WE ARE - Wiener Städtische

AnnuAl rePOrt 2010 | WiENER STädTiSchE VERSichERUNg Ag 

WE ARE 

Austria 

ANNUAL REPORT 2010 | Wiener StädtiSche 1

2 ANNUAL REPORT 2010 | Wiener StädtiSche 

NUMBER 1 IN AUSTRIA 

WE HAVE 

APPROXIMATELY 140 BUSINESS OFFICES 

AND MORE THAN 2,000 ADVISORS. 

NO ONE ELSE IN AUSTRIA CAN OFFER 

SO MUCH TO THEIR CUSTOMERS.

WE ARE AVAILABLE 

nation-wide 



EVEN MORE TIME FOR YOUR CONCERNS 

THE VIENNA INSURANCE GROUP 

ASSUMES GROUP AND HOLDING 

COMPANY RESPONSIBILITIES, AND WE 

HAVE MORE TIME TO SERVE 

OUR CUSTOMERS

WE GIVE NEW MEANING TO 

problem-free 

IN AUSTRIA 



OUR RECIPE FOR SUCCESS SINCE 1824 

ASSUME LEADERSHIP IN CURRENT INSURANCE 

TOPICS AND PRODUCT INNOVATION, AND PROVIDE 

PROFESSIONAL ADVISORS AND SERVICE. THE 

RESULTS: FAIR, LONG-LASTING CUSTOMER 

RELATIONSHIPS

WE OFFER THE MOST 

professional 

ADVISORS AND SERVICE IN AUSTRIA 



IT MUST BE IN THE GENES 

A CLAIM TO LEADERSHIP IN ALL GENERATIONS. 

JUST AS THE VIENNA INSURANCE GROUP 

IS AMONG THE LEADERS IN MANY 

CEE MARKETS, WIENER STÄDTISCHE 

IS NUMBER 1 IN AUSTRIA.

WE BELONG TO THE VIENNA INSURANCE GROUP, A 

leading family 

IN THE CEE REGION 


highlightS HigHLights 

WelcOMe tO the Future 

> 

Reorganisation of Group structure, Vienna Insurance Group assumes 

holding company responsibilities 

> New Managing Board team for Austria 

> Full concentration on the insurance business in Austria and the branch 

offices in Italy and Slovenia 

> Number 1 in the Austrian insurance market 

> Retirement pensions receiving more attention 

cOntinuOuS iMPrOVeMent 

> Premium volume increases by 4.2% to EUR 2.4 billion in 2010 

> Profit before taxes considerably higher than in the previous year 

> Combined ratio of 96.6% once again significantly below 100% 

> Wiener Städtische’s product and service innovations are 

on the pulse of the times 

> New Wiener Städtische website offers extensive product 

information and service highlights 

> Advertising awards 

10 ANNUAL REPORT 2010 | Wiener StädtiSche

»We Are AuStriA ...« 

in August 2010, robert lasshofer assumed the position of ceO for 

Wiener Städtische that had previously been held by günter geyer. 

General Manager Günter Geyer 

186 years of experience in the Austrian insurance market 

make us strong. The building blocks of our success 

are proximity to customers throughout Austria, leadership 

in current insurance topics and product innovation, and 

providing the most professional advisors and service. We 

use our leading position to create sustainable value, based 

on the four pillars of region, people, financial strength and 

optimal solutions. Our main guiding principle: relieve our 

customers of their concerns. 

Thanks to the new Group structure, we can now concentrate 

even more strongly on the Austrian market. As the 

new holding company, the Vienna Insurance Group has 

been responsible for managing the Group since August 

2010, giving Wiener Städtische Versicherung AG more 

opportunity to focus on its traditional insurance business. 

At the same time, responsibility for managing the Company 

was assigned to Robert Lasshofer. The modern, 

forward-looking management structure of our Group also 

allows us to restructure activities in our home market to 

become more efficient and customer-focused. So that we 

can truly say: WE ARE AUSTRIA! 

General Manager Robert Lasshofer 

editOriAl 



Managing Board of Wiener Städtische Versicherung Ag (from left to right) erich leiss, Judit havasi, 

general Manager robert lasshofer, christine dornaus, Peter höfinger

»... FAced With the chAllenge OF BecOMing 

eVen Better AS nuMBer 1 ...« 

An interview with the members of the 

Managing Board of Wiener Städtische Versicherung Ag, 

general Manager Robert Lasshofer, christine dornaus, 

Judit havasi, Peter höfinger and Erich Leiss. 

»We cAn FOcuS 

MOre StrOnglY On 

the AuStriAn 

MArKet.« 

Robert Lasshofer 

2010 brought fundamental change 

for you, the separation of Wiener 

Städtische and VIG, which will focus 

on holding company and Group management 

responsibilities in the future. 

What does this mean for you? 

Lasshofer: For Wiener Städtische, it 

means a natural continuation of its 

successful past. We were one of the 

first to dare enter Eastern Europe 

after the fall of the Iron Curtain, and 

we have grown to become one of 

the leading insurance companies in 

the region. At the same time, we increased 

in size to such an extent that 

separating holding company responsibilities, 

now managed by VIG, and 

operating responsibility for Wiener 

Städtische’s insurance business became 

a natural next step. This separation 

of responsibilities puts us once 

again ahead of our times, and allows 

us here at Wiener Städtische to concentrate 

more strongly on the Austrian 

market and branch offices in Italy 

and Slovenia, and the security needs 

of our customers. 

Will customers also see changes? Continuity 

is particularly important when it 

comes to insurance. 

Leiss: And continuity is exactly what 

we are focusing on. Our main themes 

were, and still remain, absolute 

customer-orientation and security. 

The concept of security has been 

expanded, however, to include not 

only our original business of providing 

risk coverage, but also security 

in a broader sense of safety, lasting 

customer relationships. A partner offering 

long-term security is precisely 

what customers need when deciding 

to join a pension plan, for example. 

What do you consider your overall role 

in the Austrian insurance market? After 

all, this Annual Report begins with 

the highly confident statement, “We 

are Austria.” 

Dornaus: Our number 1 position 

in the Austrian insurance market is 

based on a market share of 14.5%, 

approximately 3,500 employees, 

2,000 advisors and 1.3 million customers. 

Our self-confidence is therefore 

based on impressive facts. The 

statement “We are Austria”, however, 

reflects many other factors. We are 

an Austrian company, managed from 

Austria, with a successful history of 

186 years as Austria’s oldest insur- 

interVieW 



»... FOrWArd-lOOKing trendSetterS in 

»We WAnt tO 

PrOVide QuicK 

lOng-terM 

SOlutiOnS FOr 

cuStOMer 

needS.« 

Erich Leiss 

ance company. We are also one of 

the largest investors and employers 

in the country. We are well positioned 

throughout Austria, near to our customers 

and responsive to their needs. 

Our expansion into the CEE region 

was, however, also managed from 

Austria. And now, thanks to the reorganisation 

of VIG, we can once again 

place our full attention on our home 

market of Austria. 

What does being a part of VIG mean 

for you, and your customers? 

Höfinger: Being part of an international 

group of companies brings us 

stability, financial strength and a network 

covering the entire CEE region, 

which is of particular interest to our 

large customers, who often operate 

out of Austria in the entire region. 

VIG also performs important management 

functions that determine 

our strategic direction and provide 

synergies. This brings considerable 

cost benefits, for example in the IT 

area or back office. In addition, all 

of the companies in VIG benefit from 

exchanging know-how and best practices. 

It is important to us that the 

other companies in the Group meet 

the same high goals and standards 

as the Group as a whole. 

And where specifically do you score 

points compared to your competitors? 

Leiss: Our goal is to recognise trends 

before others do, and to immediately 

turn this knowledge into products 

that address those needs. We therefore 

see ourselves as forward-looking 

trendsetters in the Austrian insurance 

industry. Wiener Städtische’s 

track record of consistent success 

throughout its history shows that we 

can achieve this goal. One example: 

we were the first in the market to 

expand catastrophic protection in 

homeowner insurance. 

Havasi: We were also first mover with 

retirement pensions in the 1960s, 

and in the area of nursing care provisions, 

where we were the first in 

Austria to offer an insurance solution. 

Aside from product innovation, however, 

one of the crucial differences, 

particularly in a business based on 

trust, is the high level of professional 

service and support we provide. Because 

of our nation-wide network, 

we truly are near to our customers 

everywhere in Austria. Another factor 

that perhaps none of us would 

have suspected, and that also underscores 

longterm performance, is 

that we have been the trusted insurance 

company of many monasteries 

and other parts of the Austrian clergy 

since the Company was established. 

How does it look in terms of profitability? 

The last few years have also been 

difficult for insurance companies. 

How did the Company do in 2010? 

Lasshofer: Very well. Premium volume 

increased by more than 4%, exceeding 

our target for the year, and 

the result from ordinary activities is 

also considerably higher than the 

year before. 

Single-premium life insurance policies 

made a particularly large contribution 

to premium volume, the cost 

reduction programme begun in 2009 

was brought to a successful conclusion, 

and the reorganisation measures 

needed when the Company was 

split off from VIG were also completed 

quickly. This increased efficiency 

considerably.

the AuStriAn inSurAnce MArKet ...« 

Dornaus: In the investments area, 

we used a very conservative and security-oriented 

investment policy to 

minimise our exposure to default risk. 

This produced an excellent financial 

result. Earnings were also increased 

by a successful property sale, which 

was reported in the extraordinary result. 

Independent of this sale, we further 

expanded our real estate portfolio 

to increase security and stabilise 

our actuarial reserve fund. 

What were the most important external 

factors? The media often reported 

on natural catastrophes and an increased 

trend towards retirement provisions. 

Höfinger: 2010 was, in fact, greatly 

affected by natural catastrophes. 

In terms of our private customers, 

although there was no single largescale 

event, like the flood of the millennium 

that occurred in 2002, there 

were many smaller events spread 

over the year. In the business segment, 

since we accompany many 

Austrian companies as they move 

into foreign countries, we are naturally 

also affected by natural events 

in other regions and on other continents. 

In total, we paid out EUR 1.4 

billion in insurance benefits last year. 

Our reinsurance policy has proven its 

value here, as it allowed the charges 

for Wiener Städtische itself to be 

kept to a minimum. Due to the large 

number of major losses, however, the 

reinsurance market has become considerably 

more cautious. 

Havasi: With respect to provisions for 

retirement, demographic change and 

increasingly tight government budgets 

have caused this area to grow 

strongly for years. After a short inter- 

ruption due to the financial and economic 

crisis, the trend is now returning 

even more strongly. Single-premium 

policies, traditional life insurance, 

and our “Prämienpension” pension 

product showed clear signs of this in 

2010. In overall terms, life insurance 

premiums rose by 12.9% last year. 

What were the most important initiatives 

in the product and services areas 

in 2010? 

Leiss: We once again made a very 

large number of product additions 

and modifications in 2010. The 

central principle was to provide increased 

ease of use and transparency 

by, for example, promoting the 

use of the Internet, smartphones, and 

the like. For example, we now offer 

apps and claims processing tools for 

these channels. The main goal was to 

satisfy customer requirements, both 

in terms of sustainability, which is important 

in areas like retirement provisions, 

for example, which demand a 

great deal of advisory services, and 

in terms of speed, for example in motor 

vehicle claims settlement. At the 

same time, we also worked intensively 

in 2010 on preparations for the 

product innovation initiative that is 

planned for 2011. 

With respect to employees, in addition 

to a professional organisational structure, 

customer-orientation and good 

service require committed, competent 

employees. 

Lasshofer: That is why we are continuously 

investing in our employees. 

This is done with two goals in mind. 

First, we want to ensure that we have 

the best employees in our team and, 

second, we need to ensure that our 

»We chOOSe 

Secure inVeStMentS 

FOr cuStOMer 

PreMiuMS.« 

Christine Dornaus 

interVieW 



»... Wiener StädtiSche’S SucceSS iS 

»Our reinSurAnce 

POlicY hAS PrOVen 

itS VAlue.« 

Peter Höfinger 

advisors provide the high level of 

professional service demanded by 

the market. We use something similar 

to a double-brand strategy here. 

