgaria and Macedonia. In a next step, the Vienna Insurance Group will strengthen its commitment to TBIH and take over operational control on the basis of its majority holding. Pending regulatory approval and agreement by the governing bodies of the company, this is scheduled to take effect on 30th June 2010. “Our involvement in TBIH has allowed us to significantly expand the strategic positioning of the Vienna Insurance Group in our core markets in CEE”, comments Dr. Günter Geyer, CEO of the Vienna Insurance Group. “With these most recent steps, we are aiming to improve the harmonious integration of TBIH and its subsidiaries into our group and thereby continue with the ongoing structural reorganisation of the Vienna Insurance Group.” The Vienna Insurance Group now has a direct holding in TBIH of 60 percent, with the non-controlling interest of 40 percent being held by Kardan Financial Services B.V. This ownership structure at TBIH will remain unchanged. TBIH has majority holdings in insurance companies in Georgia, Turkey and Ukraine.

Vienna Insurance Group in the first quarter of 2010: Best first quarter in the corporate history

Thu, 20 May 2010 08:00:00 +0200

Profit (before taxes) increased by 10.4 percent to EUR 133.4 million
Group premiums for the first time above EUR 2.5 billion
Premiums grow by 7.9 percent
CEE core markets¹ – market leadership also in life insurance
Number one in the Czech Republic
Foundation of a life insurance company in Macedonia

“The business figures for the first quarter of 2010 confirm our forecast for the result of the current financial year”, stated Günter Geyer, CEO of Vienna Insurance Group, with regard to the Group’s development. “We are particularly pleased about growth achieved by our Group companies in the life insurance segment through insurance contracts sold by banks, proving that our decision to acquire the Sparkassen Versicherung Group one and a half years ago was right. This has made us the market leader in the Czech Republic for the first time. Moreover, we have also managed to move into leadership ranks in this segment in our CEE core markets. This success has encouraged us to expand our engagement in the life insurance business in new markets. After Montenegro, we will open up another market in the life insurance segment in Macedonia.“ ¹CEE core markets defined as follows: Bulgaria, the Czech Republic, Croatia, Hungary, Poland, Romania, Serbia, Slovakia I. OVERVIEW OF KEY GROUP DATA FOR THE 1^ST QUARTER OF 2010 (based on IFRS)
In the first quarter of 2010, Vienna Insurance Group reported a total of premiums written (consolidated) of EUR 2.53 billion; this is a plus of 7.9 percent compared to the same period of the previous year. The Group achieved an increase of 13.8 percent in net earned premiums.

The Group’s profit (before taxes, consolidated) for the first three months of 2010 amounted to EUR 133.44 million, corresponding to a total growth of 10.4 percent. This is the best first-quarter result ever achieved in the corporate history.

The combined ratio of the Group after reinsurance (without taking into account investment income) stood at 97.5 percent in the first quarter of the current year.

The financial result of the Group totaled EUR 310.36 million in the first quarter of 2010, climbing by 30.3 percent from the prior-year level.

The investments of the Group amounted to EUR 26.85 billion as at 31 March 2010; this is an increase by 3.7 percent compared to 31 December 2009.

II. GROUP DATA BY SEGMENTS 1^ST QUARTER OF 2010 (consolidated)

Property/casualty insurance

In this segment, the Group companies of Vienna Insurance Group earned premiums written of a total of EUR 749.52 million in the CEE markets, corresponding to a plus of 1.6 percent. The Group succeeded in increasing the net earned premiums in this segment by 8.3 percent.

In the non-CEE countries, the premiums in this segment remained on a stable level of EUR 634.56 million. In Austria, premiums in this segment showed a similar development as in the previous year, totaling EUR 614.01 million. In Germany, premiums went up by 1.7 percent to EUR 20.54 million.

Life insurance

In this segment, the Group companies of Vienna Insurance Group reported premiums written totaling EUR 1.06 billion. Compared to the prior-year period, this corresponds to a growth of 19.4 percent.

The CEE markets reported a strong growth of 12.8 percent in the life-insurance segment; premiums written increased to EUR 362.11 million.

In the non-CEE countries, the premiums written earned in this segment amounted to EUR 700 million, going up by 23.2 percent compared to the same period of the previous year.

Health insurance

With premiums written totaling EUR 84.78 million, Vienna Insurance Group reported a growth of 1.0 percent in health insurance.

III. GROUP DATA BY REGIONS 1^ST QUARTER OF 2010 (consolidated)
Austria

In the first quarter of 2010, the Group companies of Vienna Insurance Group in Austria reported premiums written of a total of EUR 1.30 billion, achieving an increase by 4.5 percent. In the segment property/casualty insurance, premiums written of EUR 614.01 million were earned. Growing by 10.2 percent, premiums in the life-insurance segment rose to EUR 602.32 million.

The profit (before taxes) totaled EUR 70.29 million in the first quarter of 2010.

The combined ratio amounted to 94.3 percent.
Czech Republic

By increasing premiums written to a total of EUR 454.46 million in the Czech Republic, the Group companies of Vienna Insurance Group achieved a plus of 12.4 percent.

In the non-life insurance segment, premiums written amounted to EUR 285.05 million; this corresponds to an increase by 4.2 percent.

Thanks to a strong growth by 29.3 percent, premiums written in the life insurance segment climbed to a level of EUR 169.41 million.

With a market share of 32.5 percent after the first quarter of 2010, the Group companies of Vienna Insurance Group became the new number one in the Czech insurance market. This makes Vienna Insurance Group the Czech Republic’s market leader in both non-life insurance and life insurance.

Compared to the same period of the previous year, the profit (before taxes) surged by 30.0 percent to EUR 31.47 million.

The combined ratio amounted to 94.8 percent in the first quarter of 2010.
Slovakia

The Group companies reported premiums written of EUR 181.77 million in total (minus 2.4 percent) in Slovakia. The Group achieved a clear plus of 5.8 percent in net earned premiums.

Premiums written of EUR 101.63 million were registered in the non-life insurance segment. Growing by 11.4 percent, premiums written in the life insurance segment totaled EUR 80.13 million.

Thanks to a market share of 33.2 percent, the Group companies of Vienna Insurance Group are the number one in the Slovakian insurance market.

The profit (before taxes) doubled to EUR 10.09 million.

The combined ratio improved to 96.1 percent.
Poland

In Poland, the Group companies of Vienna Insurance Group increased premiums written by 23.5 percent to EUR 176.72 million in the first three months of the current year.

In the non-life insurance segment, Vienna Insurance Group achieved a 60.1 percent plus, with premiums written amounting to EUR 134.89 million.

With premiums of EUR 41.82 million, the life insurance segment recorded a decline by 28.9 percent, which is exclusively due to the downward trend in the single premium business.

The profit (before taxes) amounted to EUR 7.17 million in the first quarter of 2010, climbing by 14.0 percent compared to the same period of the previous year.

Due to weather-induced damages, the combined ratio rose to above 100 percent.
Romania

The Romanian Group companies reported premiums written totaling EUR 147.40 million (minus 12.2 percent) in the first quarter of 2010. Net earned premiums went up by 4.7 percent.

