The Vienna Insurance Group in the 1st quarter of 2007

The Vienna Insurance Group one one the leaders in Austria, the Czech Republic, Slovakia, Romania,
Bulgaria, Albania and Georgia has announced 1st quarter results of 2007.

Profit (before taxes) boosted by 38 percent to EUR 101 million
The EUR 2 billion mark in Group premiums reached for the first time
already after three months
Sustained high level of premium growth in CEE of approx. 37 percent
The Vienna Insurance Group 2007 to 2009:
Profit target for 2007 raised by 28 percent compared to results
of 2006
Profit target 2009 brought forward to 2008

Planned profit for 2009 set at more than half a billion EUR
"This is the first time in our history that we surpass the EUR 2 billion premium mark in one quarter.
This effectively demonstrates the dynamics of our business, which especially in CEE consistently
posts high growth levels", Günter Geyer, CEO, comments on the record result achieved by the
Vienna Insurance Group in the first quarter of the current year. "This pleasant development allows us
to significantly adjust our prognoses for the profits for the current year and for the coming years. We
intend to increase our profit for 2007 by more than one fourth. For the year 2008, we can for the first
time announce a target of EUR 470 to 480 million and therefore we want to achieve the result planned
for 2009 already one year earlier.

Our profit target for 2009 is considerably above half a billon euros."

I. OVERVIEW OF KEY GROUP DATA FOR THE 1st QUARTER OF 20071

With consolidated premiums written (without other insurance participations) of EUR 2.02 billion in
the aggregate, the Vienna Insurance Group in the 1st quarter of 2007 achieved an increase of
15.2 percent as compared to the same period of the previous year.

(Including other insurance participations, non-consolidated premiums written from direct business in
the 1st quarter of 2007 were EUR 2.06 billion – 13.4 percent up from the 1st quarter of 2006).
The Group's profit (before taxes, consolidated) rose by EUR 27.82 million, to a total of
EUR 100.73 million. This translates to a significant increase of 38.2 percent as compared to the
1st quarter of 2006.

At 96.4 percent, the combined ratio of the Group after reinsurance (not considering investment
income) is markedly improved from the 1st quarter of 2006, when it was 98.3 percent. This combined
ratio considerably below 100 percent was reached despite claims caused by the winter storm Kyrill.
The financial result was EUR 205.32 million in the 1st quarter of the current year and was thus up
by more than one fourth (up 26.7 percent) from the same period of the previous year.

The expenses for claims incurred rose by 12.9 percent, attaining EUR 1.18 billion. Thus, they
show an under proportional development compared to the premium growth (despite Kyrill).
The total investments of the Vienna Insurance Group increased from EUR 19.60 billion as of
31 December 2006 to EUR 21.60 billion as of 31 March 2007. This translates to a 10.2 percent
growth.

II. DATA FOR THE GROUP FOR THE 1st QUARTER OF 2007, CLASSED BY SEGMENTS
(consolidated)

The Vienna Insurance Group in the first three months of 2007 posted significant premium growth in
all insurance lines, with the highest increases being generated in the life sector.
In total, the Group's income in terms of premiums written amounted to EUR 2.02 billion, and was
thus up 15.2 percent from the same period of the previous year.

In the CEE countries, premiums in the amount of EUR 751.53 million were generated, surpassing
the previous year's value by an excellent 37.3 percent.

In the non-CEE countries (Austria, Germany, Liechtenstein), the Group companies achieved a
premium income of EUR 1.27 billion in the 1st quarter of the current financial year, which translates
to a 5.1 percent growth. Austria accounted for a premium volume of EUR 1.20 billion (up
5.2 percent).

1. BUSINESS SEGMENT RESULTS

Property/casualty insurance

In property/casualty insurance, the premiums written by the Vienna Insurance Group rose by a
total of 15.5 percent, attaining EUR 1.19 billion, in the 1st quarter of 2007.
In the CEE countries, the Group companies posted a premium volume in the amount of
EUR 571.39 million and thus generated a 32.8 percent growth as compared to the corresponding
quarter of the previous year.

In the non-CEE countries, premiums written in the amount of EUR 613.88 million were achieved
in this segment, translating to an increase of 3.0 percent as compared to the 1st quarter 2006. Of
this, EUR 595.68 million (plus 2.9 percent) were achieved in Austria, and EUR 18.20 million (plus
6.3 percent) in the other markets (Germany, Liechtenstein).

