EANS-News: Vienna Insurance Group / Vienna Insurance Group continues expansion in the Baltics; VIG acquires BTA Baltic - Top insurance player in the Baltics

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Mergers - Acquisitions - Takeovers

Vienna Insurance Group has taken another step towards expanding its
presence in Central and Eastern Europe. After acquiring Latvian
non-life insurer Baltikums AAS this summer, VIG will secure a
majority stake in another Latvian insurance company.

The Group will purchase the majority of shares in BTA Baltic
Insurance Company AAS (BTA Baltic), which is headquartered in Latvia
and has branch offices in Lithuania and Estonia. The purchase
agreement has been signed and is subject to regulatory approval. The
current shareholders will continue working for BTA Baltics.

"With this transaction we have achieved an important goal of VIG's
strategic development in the Baltics. We rank among the top players
in life as well as in non-life in the Baltic States, for economic
reasons a particularly interesting region within the EU. Moreover
this acquisition opens up very good opportunities for cross selling
of life and non-life products",said Franz Fuchs, responsible among
others for the Baltic markets in the VIG Managing Board.

In 2014 BTA Balticrecorded gross premiums of around EUR 117 million
(2013: EUR 112 million), with Lithuania accounting for 46.1 percent
of the total, Latvia for 40.5 percent and Estonia for 13.4 percent.
Some 40 percent of premiums were attributable to motor liability
insurance and over 20 percent to casco insurance. Property generated
10 percent and health insurance around 9 percent of premiums
respectively. Profit before tax in 2014 amounted to EUR 10.6 Million
(2013: EUR 6.6 million) and BTA Baltic's combined ratio was at
impressive 94 percent last year.

The company has a market share of about 20 percent in Latvia, where
it is the second-largest insurer on the non-life market. It is also
the second-largest non-life insurer in Lithuania, with a market share
of around 14 percent. BTA Baltic is Estonia's seventh-biggest
insurance company, with a market share of about 6 percent. Through
the acquisition of BTA Baltic VIG will become one of the top 3
insurers in the non-life market of the Baltic States.

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

Alexander Jedlicka
Head of Public Relations, Spokesperson
Tel.: +43 (0)50 390-21029
Fax: +43 (0)50 390 99-21029
E-Mail: alexander.jedlicka@vig.com

Nina Higatzberger
Head of Investor Relations
Tel.: +43 (0)50 390-21920
Fax: +43 (0)50 390 99-21920
E-Mail: nina.higatzberger@vig.com

end of announcement euro adhoc
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company: Vienna Insurance Group
Schottenring 30
A-1010 Wien
phone: +43(0)50 390-21919
FAX: +43(0)50 390 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