In the non-life insurance segment, premiums of EUR 121.37 million were written. In this segment, the income-oriented restructuring of the portfolio has resulted in a decline of premiums.

In the life insurance segment, premiums grew by an outstanding 59.1 percent to a total of EUR 26.03 million. This significant increase is mainly due to the strong selling power of BCR life insurance.

The profit (before taxes) rose by 18.1 percent to EUR 7.41 million.

As a result of this strategy, the combined ratio was decreased significantly by more than ten percentage points compared to the first quarter of the previous year, amounting to 98.1 percent.
Other CEE markets

The segment “Other CEE markets“ comprises the Group companies of Vienna Insurance Group in the following countries: Albania, Bulgaria, Croatia, Macedonia, Serbia, Turkey, Ukraine, Hungary as well as the three Baltic states.

Premiums written totaled EUR 151.28 million in total; out of this amount, EUR 106.56 million were attributable to the non-life insurance segment. In the life insurance segment, a growth of 4.1 percent was registered, with premiums of EUR 44.72 million.

The profit (before taxes) amounted to EUR 2.80 million.
Other markets

In Germany and Liechtenstein, the Group companies reported a total of premiums written of EUR 118.22 million in the first quarter; this means that premiums more than doubled.

The profit (before taxes) amounted to EUR 4.21 million.

IV. OUTLOOK

Due to the business development in the first quarter of 2010, the management of Vienna Insurance Group reinforces the expected growth in the profit (before taxes) by more than ten percent and a single-digit increase in premiums.

V. FOUNDATION OF A LIFE INSURANCE COMPANY IN MACEDONIA

After the announced market entry in Montenegro, Vienna Insurance Group continues strengthening its presence in Central and Eastern Europe and plans to establish a life insurance company in Macedonia. The Group has already been represented in the non-life insurance sector of Macedonia through Winner Vienna Insurance Group since 2007.

The insurance products are to be sold through Investbanka a.d. Skopje, forming part of the Erste Group. As a result, sales cooperation with Erste Group will cover a total of ten countries.

Macedonia has 2.1 million inhabitants and is an insurance market with a strong development potential. The insurance density (premiums per capita) was almost EUR 50 in 2009 and the insurance penetration (share of premiums in the GDP in percent) amounted to slightly more than 1.5 percent. By comparison, the EU-15 Member States reported an insurance density of more than EUR 2,500 and an insurance penetration of 8.7 percent in this sector in 2009.

Vienna Insurance Group in the first quarter of 2010 - Best first quarter in the corporate history

Thu, 20 May 2010 07:30:00 +0200

Profit (before taxes) increased by 10.4 percent to EUR 133.4 million
Group premiums for the first time above EUR 2.5 billion
Premiums grow by 7.9 percent
CEE core markets¹ – market leadership also in life insurance
Number one in the Czech Republic
Foundation of a life insurance company in Macedonia

OVERVIEW OF KEY GROUP DATA FOR THE 1^ST QUARTER OF 2010 (based on IFRS)
In the first quarter of 2010, Vienna Insurance Group reported a total of premiums written (consolidated) of EUR 2.53 billion; this is a plus of 7.9 percent compared to the same period of the previous year. The Group achieved an increase of 13.8 percent in net earned premiums.
The Group’s profit (before taxes, consolidated) for the first three months of 2010 amounted to EUR 133.44 million, corresponding to a total growth of 10.4 percent. This is the best first-quarter result ever achieved in the corporate history.
The combined ratio of the Group after reinsurance (without taking into account investment income) stood at 97.5 percent in the first quarter of the current year.
The financial result of the Group totaled EUR 310.36 million in the first quarter of 2010, climbing by 30.3 percent from the prior-year level.
The investments of the Group amounted to EUR 26.85 billion as at 31 March 2010; this is an increase by 3.7 percent compared to 31 December 2009.

OUTLOOK
Due to the business development in the first quarter of 2010, the management of Vienna Insurance Group reinforces the expected growth in the profit (before taxes) by more than ten percent and a single-digit increase in premiums.

FOUNDATION OF A LIFE INSURANCE COMPANY IN MACEDONIA
After the announced market entry in Montenegro, Vienna Insurance Group continues strengthening its presence in Central and Eastern Europe and plans to establish a life insurance company in Macedonia. The Group has already been represented in the non-life insurance sector of Macedonia through Winner Vienna Insurance Group since 2007.

The insurance products are to be sold through Investbanka a.d. Skopje, forming part of the Erste Group. As a result, sales cooperation with Erste Group will cover a total of ten countries. ¹CEE core markets defined as follows: Bulgaria, the Czech Republic, Croatia, Hungary, Poland, Romania, Serbia, Slovakia

Vienna Insurance Group: CEE market leader in the life insurance segment

Thu, 06 May 2010 13:00:00 +0200

Following the attainment by the Vienna Insurance Group of market leadership in the Czech Republic, the Group has achieved a further milestone in the pursuit of its strategy: in its position of market leader in its core markets in CEE¹, the Vienna Insurance Group is now also number 1 in the life insurance segment in this region. With a market share of 10.6 percent, the Vienna Insurance Group is clearly ahead of its international competitors in this segment. In 2009, the Vienna Insurance Group achieved almost 40 percent of the Group’s premiums in the CEE region in the life insurance segment.
“The attainment of market leadership in the life insurance segment is a considerable achievement for our CEE strategy and means we have reached another of our goals,” comments Günter Geyer, CEO of the Vienna Insurance Group about this pleasing news, before adding, “We are thus continuing our good development even in difficult economic conditions. In terms of sales, we have been focusing strongly on bancassurance and are now benefiting from this forward-looking decision.”
This success has been achieved by virtue of the good performance in the Group’s core markets despite the difficult current economic situation. In life insurance the Vienna Insurance Group is the market leader in the Czech Republic, Croatia and Slovakia. The Group is also the market leader in this segment in Austria.
Overall, as number 1 in the region, the Vienna Insurance Group has a market share in CEE of 14.6 percent. With a market share of 18.2 percent, the Group is also the market leader in the non-life segment. ¹ CEE-core-markets define as follows: Bulgaria, Croatia, Poland, Romania, Serbia, Slovakia, Czech Republik, Hungary

Vienna Insurance Group: Number 1 in the Czech Republic for the first time

Tue, 04 May 2010 12:00:00 +0200

Market leader in the non-life and life segments

As the leading insurance group in CEE1, the Vienna Insurance Group has achieved another milestone in the pursuit of its strategy for the region. Following the group’s assumption of market leadership in Slovakia last year, the Vienna Insurance Group has now gained top position in another of its core markets:

In the Czech Republic, the group companies of the Vienna Insurance Group are the new number 1 in the insurance market with a market share of 32.5 percent in the first quarter of 2010. The Vienna Insurance Group is now market leader in both the non-life and life insurance segments in the Czech Republic. The group company Pojišt’ovna České spořitelny (PČS), which is mainly active in banking sales, has made a strong contribution in the life segment.

