Vienna Insurance Group is staying on course in the 1st quarter of 2011:

“The business data for the first quarter of 2011 emphasise our estimates regarding the growth in premiums in the current year”, said Günter Geyer, CEO of Vienna Insurance Group. “The data present a differentiated image that meets our expectations. In the non-life insurance segment, we succeeded in achieving a significant increase, while in the life insurance business a decline was reported. This is due to the extension of the statutory lock-up period for single premium business in Austria. The trend in the life insurance segment in many CEE countries has, however, been very impressive.”

I. OVERVIEW OF KEY GROUP DATA FOR THE 1ST QUARTER OF 2011 (in accordance with IFRS)
In the first quarter of 2011 Vienna Insurance Group earned a total of EUR 2.6 billion of premiums written (consolidated), corresponding to a plus of 2.9 percent compared to the same period of the previous year.

The Group profit (before taxes, consolidated) amounted to EUR 142.8 million in the first quarter of 2011. This is a significant increase by 7.0 percent compared to the same period of the previous year.

The Group reported a combined ratio after reinsurance (excluding income from investments) of 97.8 percent in the first quarter of 2011 – after 98.4 percent in 2010.

The investments of the Group amounted to EUR 28.2 billion as at 31 March 2011, while the financial result totalled EUR 253.2 million.

II. GROUP DATA BY SEGMENTS, 1st QUARTER OF 2011 (consolidated)

Property/casualty insurance
In the property/casualty insurance segment a total of premiums of EUR 1.5 billion was written, corresponding to an increase of 6.1 percent.

Life insurance
The Group companies of Vienna Insurance Group earned premiums of more than EUR 1.0 billion in the life insurance segment. A sharp growth in regular premiums of 5.9 percent was achieved, while single premium business – mainly due to the changed minimum lock-up period in Austria – decreased by 10.6 percent.

Health insurance
With premiums written totalling EUR 92.3 million in the health insurance segment, Vienna Insurance Group achieved an increase by 8.8 percent, which is mainly attributable to the consolidation of the Georgian Group companies.

III. GROUP DATA BY REGIONS , 1st QUARTER OF 2011 (consolidated)

Austria
In the first quarter of 2011 the Vienna Insurance Group companies in Austria reported premiums written of EUR 1.3 billion (minus 1.3 percent). In the property/casualty insurance segment premiums written increased by 6.1 percent to a total of EUR 651.5 million. In the life insurance segment a decline of premiums of 9.3 percent to a total of EUR 546.0 million was registered, which is due to the changed minimum lock-up period for single premium business.

Profit (before taxes) amounted to EUR 78.8 million in the first quarter, increasing significantly by 12.2 percent compared to the same period of the previous year.

The combined ratio improved to a very good 94.0 percent.

Czech Republic
Increasing by 13.2 percent, the Group companies in the Czech Republic earned premiums written of EUR 514.3 million.

In the non-life insurance segment, premiums written amounted to EUR 287.0 million (plus 0.7 percent). In the life insurance business, premiums written increased very sharply by remarkable 34.2 percent to a total of EUR 227.3 million.

With a market share of 33.3 percent, the Group companies of Vienna Insurance Group became the number one in the insurance market in the Czech Republic after the first quarter of 2011. Hence, Vienna Insurance Group is the market leader, both in the non-life insurance (36.6 percent) and in the life insurance business (29.5 percent).

Profit (before taxes) rose by pleasing 30.6 percent to EUR 41.1 million compared to the prior-year period.

The combined ratio stood at an excellent 94.5 percent.

Slovakia
The Group companies in Slovakia boosted premiums written by 3.7 percent to EUR 188.6 million.

Increasing by 1.8 percent, premiums written of EUR 103.4 million were earned in the non-life insurance segment. In the life insurance segment premiums written grew strongly by 6.3 percent to EUR 85.2 million.

The Vienna Insurance Group companies expanded their market share to 33.5 percent, strengthening their position as the number one in the Slovak insurance market.

Profit (before taxes) amounted to EUR 17.5 million. Compared to the prior-year period, a gratifying substantial increase by 73.3 percent was registered.

The combined ratio amounted to 96.4 percent.

Poland
Surging by 46.3 percent, premiums written of the Group companies of Vienna Insurance Group totalled EUR 258.6 million.

In the non-life insurance segment premiums written went up by 20.1 percent to EUR 162.0 million. Premiums written of EUR 96.6 million were earned in the life insurance business, rising significantly by 131.0 percent.

Profit (before taxes) climbed by more than one third to a total of EUR 9.6 million compared to the same period of the previous year.

Decreasing by close to 7 percentage points, the combined ratio was only slightly above 100 percent.

Romania
The Romanian Group companies reported premiums written of a total of EUR 144.5 million (minus 2.0 percent) in the first quarter of 2011.

In the non-life insurance segment a decline of premiums written to EUR 117.4 million was recorded, which is attributable to portfolio restructuring. In the life insurance business premiums written went up by 4.3 percent to EUR 27.1 million.

In the first quarter of 2011 a loss of EUR 5.0 million was posted.

The combined ratio amounted to a very unsatisfactory 110 percent.
 
Remaining markets
The segment Remaining markets comprises the countries Albania, Bulgaria, Germany, Estonia, Croatia, Latvia, Liechtenstein, Lithuania, Macedonia, Serbia, Turkey, Ukraine, Hungary and Georgia.

In the non-life insurance segment premiums written grew strongly by 15.5 percent to EUR 146.9 million, while in the life insurance segment a decline to EUR 60.8 million was recorded. In this segment the Group companies of Vienna Insurance Group reported premiums written of EUR 212.7 million.

Profit (before taxes) amounted to EUR 0.7 million.

The combined ratio was slightly above 100 percent.

IV. OUTLOOK
The management of Vienna Insurance Group confirms its forecast of January and expects an increase in profit (before taxes) of about ten percent and a low percentage growth of premiums. Moreover, the Group has set itself the target of decreasing the combined ratio to about 97 percent. The prerequisite is, however, that the economic and legal framework will not deteriorate significantly and that damage caused by natural disasters will not develop dramatically.