euro adhoc: Vienna Insurance Group / Joint Ventures/Cooperation/Collaboration / Vienna Insurance Group and ARAG Group: Joint development of new legal protection markets • Discussions on coopera

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20.01.2009

Vienna Insurance Group (VIG) and ARAG Allgemeine
Rechtsschutz-Versicherungs-AG have signed a letter of intent
regarding cooperation in the legal protection business, with the
objective of developing a joint business model for the Austrian
market as well as for those CEE countries in which Vienna Insurance
Group is represented. It is expected that the discussions will be
concluded by summer 2009.

"This announcement regarding the signing of a letter of intent
underscores the cordial and trusting atmosphere in which both
companies are discussing this issue", emphasise the two CEOs of the
respective groups, Günter Geyer (VIG) and Paul-Otto Faßbender (ARAG).

Vienna Insurance Group and ARAG have agreed in principle that ARAG
Österreich will be developed into the leading provider of legal
protection insurance in Austria. For this purpose, VIG will enter
into a joint venture with ARAG in Austria, whereby Vienna Insurance
Group's entire legal protection business in-force will be integrated
into the joint company ARAG Österreich.

Günter Geyer sums up the advantages of the partnership as follows:
"This will create a new market leader in this business line for
Austria - a company with strong product know-how and an excellent
sales network."

At the same time, the new ARAG Österreich will form the basis for the
development of legal protection products for dynamic CEE markets.
"For us the Vienna Insurance Group is the ideal partner for
positioning the relatively new subject of legal protection in this
region", elaborates Paul Otto Faßbender on the advantage of this
cooperation for ARAG, "since it recognised the development
opportunities of these markets already at an early stage and
possesses excellent know-how for the development and management of
the CEE region."

Vienna Insurance Group's Austrian legal protection business in-force,
which is to be integrated into the new ARAG Österreich, is over EUR
40 million. As a result, the new ARAG Österreich will manage total
premium volumes of approximately EUR 84 million and become Austria's
leader in legal protection insurance. Along with the successive
development of new CEE markets, the premium goal envisioned for these
insurance products could rise to over EUR 500 million.

The two groups ideally complement each other. Based on the new
business model, ARAG will gain additional growth impulses as part of
the sustained globalisation of the group. ARAG possesses decades of
experience in developing and successfully implementing business
models for different international insurance markets. Vienna
Insurance Group stands for sound knowledge of central and eastern
European markets and the successful development of insurance
companies in this region.

CEOs Paul-Otto Faßbender and Günter Geyer are convinced that both
groups have the necessary competence, financial strength and
reputation to add considerable value for consumers in this region.

Vienna Insurance Group
A-1010 Wien, Schottenring 30
ISIN: AT0000908504

end of announcement euro adhoc
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ots Originaltext: Vienna Insurance Group
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

VIENNA INSURANCE GROUP (V.I.G.)

1010 Wien, Schottenring 30

Barbara Hagen-Grötschnig

Public Relations

Tel.: +43 (0)50 350-21027

Fax: +43 (0)50 350 99-21027

E-Mail: barbara.hagen@vig.com

Thomas Schmee

Investor Relations

Tel.: +43 (0)50 350-21900

Fax: +43 (0)50 350 99-21900

E-Mail: thomas.schmee@vig.com

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