The image of our Company, and its 

success, are a product of both the 

“Wiener Städtische” brand and the 

personal “brand” of each individual 

employee. Wiener Städtische’s success 

is also the success of each individual 

employee, and vice versa. This 

is why we invest large sums in training 

and advanced training, motivation, 

and the development of young employees, 

as well as the targeted use 

of experienced employee expertise, 

and the use of job rotation to promote 

networking within the Group. High 

priority is also given to informational 

events and training courses for our 

field staff, who are of key importance 

to our sales. 

Without our employees, we could not 

have achieved the good result we reported 

for the year just ended, and 

I would like to take the opportunity 

here to thank them deeply for their 

past and future support. 

Mr. Lasshofer, you took on the position 

of CEO in August 2010. What does this 

mean for you personally, and what areas 

are you planning to focus on? 

Lasshofer: The need for security has 

been with us since the dawn of mankind, 

and I would like to build on this 

basic principle to further strengthen 

Wiener Städtische’s leading position 

in the market. We want to continue to 

follow the successful path we are on, 

and add further to our achievements. 

Our challenge, therefore, is to further 

improve our position as number 1. In 

terms of what the new position means 

to me personally, it brings great en- 

joyment, but also brings a high level 

of responsibility, both to our employees 

and our customers. I am pleased 

to take on the challenge! 

Two members of the Managing Board 

are women. This is completely unheard 

of for a large Austrian company. 

What are your thoughts about equal 

treatment in general? 

Dornaus: The situation is excellent 

at Wiener Städtische, but society as 

a whole unfortunately has a long way 

to catch up. We don’t need a quota 

system in the Company; everything 

is simply based on performance. This 

holds true for all areas of the company, 

including the Managing Board. Of 

the total 1,546 inside employees of 

Wiener Städtische, 953 are women. 

That is more than 60%. 

Havasi: As another example, we also 

have one of the first company daycare 

centres in Austria, with 105 children 

currently registered. This also 

fits the image we have of ourselves as 

a first mover. One result is that 90% of 

mothers return after maternity leave, 

which is likely to be a new record. We 

also use targeted measures to encourage 

women to join the Company. 

Each year, for example, the Company 

holds a “Daughters’ Day” event, 

where the daughters of employees 

can learn more about the professional 

careers available for women in the 

insurance industry. At the same time, 

equal treatment is also an important 

principle for us in other areas. For 

example, Wiener Städtische has 96 

employees with disabilities. 

What is the situation in terms of corporate 

social responsibility, in particular, 

sponsoring?

the SucceSS OF All Our eMPlOYeeS.« 

Havasi: As a company committed to 

sustainable security, we also recognise 

our responsibility to society, and 

regularly support a broad portfolio 

of initiatives. Our main focus is on 

cultural and social initiatives, in 

sports we limit ourselves to recreational 

sports, such as the Vienna City 

Marathon. In the area of culture, the 

VBW theatre company (Vereinigte 

Bühnen Wien) and St. Margarethen 

Opera Festival are some of our partners, 

and we also support the Festival 

der Bezirke festival and the Long 

Night of the Churches (Lange Nacht 

der Kirchen) regularly. Providing support 

for social causes, however, is 

particularly important to us. Highlights 

in this area include, for example, 

the Safety Tour for children and 

the Caritas nursing care campaign, 

which we are co-financing. A project 

started with the “Second Savings 

Bank” (Zweite Sparkasse) provides 

low-cost or, in some cases, free insurance 

for people in a precarious 

financial situation who have special 

needs in this area. This is a matter of 

particular concern to us. We feel it is 

important to be a long-term, reliable 

partner in all of these projects, and to 

provide long-lasting support over the 

long term. 

Let us finish with a look into the future. 

What are your expectations and most 

important plans for financial year 

2011? 

Lasshofer: As mentioned previously, 

we are planning a product innovation 

initiative for 2011. The overall aim of 

the initiative is to achieve new quality 

for our products. This has two main 

dimensions. First, we aim to remain a 

reliable partner in all long-term insurance 

areas, such as retirement pen- 

sions and nursing care provisions, 

and continuously develop new products 

to provide long-term security in 

this area. On the other hand, life is 

becoming ever faster, and needs are 

becoming more short-term. We are 

also reacting flexibly to these developments, 

and are planning a series 

of innovations for retirement pensions, 

motor vehicles and nursing 

care in 2011 that are a perfect match 

for these new needs. We will also, of 

course, combine this with further 

training and advanced training for our 

advisors. They need to have detailed 

knowledge of the products and customer 

needs, and be able to see the 

bigger picture. 

In terms of figures, we will naturally 

be aiming for sustainable growth. 

This applies in particular to the nonlife 

area, where natural catastrophes, 

rising criminality, and the economic 

crisis have increased people’s security 

needs, leading to an upward 

trend. In addition, we also see potential 

in nursing care provisions. In 

overall terms, we have a good basis 

for further increasing our volume of 

business. 

Thank you for the interview. 

»We tAKe Our SOciAl 

reSPOnSiBilitY 

VerY SeriOuSlY.« 

Judit Havasi 

interVieW 


Wiener StädtiSche MAnAging BOArd 


Judit hAVASi 

Member of the Managing Board 

Areas of responsibility: 

human resources and 

development, company law, 

sponsoring, life insurance, 

casualty insurance, health 

insurance, personal 

insurance service centre 

erich leiSS 



Property insurance, general liability 

insurance and legal expenses 

insurance, private and commercial 

business, motor vehicle insurance, 

property insurance service centre, 

special damages, legal expenses 

claims, business organisation, 

iT management and provider 

management

chriStine dOrnAuS 



Securities and funds, equity 

investment management and 

loans, real estate and real 

estate-related equity investments, 

finance and accounting, 

collections service centre 

rOBert lASShOFer 

general Manager, cEO 


Media and public relations, 

internal communications 

marketing, advertising, central 

sales management, primary 

distribution, secondary distribution, 

Erste Bank Sparkasse group 

partnership, provincial 

head offices 

Peter höFinger 



corporate and large customer 

business, reinsurance

OVerVieW 

A 

cOMPAnY & StrAtegY 

Number 1 in Austria 26 

The Vienna insurance group 

clear objectives and strategy 

Leadership in current insurance topics and innovation 

Professionalism and reliability 

28 

30 

32 

34 B 

Employees as a key factor in success 

Success can be shared 

36 

38 MAJOr tOPicS 2010 


The new Wiener Städtische 40 

Expansion of the service centres 41 

Negative effects of natural catastrophes 42 

Attention on retirement provisions 44 

Product and service initiatives 48 

Advertising does well 52

c 

MAnAgeMent rePOrt 2010 

Business development in 2010 54 

Risk report 59 

Outlook for 2011 61 

Proposal on the distribution of profits 63 

d 

AnnuAl FinAnciAl StAteMentS 2010 

Balance sheet 66 

income statement 74 

Notes to the financial statements 81 

Auditor’s report 104 

Supervisory Board report 106 

declaration by the Managing Board 108 

SerVice 

State advisory boards 109 

Provincial head offices 112 

contact information and addresses 113 

glossary 123 


KeY FigureS FOr Wiener StädtiSche VerSicherung Ag 

in million eur 2010 

gross premiums written 2,432.8 

Property/casualty 1,046.5 

Life 1,058.5 

health 327.8 

Financial result 388.4 

Profit from ordinary activity 187.6 

total capital assets 12,510.6 

capital assets 10,286.6 

capital assets of unit- and index-linked life insurance 2,234.0 

underwriting provisions 

(excluding unit- and index-linked life insurance) 8,294.9 

underwriting provisions of unit- and 

index-linked life insurance 2,141.4 

equity capital 881.7 

number of employees 3,497 

internal 1,546 

External (including trainees) 1,951 


Life 43.5% 

cOMPAnY & StrAtegY | MAJOR TOPicS 2010 | MANAgEMENT REPORT 2010 | ANNUAL FiNANciAL STATEMENTS 2010 

PreMiuMS BY SegMentS inSurAnce clAiMS BY SegMentS 

reSult FrOM OrdinArY BuSineSS BY SegMentS 

Property/casualty 

65.7% 

health 13.5% 


43.0% 

Life 21.7% 

health 12.6% 

Life 53.6% 

* incl. costs of claims processing 

Others 1.3% 

Real estate 2.7% 

Loans 13.0 

Ownership 

interests 17.1% 

health 13.8% 

Structure OF inVeStMentS* 

* Balance of investments excluding unit-linked and index-linked life 

insurance was EUR 10,286.60 mn as at 31 december 2010 


32.6% 

Securities 65.9% 

ANNUAL REPORT 2010 | Wiener StädtiSche 23 

A

Wiener StädtiSche VerSicherung Ag 

AuStriA’S tighteSt SAFetY net 


Bregenz 

Dornbirn 

FELDKIRCH 

Bludenz 

Vienna location 

Ottakring 

Office "Vorsorge" 

Reutte 

Imst 

Landstraße 

Floridsdorf 

Telfs 

Donaustadt 

HEADQUARTERS 

PROVINCIAL HEAD OFFICE 

Liesing 

Landeck 

INNSBRUCK 

Wörgl 

Schwaz 

Kufstein 

Zell / See 

Lienz 

Braunau/Inn 

Mattighofen 

Seekirchen 

SALZBURG 

Hallein 

Bischofshofen 

St. Johann/Pongau 

Bad Gastein 

Hermagor

Grieskirchen 

Ried/Innkreis 

Vöcklabruck 

Abtenau 

Schärding 

Mondsee 

Schörfling 

Bad Ischl 

Tamsweg 

Spittal/Drau 

Rohrbach 

Wels 

Vorchdorf 

Gmunden 

Scharnstein 

Villach 

Bad Leonfelden 

Eferding 

Leonding 

Bad Aussee 

Liezen 

Gröbming 

Traun 

Feldkirchen 

Steyr 

Kirchdorf/Krems 

LINZ 

Kremsmünster 

Windischgarsten 

Judenburg 

Murau 

St. Veit/Glan 

KLAGENFURT 

Freistadt 

Ferlach 

Völkermarkt 

Gmünd 

Kindberg 

Kapfenberg 

Zwettl 

Gratkorn 

Voitsberg 

Waidhofen/Thaya 

Bruck/Mur 

Gföhl 

Mürzzuschlag 

Deutschlandsberg Bad Radkersburg 

Leibnitz 

Hartberg 

Weiz 

Horn 

Krems 

Hollabrunn 

Gleisdorf 

Feldbach 

Fürstenfeld 

Stockerau 

Zistersdorf 

Korneuburg 

Gänserndorf 

Perg 

Herzogenburg 

Melk 

Amstetten ST. PÖLTEN 

Tulln 

Klosterneuburg 

Vienna (see 

Groß Enzersdorf 

map on left) 

Neulengbach 

Bruck/Leitha 

Mödling 

Schwechat 

Scheibbs 

Baden 

Neusiedl/See 

Waidhofen/Ybbs 

Lilienfeld 

Wr. Neustadt EISENSTADT 

Mattersburg 

Ternitz 

Leoben 

Knittelfeld 

Wolfsberg 


GRAZ 

Retz 

Neunkirchen 

Aspang 

Jennersdorf 

Wolkersdorf 

Oberwart 

Güssing 

Laa/Thaya 

Poysdorf 

Mistelbach 

Oberpullendorf 

headquarters/Provincial head offices 

Branch offices 

A

For a remarkable 186 years, Wiener Städtische has been the reliable 

partner for its customers, a manager for their problems today, and the 

provisions they make for the future. Experience, competence, financial 

strength and innovation are the pillars of our economic success. 

»MArKet leAder 

thAnKS tO the 

truSt OF 

1.3 MilliOn 

cuStOMerS« 


Wiener Städtische is the largest single 

company in the international Vienna Insurance 

Group (VIG), with registered office in 

Vienna. Wiener Städtische is an independent 

company that concentrates fully on 

activities in the Austrian market and the 

branch offices in Italy and Slovenia 

Leading market position 

The confidence of 1.3 million customers, 

a total premium volume of approximately 

EUR 2.4 billion in 2010, and a market share 

of 14.5% make Wiener Städtische the largest 

insurance company in Austria. Its customers 

benefit from its experience, pro- 

factbox 

> largest insurance company in Austria, 

with a market share of 14.5% and 

1.3 million customers 

> nation-wide service provided by nine 

provincial head offices, approximately 

140 business offices, and 3,500 

employees, including 2,000 advisors 

> Financial strength provided by good 

capital resources and integration into 

the Vienna insurance group 

nuMBer 1 in AuStriA 

fessional employees and innovative range 

of products. The Company operates in all 

insurance classes and offers customers security 

in many areas of life. 

