Vienna Insurance Group

EANS-News: Vienna Insurance Group

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Financial Figures/Balance Sheet/Half Year Results

* Top rating A+ with stable outlook confirmed
* Premiums excluding single-premium product: a solid increase of 2.2%
* Half-year combined ratio of 95.9% best in 5 years          

* Record profit for Remaining Markets region: EUR 30.9 million (increase of
* Profit (before taxes) at around EUR 250 million


In the current environment, Vienna Insurance Group is focusing on profitable
lines of business in property and casualty and on regular premium products in
life insurance, which grew well with an increase of 6.3 percent. The restraint
out of earnings aspects in offering single premium life insurance led to a
decrease in this area of 15.7 percent. Overall, Vienna Insurance Group wrote EUR
4.9 billion in consolidated premiums in the first six months of 2015 (minus 1.5
percent), without single premium policies a solid increase of 2.2 percent
compared to the previous year.

"We have reason to be satisfied with the course of business so far this
financial year: VIG has taken steps to expand in the promising markets of the
Baltic region. Proof of our stability was provided by another confirmation of
our excellent rating, and the improvement of an important key performance
indicator -the combined ratio - shows that the Group's underwriting is highly
profitable. This is particularly important in a low interest rate
environment." Peter Hagen, CEO Vienna Insurance Group

All countries and segments once again made positive contributions to earnings.
The Remaining Markets region made a particularly large contribution, with a
record profit of EUR 30.9 million (increase of 11.5 percent). The CEE share of
Group profit (before taxes) rose once again in the first half of 2015 to 67

The achieved profit (before taxes) of EUR 250.5 million was within the expected
range and was strongly affected by declining financial results. This was due to
the historically low level of interest rates, which also made it necessary to
form personnel provisions in Austria.

Vienna Insurance Group reduced its combined ratio (after reinsurance) by 1.2
percentage points. The excellent level of 95.9 percent was the best value
achieved in the last five comparison periods.

Vienna Insurance Group held EUR 31.3 billion in investments (including cash and
cash equivalents) as at 30 June 2015. The Group financial result was EUR 524.5
million. The decrease of 7.2 percent was due to the low level of interest rates.

Highlights from the Group

The Standard & Poor's rating agency once again confirmed its A+ rating with
stable outlook. This means that VIG continues to have the best rating of all
companies in the ATX index. The agency stressed VIG's excellent competitive
position as market leader in Austria and Central and Eastern Europe, its
portfolio, which is diversified across all lines of business, and its multi-
channel distribution strategy. It has an excellent capital base and exceeds the
S&P benchmark for AAA in 2014.
In Austria, the good growth of 3.0 percent achieved by Wiener Städtische in
property and casualty insurance compensated for the premium decrease of Donau
Versicherung in Italy. In life, Vienna Insurance Group acted with restraint in
the area of single-premium products. Overall premiums generated by the Austrian
group companies declined by 2.3 percent. The combined ratio improved
significantly by more than 3 percentage points to a 96.6 percent in the first
half of 2015.

Profitable CEE markets generate profit before taxes of around EUR 167 Million

The Group companies in the Czech Republic made the largest contribution to Group
profit (before taxes) in the first half of 2015. Kooperativa, CPP and PCS
generated EUR 88.1 million, corresponding to an increase of 2.7 percent.
Property and casualty premiums remained stable, with distribution activities
being particularly successful in the motor segment. In life, the companies in
the Czech Republic also acted with restraint in the single-premium business due
to the low level of interest rates, leading to a decrease in premiums. At 89.8
percent, the combined ratio was once again at an excellent level.

The Group companies in Slovakia increased their premiums written slightly in the
first half of 2015. Bank distribution via the local Erste Group subsidiary was
particularly successful, with premiums generated by PSLSP growing sharply by
19.5 percent. Profit (before taxes) rose 2.0 percent to EUR 26.2 million, and
the combined ratio was 95.6 percent.

In Poland, Vienna Insurance Group wrote EUR 449.4 million in premiums (a
decrease of 20.5 percent). Price competition was intense in the motor segment,
causing average premiums to fall, particularly in fleet and leasing business.
Because of its earnings-oriented underwriting policy, VIG accepted a loss of
premiums in the property and casualty segment. In life insurance, the low-margin
short-term single-premium business was also intentionally reduced again. When
adjusted for single-premium business, total premiums increased 10.3 percent.
Profit (before taxes) reached EUR 28.2 million, and the combined ratio stood at
96.8 percent.

The systematic implementation of restructuring measures continued to have an
effect on premiums and earnings in Romania, where Group companies recorded a
major premium increase of 17.6 percent in the first half of 2015. Positive
growth was achieved in both life and non-life. Profit (before taxes) rose to EUR
3.5 million. The combined ratio improved again by around 5 percentage points,
and is now only slightly higher than the 100 percent mark.

Remaining Markets a growth Driver

In the countries forming the Remaining Markets region, Group companies recorded
a record result in the first six months of the current year. Profit (before
taxes) rose by 11.5 percent over the previous year to EUR 30.9 million. Serbia,
Bulgaria and the Baltic region were particularly successful in raising profits.
The combined ratio improved again to 96.6 percent in the first half of 2015.

A significant increase of 18.4 percent, raising premiums to EUR 668.6 million,
was particularly pleasing. Group companies in Bulgaria, Hungary, Serbia,
Albania, Turkey and the Baltic region, for example, achieved double-digit growth

VIG takes steps to expand in the Baltic Region

The Baltic States have recently proven to be an attractive growth market for
Vienna Insurance Group. General economic conditions are solid and market
forecasts very positive. All three of the Baltic States now belong to the

The VIG life insurance company Compensa Life SE operates successfully in
Estonia, Latvia and Lithuania and has grown rapidly in previous years. Purchase
of the largest insurance distribution company in Lithuania, Finsaltas, by
Compensa Life SE was the next step towards achieving a position as a leading
provider of life insurance in the region.

Vienna Insurance Group will also promote its property and casualty business in
the future, which was previously mainly handled by Compensa in Poland. The newly
established company Compensa Non-Life in Lithuania has received a license and
the non-life insurance company Baltikums AAS was acquired in Latvia. Subject to
official approval of the acquisition, Vienna Insurance Group now has a total
market share of around 7.5 percent of the insurance market in the Baltic States.

Further inquiry note:
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 

Nina Higatzberger
Head of Investor Relations
Tel.: +43 (0)50 390-21920
Fax: +43 (0)50 390 99-21920

end of announcement                               euro adhoc 

company:     Vienna Insurance Group
             Schottenring 30
             A-1010 Wien
phone:       +43(0)50 390-21919
FAX:         +43(0)50 390 99-23303
sector:      Insurance
ISIN:        AT0000908504
indexes:     WBI, ATX Prime, ATX
stockmarkets: official market: Wien, stock market: Prague Stock Exchange 
language:   English

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