EANS-Adhoc: Record result of Vienna Insurance Group in 2011

--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------

29.03.2012

- Standard & Poor´s confirms excellent rating: "A+" with stable
outlook

- Outstanding increase in Group profit (before taxes) by 10.1 percent
to about EUR 560 million

- Group premiums grow to almost EUR 9 billion

- Proposed dividend increase of 10 percent to EUR 1.10 per share*

- Vienna Insurance Group grows considerably above market average in
CEE

I. OVERVIEW OF KEY DATA FOR THE YEAR 2011 (in accordance with IFRS)

In the financial year 2011 Vienna Insurance Group earned consolidated
premiums written of EUR 8.9 billion, which corresponds to a rise of
3.4 percent.

Group profit (before taxes, consolidated) increased significantly by
10.1 percent to EUR 559.0 million in 2011. This is the best-ever
result in the Group´s history.

The Group´s combined ratio after reinsurance (without taking into
account investment income) for the year 2011 clearly decreased by
almost 1.6 percentage points to a very good level of 96.8 percent.

The financial result for the year 2011 amounted to EUR 931.6 million.

The investments of the Group, including liquid funds, totalled
EUR 28.7 billion as of 31 December 2011.

The Managing Board of Vienna Insurance Group will propose an increase
in dividend by 10 percent to EUR 1.10 for the year 2011.*

II. GROUP EMBEDDED VALUE INCREASED

The embedded value - calculated based on international guidelines -
represents the value of existing insurance contracts. It is composed
of the net asset value of life, health and property/casualty
insurance as well as the discounted value of future earnings from
existing contracts in the life and health insurance segment.

The sustainability of the insurance business of Vienna Insurance
Group is reflected in the fact that the Group embedded value (after
taxes) increased by 6.3 percent to EUR 5.28 billion as of 31 December
2011 (adjusted value 2010: EUR 4.97 billion).

B&W Deloitte GmbH, Cologne, reviewed the Group embedded value and
confirmed to Vienna Insurance Group that the calculation procedures
applied as well as the underlying assumptions and results are
accurate.

III. OUTLOOK FOR THE FINANCIAL YEAR 2012

The priority in 2012 will be on promoting further organic growth and
on increasing profitability on a continuous basis. The Management of
Vienna Insurance Group has committed itself to achieving growth above
the market average also in the next years. As far as the situation in
the European markets is concerned, the Group expects if at all
selective stagnating revenues due to restrained consumption.

Vienna Insurance Group will continue to adhere to its principles of a
local market presence based on diversification aspects as well as to
its conservative investment strategy, while working on strengthening
its profitability. The Management of Vienna Insurance Group will
strive to keep volatilities as low as possible also in the future, by
taking into account the respective economic setting. The Group
examines on an ongoing basis if there are cost-reduction potentials
and how they may be taken advantage of in an optimal way,
particularly in the companies in the CEE region and through the
continued harmonisation of the Group´s IT infrastructure.

* subject to the approval of the corporate bodies

Further inquiry note:
VIENNA INSURANCE GROUP AG
Wiener Versicherung Gruppe
1010 Wien, Schottenring 30

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

Nina Higatzberger
Head of Investor Relations
Tel.: +43 (0)50 350-21920
Fax: +43 (0)50 350 99-21920
E-Mail: nina.higatzberger@vig.com

end of announcement euro adhoc
--------------------------------------------------------------------------------

issuer: Vienna Insurance Group
Schottenring 30
A-1011 Wien
phone: +43(0)50 350-21919
FAX: +43(0)50 350 99-23303
mail: investor.relations@vig.com
WWW: www.vig.com
sector: Insurance
ISIN: AT0000908504
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien, stock market: Prague Stock Exchange
language: English