“The attainment of market leadership in the Czech Republic is an important milestone in the positioning of our company in this significant core market,” comments Günter Geyer, CEO of the Vienna Insurance Group, before adding: “I would like to congratulate our colleagues in the Czech Republic on this achievement. Even during these very challenging economic times, they have been able to continue the exemplary development of the Group in this important CEE market by exploiting growth opportunities.”

Ongoing strong development

The total premium volume of the companies of the Vienna Insurance Group based in the Czech Republic showed positive growth during the first quarter of 2010. On a local currency basis, the company achieved overall growth of 4.4 percent with unconsolidated written premiums of CZK 12.52 billion (approx. EUR 484.1 million). In the non-life segment, premiums of CZK 8.24 billion (approx. EUR 318.4 million) were achieved. And in the life insurance segment, the company increased premiums to CZK 4.29 billion (approx. EUR 165.7 million).

Ideally positioned in the Czech insurance market

The Czech Republic is the Vienna Insurance Group’s largest CEE market and the Group is represented in the country by three companies: Kooperativa pojišťovna, Česká podnikatelská pojišťovna (ČPP) and Pojišťovna České spořitelny (PČS). Kooperativa poisťovňa has been operating in both the non-life and life insurance segments since its foundation in 1990. In the non-life segment, it is the clear number 1 in the market purely as an individual company. ¹ CEE region defined as follows: Bulgaria, the Czech Republic, Croatia, Hungary, Poland, Romania, Serbia, Slovakia

Vienna Insurance Group: Market entry in Montenegro

Wed, 31 Mar 2010 08:30:00 +0200

Entry into the property/casualty insurance business in Lithuania
Donau Versicherung starts motor liability insurance in Italy

Vienna Insurance Group is continuing its expansion path into Central and Eastern Europe even during economically difficult times and underscores its commitment to these future markets. With the market entry planned in Montenegro, the leading insurance group of this region will develop the overall 24th country as a market for itself. Furthermore, the non-life insurance business in Lithuania will be started from Poland. The Donau Versicherung is extending its product range on the Italian market and is going to sell motor liability insurance.

“We are continually expanding the geographical network of Vienna Insurance Group in Central and Eastern Europe”, states Günter Geyer, CEO of Vienna Insurance Group. “Montenegro is a small, but a seminal market, which we will develop for ourselves. The long-term perspectives indicate a substantial increase in demand and thus strong growth in the insurance area. At the same time, we are consistently pursuing our successful sales cooperation with our partner Erste Group.”
Montenegro: Foundation of life insurance Vienna Insurance Group is planning the foundation of a life insurance company in Montenegro this year. After filing the application in the second quarter of 2010, the issue of the license by the responsible insurance authorities is expected this year.
The distribution of the insurance products is planned to be made via Erste Bank AD Podgorica, which belongs to Erste Group. With this, the sales cooperation with Erste Group will be expanded to nine countries overall.
With just over 670,000 residents, the young country is among the smaller markets in this region. However, the insurance market in Montenegro shows high development potential. This is illustrated by the market data: The insurance density (annual premiums per capita) is around EUR 95, while the insurance penetration (share of the premiums in the BIP in percent) is around 1.8 percent. In comparison to this, the EU-15 states in 2008 had an insurance penetration of 8.7 percent and an insurance density of more than EUR 2,500 in this area.

Lithuania: Start of property/casualty insurance business Vienna Insurance Group has been represented in the three Baltic markets since 2008 by Compensa. Up until now, the offer has focused on life insurance. In this segment, the company in Latvia and Estonia has already captured the fourth market rank and in Lithuania the eighth market rank.
“As composite insurer we want to offer a comprehensive product portfolio in all markets. With the beginning of the distribution of property/casualty insurance in Lithuania we are taking another step towards using growth possibilities there optimally”, emphasizes Günter Geyer.
With the establishment of a branch of the Polish Group Compensa in Lithuania, the sales of property/casualty insurance starts place in the middle of April in this Baltic market. The introduction of motor liability and motor hull insurance, private accident as well as legal protection insurance is planned.

Italy: Donau Versicherung starts with motor liability insurance The Donau Versicherung has been represented in the Italian insurance market since ten years already. In order to further strengthen its commitment, it established a branch in Milan in 2007. As a partner for brokers and multi-agencies, it concentrates on household and casualty insurance as well as tailor-made solutions for small and medium enterprises. This year, Donau is extending its product range to include motor liability insurance, thus also positioning itself in this strategically very important segment in the Italian market.

Vienna Insurance Group in 2009 according to IFRS: Group premiums more than EUR 8 billion for the first time

Wed, 31 Mar 2010 08:05:00 +0200

Profit (before taxes): EUR 441.25 million – excellent result of 2007 exceeded
90 cent dividend per share proposed
CEE premium share in non-life more than 60 percent
CEE premium share in life insurance just under 40 percent

“The result of the Group for 2009 confirms the accuracy of our strategic decisions for expansion of the business with simultaneous focus on earnings. In this way we succeeded, even despite the economic head wind, in increasing the premium volume to over EUR 8 billion”, emphasizes Günter Geyer, CEO of Vienna Insurance Group. “In addition, our Group continues to show profitability with a profit of over EUR 441 million. This allows us to distribute a dividend of 90 cents per share for 2009 to our shareholders.¹”

I. OVERVIEW OF KEY GROUP DATA FOR 2009

For the first time, Vienna Insurance Group achieved premiums written (consolidated) of EUR 8.02 billion overall in the business year 2009. This corresponds to an increase of 1.5 percent. The Group even achieved a plus of 4.0 Percent on a euro basis with the net earned premiums.

On a local currency basis, the Group premiums written showed a clear plus of 5.9 percent, and the net earned premiums were even increased by 8.5 percent.

The Group profit (before taxes, consolidated) amounted to EUR 441.25 million in 2009. With that the Group exceeded the result of the outstanding year of 2007.

The combined ratio of the Group after reinsurance (excluding income from investments) is 96.3 percent for 2009 and could thus be clearly kept under the 100 percent mark.

The financial results for 2009 with EUR 929.12 million were increased by 1.2 percent vis-à-vis 2008.

The investments of the Group amounted to EUR 25.89 billion as of December 31, 2009. This corresponds to a growth of 5.5 percent in comparison to the end of 2008.

It will be proposed to the appropriate bodies that a dividend of EUR 0.90 per share shall be distributed. July 5, 2010 is set as the dividend payment date.

¹ Proposal to the appropriate bodies

II. DATA OF THE GROUP BY SEGMENTS 2009 (consolidated)

Property/casualty insurance

In the property/casualty insurance, premiums of EUR 4.21 billion overall were written (on a euro basis minus 1.7 percent). The Group attained a plus of 8.9 percent on the basis of net earned premiums on a local currency basis.

The Group attained on a local basis a growth of 13.4 percent on the CEE markets with net earned premiums. The Group companies in CEE achieved premiums written in the amount of EUR 2.57 billion (minus 2.7 percent) on a euro basis in this segment.

In the non-CEE countries the premiums written in this segment amounted to a stable EUR 1.64 billion. In Austria, the Group companies achieved a stable result with premiums of EUR 1.57 billion. In Germany, the premiums climbed by 2.9 percent to EUR 71.42 million.

