Vienna Insurance Group (Wiener Städtische Group) Preliminary IFRS Figures for :

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1 4 April 2006 Please note: this is a translation; only the German version of this news release is legally binding. The Embedded Value will be published on 4 May 2006 according to the financial calender. Vienna Insurance Group (Wiener Städtische Group) Preliminary IFRS Figures for : EUR 5 billion premium mark surpassed Group profit before tax hits historic record value, due to increase by approx. EUR 84 million to approx. EUR 240 million Excellent group combined ratio of slightly above 94 percent Strong dividend increase by 21 Cent to 66 Cent CEE share in group premiums in property/casualty insurance approx. 45 percent/cee share in aggregate group profit approx. 37 percent Substantial premium expansion in life insurance of approx. 31 percent "2005 was a very good financial year for the Vienna Insurance Group. Much earlier than we had planned, we were able to turn in a profit before tax in all CEE countries that we operate in," CEO Dr. Günter Geyer voices his satisfaction with the financial year "Group profit before tax rose by approx. EUR 84 million to approx. EUR 240 million in We are especially pleased that the Central and Eastern European group companies are already contributing to the Group profit at a high share of some 37 percent in the aggregate." 1 These figures are subject to an audit to be performed by the auditors and approval by the supervisory board of Wiener Städtische. Companies that have been acquired only recently are not included in the premiums of the Vienna Insurance Group (Wiener Städtische Group).

2 I. OVERVIEW OF KEY GROUP DATA IN THE YEAR 2005 (ACCORDING TO PRELIMINARY DATA): Consolidated premiums written of the Vienna Insurance Group (excluding other insurance participations) rose by 22.1 percent to EUR 5.01 billion. In the year 2005, the Vienna Insurance Group (including other insurance participations) in the aggregate posted a strong increase of 21.2 percent to EUR 5.36 billion in non-consolidated premiums written. The Group's profit before tax rose by EUR million to EUR million (plus 54.2 percent) in the year With this result, the Group surpasses the most recent profit forecast of about EUR 230 million. Essential factors for the excellent profit before tax were good results from investments, cost-conscious administration and good loss ratios based on tariffs adequate to the risk. The profit after tax rose by a considerable 63.5 percent to EUR million. It will be suggested to the Annual General Meeting to increase the dividend by 21 cent to 66 cent per share - thus the increase will be 10 percent higher than most recently planned. The combined ratio of the Vienna Insurance Group after reinsurance (not including investment income) was reduced to the excellent value of 94.3 percent. This places the Vienna Insurance Group in the leading group internationally. The decisive factors for this improvement were selective risk underwriting as well as very active claims management. The net investment income posted an increase of 33.0 percent to EUR million as compared to The result was influenced by the favorable conditions prevailing on the capital markets. The gross expenses for claims incurred amounted to EUR 3.99 billion (plus 24.9 percent) and are especially influenced by the increase in the actuarial reserve in life insurance. This is above all due to the marked increase in the single-premium policy business and the fact that the Vienna Insurance Group has already fully taken into account the application of the new Austrian mortality tables. Gross expenses for insurance operations increased by 15.1 percent to EUR 1.07 billion and with this increase remained far below the growth achieved in terms of premiums. The total investment of the Group rose by 25.5 percent to EUR billion (as of December 31, 2005). Says Günter Geyer: "The Vienna Insurance Group will soon be covering 17 countries on the map - those markets that show a strong potential for growth. We will thus soon be catering to 17 million customers in the most dynamic economic region of Europe." -2-

3 II. DATA FOR THE GROUP FOR 2005, CLASSED BY SEGMENTS (CONSOLIDATED): Each of the Vienna Insurance Group's lines of business posted increases in premiums in the year In all, the Vienna Insurance Group was able to achieve a strong increase of 22.1 percent to EUR 5.01 billion premiums written in In Central and Eastern Europe, premiums written amounted to EUR 1.56 billion. This represents a steep increase in premiums of 32.2 percent. A strong increase was also achieved by the Austrian companies, in the shape of a doubledigit increase in premiums written of 14.7 percent to EUR 3.17 billion. In the other markets (Germany and Liechtenstein), premiums written rose from EUR million to EUR million. 1. BUSINESS SEGMENT RESULTS Property/casualty insurance In the property/casualty segment, premiums written of the Vienna Insurance Group increased by 17.6 percent to a total of EUR 2.56 billion in the year In the CEE markets, the Group's premium volume in that segment amounted to EUR 1.16 billion. This represents a considerable growth of 33.0 percent. The share in premiums of the CEE companies of already approx. 45 percent in the property/casualty segment shows how essential the contribution of the fast-growing countries of Central and Eastern Europe already is with regard to the premium income. In Austria, premiums in the property/casualty segment increased by 7.4 percent to EUR 1.35 billion. In the other markets (Germany and Liechtenstein), premiums written were up 5.9 percent, totaling EUR million. Life insurance The highest growth rates were achieved in the life insurance segment, which has a considerable growth potential in Austria and CEE. With an increase of 31.3 percent, premiums written of the Group in the life insurance segment grew to a total of EUR 2.16 billion in the year The decisive factors for this improvement were the ongoing strong demand for old-age provision products and the favorable development on the capital markets. -3-

