EANS-Adhoc: Vienna Insurance Group in 2010 in accordance with IFRS:

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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31.03.2011

Group premiums raised by 7.2 percent to EUR 8.6 billion

Profit (before taxes): clear increase by 15.1 percent to
EUR 507.8 million

Proposed increase of dividend from EUR 0.90 to EUR 1 per share*

Strong growth of the Group embedded value by 8.5 percent to EUR 5.1
billion

I. OVERVIEW OF KEY DATA FOR THE YEAR 2010

Vienna Insurance Group achieved premiums written (consolidated)
totalling about EUR 8.6 billion in the past financial year 2010. This
corresponds to an increase by 7.2 percent.

The Group profit (before taxes, consolidated) amounted to EUR 507.8
million in 2010. Hence, the Group exceeded the result for the year
2009 by 15.1 percent.

The combined ratio of the Group after reinsurance (without taking
into account investment income) was 98.4 percent in 2010. This means
that the Group succeeded in keeping it clearly below the 100-percent
threshold despite the heavy burden caused by natural disasters.

The financial result for the year 2010 increased to EUR 1.1 billion
(by 20.2 percent compared to 2009).

The investments of the Group amounted to EUR 28.2 billion as of 31
December 2010, growing by 8.7 percent compared to 31 December 2009.

The bodies of the Group will be proposed to distribute a dividend of
EUR 1 per share. The planned date for paying the dividend is 16 May
2011.

II. GROUP EMBEDDED VALUE INCREASED

The embedded value - calculated on the basis of international methods
- expresses the value of existing insurance contracts. It is composed
of the net asset value of the life, health and property/casualty
insurance as well as the present value of future profits of existing
insurance contracts in the life and health insurance segment.

"The embedded value shows in a very impressive way how important and
above all sustainable the step towards expanding the life insurance
business has proved to be, especially in the CEE markets. Thus Vienna
Insurance Group has achieved for its shareholders a considerable
annual increase in company value, which is, however, not yet
reflected in our market capitalisation. The embedded value does not
even take into account the value of in-force of the property
insurance segment, which accounts for about 50 percent of our total
business", explained Günter Geyer, CEO of Vienna Insurance Group and
adds: "This confirms that Vienna Insurance Group is a promising
investment."

The sustainability of the insurance business of Vienna Insurance
Group is mirrored by the fact that the Group embedded value (after
taxes) as of 31 December 2010 increased by 8.5 percent to EUR
5.1 billion (restated value 2009: EUR 4.7 billion). The increase in
embedded value, after taking into account dividend payments made,
results in a profitability (return on Group embedded value) of
9.1 percent.

The growth in embedded value (plus 17.5 percent to EUR 3.4 billion)
in Central and Eastern Europe is even more significant and
impressively confirms the value- added potential of this region. The
profitability of new business is a clear sign of the earnings power
of the CEE countries; it rose from 45.7 percent to 66.4 percent of
the new business premiums.

B&W Deloitte GmbH, Cologne has reviewed the Group embedded value
(GEV), and confirmed to the Vienna Insurance Group that the
methodology and the assumptions used to determine the GEV and also
the results are reasonable.

III. OUTLOOK FOR THE FINANCIAL YEAR 2011

The management of Vienna Insurance Group affirms its outlook of
January and expects an increase in profit (before taxes) by about ten
percent as well as a low percentage increase in premiums. Moreover,
the Group set itself the target of decreasing the combined ratio to
about 97 percent. However, this can only be achieved if the economic
and legal framework will not deteriorate significantly and if the
damage caused by natural catastrophes will not develop dramatically.
Vienna Insurance Group is basically not affected by the natural
disasters in Japan.

(*subject to the approval of the corporate bodies)

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 AG
Wiener Versicherung Gruppe
1010 Wien, Schottenring 30

Alexander Jedlicka
Public Relations, Spokesperson
Tel.: +43 (0)50 350-21029
Fax: +43 (0)50 350 99-21029
E-Mail: alexander.jedlicka@vig.com

Thomas Schmee
Head of 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
Wien / official market