Life insurance

With premiums of EUR 3.49 billion, the Group companies of Vienna Insurance Group achieved a plus of 5.6 percent in the life insurance on a euro basis. On a local basis, the net earned premiums were increased by a clear 8.8 percent.

On the markets in CEE in the life insurance segment, a growth in the premiums written of 6.3 percent overall to EUR 1.37 billion could be recorded. In the Czech Republic, the growth of Vienna Insurance Group in this segment even amounted to 43.7 percent and in Romania the Group companies recorded a growth of an outstanding 123.4 percent.

In the non-CEE markets the premiums written in the life segment amounted to EUR 2.13 billion. This corresponds to a plus of 5.2 percent.

Health insurance

In the health insurance segment, Vienna Insurance Group recorded an increase of 2.3 percent with premiums written of EUR 321.36 million. Health insurance products are only sold to a relevant extent by Wiener Städtische Versicherung in Austria. In the Czech Republic the health insurance business was started in 2009. The Donau Versicherung will start the distribution of health insurance in Austria in the first six months of 2010.

III. GROUP DATA BY REGIONS 2009 (consolidated)

Austria

In 2009 the Austrian Group companies of Vienna Insurance Group achieved premiums written overall of EUR 3.87 billion and a plus of 3.2 percent. In the non-life segment premiums of EUR 1.89 billion overall were recorded (plus 0.3 percent). In the life insurance segment premiums amounted to EUR 1.99 billion. This corresponds to an increase of 6.0 percent as compared to the previous year.
The profit (before taxes) amounted to EUR 247.49 million overall. Due to the sale of Unita and BA-CAV, comparison with the previous year is only possible to a limited extent.

The combined ratio amounted to 96.0 percent in 2009.

Czech Republic

In 2009, the three Czech Group companies Kooperativa pojišťovna, a.s., Česká podnikatelská pojišťovna, a.s. (ČPP) and Pojišt’ovna České spořitelny, a.s. (PČS) achieved on a euro basis a growth of 12.9 percent and with this increased the premiums to EUR 1.60 billion. With an increase of 43.7 percent to premiums of EUR 627.77 million, the growth in life insurance proved to be very robust. In the non-life segment, the Group achieved premiums of EUR 975.52 million in the Czech Republic (on a euro basis minus 0.7 percent).

On a local currency basis, an even more robust growth of 19.5 percent was attained with premiums written. In the area of non-life insurance the premium volume was increased on a local basis by 5.0 percent and in the area of life insurance there was a clear growth of 52.1 percent.

The Czech Group companies of Vienna Insurance Group took over – powered by the strong development in life insurance – the market leadership for the first time in this segment with a market share of 27.4 percent.

The profit (before taxes) amounted to EUR 122.91 million and was increased by 14.4 percent.

The combined ratio for 2009 was 91.2 percent and was decreased by close to one percentage point.

Slovakia

The three Slovakian Group companies Kooperativa poisťovňa, a.s., Komunálna poisťovňa, a.s. and Poist’ovňa Slovenskej sporitel’ne, a.s. achieved premiums of EUR 628.38 million overall in 2009 and thus an increase of 3.8 percent. The net earned premiums increased in comparison to the previous year by 5.6 percent. In the non-life segment the Group achieved premiums of EUR 333.36 million with an increase of 0.9 percent, while in life insurance a growth of 7.2 percent was attained with premiums in the amount of EUR 295.02 million.

Vienna Insurance Group is the number one in the insurance market in Slovakia. The Group is also the market leader in the life insurance as well as the motor vehicle insurance.

The profit (before taxes) was more than tripled to overall EUR 23.01 million.

The combined ratio was decreased by just under 2.5 percentage points and amounted to 90.8 percent for 2009.

Poland

In Poland, Vienna Insurance Group achieved premiums of EUR 548.26 million. In the non-life segment, premiums of EUR 384.07 million were attained. This means an increase of 14.5 percent on a local basis for the premiums written. In life insurance a decrease of 57.0 percent to EUR 164.19 million was recorded, which is to be traced back exclusively to the strongly declining development in the single-premium business as a result of the economic situation.

In 2009 the profit (before taxes) amounted to EUR 27.43 million and consequently grew by 5.0 percent. On a local currency basis the group achieved an increase in the profit (before taxes) of 29.4 percent.

The combined ratio amounted to around 100 percent.

Romania

In Romania the Group companies of Vienna Insurance Group achieved premiums of EUR 606.66 million overall. On a local basis, this means an increase of 14.8 percent in premiums written. The increase in the net earned premiums amounted to 20.0 percent for the Group in Romania. The premiums written in the non-life insurance segment amounted to EUR 519.42 million. On a local basis, this means a growth in this segment of 5.1 percent. In life insurance the Group achieved premiums of EUR 87.23 million (plus 123.4 percent).

In Romania the Vienna Insurance Group is the market leader and also the number one in non-life insurance. In life insurance the companies of Vienna Insurance Group rank second.

The profit (before taxes) amounted to EUR 24.19 million, whereby a comparison with the previous year’s value – due to the final consolidation of Unita at that time – is not conclusive.

The combined ratio for 2009 amounted to 99.3 percent and was decreased by more than 5 percentage points.

Other CEE markets

In the other CEE markets segment Vienna Insurance Group achieved premiums of EUR 546.56 million and with this an increase of 10.1 percent. Noteworthy are the double-digit growth rates in Bulgaria (38.8 percent) and Croatia (11.7 percent) in 2009.

Other markets

In Germany and Liechtenstein the Group companies of Vienna Insurance Group achieved premiums of EUR 211.98 million (minus 2.8 percent).

The profit (before taxes) amounted to EUR 19.98 million.

IV. GROUP EMBEDDED VALUE INCREASED

The embedded value calculated according to international guidelines represents the value of the in-force insurance business and is composed of the net asset value for life, health and property/casualty insurance as well as the present value of future earnings from the in-force business in the life and health insurance.

The sustainability of the insurance business of Vienna Insurance Group is reflected in the fact that the Group embedded value (after taxes) as of the effective date of December 31, 2009 was increased by 7.5 percent to EUR 4.59 billion (2008 adjusted value: EUR 4.26 billion). The growth of the embedded value by 15.9 percent to EUR 2.83 billion in Central and Eastern Europe is even more marked and impressively confirms the potential for value appreciation in this region.

The growth in embedded value, including dividend payments made, yields a return on Group embedded value of 15.4 percent.

The profitability of the new business represents a clear indication of the earnings power of the CEE countries, which was increased from 40.0 percent to 41.7 percent of the new business premiums. However, there was also an increase from 24.2 percent to 25.0 percent recorded in the region of Austria/Germany. The Group-wide efficiency programme implemented last year had a direct impact.

B & W Deloitte GmbH, Köln has fully confirmed the Group embedded value of Vienna Insurance Group.

V. FORECAST

The management of Vienna Insurance Group confirms the forecast already made in January and expects a growth in profit (before taxes) of at least ten percent and an increase of premiums in the single-digit percentage area.