Important for the economy 

In addition, Wiener Städtische plays a 

major role in maintaining Austria’s attractiveness 

as a business centre, not only as 

a major employer, but also as one of the 

most important investors in the country. 

Sustainable investments and equity investments, 

and support in the social and 

cultural areas are deeply anchored in our 

business strategy. 

Wiener Städtische also makes a major contribution 

to the stability and growth of the 

Austrian economy by being a reliable partner 

for industry and large customers. Wiener 

Städtische is one of the most important 

real estate investors in Austria. The investment 

portfolio is supplemented with real 

estate in order to offer customers sustainability 

and a high level of security. 

An insurance partner in all classes 

Wiener Städtische operates in the property/casualty, 

life and health insurance areas, 

and offers innovative custom-tailored 

solutions for private, commercial and corporate 

customers. Everything is based on 

the needs of the market and customers – 

in the future, Wiener Städtische will continue 

to offer products that provide stability 

and security in the future, as well as flexibility 

and convertibility.

Proximity to customers and 

service orientation 

Close to 3,500 employees, including more 

than 2,000 advisors, in nine provincial 

head offices and approximately 140 business 

offices provide personal service tailored 

to individual needs throughout all of 

Austria. Use of this regional approach and 

strong nation-wide customer service will 

continue to be one of the most important 

pillars of Wiener Städtische’s success. It 

guarantees proximity to customers, rapid 

claims settlement, and personal, comprehensive 

service. 

Attractive multi-channel distribution 

Our field staff, brokers, agents, and approximately 

140 business offices represent 

Wiener Städtische’s sales strength. Our 

salaried field staff are our strongest channel 

for private sales, and sales to small and 

medium-sized business. In 2008, a new 

institutional distribution option, banking 

distribution, was added to the previous 

successful channels of distribution. 

The cooperation with the Erste Bank 

Sparkasse Group helps to develop insurance 

solutions for capital accumulation 

using competitive forms of investment. 

The cooperation is also being steadily expanded, 

with the goal of positioning these 

two distribution channels as professional 

and reliable partners for both banking and 

insurance products. 

Stability and security 

As a result of choosing targeted investments 

in highly secure projects known 

to have good capital resources, Wiener 

Städtische is excellently positioned and financially 

strong, even in times of economic 

tension. The broad positioning of Wiener 

Städtische‘s parent company, the Vienna 


Insurance Group, provides additional stability. 

VIG’s top listing on the Vienna Stock 

Exchange and its success in the CEE region 

generate significant added value for 

Austria as a financial centre. 

Due to the events that occurred in financial 

markets in recent years, the European 

Union intends to change its capital requirements 

(Solvency II). Wiener Städtische is 

already well positioned in terms of its riskaware 

culture and risk management for implementing 

these rules. 


A


The Vienna insurance group (Vig) is a listed international 

insurance group with its registered office in Vienna. With a 

premium volume in excess of EUR 8 billion and approximately 

25,000 employees, Vig is one of the largest players in the 

insurance market of central and Eastern Europe. 

»MOre StABilitY 

And SecuritY 

thrOugh integrAtiOn 

in An internAtiOnAl 

grOuP« 

the ViennA inSurAnce grOuP 

VIG’s insurance companies offer their 

customers high-quality products and 

services in the life and non-life areas. 

Shares of the Vienna Insurance Group 

are listed on the Vienna and Prague 

stock exchanges. 

VIG’s focused and systematic strategy for 

expanding into the CEE region enabled it to 

make the leap from being a national insurance 

company to an international group of 

approximately 50 insurance companies in 

24 countries. Standing for financial stability, 

VIG is able to offer customers, shareholders, 

partners and employees a high 

level of security. This is also underscored 

by the A+ rating, with a stable outlook, 

given to it by the well-known rating agency 

Standard & Poor’s. 

The CEE growth region 

In 1990, VIG was the first Western insurance 

company to move into Central and Eastern 

Europe – a region that today already accounts 

for around 50% of total group premiums. 

The Group has group companies 

operating in this region in Albania, Belarus, 

Bulgaria, Croatia, the Czech Republic, Estonia, 

Georgia, Hungary, Latvia, Lithuania, 

Macedonia, Montenegro, Poland, Romania, 

Russia, Serbia, Slovakia, Turkey and 

Ukraine. There is also a Wiener Städtische 

branch office in Slovenia. VIG is therefore 

optimally positioned to participate in the 

CEE region’s rising standard of living and 

hence in its rising need for insurance. 

VIG is also represented in Germany, Liechtenstein 

and Italy. 

Core market: Austria 

Austria is a key market for the Group; it is 

here that the expansion began. The excellent 

positioning of VIG’s three Austrian 

companies, Wiener Städtische Versicherung, 

Donau Versicherung and Sparkasse Versicherung, 

makes it the market leader in 

Austria. 

Corporate structure redesigned 

In 2010, as part of a restructuring, Wiener 

Städtische’s operating business in Austria 

was separated from the international holding 

company activities. As a result, VIG now 

focuses on management responsibilities 

for the Group. The transparent structures 

and processes created within the Group 

have enabled management to become 

more efficient. 

All of the Group companies have strong 

regional roots, and can also build on VIG’s 

strong international background. The restructuring 

provides them with a common 

umbrella and a strong, unifying identity that 

extends beyond their individual markets. 

Full range of products offered 

VIG has more than 185 years of experience 

in the insurance business. Committed customer 

advisors, innovative products, excellent 

service, and optimal customer access 

through multi-channel distribution were

MAnY BrAndS, 

One grOuP 

and are the cornerstones of the company’s 

successful development. VIG also uses a 

multi-brand strategy to take advantage of 

the power of the proven brands rich in tradition 

in every country. 

The Group companies in Austria have offered 

innovative insurance solutions tailored 

to customer needs for many years in 

both the life and the non-life areas. In Central 

and Eastern Europe, the rising standard 

of living has led to an increased need 

for insurance. While motor vehicle insurance 

and household/homeowner policies 

were initially in strongest demand, today 

retirement provisions, savings and investment 

products in the form of life insurance 

policies are enjoying rising popularity. 

VIG Re was founded to be the Group’s inhouse 

reinsurance company. Its location in 

the Czech Republic underscores the significance 

of the CEE region as a growth 

market. 

The Erste Group – a strong partner 

In 2008, a reciprocal sales and distribution 

agreement was signed with the Erste Group 

in Austria and Central and Eastern Europe. 

Using a multi-channel distribution approach, 

the Erste Group distributes VIG insurance 

products, while VIG companies 

offer banking products in return. Both VIG 

and the Erste Group are professional and 

reliable points of contact for banking and 

insurance products alike. 


Employees ensure success 

VIG offers the best possible advice and excellent 

service for its comprehensive range 

of products. Group employees therefore 

play a very important role in the Company’s 

success. Use of a regional approach means 

they are always close to the customer and 

in touch with the needs of the market. 

Further information on VIG is available at 

www.vig.com and in its group management 

report. 


A


cleAr OBJectiVeS And StrAtegY 

Excellent advisors and service, trend-setting products, and 

its regional approach and international background have made 

Wiener Städtische the clear number 1 in the Austrian market. 

And the company’s goal will continue to be maintaining and 

expanding its leadership position in the market. 

»FOur KeY StrAtegic 

PillArS FOr eXPAnding 

Our MArKet 

leAderShiP« 

OBJectiVeS FOr 2011 

In 2010 the Austrian market showed clear 

signs of recovering again following the end 

of the financial crisis. Premium volume in 

the Austrian insurance market as a whole 

rose by 2%. Significant growth was recorded 

in all classes, especially life insurance 

and health insurance, but also property/ 

casualty insurance. 

Maintain and expand the 

number 1 position 

Wiener Städtische‘s market share of 14.5% 

and premium volume of EUR 2.4 billion 

made it the clear number 1 in the Austrian 

market. The Company recorded growth at 

a rate that was significantly better than the 

market average, and even recorded an increase 

in premiums of more than 5%. This 

growth was primarily due to good performance 

in the life insurance class. Wiener 

Städtische will continue to focus on life 

insurance and motor vehicle insurance in 

2011. 

Improvement in result from ordinary 

activities 

Targeted increases in premium volume 

and further administrative optimisation of 

services and synergies will be used to continuously 

improve our combined ratio and 

result from ordinary activities. 

StrAtegY FOr 2011 

Wiener Städtische is basing its strategy 

on four key pillars to achieve its ambitious 

goals: innovation, the best possible advisors 

and service, continuous employee development, 

and expansion of the partnership 

with the Erste Bank Sparkasse Group. 

In all cases, the central focus is on the customer 

and their concerns. 

- Innovation: Optimisation, simplification, 

personalisation and tailoring products to 

customer needs are the challenges related 

to products. 

- Best possible advisors and service: 

Customer satisfaction and, therefore, 

the length of customer relationships are 

continuously increased by continuous improvements 

in service. 

- Continuous employee development: 

Wiener Städtische employees primarily 

manage customer problems. The majority 

of our employees provide advisory services. 

Continuous employee development and 

training of young advisors ensure continuing 

success in personal advisory services. 

- Expansion of the partnership with the 

Erste Bank Sparkasse Group: Both companies 

have customer potential that has 

not yet been fully exploited. The partnership, 

which permits customers to obtain 

advice on a full range of financial and insurance 

concerns, will be further expanded 

and intensified.



A


Wiener Städtische is currently the market leader in Austria. 

This success is due to early attention to important insurance- 

related topics, continuous development of new products and 

improvement of proven products, as well as customer-friendly 

and service-oriented advisory and distribution systems. 

»... neW PrOductS 

thAt Are OFten 

FAr AheAd OF 

their tiMe« 

leAderShiP And innOVAtiOn 

A long tradition 

During Wiener Städtische’s long and successful 

history, management and employees 

repeatedly changed the focus of 

insurance product development in Austria 

in order to react optimally to changes in 

customer needs. 

The Company started with non-life insurance, 

soon followed by the life insurance 

class. Today, private customers can obtain 

insurance products in all of the important 

subcategories, from retirement provisions, 

residential, mobility, vacation and health 

products all the way to attractive, innovative 

special solutions, such as insurance 

for students. 

Wiener Städtische is the reliable partner 

for all business customers’ needs, from 

company pensions to business insurance 

and liability insurance. Integration in the 

Vienna Insurance Group enables business 

customers to receive the same comprehensive 

service they are used to from Wiener 

Städtische in all CEE countries where 

the Group is represented. 

Product innovation 

Wiener Städtische still continues to provide 

customers with new products that are 

often far ahead of their time. For example, 

retirement pensions were already offered 

in the 1960s, long before it became 

a general topic of interest. Today, nursing 

care provisions are also in the centre of at- 

tention. Wiener Städtische offered its first 

insurance solution for nursing care provisions 

as early as in 1995, in association 

with a retirement pension product. 

In 2003, Wiener Städtische became the 

first insurance company in Austria to offer 

a government-sponsored pension plan, 

thereby starting a trend throughout the 

Austrian insurance market. Today, more 

than one million Austrians use a product 

of this kind, and approximately one in five 

are insured with Wiener Städtische. This 

makes Wiener Städtische the clear market 

leader in this area. 

Alternative drive technologies will play an 

increasingly important role in the future. In 

2006, Wiener Städtische became the first 

Austrian insurance company to promote 

the sale of environmentally friendly vehicles 

by offering a premium discount. Today, 

every second customer already benefits 

in this way by insuring a low-emission 

vehicle. 

In the area of property insurance, Wiener 

Städtische was the first to expand catastrophic 

protection in homeowner insurance 

and increasing the amount insured 

for natural hazards. Due to climate change, 

this topic will also play an increasingly important 

role in the future. 

Students and customers with little money 

often cannot afford comprehensive insur-

ance coverage. Wiener Städtische therefore 

offers special low-budget insurance 

solutions. Customer well-being is our number 

1 priority. 

