EANS-News: Vienna Insurance Group Wiener Versicherung Gruppe / Half Year Results 2016: Vienna Insurance Group right on track

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Subtitle: "A+" rating with stable outlook confirmed again

Financial Figures/Balance Sheet/Half Year Results 2016

- Premiums rise to EUR 4.9 billion
- Profit (before taxes) of EUR 201.3 million
- Combined ratio of 97.9 percent clearly below the 100 percent mark

Vienna Insurance Group's half year results for 2016 are right on
target. VIG generated EUR 4.9 billion in Group premiums, representing
a slight increase of 0.4 percent compared to the previous year. The
restrictive underwriting policy used for single-premium life
insurance in many markets continued to have an effect on total
premium income. When adjusted for single premium business, total
premiums even grew by 4.5 percent in the first six months of the
current year.

Profit (before taxes) was EUR 201.3 million. "We announced a target
of doubling the profit achieved last year to up to EUR 400 million
and our half-year results show we are on course to achieve this goal,
even though the low interest rate environment has not changed and
continues to have a negative effect on our financial result,"said
Elisabeth Stadler, CEO of Vienna Insurance Group. The financial
result was EUR 449.5 million (-13.2 percent).

The Group's combined ratio of 97.9 percent after reinsurance (not
including investment income) remained clearly below the 100 percent
mark during the reporting period.

Group investments including cash and cash equivalents were EUR 32.3
billion (+3.2 percent) as of the 1sthalf of 2016.

The international rating agency Standard & Poor's once again
confirmed Vienna Insurance Group's "A+" rating with a stable outlook
in July 2016. VIG therefore continues to have the best rating of any
company listed in the ATX Index. "Standard & Poor's based its "A+"
rating primarily on our leading market position and high level of
financial flexibility, which also gives us security during periods of
unexpected market turbulence. Standard & Poor's believes we will be
able to maintain our market leadership in Austria and Central and
Eastern Europe. We are pleased that the stable outlook was also
confirmed," concluded Elisabeth Stadler.

VIG current market news VIG's goal of achieving a market share of at
least 10 percent in four markets over the medium term is also
proceeding according to plan. Except for Poland where, among other
things, the ongoing reduction in single-premium life insurance put
downward pressure on premium volume, Hungary (premium increase of
15.4 percent), Croatia (+6.2 percent) and Serbia (+12.1 percent)
showed clear gains. "In Croatia, significant gains were achieved,
particularly from growth in the life insurance, bringing us close to
our minimum target of a 10 percent market share. We recently signed a
purchase agreement for the AXA companies in Serbia and will soon pass
our target by reaching a market share of around 12 percent, once the
acquisition has been approved by the authorities," said Elisabeth
Stadler, confirming the strategy followed for these markets.

Vienna Insurance Group also recorded good results in the Romanian
insurance market, which has been difficult for a number of years. The
Group companies in Romania increased premiums by a remarkable 37.3
percent in the first half of 2016. This was primarily due to the
motor insurance business, which is currently moving in a positive
direction. In life insurance, VIG signed an agreement at the
beginning of August to acquire the Romanian AXA Life company (subject
to approval by the authorities), a further step that will expand its
market leadership.

Change to measurement of the non-profit housing societies The
half-year results for 2016 already include the adjustments and
comparative values for 2015 based on the notice recently received
from the Austrian Financial Market Authority (FMA).VIG has now
regained a controlling influence over the non-profit housing
societies. The future full consolidation of the shares held in this
nine companies will not show an effect until the financial statements
for the third quarter of 2016.

Solvency II ratio of 196 percent The change in measurement of the
non-profit housing societies has no effect on the calculation of the
Solvency II ratio. This calculation is performed based on the partial
internal model that was approved by the FMA, which only includes the
future payouts made by the non-profit companies. The Solvency II
ratio at the level of the listed VIG Group was 196 percent at the end
of 2015. VIG therefore continues to be among the leading
international insurance groups with regard to solvency.

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

Wolfgang Haas
Head of Group Communications & Marketing, Spokesperson of the Group
Tel.: +43 (0)50 390-21029
Fax: +43 (0)50 390 99-21029
E-Mail: wolfgang.haas@vig.com

Nina Higatzberger-Schwarz
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 Wiener Versicherung Gruppe
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