euro adhoc: Wiener Städtische Allg. Vers. AG / other / Vienna Insurance Group (Wiener Städtische Group) for the first time publishes European Embedded Value

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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04.05.2006

Please note: this is a translation; only the German version of this
news release is legally binding.

The big international insurance groups use the embedded-value
approach in addition to the annual financial statements in order to
better reflect the nature of the insurance business as a long-term
business when determining the economic value of the enterprise. The
group embedded value (after taxes) for the Vienna Insurance Group
(Wiener Städtische Group) was EUR 3.779 billion as of the valuation
date December 31, 2005. This value is based exclusively on the
business already written and does not take into account the enormous
potential for future growth.

After the traditional embedded value had been published within the
scope of last year's capital increase, the leading Austrian insurance
group in Central and Eastern Europe for the first time, and as the
only Austrian insurance group to do so, publishes a European Embedded
Value. The European Embedded Value is a new market standard by which
the Vienna Insurance Group reflects the most recent developments in
the valuation of businesses by the capital market. This approach
tries to represent as realistically as possible the environment in
which insurance business is transacted.

To obtain the embedded value number, the value of in-force insurance
business is calculated. According to international principles, the
embedded value is made up of the net assets for life, health and P &
C insurance and the present value of the combined future earnings
from in-force business in the life and health lines.

In addition to these two components, the Vienna Insurance Group also
determines the value of in-force business for parts of the Austrian P
& C business. This value is determined on the basis of long-term
relations with private customers who have taken out P & C contracts
that are serviced via the important sales channel of the own salaried
sales force. If this additional value of EUR 570 million were taken
into account, the value of the enterprise would be as high as approx.
EUR 4.35 billion.

Some 80 percent of the total group embedded value of EUR 3.779
billion is attributable to the Austrian insurance business, and the
remaining portion to the CEE segment. Compared to 2004, the Vienna
Insurance Group was able to increase the group embedded value for
2005 by EUR 1.613 billion (including the proceeds from the capital
increase of December 2005 in the amount of approx. EUR 900 million).
It should be noted in this connection that this rise could be
achieved in spite of the increase in the actuarial reserve in life
insurance by which the Vienna Insurance Group already fully took into
account the application of the new Austrian mortality tables.

The value of the new business written in 2005, in the amount of EUR
74.8 million, which represents the earnings power of the life and
health insurance lines and is included in the group embedded value,
constitutes a noticeable increase over 2004.

Renowned consultants Deloitte & Touche LLP London have reviewed and
fully confirmed the group embedded value of the Vienna Insurance
Group.

Wiener Städtische Allgemeine Versicherung AG
A-1010 Vienna, Schottenring 30
ISIN: AT0000908504

end of announcement euro adhoc 04.05.2006 07:28:47
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ots Originaltext: Wiener Städtische Allgemeine Versichererungs AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Mag. Barbara Hagen-Grötschnig
Wiener Städtische Unternehmenskommunikation
Tel.: +43 (0)50 350-21027
Fax: +43 (0)50 350 99-21027
E-Mail: b.hagen@staedtische.co.at

Branche: Insurance
ISIN: AT0000908504
WKN: A0ET17
Index: ATX Prime, ATX, WBI
Börsen: Wiener Börse AG / official market