Further information on specific products 

and changes in 2010 is available on page 

48 and on the Internet at www.wienerstaedtische.at 

Optimal service 

Optimal advice and service is the way to 

reach customers with innovative products. 

This is why Wiener Städtische has always 

relied on a regional approach and multichannel 

distribution. Close contact with 

customers gives sales employees a direct 

understanding of customer needs, and 

this information flows directly into product 

development. 

New media are also being increasingly 

used to further improve service. Whether 

it is apps for smartphones or tablet PCs, or 

online portals for claims reporting, Wiener 

Städtische is service-oriented, innovative, 

and on the pulse of the times. 

Multi-channel distribution with our partners 

offers optimal advice and access for 

every customer. 

Also a trendsetting investor 

In addition to playing a leading role in its 

core business, the insurance industry, 

Wiener Städtische is also an established financial 

partner, and has made new, trendsetting 

investments. 

In 1990, Wiener Städtische was one of the 

first to dare to cross the border to enter 

Central and Eastern Europe. Many Austrian 

companies followed. The CEE region 

is still one of the most important, fastest 

growing economic areas for the Austrian 

economy today. VIG generates a substantial 

portion of its profits there and continues 

to steadily expand its position as one 

of the market leaders in the region. 


A restructuring was performed in 2010, in 

which the business operations in Austria 

were separated from the international activities. 

The new structure allows Wiener 

Städtische to concentrate on the Austrian 

insurance business, while VIG takes responsibility 

for holding company activities. 

The Group offers its subsidiaries an optimal 

operating framework and the opportunity 

to take advantage of common structures 

and synergies. The customer also benefits 

in the end, because more time is available 

for providing advice and service. 

»... Wiener 

StädtiSche – 

SerVice-Oriented 

And innOVAtiVe, 

On the PulSe OF 

the tiMeS« 


A

»2,000 AdViSOrS 

enSure PerFect 

SerVice« 


PrOFeSSiOnAliSM And reliABilitY 

Achieving customer satisfaction and understanding 

customer concerns are important priorities for Wiener 

Städtische. Providing optimal service and excellent 

advisors will ensure continued success in the increasingly 

competitive Austrian insurance market. 

The best possible service by professional 

employees 

High quality service and custom-tailored 

insurance solutions are key factors in Wiener 

Städtische’s successful past. Customer 

satisfaction has been a priority for 

186 years. Wiener Städtische’s regional 

approach, professional advice and guaranteed 

availability at all times is made possible 

by nine provincial head offices, three 

service centres, approximately 140 business 

offices and more than 2,000 advisors. 

Optimal solutions 

Customer needs are changing, with the 

trend moving in the direction of more personalisation. 

Having professional advisors 

as field staff allows customer concerns 

and needs to be understood and appropriate 

solutions provided. Personal service 

also promotes customer loyalty when the 

advisor is a true “problem manager”. The 

experience in previous years indicates that 

customer service and personal advisors 

will continue to become more important in 

the future. 

New service channels 

In addition to the use of personal advisors 

as field staff, customers can, of course, 

also use service hotlines or email to contact 

Wiener Städtische. Many services are 

also available via new media. 

The Company’s new website offers customers 

many easy-to-use tools, such as on- 

line claims reporting and benefit claims, 

and extensive information on individual 

insurance topics. An app for direct claims 

reporting has been available for smartphones 

since 2010. The app also provides 

emergency checklists and important first 

aid measures. 

An SMS claims service keeps customers upto-date 

on the current status of their claims, 

and an SMS storm warning service is available 

free of charge for mobile phones. 

Strong partners 

In 2008, Wiener Städtische and the Erste 

Bank Sparkasse Group entered into a distribution 

agreement aimed at providing customers 

a single source of solutions for all 

their financial needs. In addition to proven 

insurance solutions, Wiener Städtische’s 

professional advisors also offer banking 

products to customers. 

Favourably priced account packages, loans 

and savings cards with attractive interest 

rates provide a complement to the range of 

products offered by Wiener Städtische. In 

return, insurance solutions were added to 

the range of products offered to customers 

by the Erste Bank Sparkasse Group. This is 

a win-win situation.



A


eMPlOYeeS AS A KeY FActOr in SucceSS 

in addition to optimal products, Wiener Städtische customers 

also rely greatly on our excellent service and personal advisors. 

Professional, committed employees play a central role in 

achieving our ambitious company objectives and making 

Wiener Städtische an outstanding company. 

Over the course of its 186-year history, 

Wiener Städtische has become the largest 

employer in the Austrian insurance industry, 

with a current total of 3,500 employees, 

including more than 2,000 customer 

advisors. A special work environment has 

been created around the core values of 

fairness and mutual respect. 

Education and advanced training 

Well-trained trainees are the professional 

advisors of tomorrow. Wiener Städtische is 

already educating a third of the trainees in 

the entire insurance industry. In addition, 

the Company also began a trainee initiative 

in 2010. More than 100 young career entrants 

were already hired in the first year, 

and another 100 youth trainee positions 

will be offered starting in the autumn of 

2011. 

The Company‘s human resources policy 

also contains other key elements in addition 

to training and advanced training. 

Potential analyses across the Group form 

the basis for a targeted, needs-oriented 

development programme that conveys 

technical knowledge and Company values. 

Joint training events allow a continuous exchange 

of best practices between all employees. 

Human resources development 

Wiener Städtische has a three-level management 

training programme that provides 

targeted training in internal, custom

tailored courses for the different target 

groups: future/young executives, department 

heads, and group leaders. The goal 

of the programme is to further increase 

management quality by teaching modern 

management concepts and developing a 

shared management philosophy within the 

Company. The executives identify themselves 

with their role and network with 

each other. Young employees benefit from 

the knowledge and experience of their older 

colleagues. Attention is consciously paid 

to mixing ages in structures and teams to 

allow a continuous exchange of experience 

and knowledge transmission. 

This programme makes an important contribution 

to the professional and personal 

development of Wiener Städtische‘s executive 

employees, and ensures the longterm 

success of the Company. 

Employee ideas and experience also contribute 

to the development of new Wiener 

Städtische products and services and further 

development of existing products and 

services. A variety of internal company 

competitions provides a good incentive to 

become actively involved. 

Gender equality 

Wiener Städtische views equal treatment 

of men and women as a key objective at all 

levels. Two women and mothers in a fivemember 

Managing Board, and 35% women 

in middle management provide impressive 

proof of this. Wiener Städtische feels 

that the corporate income transparency 

amendment that entered into force on 1 

March 2011 provides another good contribution 

to equal treatment. There are also 

other initiatives, such as “Daughters’ Day” 

and a variety of other measures for creating 

a balance between career and family. 

In 1974, Wiener Städtische became one 

of the first employers in Austria to provide 

company day-care facilities. Today, 105 

employee children are looked after in these 

facilities. The Company also offers flexible 


working time and work organisation models 

for its employees. One pleasing result of 

this is that 90% of all employees return after 

maternity leave. Wiener Städtische has 

been one of the most family-friendly, women-friendly 

companies in Austria for years, 

and has received many awards in this area. 

Equal treatment is, of course, also reflected 

in terms of migration. Multilingual skills are 

an important factor for customer information 

at Wiener Städtische and are actively 

promoted. English is already a minimum 

requirement in all areas. 

For years now, the Company has taken the 

view that people with certain disabilities 

can perform their work just as efficiently 

as people with no disabilities. Wiener 

Städtische therefore provided positions for 

96 employees with disabilities in 2010, a 

number considerably higher than the statutory 

requirement. 

Employment statistics as at 

31 December 2010 

number of employees 

2009 

as at 

31.12. 

2010 

as at 

31.12. change 

Administration 1,526 1,546 20 

headquarters 873 1,030 157 

Provincial head offices 

(+ branch offices) 

653 516 -137 

distribution 1,884 1,802 -82 

Field sales 

representatives 

1,654 1,598 -56 

Organisational 

employees 

230 204 -26 

trainees 149 149 0 

total 3,559 3,497 -62 

- 62 fewer employees, the decline is mainly due to natural turnover without replacement 

and combining of duties during the structural reorganisation of the company 

- The number of office employees rose by 20 to 1,546 in 2010 due to reassignment 

of authority when the company was separated from the group 

- Of the 1,546 office employees, 593 were men and 953 women 

- 96 employees with disabilities 

»Our eMPlOYeeS – 

the BASiS OF Our 

SucceSS« 


A


As the largest insurance company in Austria, Wiener Städtische 

is aware of its responsibility to society. it therefore provides 

a wide range of programmes and targeted support for 

social causes, culture and the arts, sports, and the area 

of child and youth development. 

factbox 

Wiener Städtische’s 

most important sponsoring areas: 

SucceSS cAn Be ShAred 

> Social involvement: cooperation with 

the “Second Savings Bank” (Zweiter 

Sparkasse), the “Bank for People without 

a Bank”, and a number of types of 

ooperation with many aid organisations. 

> children and youth: many support 

projects, such as the children Safety 

Olympics, the Zoom children‘s 

Museum, and cooperation with the 

Kinderfreunde organisation. 

> culture & the arts: Wiener Städtische 

supports many cultural projects, theatre 

productions, and film and music 

festivals. 

> Sports & exercise: sponsoring of 

Austrian sports associations and 

major events, such as the Vienna city 

Marathon and Business run. 

People form the core of Wiener Städtische. 

Respectful and fair treatment of customers, 

as well as employees, ensures the sustained, 

long-term success of the Company. 

This success can be shared. 

Wiener Städtische has made it a goal to provide 

support as a partner to many social, 

sports, cultural and forward-looking initiatives. 

People and sustainability are always a 

priority. Wiener Städtische receives support 

in many areas from its principal shareholder 

WIENER STÄDTISCHE Wechselseitiger Versicherungsverein 

- Vermögensverwaltung - 

Vienna Insurance Group. 

Social initiatives 

Social involvement is especially important 

to the Company, and is deeply anchored in 

its business philosophy. 

People in need are in particular need of support 

– Wiener Städtische was the first Austrian 

insurance company to address the 

topic of micro-insurance. In cooperation 

with the “Second Savings Bank” (Zweite 

Sparkasse), these people are offered very 

low-cost or free banking and insurance 

services. 

The number of people requiring nursing 

care is rising rapidly in Austria. Wiener 

Städtische therefore supports initiatives in 

the area of nursing care and works together 

as a partner with aid organisations such 

as Caritas, Hilfswerk, Volkshilfe and the Red

Cross throughout Austria to provide nursing 

care to those who require it. 

Arts and culture 

Wiener Städtische actively promotes the 

development and diversity of the cultural 

sector in Austria by providing personalities 

of the cultural scene with additional opportunities 

and freedom for artistic development. 

The VBW theatre company (Vereinigten 

Bühnen Wien), St. Margarethen Opera 

Festival, Bregenz Festival, Viennale, Danube 

Island Festival and the “Long Night of 

the Churches” (Lange Nacht der Kirchen) 

are only a few examples of the many different 

organisations receiving support from 

Wiener Städtische. 

As part of the “RINGTURM.KUNST” exhibition, 

Wiener Städtische presented more 

than one hundred selected works from its 

collection in the Leopold Museum from 21 

October 2010 to 14 March 2011. This is the 

first time that a broad cross-section of the 

Wiener Städtische collection, which focuses 

on paintings and graphic art from 1945 to the 

present, has been presented to the public. 

Children, youth and families 

Sports activities, projects on the topic of 

security or in the cultural area, and support 

for children and youth are of particular 

importance to Wiener Städtische. Wiener 

Städtische has worked with the Kinder- 

freunde organisation for many years, and 

provides support for the Zoom Children’s 


Museum, and the Safety Tour, which gives 

children across Austria an understanding of 

safety. 

Sports 

Whether the Business Run, Wachau Marathon, 

Vienna City Marathon or the Vienna 

Street Soccer, Street Basketball and Beach 

Volleyball Championships (Käfigmeisterschaften), 

sports are important for maintaining 

good health. Wiener Städtische provides 

support for public sports events that 

allow as many people as possible to participate 

and achieve their personal best. 

The environment 

Small ideas can have a great effect. The 

scale of the company can often turn small 

changes into big effects. Changes that are 

almost insignificant for a single person, such 

as printing on both sides of a sheet of paper, 

instead of using two pages, produce big effects 

when applied by 3,500 employees. 