Vienna Insurance Group in 2009 according to IFRS: Group premiums more than EUR 8 billion for the first time

Wed, 31 Mar 2010 08:00:00 +0200

Profit (before taxes): EUR 441.25 million – excellent result of 2007 exceeded
90 cent dividend per share proposed¹
CEE premium share in non-life more than 60 percent
CEE premium share in life insurance just under 40 percent

OVERVIEW OF KEY GROUP DATA FOR 2009 For the first time, Vienna Insurance Group achieved premiums written (consolidated) of EUR 8.02 billion overall in the business year 2009. This corresponds to an increase of 1.5 percent. The Group even achieved a plus of 4.0 Percent on a euro basis with the net earned premiums. On a local currency basis, the Group premiums written showed a clear plus of 5.9 percent, and the net earned premiums were even increased by 8.5 percent. The Group profit (before taxes, consolidated) amounted to EUR 441.25 million in 2009. With that the Group exceeded the result of the outstanding year of 2007. The combined ratio of the Group after reinsurance (excluding income from investments) is 96.3 percent for 2009 and could thus be clearly kept under the 100 percent mark. The financial results for 2009 with EUR 929.12 million were increased by 1.2 percent vis-à-vis 2008. The investments of the Group amounted to EUR 25.89 billion as of December 31, 2009. This corresponds to a growth of 5.5 percent in comparison to the end of 2008. It will be proposed to the appropriate bodies that a dividend of EUR 0.90 per share shall be distributed. July 5, 2010 is set as the dividend payment date. ¹ Proposal to the appropriate bodies

GROUP EMBEDDED VALUE INCREASED

The embedded value calculated according to international guidelines represents the value of the in-force insurance business and is composed of the net asset value for life, health and property/casualty insurance as well as the present value of future earnings from the in-force business in the life and health insurance.

The sustainability of the insurance business of Vienna Insurance Group is reflected in the fact that the Group embedded value (after taxes) as of the effective date of December 31, 2009 was increased by 7.5 percent to EUR 4.59 billion (2008 adjusted value: EUR 4.26 billion). The growth of the embedded value by 15.9 percent to EUR 2.83 billion in Central and Eastern Europe is even more marked and impressively confirms the potential for value appreciation in this region.

The growth in embedded value, including dividend payments made, yields a return on Group embedded value of 15.4 percent.

The profitability of the new business represents a clear indication of the earnings power of the CEE countries, which was increased from 40.0 percent to 41.7 percent of the new business premiums. However, there was also an increase from 24.2 percent to 25.0 percent recorded in the region of Austria/Germany. The Group-wide efficiency programme implemented last year had a direct impact.

B & W Deloitte GmbH, Köln has fully confirmed the Group embedded value of Vienna Insurance Group.

FORECAST

The management of Vienna Insurance Group confirms the forecast already made in January and expects a growth in profit (before taxes) of at least ten percent and an increase of premiums in the single-digit percentage area.

Vienna Insurance Group in 2009

Tue, 26 Jan 2010 08:30:00 +0100

The corporate figures are based on preliminary data, are not consolidated and not audited. The comparative values of 2008 were adjusted for Wüstenrot Versicherung, in which Vienna Insurance Group held a minority interest.

With stability through difficult times
Group premiums remain at stable level of EUR 8.2 billion (plus 1.2 percent)
Consolidated profit (before taxes): about EUR 440 million – excellent result of 2007 surpassed
Dividend policy provides for continuing attractive dividend payout – at least 30 percent of the Group profit
Cautious outlook for 2010 – goal is a further increase in profit
Realignment of Group structure increases transparency and efficiency