4 The Group companies in CEE achieved particularly high growth rates in this segment: with a 30.3 percent increase, premiums written totaled EUR million. Austrian Group companies were able to increase premiums written by 24.8 percent to EUR 1.54 billion. In the other markets (Germany and Liechtenstein), premiums written amounted to EUR million. Health insurance In the health insurance segment, the Vienna Insurance Group was able to generate a premium increase of 2.9 percent with premiums written in the amount of EUR million. Health insurance products are only sold on a significant scale by Wiener Städtische AG, which is one of the leading health insurers in the Austrian market. 2. GEOGRAPHIC RESULTS Austria With premiums written of EUR 3.17 billion in the year 2005, the Vienna Insurance Group and its Austrian companies achieved an increase of 14.7 percent as compared to Apart from Wiener Städtische AG, Donau Versicherung, Union Versicherung and BA-CA Versicherung also recorded double-digit growth rates in their total premium volume. The favorable development in premiums was due to the booming life insurance business. The Vienna Insurance Group's profit before tax in Austria was EUR million in the financial year This marked a considerable increase of 32.8 percent compared to the prior year. Czech Republic In the Czech Republic, premiums written of the Vienna Insurance Group rose to EUR million. This represents a satisfactory increase in premiums of 27.0 percent as compared to As regards the profit before tax, the Czech companies, with a considerable growth of 51.2 percent to EUR million, made an important contribution to the Group's higher result in profit before tax. Slovakia The Vienna Insurance Group was able to increase its premiums written in Slovakia by 15.6 percent to EUR million in The Slovak Group companies, too, made an important contribution to the overall result by increasing profit before tax by some very satisfactory 24.5 percent to EUR million. -4-

5 Other CEE With premiums written of EUR million in 2005, the Vienna Insurance Group has achieved an outstanding growth in premiums of 77.0 percent in the other CEE markets. It is particularly pleasing that the Group companies of these markets for the first time achieved a profit before tax, which amounted to EUR 3.21 million in the aggregate. The term "other CEE" as used by the Vienna Insurance Group includes Belarus, Bulgaria, Croatia, Hungary, Poland, Romania, Serbia and Montenegro and Ukraine. Other markets In its other markets (Germany and Liechtenstein), the Vienna Insurance Group was able to generate premiums written in the amount of EUR million. Profit before tax of the Group companies in the other markets amounted to EUR 7.54 million. In 2005, the share in premiums of the CEE Group companies in property/casualty insurance amounted to already approx. 45 percent and, in the aggregate of all insurance lines, to about one third of the Group s premiums. In 2005, about 37 percent of the Group's profit before tax were generated in the CEE countries. Says Günter Geyer: "No other international insurance group shows such a high percentage of CEE-activities and is in a position to offer such a long-term growth perspective in that region as does the Vienna Insurance Group. From today's point of view, we will be able to successfully continue the positive and prosperous development of the past financial year also in Altogether, we expect a two-digit growth in premiums. For the current year, we are aiming at a Group profit before tax of between EUR 270 and 290 million." -5-

6 Consolidated Balance Sheet (IFRS) 31 December 2005 Assets /- % A. Intangible assets 316, ,542 >100.0 B. Total investments 15,162,669 12,368, C. Unit- and index-linked investments 1,762,071 1,119, D. Reinsurers' share in technical provisions 840, , E. Receivables 856, , F. Deferred tax assets 11,838 7, G. Other assets 200, H. Cash and cash equivalents 290, , Total Assets 19,441,446 15,430, Equity and Liabilities /-% A. Shareholders' equity >100.0 B. Subordinated liabilities >100.0 C. Technical provisions D. Unit- and index-linked technical provisions E. Non-technical provisions F. Liabilities G. Deffered tax liabilities H. Other liabilities Total equity and liabilities Consolidated Income Statement (IFRS) /- % Gross premiums written 5, , A. Net earned premiums 4, , B. Net investment income C. Other income D. Expenses for claims incurred -3, , E. Operating expenses F. Other expenses Income from shares in affiliated and associated companies >100.0 Profit before taxes Taxes Profit for the year Thereof attributable to owners of minority interests >100.0 Net profit after minorities

7 Segment Reporting Split by Business Segments: P&C Life Health Total Gross written premiums 2, , , , , ,101.4 A. Net earned premiums 1, , , , , ,447.3 B. Net investment income * C. Other income D. Expenses for claims incurred -1, , , , , ,878.2 E. Operating expenses F. Other expenses G. Profit before tax Split by Regions: Austria Czech Republic Slovakia Gross written premiums 3, , A. Net earned premiums 2, , B. Net investment income * C. Other income D. Expenses for claims incurred -2, , E. Operating expenses F. Other expenses G. Profit before tax Other CEE Other Total Gross written premiums , ,101.4 A. Net earned premiums , ,447.3 B. Net investment income * C. Other income D. Expenses for claims incurred , ,878.2 E. Operating expenses F. Other expenses G. Profit before tax * including income from associated and affiliated companies -7-

8 The Vienna Insurance Group is the leading Austrian insurance group in Central and Eastern Europe. Among the international competitors, the Vienna Insurance Group ranks an excellent second in the region. Outside its Austrian home market, the Vienna Insurance Group operates (through subsidiaries) in Belarus, Bulgaria, Croatia, the Czech Republic, Germany, Georgia***, Hungary, Liechtenstein, Poland, Romania, Russia***, Serbia, Slovakia and Ukraine. Branch offices are maintained in Italy and Slovenia. Alongside Wiener Städtische AG, the Group in Austria includes Donau Versicherung, Bank Austria Creditanstalt Versicherung and Union Versicherung. The Group also has ownership interests in Wüstenrot Versicherung and Sparkassen Versicherung. In Austria, Bulgaria***, the Czech Republic, Slovakia and Romania, the Vienna Insurance Group ranks first or second in the market. *** subject to approval by the authorities Contact: Wiener Städtische Allgemeine Versicherung Aktiengesellschaft Investor Relations, 1010 Vienna, Schottenring 30 Thomas Schmee Tel.: Fax: Nina Higatzberger Tel.: Fax: Wiener Städtische s investor relations news are also available at under Investor Relations > IR News -8-