Wiener Städtische attempts to actively integrate 

environmental protection as a part of 

the everyday work environment and create a 

strong sense of environmental awareness in 

the office. In 2006, Wiener Städtische became 

the first programme partner for the 

Austrian Ministry of Life’s klima:aktiv climate 

initiative. 

Detailed information on Wiener Städtische’s 

many activities in the area of Corporate 

Social Responsibility are available at 

www.wienerstaedtische.at. 


A

»FULL CONCENTRA- 

TION ON AUSTRIA« 

40 ANNUAL REPORT 2010 | WIENER STÄDTISCHE 

WIENER STÄDTISCHE NEW 

Welcome to the future! 

Wiener Städtische is a wholly-owned subsidiary of 

the Vienna Insurance Group and number 1 in the 

Austrian insurance market. 

A look back explains the way to the new 

company structure: Over the last two decades 

Wiener Städtische has developed 

from a successful local insurance company 

to a group operating internationally. Against 

this background, Wiener Städtische was 

responsible for a variety of control tasks in 

addition to the insurance business operations. 

factbox 

> New corporate structure of Wiener 

Städtische legally binding since 

3 August 2010. 

> The Managing Board of Wiener 

Städtische is composed as followed: 

Robert LASSHOFER, CEO 

Christine DORNAUS 

Judit HAVASI 

Peter HÖFINGER 

Erich LEISS 

Ralph MÜLLER* 

* Effective 1 April 2011, Ralph Müller 

is appointed a member of the Managing 

Board of Wiener Städtische. 

To do justice to the dynamic expansion, the 

company decided to create a new corporate 

structure and to separate the Austrian 

insurance business from the international 

activities of the group. 

At the general meeting of Wiener 

Städtische on 29 June 2010, the split-off of 

the entire insurance business into a whollyowned 

subsidiary was resolved. The resolution 

was passed with 100% of the votes 

present at the general meeting. 

The new organisational structure became 

final on 3 August 2010 and took effect 

retroactively as of 1 January 2010. 

Since then, VIENNA INSURANCE GROUP 

AG Wiener Versicherung Gruppe, as a publicly 

traded holding company, has been 

responsible for the control of the group in 

Austria and Central and Eastern Europe. 

WIENER STÄDTISCHE Versicherung AG 

Vienna Insurance Group continues to be 

the group’s largest individual property/casualty, 

life and health insurance 

company in Austria. As a result of the corporate 

reorganisation, Wiener Städtische 

can fully concentrate on the Austrian market. 

The new structure provides transparency 

and a strong starting position for the 

future.

COMPANY & STRATEGY | MAJOR TOPICS 2010 | MANAGEMENT REPORT 2010 | ANNUAL FINANCIAL STATEMENTS 2010 

EXPANSION OF THE SERVICE CENTRES 

Still more customer service, more efficient communication 

and optimisation of the cost position are the essential 

basic ideas of the bundling of activities in 

Service Centres. 

As early as in 2009, Wiener Städtische 

started a future-oriented reorganisation 

programme to create clear new structures 

and allow an even more efficient processing 

of the insurance business. 

As part of the restructuring measures, three 

new Service Centres for the areas of personal 

insurance, property insurance and 

collections were established. The Service 

Centres assume the administrative agendas 

for all of Austria. This relieves the individual 

provincial head offices so that they 

can concentrate even better on their core 

businesses, customer service and sales. 

Bundling of underwriting and claims units 

creates synergy effects that allow expansion 

of expertise through specialisation. 

Standardised and uniform processing of all 

cases offers customers an even higher level 

of quality and employees a more structured 

work environment. Not least, bundling has 

a positive effect on the cost position. 

Personal Insurance Service Centre 

The Personal Insurance Service Centre has 

been responsible throughout Austria for 

policy and claims processing for standard 

personal insurance transactions since 

September 2009. The bundling of life, 

health and casualty insurance classes was 

successfully completed in March 2010 as 

scheduled. 

Property Insurance Service Centre 

The Property Insurance Service Centre 

assumes the policy and claims processing 

for standard property insurance transactions 

(motor vehicle, homeowner, household 

and legal expenses claims). 

The Property Insurance Service Centre is 

divided into two locations – Vienna and Linz. 

The Property Insurance Service Centre 

located in Linz manages Upper Austria and 

Salzburg; the other provinces are managed 

in Vienna. The assumption of the agendas 

of the provincial head offices was completed 

in January 2011, faster than scheduled. 

Collections Service Centre 

The responsibilities of the third service 

centre cover the entire spectrum of collection 

services. 

The bundling of collections activities was 

successfully implemented over the course 

of the past year. In the course of the combining 

exercise, all business processes 

were streamlined and the workflow was 

optimised. Top priority is to process external 

and internal customer requests quickly 

and professionally. 

»THE GOAL IS TO 

OFFER EVEN HIGHER 

SERVICE QUALITY TO 

OUR CUSTOMERS.« 

ANNUAL REPORT 2010 | WIENER STÄDTISCHE 41 

B

»WHETHER 

PRIVATE OR 

BUSINESS – WE 

OFFER INSURANCE 

COVERAGE WORLD- 

WIDE FOR NATURAL 

DISASTERS.« 


CHARGES FROM NATURAL DISASTERS 

Since the year 2000, the frequency of damage 

caused by natural disasters has significantly 

increased worldwide. 

The more and more frequently observed 

weather extremes can hardly be explained 

without climate change. Over the last 30 

years their number has tripled. Weather 

disasters are storms like Hurricane Katrina 

or Kyrill, floods as we experienced in many 

parts of the world in 2010 or the heat wave 

in Russia and the forest fires in Israel. 

The climate changes in the last century are 

probably the result of man-made greenhouse 

gases. Deforestation, agriculture and 

waste management also play a role. The 

concentration of greenhouse gases in the 

atmosphere is increasing, and it is getting 

warmer. 

In many parts of the world, the effects of 

global warming can already be seen clearly: 

snow and ice layers melt, global sea levels 

rise, and glaciers retreat. According to the 

current state of climate research, it is likely 

that our environment will also change in the 

future. It can be expected that extreme 

weather events will occur more often. 

Natural Hazards in 2010 

The year 2010 was marked worldwide by 

strong earthquake occurrences and a high 

number of weather disasters. The major 

losses in 2010 occurred mainly outside 

Austria. Since Wiener Städtische assists 

Austrian companies abroad and offers 

comprehensive insurance coverage to 

business customers, Wiener Städtische was 

also affected by numerous major losses. 

The earthquake in Chile in February 2010 

had a magnitude of 8.8 Mw on the moment 

magnitude scale and was the strongest 

earthquake in Chile in almost 50 years. 

Wiener Städtische was affected by Austrian/European 

risks with interests abroad. 

In May and June 2010, there was severe 

flooding in Austria, the Czech Republic, 

Slovakia and Poland. Wiener Städtische 

processed about 2,900 individual claims 

and alleviated at least the financial difficulties 

of the customers. 

Between 6 August 2010 and 8 August 

2010 there were heavy rains in the Czech 

Republic, Austria and Poland. In Austria, 

about 230 reports of damage were filed. 

However, in Poland, the branch office of an 

Austrian customer was also affected, with 

the damage incurred there accounting for 

most of the claim amount. 

In November 2010, Thailand was afflicted 

by the heaviest floods in recent decades. 

Wiener Städtische was affected by this 

natural disaster through the coverage of 

Austrian risks abroad.

After several years of increased claims, it 

was possible to reduce the claims rate for 

damage caused by storm and other natural 

hazards in Austria – despite isolated local 

events with a low damage volume. 

Insurance Coverage 

Wiener Städtische offers comprehensive 

insurance coverage in the event of natural 

disasters. As part of the homeowner insurance 

System Plus, an insurance amount of 

up to 50% of the agreed building and 

household insurance amount can be 

agreed for damage caused by natural phenomenons. 

This is a unique coverage in the 

Austrian market. 

. 


With this high financial performance, 

Wiener Städtische is well above the market 

level. In the case of imminent acts of God, 

Wiener Städtische reminds its customers 

through an SMS severe weather service 

and thus makes it possible for prevention 

measures to be taken early enough. 

In addition to private protection against 

natural disasters, Wiener Städtische also 

offers insurance coverage to business establishments 

(business class) and farms 

(eco/agro) for damage caused by natural 

hazards such as flooding and floods, depending 

on the product version and size of 

the business. 

. 


B

»MORE AND MORE 

PEOPLE ARE 

INVESTING IN A 

PRIVATE PENSION 

PROVISION.« 


FOCUS ON RETIREMENT PROVISION 

Confidence in the state pension system is falling but 

the need for financial security and the desire to 

maintain one’s standard of living 

even in old age is increasing. 

The demographic structure of the population 

has changed significantly in the past 

few decades. People are getting older. The 

same is true for customers of Wiener 

Städtische: 45% of customers are in the 

age group 40-59 years and 25% in the age 

group 20-39 years. 

Financial Security in the Future 

Life insurance is the most popular provision 

instrument for securing the standard of 

living in old age – ideal to make targeted, 

long-term and safe provisions. On the one 

hand, life insurance is a good investment 

product; on the other hand, it covers many 

risks. Traditional life insurance, for example, 

offers a guaranteed rate of return and protection 

in case of death; annuity insurance 

policies cover the longevity risk and secure 

lifelong capital requirements. Private pension 

provision has developed into an indispensible 

pillar in the pension system. 

Change of Trend in Life Insurance 

As a result of the financial crisis in 2008, 

there was a trend towards fewer new life 

insurance policies; in uncertain times, 

decisions on long-term financial commitments 

are naturally postponed. Given the 

economic recovery, the needs of customers 

for safe and conservatively invested provision 

products are awakening again. 

The life insurance market – in recent years 

driven primarily by expectations of return – 

is currently undergoing a transformation. 

Products offering capital guarantees and 

flexible investing in uncertain capital market 

phases are gaining in importance. In 

particular, traditional life insurance was a 

branch of insurance in high demand in 

2010. 

In the coming year as well, private pension 

provision will be a large thematic focus of 

Wiener Städtische. 

Top Trend: Government-Subsidised Additional 

Pension Plans 

Wiener Städtische Versicherung has been 

offering its government-subsidised old-age 

provision product, “Prämienpension”, since 

2003. As a supplement to the state pension, 

“Prämienpension” is an ideal product to 

build an additional capital stock for old age. 

More than 230,000 customers have already 

opted for the “Prämienpension” and 

more than a third of these customers are 

under 30: this means that pension provision 

is starting earlier and earlier. 

When paid out as a pension, the premiumsubsidised 

old-age provision product is 

exempt from income tax and investment

income tax. No insurance taxes or speculative 

taxes need to be paid. 

In 2010, the government subsidy was 9% 

of the premiums paid, up to a maximum 

of EUR 2,263.70. In 2011, there is a government 

subsidy of 8.5% for premiums 

paid up to EUR 2,313.30 – that is up to 

EUR 196.60 per year. 

As part of the lifecycle model introduced in 

early 2010, 30% of the premiums are invested 

in the Ringturm Zukunftsvorsorge 

Aktienfonds equity fund and at least 70% 

are invested in the traditional cover fund in 

accordance with the Versicherungsaufsichtsgesetz 

(VAG, Austrian Insurance 

Supervision Act). With advancing age, investments 

in the Ringturm Zukunftsvorsorge 

Aktienfonds equity fund will be transferred 

to the security-oriented cover fund. 

The statutory minimum percentage invested 

in equities decreases to 25% starting 

at age 45, and to 15% starting at age 55. 

This reduces the risk due to price fluctuations 

on the stock exchanges as retirement 

approaches. The combination of equity 

funds and cover funds links income opportunities 

and security. 

In case of policies purchased before 

31 December 2009, 60% of the investment 

is in the traditional cover fund and 40% in 

the Ringturm Zukunftsvorsorge Aktienfonds 

equity fund. Wiener Städtische also offers 

existing customers the option of changing 

over to the lifecycle model. 