“It is our clear objective to offer the customers and investors of Vienna Insurance Group great stability beyond cyclical fluctuations. This is precisely what we have achieved with a projected profit before taxes of EUR about 440 million. In view of the fact that this even exceeds the result of 2007 – the record year before the economic slump – this is a huge success”, Günter Geyer, CEO of Vienna Insurance Group, commented on the Group result. “Our markets in Central and Eastern Europe proved to be considerably more crisis-resistant than this had been predicted in many forecasts. Now it has become apparent that our decision to ensure a wide geographical distribution was absolutely right. The different economic dynamics in the various countries have a balancing effect on Vienna Insurance Group. Excluding the currency relations in CEE, we even achieved a significant growth in these emerging markets.“
I. OVERVIEW OF KEY DATA FOR THE YEAR 2009 Based on preliminary data, Vienna Insurance Group reported a total of premiums written on an unconsolidated basis of EUR 8.22 billion. This corresponds to an increase of 1.2 percent. In the non-life insurance segment, Group premiums of EUR 4.75 billion were achieved (minus 0.7 percent). With premiums amounting to EUR 3.48 billion, the Group records a plus of 3.9 percent in the life insurance segment.
The Group profit (before taxes, consolidated) for the year 2009 will total approximately EUR 440 million (based on preliminary data). Hence, the Group’s result will exceed that of the excellent year 2007. Despite this favourable result for the year 2009, the Managing Board of Vienna Insurance will renounce claims to bonuses in view of the difficult economic situation. The combined ratio of the Group (net, after reinsurance) for the year 2009 will amount to about 96 percent. The dividend policy of the Group ensures that an attractive payout of at least 30 percent of the Group profit (after taxes and minority interests) will be provided.
II. THE DEVELOPMENT IN THE KEY REGIONS FOR THE YEAR 2009 Austria Based on preliminary data, the Austrian Group companies of Vienna Insurance Group earned a premium volume of EUR 3.86 billion, corresponding to a plus of 3.1 percent. In the non-life insurance segment, premiums rose by 2.6 percent to EUR 1.87 billion. In the life-insurance segment, premiums increased by 3.5 percent to a total of EUR 1.98 billion. Czech Republic In 2009 the three Czech Group companies Kooperativa pojišťovna, a.s., Česká podnikatelská pojišťovna (ČPP) and Pojišt’ovna České spořitelny, a.s. (PČS) reported a growth of 15.6 percent on a local basis; premiums climbed to EUR 1.67 billion. Growth in the life insurance segment proved to be very strong, with premiums surging by 49.2 percent to EUR 614.95 million. In the non-life insurance segment, the Group recorded premiums of EUR 1.05 billion, corresponding to a plus of 2.1 percent. Slovakia The three Slovak Group companies Kooperativa poisťovňa, a.s., Komunálna poisťovňa, a.s. and Poist’ovňa Slovenskej sporitel’ne, a.s. reported premiums totalling EUR 638.28 million in 2009 (based on preliminary data); this is an increase by 3.9 percent. In the framework of the Group-wide action programme, Kontinuita poisťovňa, a.s. was merged with Komunálna poisťovňa, a.s. in 2009. In the non-life insurance segment, the Group recorded premiums of EUR 343.53 million following an increase of 1.2 percent, while in the life insurance segment – with premiums amounting to EUR 294.75 million – an increase of 7.2 percent was achieved. Poland In Poland Vienna Insurance Group earned premiums of EUR 599.63 million. In the non-life insurance segment, premiums on a local basis increased by 15.5 percent to EUR 438.41 million. In the life insurance segment, premiums declined by 44.7 percent to EUR 161.21 million on a local basis; this is exclusively due to the strong downward trend of the single premium business triggered by the economic situation. Romania In Romania the companies of Vienna Insurance Group increased the premium income on a local currency basis by 15.5 percent to a total of EUR 614.81 million, significantly reinforcing the position of Vienna Insurance Group as a market leader. The preliminary premiums in the non-life insurance segment amounted to EUR 528.40 million (plus 6.0 percent); in the life-insurance segment, the Group reported premiums of EUR 86.41 million (plus 155.7 percent). Other CEE markets In 2009 Vienna Insurance Group recorded in “Other CEE markets” preliminary premiums written of EUR 632.76 million. Remarkable double-digit increase rates on a local currency basis were achieved in Bulgaria (42.3 percent), Croatia (15.4 percent) and Hungary (36.3 percent) in 2009. CEE Vienna Insurance Group increased premiums by 9.3 percent on a local basis in CEE, with the life-insurance segment achieving a growth of 15.2 percent and the non-life insurance segment recording a plus of 6.7 percent. In CEE Vienna Insurance Group reported premiums of EUR 4.15 billion (i.e. minus 0.3 percent) on a euro basis. EUR 2.80 billion (minus 2.9 percent) of this amount were attributable to the non-life insurance segment. In the life insurance segment, premiums on a euro basis went up by 5.5 percent to a total of EUR 1.35 billion. Other markets In Germany and Liechtenstein the Group companies of Vienna Insurance Group reported premiums of EUR 211.42 million.
III. Outlook for the financial year 2010 The year 2009 – in particular the first half – was decisively influenced by the drastic economic downturn in most European countries. Thanks to massive interventions of the governments both industrial production and consumption could be stabilised to a certain degree. In the CEE region, currency depreciation was successfully halted. However, the financial markets continue to be under the impact of uncertainties and volatility – and this makes it more difficult to assess the future development. The scope of possible state interventions for the current financial year is, however, very limited due to tighter budgets. Therefore, in their forecasts economic analysts assume the unemployment will continue to increase also in Austria. As a result, consumers will experience uncertainty, their willingness to take risks will decrease and their confidence in the near future will deteriorate on a long-term basis. Therefore, the management of Vienna Insurance Group expects the business volume to stagnate in Austria in 2010 and cannot exclude a decline. In CEE above all the core markets Poland and the Czech Republic have proven to be very stable, registering a steady consumer demand. A favourable development is likely also in the current financial year. In many other countries, the economy is expected to return on a growth path only after a downturn in 2010. A further demand for insurance products is assumed due to the countries’ continuing need to catch up and the determination of the people to improve their living standard. “Our longstanding experience in the CEE region and our intensive contacts with the people make us confident that Vienna Insurance Group will deliver growth particularly in these countries in the current financial year and that their contribution to the consolidated profit will increase“, Günter Geyer expressed his expectations. “Based on realistic estimates, we expect a single-digit premium increase for the Group this year. Profit before taxes is likely to grow by at least ten percent. Other than many competitors, Vienna Insurance Group showed an excellent performance in the past two years and is continuing its successful development also this year.“ IV. Realignment of the Group’s organisational structure Due to expanding into the markets of the CEE region, Vienna Insurance Group has grown to comprise about 50 companies. Continuous adjustment of Group structures is indispensable for the Group’s successful development. This is for example realised in important elements of management such as IT coordination, reinsurance management, investment management, finance and accounting, planning and controlling, international personnel development, international actuarial services, risk management, internal group auditing, investor relations and public relations. The international business also continues to be strengthened at Group level; this policy also provides for optimal support and long-term relations with customers and sales partners across borders. To meet these challenges in an even better way, the Group believes that the next logical measure will be to establish a listed Group holding company named Vienna Insurance Group AG, in which the shareholders will continue to hold their shares. Wiener Städtische Versicherung – the largest individual company of the Group and leading Austrian insurer – will run the operational insurance business in Austria. “The first measures to create a new Group structure have already been implemented successfully. We are now planning the next steps”, Günter Geyer explained the changes. “By reorganizing our Group, we enhance transparency in business processes, and the operational Group companies will be able to focus more clearly on their customer relations. In the top management level of our Group we have already taken decisive steps towards this reorganisation and appointed young Managing Board members with experience in the CEE region. By realising these measures, Vienna Insurance Group invigorates its internationally oriented profile in this region.“ The resolutions of the executive bodies and the formal implementation under corporate law have been scheduled for the first six months of 2010.

Vienna Insurance Group in 2009*:

Tue, 26 Jan 2010 08:00:00 +0100

With stability through difficult times
Group premiums remain at stable level of EUR 8.2 billion (plus 1.2 percent)
Consolidated profit (before taxes): about EUR 440 million – excellent result of 2007 surpassed
Dividend policy provides for continuing attractive dividend payout – at least 30 percent of the Group profit
Cautious outlook for 2010 – goal is a further increase in profit
Realignment of Group structure increases transparency and efficiency

[* The corporate figures are based on preliminary data, are not consolidated and not audited. The comparative values of 2008 were adjusted for Wüstenrot Versicherung, in which Vienna Insurance Group held a minority interest.] OVERVIEW OF KEY DATA FOR THE YEAR 2009 Based on preliminary data, Vienna Insurance Group reported a total of premiums written on an unconsolidated basis of EUR 8.22 billion. This corresponds to an increase of 1.2 percent. In the non-life insurance segment, Group premiums of EUR 4.75 billion were achieved (minus 0.7 percent). With premiums amounting to EUR 3.48 billion, the Group records a plus of 3.9 percent in the life insurance segment. The Group profit (before taxes, consolidated) for the year 2009 will total approximately EUR 440 million (based on preliminary data). Hence, the Group’s result will exceed that of the excellent year 2007. The combined ratio of the Group (net, after reinsurance) for the year 2009 will amount to about 96 percent. The dividend policy of the Group ensures that an attractive payout of at least 30 percent of the Group profit (after taxes and minority interests) will be provided.

Outlook for the financial year 2010 Vienna Insurance Group expects a single-digit premium increase for the Group this year and profit before taxes to grow by at least ten percent.
Realignment of the Group’s organisational structure Due to expanding into the markets of the CEE region, Vienna Insurance Group has grown to comprise about 50 companies. Continuous adjustment of Group structures is indispensable for the Group’s successful development. To meet these challenges in an even better way, the Group believes that the next logical measure will be to establish a listed Group holding company named Vienna Insurance Group AG, in which the shareholders will continue to hold their shares. Wiener Städtische Versicherung – the largest individual company of the Group and leading Austrian insurer – will run the operational insurance business in Austria. The resolutions of the executive bodies and the formal implementation under corporate law have been scheduled for the first six months of 2010.

