euro adhoc: Generali Holding Vienna AG / Mergers - Acquisitions - Takeovers / Generali will acquire Ukrainian Garant Insurance companies

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09.06.2006

Generali will acquire Ukrainian Garant Insurance companies

Entry in Ukrainian market - acquisition of 51% of Garant Auto, the
second company in the non-life sector, and Garant Life, the third
in the life Ukranian business.

Today Generali Holding Vienna AG has signed an agreement with the
UkrAvto Group for the acquisition of 51% shareholding in Garant Auto
and Garant Life, insurance companies that operate in the non-life and
life segments respectively. The operation is waiting for the go-ahead
from the Antimonopoly Committee of Ukraine.

With this transaction in Ukraine, which comes after the recent entry
in Serbia, the Generali Group has further pursued its strategic
expansion and strengthening of positions in CEE, bringing to nine the
coun-tries in which it operates.

Karl Stoss, CEO of Generali Holding Vienna AG: "With this transaction
in Ukraine, which comes after the recent entry in Serbia, the
Generali Group has further pursued its strategic expansion and is
strengthening its position in the CEE region, bringing to nine the
countries in which we operate." With the acquisition of the Garant
Auto Group, Generali becomes a leading operator in the Ukrainian
market.

Garant Auto Group: premium income doubled in 2005. First motor TPL
provider in the country Garant Auto Group closed 2005 with a premium
income of EUR 42.6 million, more than doubling the total of EUR 19.7
million reached in the previous year, and recording strong growth in
both the life and non-life segments. Thanks to these results, at the
end of 2005 the Ukrainian companies rank second in the non-life -
first provider of motor TPL - and third in life business with a
market share of 11%. Currently Garant Auto Group can rely on a
client base of 400,000 and on a salesforce comprising 720 payroll
and 1,200 independent salesmen. In addition, it can rely on an
exclusive distribution agreement with UkrAvto Group’s car dealership
network, which is the leader in the Ukrainian auto market. With a
view to strengthening the partnership, UkrAvto will continue to be a
shareholder holding a significant stake.

Generali in Central Eastern Europe Generali has a significant
presence today in Central Eastern Europe with approximately 3.5
million clients, operating in eight countries with a historically
known trademark (Hungary 1989, Czech Republic and Romania 1993,
Slovenia 1996, Slovakia 1997, Poland 1999, Croatia 2002 and Serbia
2006). In 2005, the premium income that rose by more than 22% to
nearly EUR 940 million at the end of 2005.

The insurance market in Ukraine: +42% average growth rate in the past
three years With a population of approximately 48.7 million, Ukraine
is the region’s second-largest country in terms of inhabitants. The
insurance industry is rapidly expanding, recording an average growth
rate of 42% over the past three years. The growth potential is
testified also by low insurance penetration: GDP-to-premium ratio in
the life segment in 2004 was 4.77% and 0.05% in the non-life,
compared to an overall average of 8.41% in western Europe.

(This is a translation of the original German information. In the
event of any discrepancy, the German version shall apply.)

end of announcement euro adhoc 09.06.2006 12:14:00
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ots Originaltext: Generali Holding Vienna AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Generali Holding Vienna AG
Josef Hlinka
Tel.: (++43-1) 534 01-1375
Fax: (++43-1) 534 01-1593
mailto:josef.hlinka@generali.at
http://www.generali-holding.at

Branche: Insurance
ISIN: AT0000661350
WKN: 873075
Index: WBI, ATX Prime
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