In 2010, the financial crisis resulted in the 

stopping (Ausstoppen) of policies for many 


funds in which money from the government-subsidised 

old-age provision had 

been invested under a CPPI model. This 

means that under certain circumstances no 

more than the capital guarantee will be 

received for the premiums paid in previously 

and the subsidies obtained. Participation 

in stock price gains for such models 

has often dropped to zero. With the 

“Prämienpension” product of Wiener 

Städtische, such stopping is not possible 

due to the product structure. The Ringturm 

Zukunftsvorsorge Aktienfonds equity fund 

is not managed and secured by a CPPI 

model and therefore not affected by this 

problem. Thus, the percentage invested in 

equities fully affects net income. Despite 

the stock market losses due to the financial 

crisis, the Ringturm Zukunftsvorsorge 

Aktienfonds equity fund has had an average 

performance of 6.2% per year since the 

introduction of the government-subsidised 

old-age provision in 2003. 

The “Prämienpension” product, which 

combines all of the life insurance benefits – 

protection, tax advantages, government 

subsidy, guarantees and return opportunities 

through investments funds – will represent 

a core product of Wiener Städtische in 

2011 as well. 

Company Pension Plans 

The company pension plan is on the rise – 

even though, compared with other countries, 

Austria has much catching up to do. 

There are still too few tax incentives for 

both employees and employers. A market 

that certainly has potential – not only for 

the coming year. 

»THE “PRÄMIENPEN- 

SION” PRODUCT FOR 

OLD-AGE PENSION 

PROVISION IS ALL 

THE RAGE.« 


B

»WIENER 

STÄDTISCHE IS 

A PIONEER OF 

NURSING CARE 

PROVISION.« 


Nursing Care Provision is Gaining 

Importance 

The cost of nursing care will dramatically 

increase in the coming years. Care for the 

elderly is becoming increasingly costprohibitive 

for the state and is therefore a 

highly charged topic in society. 

Whereas private pension provision has 

been actively demanded by the population 

for years now, there is a great need for 

factbox 

> Change of trend in life insurance: Traditional 

life insurance is gaining importance 

again in 2010. 

> More and more Austrians invest in private 

pension provision, with the 

“Prämienpension” product of Wiener 

Städtische keeping in line with the 

trend. 

> With more than 23,000 policies, Wiener 

Städtische is a pioneer of nursing care 

insurance. Public awareness must still 

be increased. 

catching up with nursing care provision. 

While the problem of nursing care financing 

is largely known, public awareness of the 

necessity of early nursing care provision 

still needs to be increased. A government 

incentive for private provision – similar to 

that of old-age pension provision – could 

achieve a lot here. 

Since 2004, Wiener Städtische has offered 

comprehensive, affordable and flexible 

nursing care insurance that can fill the 

nursing care provision gap and help relieve 

the financial situation that arises when 

nursing care is needed. 

EXTRA-Pflege payments are made in parallel 

with government nursing care allowances 

and enable policyholders to live and 

receive care according to their individual 

needs, whether at home or in a nursing 

home. The care level at which benefits 

should start and the amount of the care 

allowance can be freely chosen. Extra- 

Pflege payments are made twelve times a 

year during the entire period that nursing 

care is required, and for an entire lifetime if 

necessary. 

Wiener Städtische had registered more 

than 23,000 nursing care policies by the 

end of 2010, making it a trailblazer in the 

area of nursing care insurance. 

.



B

»PRODUCTS 

OFFERING CAPITAL 

GUARANTEE AND 

FLEXIBLE INVEST- 

MENT ARE GAINING 

IMPORTANCE.« 


PRODUCT AND SERVICE INITIATIVES 

Wiener Städtische is the market leader and pioneer in 

the development of innovative products tailored 

to the customers’ personal needs. 

NEW PRODUCTS IN 2010 

In 2010, numerous products were relaunched. 

This improves the high quality of 

insurance protection even further. The new 

benefit packages secure the customers’ 

most important basic needs and allow even 

more personal customer responsiveness 

through supplementary options. 

The following are the major product innovations 

in 2010. Detailed product information 

is available on the company’s website at 


SECURE INVESTMENT FOR 

THE FUTURE 

Limited Edition Series 

In 2010 Wiener Städtische launched attractive 

products as part of the Limited 

Edition Series. These provision products 

provide a safe investment, are a good alternative 

to savings accounts and ideal as 

financial security for family members. The 

fixed endowment benefit is assured by 

Erste Group Bank AG in the form of subordinate 

bonds and, since 2011, with a senior 

bond. 

Limited Edition Garant 2010 

With the Limited Edition Garant 2010, 

158% of the investment sum is paid out 

after 12 years after a one-time payment of 

at least EUR 5,000. The index-linked single- 

premium product offers the insurance 

protection and the tax advantages (free of 

investment income tax) of a life insurance. 

The product enjoys an impressive rate of 

return which is 3.9% p.a.; this corresponds 

to an interest rate of 5.2% p.a. for a traditional 

savings product subject to investment 

income tax. 

Limited Edition SOLID 150 

Single Premium 

The Limited Edition SOLID 150 singlepremium 

product guarantees a net premium 

of 150.8% after a term of 12 years 

(deposit excl. insurance tax). 

Limited Edition SOLID 175 + Inflation 

Protection 

In February 2011 Wiener Städtische 

launched the new provision product Limited 

Edition SOLID 175 + Inflation Protection. 

The index-linked single-premium 

product generates at least 175% of the net 

premium after a term of 15 years (deposit 

excl. insurance tax). One innovation is the 

protection of the invested capital from the 

effects of high inflation. If the total increase 

in the European price index HICPxT (excluding 

tobacco) is higher than the minimum 

return of the investment, the payment 

will increase accordingly. Other highlights 

include the flexibility of the product during 

the term. The product offers a one-time 

withdrawal of 25% as of year 6 of the insurance 

policy and, as of a one-time premium

of EUR 10,000 with annuitisation, a guarantee 

is offered in accordance with the 

annuity table AVÖ 2005 R. 

Similarly, two new products were launched 

in 2010 for regular premium payment. 

Limited Edition Euro Garantie 2010 

Limited Edition Euro Garantie 2010 is a 

traditional endowment insurance optimised 

for a policy term of 12 years. For this product, 

payment of the insurance sum is guaranteed 

by Wiener Städtische. An attractive 

profit participation offers additional earnings 

potential. 

United Funds of Success Garantie II 

With United Funds of Success Garantie II, 

the unit-linked life insurance with guarantee 

fund was relaunched. The WSTV ESPA 

Garantie II guarantee fund of Erste Sparinvest 

KAG offers a daily adjusted and valid 

80% maximum guarantee provided by 

Erste Group Bank AG. 

THE FOCUS IS ON HEALTH 

The products of Wiener Städtische in the 

area of health care provision were in high 

demand in 2010. The new attractive product 

solutions or product components contributed 

significantly to this success. They 

are easy to combine and can therefore be 

adjusted to the customers’ personal needs 

and different life situations. 

TOP MED-Option 

The TOP MED Special Class Insurance of 

Wiener Städtische offers customers all of 

the advantages available to private patients. 

With the new variant TOP MED Option, 

Wiener Städtische has launched an ideal 

product for young people. It offers insurance 

protection after accidents and is affordable 

for newcomers to health care 


provision. In particular, young people are in 

hospital more often due to an accident than 

due to illness. Nevertheless, the product 

additionally offers insurance coverage for 

serious illness. A particular advantage is the 

possibility to switch. Until their 40th birthday, 

customers can switch to an extended 

Special Class policy every year without 

having to undergo another medical examination. 

ZukunftsPLUS 

For private health insurance, Wiener 

Städtische offers its customers a lifetime 

reduction of the premium starting at age 65 

optionally by 50% or 25%with the new 

supplementary ZukunftsPLUS insurance. 

The new product offers significant financial 

relief for the 65+ generation with the same 

benefits. What makes ZukunftsPLUS 

unique is that customers will receive a 

refund (saved-up cover reserve of the ZukunftsPLUS 

policy) in case of cancellation 

of the Special Class and the supplementary 

insurance until age 65. 

One-bed room charge 

With the new one-bed room policy as a 

supplement to the Special Class, Wiener 

Städtische offers its customers even more 

convenience when they are in hospital. In 

addition to advantages, such as free choice 

of hospital and physician, short waiting 

times and state-of-the-art treatment methods, 

Special Class patients enjoy absolute 

privacy. Instead of the Special Class twobed 

room, costs for staying in a one-bed 

room are guaranteed with this policy. 

In recent years a growing trend towards the 

one-bed room has been noticed. The Special 

Class additional coverage for the onebed 

room is available starting at a premium 

of six euros per month. 

»EARLY DETECTION 

OF LONG-TERM 

TRENDS IS ONE OF 

OUR STRENGTHS.« 


B

»WE OFFER 

A MOTOR VEHICLE 

BONUS FOR 

ENVIRONMENTALLY 

CONSCIOUS 

CUSTOMERS.« 


INSURANCE POLICIES FOR SMALL 

BUDGETS 

Insurance protection should not be a question 

of money. Wiener Städtische therefore 

offers people or students with only a limited 

budget insurance solutions at low cost. 

Household/homeowners insurance NEW 

The new variant of the household and homeowners 

insurance for the small wallet 

offers comprehensive insurance protection 

for little money. Risks such as fire, water 

damage and burglary damage, including 

vandalism, are covered. In addition, insurance 

protection with as-new replacement 

value and underinsurance waiver also apply 

to the small variant. Extended natural hazard 

coverage, for example, for flooding, high 

water and rainfall, up to EUR 2,000 is new. 

The product is characterised by solid basic 

coverage at an affordable premium and by 

the possibility to determine the insurance 

amount individually. 

“Take it easy” Student 

With its “Take it easy” product offering, 

Wiener Städtische launched ideal insurance 

solutions for young adults who have 

not yet completed their education. The 

products meet customer needs and offer 

affordable insurance protection in the areas 

of household, health, and casualty 

insurance as well as pension provision. The 

consistently high demand proves that there 

is much need for these products. 

MOTOR VEHICLE BONUS FOR 

ENVIRONMENTALLY CONSCIOUS 

CUSTOMERS 

With 600,000 customers in its motor vehicle 

liability insurance and more than 

200,000 customers in its motor vehicle 

own-damage insurance, Wiener Städtische 

is one of the leading providers of motor 

vehicle insurance in Austria. Consulting, 

leasing, insurance protection and registration 

are offered from a single source. In this 

area, Wiener Städtische is a pioneer in 

offering environmentally friendly motor 

vehicle insurances. 

Climate and Environmental Bonus 

With its climate and environmental bonus, 

for five years now Wiener Städtische has 

been offering two attractive products, designed 

to promote the purchase of environmentally 

friendly motor vehicles. 

The climate bonus promotes the purchase 

of low-emission vehicles with emissions of 

up to 160 g CO2/km by providing a premium 

discount of 10% for motor vehicle 

liability insurance. Since there are now 

more and more vehicles with even lower 

CO2 emissions available in the market, this 

bonus has been extended. For emissions of 

up to 120 g CO2/km, customers of Wiener 

Städtische receive a 20% premium discount. 

The environment bonus promotes the purchase 

of natural gas-powered vehicles, 

electric or hybrid vehicles and other alternative 

drive concepts by providing a 10% 

premium discount for motor vehicle thirdparty 

liability insurance. 

Already one in two people benefits from the 

Wiener Städtische motor vehicle insurance. 

PRODUCT INITIATIVES IN 2011 

In 2011 as well, Wiener Städtische will be 

working on new quality in the area of products. 

Customers now want a product that 

meets their personal needs and can be 

adapted to different life situations. The 

trend towards customisation is increasingly 

noticeable. The fact that many insurance 

products have become more complex led 

to the conclusion that simplification in the 

product area will play an increasingly grea-

ter role in the future. This, in turn, will lead 

to new quality in consulting and thus in 

customer relations. Therefore, Wiener Städtische 

places a focus on product development 

in 2011. 

SERVICE INNOVATIONS 

To further improve services, Wiener 

Städtische will increasingly use new technologies 

in the service area. New media, 

such as the Internet and apps, not only 

revolutionize claims reporting but also offer 

customers a quick and mobile information 

platform. Security and service for our customers 

are the focus of our efforts. 