Vienna Insurance Group in the first three quarters of 2009

Tue, 10 Nov 2009 08:00:00 +0100

Group premiums of more than EUR 6 billion
Solid development of the result – profit (before taxes, consolidated) about EUR 340 million
Continuing growth in the CEE core markets*
Excellent capitalisation of the Group

[* Definition CEE: Czech Republic, Slovakia, Poland, Romania, Bulgaria, Croatia, Serbia and Hungary]

“Vienna Insurance Group continues growing also in tough economic times. Very clear growth is observed especially in our core markets in Central and Eastern Europe. In this context, the very good development in the Czech Republic and in Slovakia should be mentioned as an example“, stated Günter Geyer, CEO of Vienna Insurance Group, highlighting the good news. “Moreover, Group-wide growth provides Vienna Insurance Group with a basis for continuing to develop the result in 2009 at a steady pace. Hence, our strategy of concentrating on profitable growth has proven right and confirms our successful business model, which has been based on the strong demand for insurance products in Central and Eastern Europe.“ I. OVERVIEW OF KEY GROUP DATA FOR THE FIRST THREE QUARTERS OF 2009 (in accordance with IFRS)** [** All statements for the 1st to 3rd quarter of 2009 include figures from s Versicherung Group and BCR insurance companies. BA-CAV and Unita are included only in comparisons to the first six months of 2008.] Vienna Insurance Group registered premiums written of a total of EUR 6.11 billion in the first three quarters of the current year. This corresponds to an increase of 1.5 percent (on a euro basis) compared to the same period of the previous year. The net earned premiums of the Group rose by a remarkable 4.0 percent (based on euros). On a local currency basis, the Group’s premiums written showed a significant plus of 6.6 percent, and the net earned premiums climbed by no less than 9.2 percent. With a Group profit (before taxes, consolidated) of EUR 340.50 million, Vienna Insurance Group has achieved a very continuous development of the result in the current year, which is even better than the result for the same period in 2007. This comparison shows an increase in the result by more than EUR 16 million or 5 percent. Excluding special effects – in particular those resulting from the sale of BA-CAV and Unita – the result even surpassed that for the first three quarters of 2008. The combined ratio of the Group after reinsurance (excluding income from investments) of 96.2 percent was significantly below the 100-percent threshold and remained on a stable level despite the storm damages. These damages entailed expenses – in particular in Austria – totalling about EUR 130 million. As a result, the loss ratio went up by 1.7 percentage points compared to the same period of the previous year. Thanks to the stringent implementation of the cost-cutting programme, the expense ratio of the Group was reduced by 1.5 percentage points in the same period, compensating for the increase in the loss ratio. The current income from investments increased by 13.3 percent. The total financial result of the Group amounted to EUR 727.21 million in the first three quarters of the current year. Comparison to the prior-year level is possible only to a limited extent due to the one-off effects of the sale of BA-CAV and Unita. As of 30 September 2009, the investments of the Group amounted to EUR 26.05 billion. Compared to 1 January 2009, this corresponds to an increase of 6.1 percent. The shareholders’ equity of the Group rose by 13.1 percent to EUR 4.68 billion.
II. DATA OF THE GROUP BY SEGMENTS 1ST TO 3RD QUARTER OF 2009 (CONSOLIDATED)
Property/casualty insurance In the property/casualty segment, Vienna Insurance Group reported premiums written of a total of EUR 3.34 billion (minus 1.1 percent on a euro basis). The Group succeeded in increasing the net earned premiums in local currencies by 10.5 percent in this segment. In the CEE markets, Vienna Insurance Group reported a growth of premiums written of 8.6 percent based on local currencies. The Group posted premiums written of EUR 1.99 billion (minus 2.4 percent) on a euro basis in Central and Eastern Europe. In the non-CEE markets, the premiums written in the property/casualty insurance segment amounted to EUR 1.35 billion (corresponding to a growth by 0.9 percent on a euro basis). The Austrian Group companies attained a growth rate of 0.8 percent and thus, premiums of EUR 1.29 billion. With premiums of EUR 53.80 million, a pleasing growth of 3.1 percent was achieved in Germany compared to the same period of the previous year. Life insurance In the life insurance segment, the Group’s premium volume totalled EUR 2.52 billion, representing a plus of 5.0 percent. The companies of s Versicherung Group made a major contribution to this good result. Vienna Insurance Group achieved a significant plus of 8.5 percent in net earned premiums on a local currency basis. In the CEE region, the growth rate in this segment climbed to a pleasing 12.9 percent – with premiums written of EUR 953.57 million. Particularly remarkable are the continuing double-digit growth rates in the Czech Republic, Slovakia, Romania, Croatia, Bulgaria as well as Hungary. In the non-CEE countries, the premiums written climbed to EUR 1.57 billion, corresponding to an increase of 0.6 percent compared to the same period of the previous year.