Life insurance

In the life sector, the premium volume of the Group companies rose by a total of 16.2 percent, to
attain EUR 753.17 million. This business segment could thus post the highest increase.
A particularly satisfactory premium increase was achieved in the CEE markets: premium income in
the amount of EUR 180.14 million meant that an excellent 54.1 percent premium expansion was
achieved.

In the non-CEE countries the premium income in the life insurance business amounted to
EUR 573.03 million, thus surpassing the 1st quarter of 2006 by 7.9 percent. The Group companies
in Austria expanded their premium volume to EUR 520.65 million, which translates to an
8.3 percent growth, while the other markets (Germany, Liechtenstein) posted an increase by
3.8 percent to EUR 52.38 million.

Health insurance

In the health insurance segment, the Vienna Insurance Group achieved a total of EUR 79.93 million
in premiums written, which constitutes a 2.9 percent increase from the 1st quarter of 2006. The
products from this business segment are only sold to a relevant extent by Wiener Städtische AG as
one of the leading health insurers.

2. GEOGRAPHIC RESULTS

Austria

In the 1st quarter of 2007, premiums written in Austria were at a total of EUR 1.20 billion, thus
being up 5.2 percent from the same period of the previous year.
As compared to the corresponding quarter of the previous year, the Group in the first three months of
the current year posted an increase in profit (before taxes) in Austria in the amount of 14.1 percent
to EUR 62.49 million.

Czech Republic

In the Czech Republic in the 1st quarter of 2007 a premium volume of EUR 312.59 million in the
aggregate was achieved, and thus an 11.2 percent increase.
Profit (before taxes) in the 1st quarter of 2007 was EUR 18.34 million, which amounts to an
increase of 178.8 percent, as the considerable acts of God of the year 2006 did not repeat
themselves.

Slovakia

The business volume was also vigorously expanded by the Group companies in Slovakia, which at a
premium income in the amount of EUR 141.35 million posted an increase of 21.0 percent as
compared to the same period of the previous year.
Profit (before taxes) was increased by an excellent 58.1 percent to EUR 9.97 million in the
1st quarter.

Other CEE

The other Group companies of the Vienna Insurance Group in CEE expanded their business volume
by a striking 99.3 percent, posting premiums in the amount of EUR 297.59 million. Of this, a total of
EUR 121.41 million (up 149.1 percent) was achieved by the Vienna Insurance Group in Poland
and a total of EUR 106.23 million (up 75.3 percent) by the Vienna Insurance Group in Romania.
In this segment, profit (before taxes) in the first quarter of the current year was at EUR 6.65 million,
thus more than quadrupling the result.

The term "Other CEE countries" as used by the Vienna Insurance Group includes Bulgaria, Croatia,
Poland, Romania, Serbia and Hungary.2

Other markets

The Group companies in Germany and Liechtenstein posted premiums written in the amount of
EUR 70.58 million (plus 4.4 percent) in the 1st quarter of 2007.
Profit (before taxes) amounted to EUR 3.28 million.

III. NEW PROFIT TARGETS FOR THE YEARS 2007 TO 2009

In view of the excellent business development of the Group in the first three months of the current
year and the remarkable 38 percent boost in profits, the Management raises the target for the
Group profit (before taxes) for the year 2007 to the new target figure of up to EUR 410 million.
This means an increase of approx. 28 percent as compared to the results of the year 2006.

For the financial year 2008, a Group profit (before taxes) in the amount of EUR 470 to 480 million is
expected. This means that the Vienna Insurance Group intends to achieve the profit planned for 2009
one year earlier, i.e. in 2008.

For the year 2009 the target for the Group profit (before taxes) will be increased to EUR 520 to
530 million, thus considerably surpassing the half a billion Euro mark. This corresponds to an
average annual increase of the Group result from 2006 to 2009 of close to 20 percent.

The Vienna Insurance Group is the leading Austrian insurance group in Central and Eastern Europe. Among the
international competitors, the Vienna Insurance Group is among the market leaders.

Outside its Austrian home market, the Vienna Insurance Group operates (through subsidiaries) in Albania*,
Belarus, Bulgaria, Croatia, the Czech Republic, Georgia, Germany, Hungary, Liechtenstein, Macedonia*,
Poland, Romania, Russia, Serbia, Slovakia, Turkey* and Ukraine. Branch offices are maintained in Italy and
Slovenia.

Alongside WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group, the Vienna Insurance 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.

The Vienna Insurance Group is among the market leaders in Austria, the Czech Republic, Slovakia, Romania,
Bulgaria, Albania* and Georgia.

Source: Vienna Insurance Group