Claims Service App 

Since 2010, Wiener Städtische has been 

offering a free claims service via app. This 

mobile service allows customers to get in 

contact with Wiener Städtische directly 

from the accident site and to report the 

circumstances of the damage by transmitting 

pictures. Motor vehicle damage as well 

as damage due to severe weather, fire, 

burglary, etc. can be reported. 

In addition to claims forms, the app provides 

information, checklists, the most 

important first-aid measures and an emergency 

call. The Claims Service App can be 

downloaded from the website and the App 

Shop. 

Claims Service SMS 

Another innovation in the service area is 

the Claims Service SMS. Upon request, 

Wiener Städtische customers are kept upto-date 

by SMS about the current state of 

processing of their claim. In the event of a 

loss, customers will be notified when the 

claim is opened, when payment is made 

and when the claim is finally completed. 

The service is available to all customers 

after initial activation when a policy is pur- 


chased or also subsequently and applies to 

the entire customer relationship. 

SMS Storm Warning Service 

A free SMS storm warning service is available 

to a broad customer base so that preventive 

measures can be taken in time. The 

storm warning service is available free of 

charge to customers as part of their homeowners 

and household insurance. The 

warnings relate to weather events such as 

thunderstorms, hail, windstorms, heavy rain, 

snow and black ice. 

New company website 

The new company website of Wiener 

Städtische offers the general public and 

customers of Wiener Städtische an attractive 

information platform. The website 

offers extensive product information, best 

service and many additional features. 

User-friendliness, design and function 

meet the current requirements. 

Thanks to the clear presentation of the 

products, the new website is also a valuable 

tool for sales support. The good clarity and 

user-friendly forms facilitate Internet use in 

the solicitation of bids or purchasing policies 

online. A service summary page bundles 

the most important contact platforms 

and service numbers, such as online claims 

notification and motor vehicle registration. 

Another important part of the service pages 

are tips to avoid damage. 

The new company website allows modern 

and fast communication with custom- 

mers and can be visited at 


»WITH THE 

CLAIMS SERVICE APP 

WE SET NEW STAN- 

DARDS IN CUSTOMER 

SERVICE« 


B

»THE TV CAMPAIGN 

‘THE NEIGHBORS’ 

SCORES WITH ITS 

LIKEABLE ACTORS.« 


ADVERTISING IS WELL RECEIVED 

Wiener Städtische is successfully present in the market! 

The current advertising campaigns convey values such as 

safety and security and their clear product 

messages are persuasive. 

TV campaign 

The best stories are written by life. Wiener 

Städtische also feels this way, and directs 

enjoyable episodes around a single woman, 

her daughter and the attractive neighbour. 

The aim of the campaign is to create a 

series that would involve the public in a 

story from everyday life. 

The campaign started in November 2009 

with a trailer that introduced the story and 

the individuals involved. The very first 

commercial “Meeting each other” received 

a highly positive audience response. 

The second episode followed in the summer 

of 2010. The single woman, who has 

just moved in, introduces herself to the 

neighbour who asks her over to his apartment. 

The new neighbour signals that he is 

someone who thinks about providing for the 

future. This lets an appealing reference be 

made to Wiener Städtische’s “Prämienpension” 

pension product, the subsidized oldage 

provision. 

The continuation of the TV campaign with 

the “Burst pipe” commercial has been 

entertaining viewers since November 2010. 

The new neighbour is asked for help. A 

burst pipe in the kitchen – in one’s own 

home – communicates how helpful house- 

hold insurance is. In this episode, the teenage 

daughter also plays a role for the first 

time since the beginning of the campaign. 

The “Burst pipe” commercial has gained 

much attention among viewers. 

In the Gallup Top Ten, the “Burst pipe” 

commercial excelled as the TV commercial 

with the strongest impact in the year 2010. 

Furthermore, for the “Big 3”, the TV advertising 

campaigns of the year with the 

strongest impact, the campaign “The dear 

neighbours” won first prize. This double 

award shows that the concept chosen is 

very well received by viewers. 

Wiener Städtische’s General Manager 

Robert Lasshofer is pleased: “The campaign 

conveys perfectly the essence of the 

Wiener Städtische Versicherung brand 

which is at its customers’ side as a reliable 

partner in different life situations. The success 

of the campaign confirms our belief 

that good neighbourliness pays off – both 

in business and in our TV stories.” 

The series concept of Wiener Städtische 

conveys not only product messages but 

also values such as trust, reliability and 

proximity.

Print campaigns 

Consistent with the relevant TV commercial 

and the product associated with it, the 

main actors from the TV commercial can be 

seen in magazines and newspapers. In 

addition, the “Worry-free” campaign with 

the main actors from the TV commercial 

was shown in the form of a picture story on 

billboards all over Austria in September 

2010. 


Image campaign 

We wish your problems were ours – the 

slogan of Wiener Städtische is well known. 

In image promotion, Wiener Städtische is 

very much to the point, or rather to the 

letter. Because the current campaign focuses 

on the essentials. Key words like trust, 

security, burst pipe and care convey strong 

values and clear product messages. 


B

MANAGEMENT REPORT 2010 

BUSINESS DEVELOPMENT 2010 

Wiener Städtische is an independent insurance company 

and number 1 in the Austrian insurance market. It operates 

in the property/casualty, life and health insurance segments. 

Wiener Städtische has branch offices in Italy and 

Slovenia. 

Wiener Städtische is a wholly-owned subsidiary of VIENNA 

INSURANCE GROUP AG Wiener Versicherung Gruppe, 

which received a confirmation of its existing A+ rating 

with stable outlook from the international rating agency 

Standard & Poor’s in 2010. 

In August 2010, the insurance business operations of 

VIENNA INSURANCE GROUP Wiener Städtische 

Versicherung AG (now VIENNA INSURANCE GROUP AG 

Wiener Versicherung Gruppe, FN 75687f) were spun off 

to VERSA-Beteiligungs AG with retroactive effect as of 

1 January 2010, while claiming the reorganisation tax privileges 

provided for under Art. VI of the Austrian Reorganisation 

Tax Act (Umgründungssteuergesetz). 

Since the previous year values for 2009 come from the 

annual financial statements of VERSA-Beteiligungs AG, and 

the comparability of these values is extremely limited due 

to the completely different structure of the business, the 

commentation in the management report uses “2009 pro 

forma values” based on the results of VIENNA INSURANCE 

GROUP Wiener Städtische Versicherung AG including holding 

company responsibilities in 2009. These previous year 

values and the 2010 year-end values have limited comparability. 

The limited comparability of investments and of the financial 

result arises because the shares in affiliated companies 

(primarily insurance companies in Eastern Europe) were 

retained by the newly created holding company (VIENNA 

INSURANCE GROUP AG Wiener Versicherung Gruppe) 

during the demerger. 


The holding company also took over insurance business 

during the financial year. In addition, VIENNA INSURANCE 

GROUP AG Wiener Versicherung Gruppe and the Company 

are also related in terms of reinsurance business. These 

two factors must be taken into account when comparing 

underwriting items. 

All disclosures, rates of change and previous year values 

presented in this management report therefore refer to 

these (unaudited) “pro forma values”. 

Premium income 

In financial year 2010, Wiener Städtische generated a total 

premium volume of EUR 2,432.80 million, representing a 

4.2% increase over 2009. EUR 2,419.86 million of these 

total premiums were generated from direct business and 

EUR 12.94 million from indirect business. Of the gross 

premiums written, EUR 2,001.49 million were retained by 

Wiener Städtische, and EUR 431.31 million ceded to reinsurance 

companies. 

The property/casualty segment contributed EUR 1,046.52 

million, or 43.0%, of the total premiums, the life insurance 

segment EUR 1,058.52 million, or 43.5%, and the health 

insurance segment EUR 327.76 million, or 13.5%.

Expenses for claims and insurance benefits 

Expenses for claims and insurance benefits were 

EUR 2,252.98 million in 2010, including the change in the 

mathematical reserve. 

Operating expenses 

Administrative expenses were EUR 423.40 million. 

Wiener Städtische key figures (UGB) 

in million EUR 2009 2010 

Gross premiums written 2,334.87 2,432.80 

thereof property/casualty 1,076.11 1,046.52 

thereof life 937.40 1,058.52 

thereof health 321.36 327.76 

Financial result 335.65 388.39 

Gross expenses for insurance claims 1) Result from unrealised gains and losses 

from unit- and index-linked life insurance 

-2,155.66 -2,252.97 

items 199.55 174.83 

Gross administrative expenses -434.34 -423.40 

Result from ceded reinsurance -83.32 -104.08 

Other income/ expenses (net) -26.77 -28.01 

Result from ordinary activities 169.98 187.56 

thereof property/casualty 148.51 123.34 

thereof life 9.64 40.63 

thereof health 11.83 23.59 

Investments 2) 14,633.13 12,510.59 

Underwriting provisions 3) 10,348.57 10,990.58 

Coverage of capital requirements (in %) 698.56 226.30 

1) 

incl. change in mathematical reserve 

2) 

incl. unit-linked and index-linked life insurance 

3) 

incl. unit-linked and index-linked life insurance, incl. deposits from ceded 

reinsurance business 

The results from indirect business are presented in the 

notes to the annual financial statements. 

Combined ratio far below 100% 

Wiener Städtische’s 2010 net combined ratio of 96.6% 

(after deducting the reinsurers’ share) was once again 

significantly below 100%. The combined ratio is a figure 

showing the ratio of administrative expenses and insurance 

payments to earned premiums in the property/casualty 

segment. 


Financial result 

Wiener Städtische’s financial result increased to 

EUR 388.39 million in 2010. The increase is due to positive 

growth in earnings from securities and loans. The extraordinary 

financial result also increased significantly compared 

to the previous year. This was due to smaller writedowns 

and realised gains from sales. 

Investments 

Investments were EUR 12,510.59 million as at 31 December 

2010, including EUR 2,223.99 million attributable to 

investments for unit-linked and index-linked life insurance. 

Investments not including unit-linked and index-linked life 

insurance were EUR 10,286.60 million in 2010. 

Investments at the end of 2010 (not including investments 

for unit-linked and index-linked life insurance) consisted of 

65.9% securities, 17.1% ownership interests, 13.0% loans, 

2.7% real estate and 1.3% other investments. 

Result from ordinary activities 

Wiener Städtische earned a result from ordinary activities 

of EUR 187.56 million in financial year 2010, calculated in 

accordance with the provisions of the Austrian Corporate 

Code (UGB). This corresponds to an increase of 10.3% 

compared to the value in 2009 (EUR 169.98 million). This 

increase is primarily due to the positive performance of the 

financial markets. 


C

65.7% of the result from ordinary activities came from the 

property/casualty segment, 21.7% from life insurance, and 

12.6% from health insurance. 

BUSINESS DEVELOPMENT IN DETAIL 

Property/casualty insurance 

Wiener Städtische generated EUR 1,046.52 million in premiums 

in the property/casualty segment (direct and indirect 

business), a decrease of 2.8% compared to the previous 

year. One reason for this decrease is that mandatory 

reinsurance within the group is no longer being provided by 

Wiener Städtische, but by VIG Re in Prague. Indirect premiums 

in the property/casualty segment therefore decreased 

69.8% to EUR 9.43 million. In contrast, direct premiums 

written fell only slightly, by 0.8%, to EUR 1,037.09 million. 

In the non-motor vehicle classes, Wiener Städtische’s 

direct premiums written grew by 1.0% compared to the 

previous year, to EUR 719.74 million. In contrast, direct 

premiums in the motor vehicle classes decreased by 4.5%, 

to EUR 317.35 million. Premium income in the motor vehicle 

segment was negatively affected by the ongoing competitive 

market environment and the resulting increase in 

price competition. The ongoing market trend towards 

smaller vehicles and longer useful lives is also causing a 

reduction in premiums in this segment. 


In the non-motor vehicle classes (direct business), high 

growth rates were recorded in the storm damage (3.4% to 

EUR 30.31 million), transport (9.0% to EUR 21.16 million) 

and burglary (5.2% to EUR 12.43 million) segments. 

Premium volume for transport insurance increased significantly 

due to new policies. The increase in premiums for 

burglary insurance is due to a greater need for security 

resulting from the high number of break-ins. The rising 

volume of premiums in the storm damage business shows 

the continuing demand for coverage against natural catastrophes. 

