18.12.2007 – 12:30

Wiener Städtische Versicherung AG - VIENNA INSURANCE GROUP

euro adhoc: WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group
Mergers - Acquisitions - Takeovers
Vienna Insurance Group: Market entry into the three Baltic states Estonia, Latvia and Lithuania by acquisition of Seesam Life Insurance SE ...

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.

18.12.2007

Vienna Insurance Group completes its entry into the insurance markets
of the Baltic region and strengthens its presence in Poland.

I. Market entry into the Baltic markets through the acquisition of 
Seesam Life Insurance SE

On 18 December 2007 Wiener Städtische Versicherung AG Vienna 
Insurance Group signed a purchase agreement with the Finnish Suomi 
Mutual Life Assurance Company for the acquisition of 100 percent of 
Seesam Life Insurance SE (Seesam).*

"This deal significantly expands the geographic network of the Vienna
Insurance Group in Central and Eastern Europe", explains Günter 
Geyer, CEO of the Vienna Insurance Group, and adds: "As the leading 
Austrian CEE insurer we possess a high level of integration know-how 
and practical experience in these markets. With their robust economic
development, the three Baltic states open up strong growth prospects 
for insurance companies."

Seesam Life Insurance SE, with its headquarters in the Estonian 
capital Tallinn, was founded in 1993. The life insurance company 
subsequently expanded into the markets of Latvia (1999) and Lithuania
(2001).

In 2006 the company achieved a premium volume of EUR 13.6 million in 
all three Baltic states with a combined population of approximately 7
million, which represents an increase of 26.2 percent in comparison 
with the previous year. In Latvia and Estonia Seesam ranks an 
excellent fourth place in the life insurance market and in Lithuania 
the ninth place. Seesam has ten branches in all three countries and 
provides services for 45,000 clients with a staff of approximately 
200 employees. Besides classical life insurance policies, unit-linked
policies and term insurance are also offered.

The enormous potential for growth is made clear by the low insurance 
penetration (share of life insurance premiums in GDP: Estonia 0.8 
percent, Lithuania 0.6 percent, Latvia 0.2 percent) as well as the 
low insurance density (premiums per capita for life insurance: 
Estonia approx. USD 94, Lithuania approx. USD 48, Lithuania approx. 
USD 12) in 2006.

The potential is further illustrated by the market growth in the 
areas of life insurance for these countries (Estonia 22 percent, 
Latvia 58 percent, and Lithuania 68 percent). In comparison, in 2006 
the 15 EU states had an insurance penetration of 6.2 percent and an 
insurance density of USD 2,198 in this field of insurance.

II. Expansion of life insurance through the acquisition of FinLife 
TunZ S.A. in Poland

At the same time Wiener Städtische Versicherung AG Vienna Insurance 
Group also acquired 100 percent of the shares in FinLife TUnZ S.A. 
(FinLife) from Suomi Mutual Life Assurance Company.*

"Vienna Insurance Group is already amongst the most prominent 
insurance groups in Poland, where we rank an excellent fifth place in
the area of non-life insurance. The purchase of FinLife enables us to
further strengthen our sales network and to make even better use of 
the market potential in the life insurance area as well", emphasizes 
Günter Geyer.

Headquartered in Warsaw, FinLife was founded in 1996. FinLife 
specialises in group insurance and term life insurance, and in 2006 
recorded a premium income of approximately EUR 20 million. The 
company has around 90 employees and 15 branches across the country. 
FinLife also possesses a well-developed independent sales network and
has concluded a number of cooperation agreements in the banking 
sector.

Vienna Insurance Group already has a presence in Poland, with a total
of seven companies. They include Compensa non-life and Compensa life,
Benefia non-life and Benefia life, the life insurance company Royal 
Polska as well as the non-life insurers Cigna and TU PZM. With a 
population of around 38 million, and thus one of the biggest markets 
in Central and Eastern Europe, Poland has an insurance penetration of
1.7 percent and an insurance density of approx. USD 151 in the life 
insurance business.

Please note: this is a translation; only the German version of this 
release is legally binding.

* subject to approval of authorities

end of announcement                               euro adhoc

Further inquiry note:

WIENER STÄDTISCHE Versicherung AG
VIENNA INSURANCE GROUP
Barbara Hagen-Grötschnig
Corporate Communications
Schottenring 30, 1010 Vienna
Tel.: +43 (0)50 350-21027
Fax: +43 (0)50 350 99-21027
E-Mail: b.hagen@staedtische.co.at

Branche: Insurance
ISIN: AT0000908504
WKN: A0ET17
Index: WBI, ATX Prime, ATX
Börsen: Wiener Börse AG / official market