Vienna Insurance Group

EANS-News: Vienna Insurance Group
VIENNA INSURANCE GROUP WITH A SOLID START INTO 2015

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Financial Figures/Balance Sheet/3M 2015

ALL COUNTRIES AND BUSINESS LINES POSITIVE

"In a very challenging market environment, Vienna Insurance Group managed
successfully to achieve positive results in all countries and business lines.
Our strong regional ties which give us a close relationship with the markets
resulted in certain parts in a significant premium growth."
Peter Hagen, CEO Vienna Insurance Group 

In the first quarter of 2015, Vienna Insurance Group wrote consolidated premiums
of about EUR 2.8 billion, representing an increase of 0.9 percent despite the
marked decline in single premium policies in life.

Profit (before taxes) reached EUR 130.9 million in the first quarter of 2015.
All countries and business lines contributed positively to this result. The
historically low interest rates adversely affected current income in the
financial result and also made a precaution for personnel provisions in Austria
necessary. In addition, interest expense for the subordinated bond issued in
March 2015 was recognised for the first time. Furthermore, notably higher
expenses were registered in weather related claims than in the same quarter in
the prior year. Overall, this led to a decreased result of 15.2 percent.

The combined ratio improved further and stood at 96.3 percent, a very good
level.

Vienna Insurance Group's investments (including cash and cash equivalents) rose
by 4.0 percent and amounted to EUR 32.4 billion as of 31 March 2015. The Group's
financial result amounted to EUR 273.4 million.
 
All countries and business lines make positive contributions to VIG's result
At the beginning of the financial year 2015, Vienna Insurance Group's strategy
of strong regional diversification proved to be successful. All countries and
business lines
contributed positively to profit (before taxes). Despite the difficult market
conditions, the positive earnings performance in Romania, Croatia and Ukraine,
among others, should be emphasised. A significant double-digit premium growth
was achieved in the Remaining Markets of Vienna Insurance Group.

Stable development in the Austrian market - VIG number 1
In Austria, the Group companies achieved premiums of EUR 1.3 billion. In
property and casualty, the strong growth of Wiener Städtische Versicherung
offset the further decline in premiums written by Donau Versicherung in Italy.
In life, the single premium business declined, while a slight increase was
recorded in regular premiums. Profit (before taxes) amounted to EUR 39.6
million; it was adversely affected by the precaution for personnel provisions
due to the low interest rate environment, increased expenses for weather related
claims and the high reserve ratio and charges in Italy. The trend in the
combined ratio was positive, improving to 98.1 percent.

Highest earnings contribution from the Czech Republic
In the Czech Republic, the Group wrote total premiums of EUR 457.8 million. An
increase of 6.6 percent was achieved in motor casco and regular premiums in life
grew by 2.7 percent. With profit (before taxes) of EUR 45.8 million, the Group
companies in the Czech Republic again made the highest earnings contribution to
Vienna Insurance Group in the first quarter of 2015, in spite of increased
expenses for weather related claims. The combined ratio stood at an excellent
89.7 percent.

Slovakia - Sustained demand in life insurance
In Slovakia, the Group companies increased premiums to EUR 214.7 million. The
success of bank distribution through the local Erste Group subsidiary resulted
in a 4.7 percent increase in life premiums. Growth of 2.7 percent was achieved
in regular premiums and single premiums increased by 5.8 percent. Profit (before
taxes) rose to EUR 9.7 million, while the combined ratio improved to very good
94.5 percent.

Poland - Success in a competitive environment
Vienna Insurance Group's performance in Poland was particularly influenced by
the decline in single premiums in life. Without this factor, premium growth of
17.6 percent was achieved. With a plus of 4.3 percent to EUR 16.6 million,
profit (before taxes) turned in very encouraging. The combined ratio stood at
98.1 percent.

 
Positive trends in Romania
The overall improvement in conditions in the Romanian insurance market enabled
intensified sales activities for the first time in years. With a strong increase
of 21.7 percent, premiums written grew to EUR 100.3 million.
An increase in premiums of 21.8 percent was achieved in property and casualty.
Premiums in life also rose by 21.1 percent to EUR 16.6 million, demonstrating
the success of the strong partnership in bank distribution with the local Erste
Group subsidiary BCR for unit-linked insurance products.
The restructuring measures in Romania are having an effect and resulted in a
profit (before taxes) of EUR 1.8 million. In 2015, we will continue to work on
the improvement of the combined ratio which is still above the 100 percent mark.

Remaining Markets - double-digit growth
The Remaining Markets region again proved its sustainable potential in the first
quarter of 2015. The positive trend in premiums resulted in a climb in business
volume of 15.9 percent.
In property and casualty, premiums increased by 8.5 percent to total of EUR
183.2 million, and in life the Group recorded a 29.4 percent rise in premiums to
EUR 169.6 million.
The region showed particularly strong growth for the companies in Serbia (+23.7
percent), Turkey (+23.6 percent) and Albania (+17.8 percent).

Successful bond issue strengthens capital structure
In March, Vienna Insurance Group issued a subordinated bond in the amount of EUR
400 million. In addition, shares of the 1st tranche of the EUR 500 million
hybrid bond, issued in 2008, and the supplementary capital bond 2005-2022,
issued in January 2005, were repurchased. These measures contributed to the
further strengthening of the Group's capital structure.

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