Health insurance In the health insurance segment, Vienna Insurance Group attained a total of premiums written of EUR 241.71 million and an increase of 2.2 percent.
III. DATA OF THE GROUP BY REGIONS 1ST TO 3RD QUARTER OF 2009 (CONSOLIDATED)
Austria In Austria, the premiums written of Vienna Insurance Group amounted to EUR 3.01 billion in the first nine months of this year. This corresponds to a solid plus of 1.6 percent compared to the same period of the previous year. In the property/casualty segment, the Group companies reported premiums written of EUR 1.29 billion – this is an increase by 0.8 percent. In the life insurance segment, the premiums written amounted to EUR 1.47 billion (plus 2.1 percent). Taking into account Group-related aspects, the profit (before taxes) totalled EUR 184.21 million (minus 23.7 percent) in the first nine months of the current year. Due to the sale of Unita and BA-CAV, prior-year comparison is possible only to a very limited extent. The combined ratio amounted to 96.3 percent.
Czech Republic The Group companies in the Czech Republic reported a total of premiums written of EUR 1.20 billion. They succeeded in continuing the double-digit premium growth with a plus of 19.1 percent from the level of the same period of the previous year. In the non-life insurance segment, a total of premiums written of EUR 782.82 million represented a 4.1 percent increase over the same period of the previous year. In the life insurance segment, the premiums surged by 63.2 percent to
EUR 415.71 million. On a local currency basis, the premiums written recorded an even stronger growth of 27.7 percent. In the non-life insurance segment, the volume of premiums went up by 11.6 percent, while a sharp increase of 75.0 percent was reported in the life insurance segment. Compared to the same period of the previous year, the total net earned premiums rose by 35.1 percent. The Group was able to increase the profit (before taxes) by 39.6 percent to a total of EUR 98.39 million from the level of the same period in the previous year. With this excellent result, the Czech Group companies demonstrated once more their strong earning power, contributing almost one third to the Group profit. The combined ratio amounted to 88.0 percent in the first three quarters of 2009.
Slovakia The Slovak Group companies of Vienna Insurance Group have continued their very favourable trend during the current year. They reported a total of premiums written of EUR 469.37 million, corresponding to an increase of 11.0 percent. The net earned premiums grew by 15.0 percent compared to the same period of the previous year. In the non-life insurance segment, the premiums written rose by 3.6 percent to EUR 256.24 million compared to the same period of the previous year. In the life insurance segment, premiums grew by 21.5 percent to EUR 213.13 million. The profit (before taxes) for the first nine months of the current year totalled EUR 16.07 million, showing an increase by 42.6 percent. In Slovakia the combined ratio stood at 94.3 percent.
Poland The Polish Group companies of Vienna Insurance Group reported premiums written of EUR 405.75 million in the first three quarters of 2009. Premiums written of EUR 277.39 million were recorded in the non-life insurance segment. On
a local currency basis, this is an increase by 9.4 percent. Based on net earned premiums, a
9.9 percent growth was achieved in the non-life insurance segment. In the life insurance segment, premiums written amounted to EUR 128.36 million. On a local currency basis, this is a minus of 42.5 percent, which may be attributed exclusively to the downward trend in the single premium business in the wake of the economic situation. The profit (before taxes) rose by 8.7 percent to EUR 19.48 million compared to the same period of the previous year.
Romania The Romanian Group companies of Vienna Insurance Group reported premiums written of EUR 455.92 million. On a local currency basis, the premiums written grew by 7.1 percent. In Romania the Group recorded an increase in net earned premiums (on a local currency basis) of 13.9 percent. In the non-life insurance segment, the Group recorded premiums written amounting to EUR 396.24 million. The ongoing portfolio restructuring in this segment led to a decrease by 1.2 percent on a local currency basis. After including the BCR Life Insurance Company, the Group achieved premiums written of EUR 59.68 million in the life insurance segment. This corresponds to a growth of 142.9 percent on a local currency basis. The profit (before taxes) amounted to EUR 16.58 million. Due to the de-consolidation of Unita in 2008, a comparison with prior-year data is not meaningful.
Other CEE markets The result of Vienna Insurance Group in “Other CEE markets” for the first nine months of the current year includes the following countries: Albania, Bulgaria, Croatia, Macedonia, Serbia, Turkey, Ukraine as well as the three Baltic markets. Pleasing double-digit growth rates on a euro basis continue to be registered, notably in Bulgaria (plus 46.0 percent), Croatia (plus 17.3 percent) and Hungary (plus 28.2 percent). In this segment, the Vienna Insurance Group companies reported premiums written of EUR 418.80 million, boasting a significant double-digit increase of 18.3 percent compared to the same period of the previous year. In the non-life insurance segment, a sizeable 11.3 percent plus was achieved, with premiums amounting to EUR 282.11 million. In the life insurance segment, premiums written of EUR 136.69 million were recorded, corresponding to a substantial increase of EUR 36.1 percent. In the segment “Other CEE markets” (excluding Croatia), the profit (before taxes) totalled EUR 4.31 million. In Croatia a regulatory reduction of the guaranteed interest on life insurance contracts led to the recognition of a one-off provision in the financial statements amounting to more than EUR 10 million, entailing a negative result. Other markets In Germany and Liechtenstein, the Group companies reported premiums totalling EUR 152.01 million. The profit (before taxes) amounted to EUR 10.46 million.

Vienna Insurance Group in the first three quarters of 2009:

Tue, 10 Nov 2009 07:30:00 +0100

Group premiums of more than EUR 6 billion
Solid development of the result – profit (before taxes, consolidated) about EUR 340 million
Continuing growth in the CEE core markets*
Excellent capitalisation of the Group

[Definition CEE: Czech Republic, Slovakia, Poland, Romania, Bulgaria, Croatia, Serbia and Hungary]

Vienna Insurance Group: General Manager Karl Fink retires from Managing Board

Tue, 22 Sep 2009 11:28:00 +0200

Group management continues its internationalization
After serving as a Member of the Managing Board of Vienna Insurance Group for about 35 years, General Manager Karl Fink will step down effective 30 September 2009. With his extensive experience, Karl Fink will, however, continue to carry out various assignments on behalf of the Group. “Karl Fink has played a decisive role in developing our company into Austria’s leading insurance group in Central and Eastern Europe. We would like to thank him very cordially for his achievements and accomplishments in our Group“, stated Günter Geyer, CEO of Vienna Insurance Group, highlighting the outstanding performance of Karl Fink. “We are very pleased that he will also support in the future by contributing his expertise and international experience. By restructuring its Managing Board, Vienna Insurance Group demonstrates its clear orientation towards the future as well as the strong international focus of the Group.“ Based on the proposal of Chief Executive Officer Günter Geyer, the Supervisory Board of Vienna Insurance Group Wiener Städtische Versicherung AG passed the following resolutions regarding the ongoing internationalization of the management of Vienna Insurance Group: Franz Fuchs, 55, General Manager of Vienna Insurance Group Polska and Deputy Member of the Managing Board of Vienna Insurance Group, will be appointed Member of the Managing Board of Vienna Insurance Group with effect 1 October 2009. Franz Fuchs studied actuarial mathematics at the Vienna University of Technology and started his career in the insurance sector in 1974. Before joining Vienna Insurance Group in 2003, he had already held leading management positions in the international insurance industry. Under his leadership, Vienna Insurance Group considerably boosted its market shares in the Polish insurance sector and the individual companies started to report positive results. As proposed by Günter Geyer, Peter Hagen, 49, will be awarded the title “Deputy General Manager” with effect 1 October 2009. After the retirement of Karl Fink, whose main sphere of responsibility were international issues, Peter Hagen will focus on this area as a deputy for Günter Geyer. Peter Hagen started to work for the Group in 1989 and has been a Member of the Managing Board of Vienna Insurance Group since July 2004. Having played a key role in establishing the group-owned reinsurer VIG RE, Peter Hagen heads this company since September 2008. Moreover, he is Deputy General Manager of the Czech Kooperativa. With effect 1 October 2009, Franz Kosyna, 54, General Manager of Donau Versicherung, will be appointed Deputy Member of the Managing Board of Vienna Insurance Group Wiener Städtische Versicherung AG. Franz Kosyna has been active in the company since 1983. In 1999 he became a Member of the Managing Board of the Slovak Kooperativa; he was appointed its Deputy General Manager in 2003. Since 2005 Franz Kosyna has served as General Manager of the Czech Česká podnikatelská pojišťovna (ČPP). After his successful international activity in Slovakia and the Czech Republic, Franz Kosyna returned to Vienna, where he was appointed Chief Executive Officer of the Austrian Group company Donau Versicherung in July 2009. With effect 1 October 2009, the entire Managing Board forms two committees, which are responsible for Group business (Vienna Insurance Group) on the one hand and the management of Wiener Städtische in Austria (Wiener Städtische) on the other hand. The two committees are made up as follows by the individual members of the entire Managing Board:

Vienna Insurance Group Committee:	Wiener Städtische Österreich Committee:
General Manager Günter Geyer (CEO)	General Manager Günter Geyer (CEO)
Deputy General Manager Peter Hagen	Deputy General Manager Robert Lasshofer
Martin Simhandl (CFO)	Christine Dornaus
Martin Divis	Judit Havasi
Franz Fuchs	Erich Leiß
Peter Höfinger

Deputy Members of the Managing Board:

Franz Kosyna

Roland Gröll

The entire Managing Board and the two committees are chaired by Günter Geyer. The term of office of the members of the Managing Board ends in mid-2013.