EANS-Adhoc: Vienna Insurance Group / Vienna Insurance Group in 2008 in accordance with IFRS: Good results for 2008 confirmed

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31.03.2009

Increase in profit (before taxes) of nearly 24 percent to approx. EUR
540 million

Bonus dividend for shareholders

Excellent increase in Group premiums to almost EUR 8 billion overall
(up 14.3 percent)

CEE premium share in non-life at around 60 percent

I. OVERVIEW OF KEY GROUP DATA FOR 2008*

(* The BCR insurance companies in Romania are not included in the
Group results of the Vienna Insurance Group.)

In 2008, the Vienna Insurance Group achieved an increase of 14.3
percent to EUR 7.90 billion with total premiums written
(consolidated) (excluding other insurance participations) in
comparison to the previous year.

In 2008, the Group profit (before taxes, consolidated) amounted to a
total of EUR 540.80 million. The Vienna Insurance Group is therefore
one of the few insurance groups, in an international comparison,
which has not revised the earnings outlook downwards, but has even
increased consolidated profit in comparison to the previous year by a
remarkable 23.7 percent. For the first time, the share of the Czech
Group companies in the consolidated profit (before taxes) was over
EUR 100 million.

As previously mentioned, it will be suggested to the decision-making
bodies - in spite of the fact that the number of shares increased by
23 million - that a dividend of EUR 1.10 per share be distributed
again in 2008. It will also be suggested that a bonus dividend of EUR
0.90 per share be distributed to the shareholders in late autumn
2009. In this way, the loyalty of the shareholders in conjunction
with the capital increase in difficult market times shall be
recognized. 4 May 2009 is scheduled as the dividend payment date. The
bonus dividend shall be paid out on 27 October 2009.

The combined ratio of the Group after reinsurance (not considering
investment income) was once again significantly under the 100 percent
mark in 2008 at 96.4 percent.

The financial results for 2008 were kept relatively stable at EUR
918.14 million despite the negative situation in the world markets.

As of 31 December 2008, the investments of the Group amounted to EUR
24.55 billion. This corresponds to a growth of 21.7 percent in
comparison to the end of 2007.

II. SOLID GROUP EMBEDDED VALUE

The embedded value represents the value of in-force insurance
business and in accordance with international guidelines is made up
of the net asset value for life, health and property & casualty
insurance as well as the present value of the combined future
earnings from in-force business in the life and health lines.

The embedded value reacts sensitively to the developments of the
capital markets and directly shows the effects of the increased
volatility of the interest and stock markets, higher bond risk
spreads and declining interest. This leads to an increased assessment
of the guarantee risk in life insurance and subsequently to a
reduction of the embedded value, among other things. The insurance
activities of the Vienna Insurance Group in Austria were primarily
affected by this, whereas in Central and Eastern Europe even an
increase of the embedded value was recorded.

As a result, the Vienna Insurance Group has been successful in
keeping the embedded value on a Group basis comparatively stable. The
Group embedded value (after taxes) of the Vienna Insurance Group was
EUR 4.16 billion as of 31 December 2008 (2007: EUR 4.55 billion).

A clear sign of the successful continuation of the course of growth
in Central and Eastern Europe are the expected earnings of newly
concluded life insurance business in this region. With EUR 92.2
million for the new business of 2008, this shows an increase of 34
percent vis-à-vis the comparative value in the previous year and
underlines the earnings power of this segment (2007: EUR 68.8
million). This also shows that the strategic step of the Vienna
Insurance Group in acquiring the s-Versicherungsgruppe as well as the
BCR companies was correct.

The very gratifying development in the segment of life insurance in
Central and Eastern Europe particularly shows an increase of the
Group embedded value in this region by EUR 147.4 million to EUR 2.34
billion. The detailed key data for Central and Eastern Europe
contained in the entire Group embedded value also shows sustained
positive development of the insurance business in economically
difficult times.

B & W Deloitte GmbH, Köln have reviewed and fully confirmed the Group
embedded value of the Vienna Insurance Group.

III. 2009 HYBRID BONDS ISSUANCE**

The Wiener Städtische Versicherung AG Vienna Insurance Group intends
to issue, within the scope of the existing hybrid bonds programme,
the emission of a second tranche with a volume of up to EUR 250
million. The terms and conditions of the bonds will be determined in
the final conditions of the bonds within the near future.

(** Not for distribution in the United States, Canada, Japan and
Australia.)

IV. 2009 OUTLOOK

In spite of a difficult economic environment, the Vienna Insurance
Group expects a growth in premiums for 2009, the concrete definition
of which is not currently possible due to the very volatile exchange
rate development of the CEE markets. Due to the uncertain situation
on the financial markets, the financial results, which are considered
to be the driver of results in insurance, cannot be reliably
predicted either.

It is the goal of the Vienna Insurance Group to maintain the combined
ratio at significantly below 100 percent. To guarantee this and in
light of the altered general economic conditions, the management of
the Vienna Insurance Group has decided to initiate a Group-wide and
future-oriented action program. The focus of the measures will be
centered on the material costs as well as the comprehensive
improvement of processes in the individual companies as well as
across the entire Group. An optimization potential of at least EUR
100 million was identified until the end of 2010.

As already announced, the Vienna Insurance Group has conducted talks
with the Wüstenrot Group concerning the acquisition of the shares of
the Vienna Insurance Group in Wüstenrot
Versicherungs-Aktiengesellschaft (31.6 percent). These talks have now
come to a positive conclusion.

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

Mag. Barbara Hagen-Grötschnig

Unternehmenskommunikation

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

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

E-Mail: barbara.hagen@vig.com

Mag. 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