The larger number of natural events in recent 

years (storms) has increased public awareness of the need 

for insurance coverage in this area. 

Key figures property/casualty insurance 


Gross premiums written 1,076.11 1,046.52 


Gross expenses for insurance claims -707.79 -682.05 





The loss rate was 68.6% (total after reinsurance, incl. 

claims processing expenses). Expenses for claims 

and insurance benefits declined by 3.6% in 2010, to 

EUR 682.05 million. Gross administrative expenses were 

EUR 236.32 million in 2010. 

Details on the results for the individual classes are provided 

in the notes to the annual financial statements. 

The result from ordinary activities for the property/casualty 

segment was EUR 123.34 million for all of 2010.

Life insurance 

Wiener Städtische life insurance premiums rose to 

EUR 1,058.52 million, representing an increase of 12.9% 

compared to 2009. This was primarily due to increased 

volatility in the single-premium product segment. 

Direct premiums written in the life insurance segment rose 

by 13.1% compared to the previous year. Single-premium 

products recorded a 39.4% increase in premiums to 

EUR 408.70 million. Regular premiums rose by 1.0% to a 

level of EUR 646.38 million. 

Key figures life insurance 


Gross premiums written 937.40 1058,52 


Gross expenses for insurance claims* -1,184.52 -1,307.88 

Result from unrealised gains and losses 

from unit- and index-linked life insurance 

items 199.55 174.83 





* incl. the change in the actuarial reserve 

Gross expenses for claims and insurance benefits were 

EUR 743.06 million in 2010. Gross administrative expenses 

were EUR 147.34 million in 2010. 

The result from ordinary activities in the life insurance segment 

was EUR 40.63 million for all of 2010. 


Health insurance 

EUR 327.76 million in premiums were written in the health 

insurance segment during the financial year just ended, 

corresponding to an increase of 2.0% over 2009. 

There was strong demand for the new health insurance 

products offered by Wiener Städtische in 2010. Because of 

increasing public awareness of the topic of old-age nursing 

care, demand for insurance solutions in this area is also 

expected to rise over the long term. 

Expenses for claims and insurance benefits were EUR 

211.53 million in 2010. This figure already includes the 

transfer to the ageing reserve. The ageing reserve ensures 

funding for future insurance benefits, regardless of demographic 

changes. Gross administrative expenses were EUR 

39.74 million in 2010. 

The result from ordinary activities reached EUR 23.59 

million in the health insurance segment. 

Key figures health insurance 


Gross premiums written 321.36 327.76 


Gross expenses for insurance claims -263.35 -263.04 





* incl. the change in the actuarial reserve 


C

Employees 

The number of Wiener Städtische employees fell by 62 

compared to the previous year. 178 employees were transferred 

to the holding company in 2010. At the end of 2010, 

Wiener Städtische had a total of 3,497 employees, including 

1,802 sales employees and 1,546 administrative employees. 

There were 149 trainees at the end of 2010. 

Number of employees 

2009 2010 

Office employees 1,704 1,546 

Field sales representatives (incl. interns) 2,033 1,951 

TOTAL 3,737 3,497 

Employee interests 

Professional, motivated employees play an important role in 

Wiener Städtische’s success. Training, advanced training 

and equal treatment in the workplace are therefore key 

values in its business philosophy. The company places 

great importance on training and offers many development 

and career opportunities. The company’s own human 


resources development company, Horizont GmbH, is one of 

the ways the company ensures continuous training of its 

employees. Targeted support is also provided for trainee 

development. As in the previous year, Wiener Städtische is 

once again offering 100 young people the best career opportunities 

through its new 2011 trainee initiative. 

Wiener Städtische is one of the most family and womenfriendly 

companies in Austria. The company day-care centre 

is one example of how employees are actively supported 

in creating a balance between career and family. Wiener 

Städtische also provides a variety of fringe benefits to make 

conditions attractive for its employees. 

Qualified, satisfied employees open the path to economic 

success for Wiener Städtische. 

Events occurring after the balance sheet date 

No other events of special significance that would have 

changed the presentation of the net assets, financial position 

and results of operations occurred after the balance 

sheet date.

RISK REPORT 

The risk management department is responsible for the risk 

strategy, risk organisation and its processes, and ensuring 

continuous risk management and assessment. The systematic, 

comprehensive, cross-department and companywide, 

active, forward-looking, targeted management of the 

total risk position of the group of companies is one important 

objective. 

In addition, Wiener Städtische’s corporate risk management 

department monitors and reports on economic capital, 

which was also calculated in 2010 in accordance with 

the 5th EU Quantitative Impact Study, and external rating 

requirements. The rating agency Standard&Poor’s continuously 

rates the VIG Group and, therefore, Wiener Städtische, 

which is the most important component of the group. 

All important risk measures are in the good to excellent 

range. 

THE INDIVIDUAL RISK CATEGORIES 

Underwriting risks 

Underwriting risks are risks that the calculated premiums 

and reserves will be insufficient to settle the benefits that 

are promised to the policyholder in advance, but unknown. 

Credit risk 

This risk quantifies the potential loss due to deterioration of 

the situation of a counterparty against which claims exist. 

Market risk 

Market risk is the risk of changes in the value of investments 

due to unforeseen fluctuations in interest rate curves, 

share prices and exchange rates, and the risk of changes in 

the market value of real estate and participations. 

Strategic risks 

Strategic risks can arise due to changes in the economic 

environment, case law, or the regulatory environment. 

Operational risks 

These may result from deficiencies or errors in business 

processes, controls or projects caused by technology, staff, 

organisation or external factors. 


Liquidity risk 

Liquidity risk depends on the goodness of fit between the 

investment portfolio and insurance obligations. 

Concentration risk 

Concentration risk is a single direct or indirect position, or a 

group of related positions, with the potential to significantly 

endanger the insurance company, its core business or key 

performance measures. Concentration risk is caused by an 

individual position, a collection of positions with common 

holders, guarantors or managers, or by sector concentrations. 

RISK STRATEGY 

The Managing Board is responsible for risk management, 

and the internal control system developed from it, and 

defines the risk strategy, risk policy, targets and measurement 

bases. 

The objective of risk management is not complete avoidance 

of risk, but instead a conscious acceptance of desired 

risks or the implementation of measures to monitor and 

possibly also reduce existing risks based on economic factors. 

These considerations are based on the assumption 

that higher returns can be achieved by accepting higher 

risk. 

The risk-return ratio is therefore a key measure that should 

be optimised. 

RISK ORGANISATION 

In addition to the operational risk managers, an independent 

corporate risk management unit has been established 

in the General Secretariat, directly under the Managing 

Board. 

The risk committee assists the Managing Board with optimisation 

of the systematic, comprehensive, cross-department, 

active, forward-looking and targeted management 

of the total risk position of the company, optimisation 

of the company-wide risk culture and risk policy, and creation 

of appropriate framework conditions allowing all material 

risks in the company to be identified, defined, quantified, 

calculated, estimated and managed. 


C

OUTLOOK FOR 2011 

Risk management will be faced with new requirements in 

the future due to the provisions of the new solvency framework 

directive. The new solvency directive is to be transformed 

into national law within the EU by 2013. 

Like the Basel II model for the banking sector, Solvency II is 

comprised of three pillars. The first pillar deals with the 

quantitative requirements of capital adequacy, while the 

second pillar deals with the qualitative requirements for 

company management, the risk management system and 

internal controls. The second pillar also covers supervisory 

principles and methods. The third pillar deals with the new 

provisions on market discipline, transparency and disclosure 

requirements. 

Five field studies, the Quantitative Impact Studies (QIS), 

have been performed to date in Europe in order to test the 

practicability and suitability of Solvency II standard model 

prototype. All of the studies showed that Wiener Städtische 

had good capital adequacy and is optimally prepared for 

the future. 

Although many of the details needed for implementing the 

solvency framework directive are still unclear or variable, 


the insurance industry expects high costs and higher capital 

costs to be an unpleasant side effect of the new upcoming 

solvency legislation. Many industry experts also think 

that the field studies have shown that the prototype of the 

standard model (QIS 5) is not yet mature. 

Wiener Städtische is an active participant in the group-wide 

project that is making preparations for Solvency II. 

The project is currently documenting and performing regular 

revisions to the internal control system. Operational and 

financial statement-related risk classes are ordered according 

to risk magnitude, combined with their controls in a 

risk and control matrix and reported regularly to the Managing 

Board and Supervisory Board. This allows control processes 

to be efficiently optimised. Using multiple controls for 

insignificant risks is too costly, while material risks must be 

continuously monitored and managed. 

Efforts are also being made to develop a potential 

internal model that will optimally present the total risk 

position of the group and, therefore, of Wiener 

Städtische.

OUTLOOK 

ECONOMIC GROWTH FOR AUSTRIA IN 2011 

Economic growth recovered significantly in 2010 following 

the sharp global economic downturn in 2009. According to 

preliminary estimates by the Austrian national bank (Österreichische 

Nationalbank — OeNB), real gross domestic 

product (GDP) in 2010 grew by 1.8% compared to 2009. In 

view of the consolidation measures planned for the Eurozone, 

the expansion is not expected to accelerate in Europe 

or Austria in 2011. After years of large economic fluctuations, 

a long period of growth is expected in Austria. The 

OeNB is projecting economic growth of 2.1% and 2.3% for 

2011 and 2012, respectively. 

The Austrian economic upswing is primarily being supported 

by exports of goods. The OeNB expects exports to 

rise by 10.4% in 2010, with the upturn slowing in subsequent 

years to approximately 7%. Although domestic 

demand continued to be restrained in 2010, growth was 

nevertheless already considerably faster in the 4th quarter 

of 2010. Investment is expected to increase in 2011 and 

2012. The crisis will continue in the construction industry. 

According to the OeNB, the consolidation measures planned 

for 2011 will have a negative effect on real disposable 

household income, thereby depressing private consumption. 

The labour market situation improved significantly in 

2010 as a result of the economic upswing, and positive 

growth is also expected for 2011 and 2012. 

THE AUSTRIAN INSURANCE MARKET IN 2011 

Premium income also rose considerably in the insurance 

industry in 2010, as a result of the economic upswing last 

year. According to preliminary estimates, the Insurance 

Association of Austria (Versicherungsverband Österreich — 

VVO) expects a 2% increase in premiums in 2010. The 

insurance industry is also expected to have strong premium 

growth in coming years. 


According to the latest projections by the VVO, the Austrian 

insurance market will grow by 1.7% in 2011 (2010 preliminary: 

2.0%). The small decrease in the growth rate is due to 

the above-average growth in single-premium life insurance 

business experienced in 2010. Total growth without taking 

into account the single-premium business will be 2.0% in 

2011 (2010 preliminary: 1.9%). 

According to initial cautious projections, life insurance 

premiums are expected to grow by 1.1% in 2011, which is 

considerably lower compared to the previous year (2010 

preliminary: 1.9%). However, because of demographic 

change and the increasing number of older people in the 

population, demand is expected to rise in the area of oldage 

provisions. Life insurance is the ideal instrument for 

making provisions to protect the standard of living in old 

age. 

Premium growth is expected to remain strong in the health 

insurance segment, with an increase of 2.8% expected for 

2011 (2010 preliminary: 2.9%). The growing propensity to 

invest in private health insurance in order to protect the 

standard of medical care in old age will have a positive 

effect on premium income. 

A premium increase of 2.0% is projected for the property/casualty 

segment in 2011 (2010 preliminary: 1.9%). 

Premiums for motor vehicle liability insurance are expected 

to grow again slightly by 0.2% in 2011. 

Due to the increasingly competitive environment in the 

Austrian insurance market, the current focus on providing 

advice and service will become even more important for 

insurance companies in the future. 


C

WIENER STÄDTISCHE IN 2011 

The strong economic upswing in 2010 and the growth 

trend expected for 2011 will have a positive effect on the 

Austrian insurance business. Wiener Städtische management 

expects strong premium growth in 2011, and positive 

growth in the profit before taxes. Efforts are also being made 

to further improve the combined ratio in the property/casualty 

segment. Wiener Städtische’s main focus in 

the life insurance segment is on old-age provisions. 

Management’s top priority is to ensure lasting success for 

Wiener Städtische and further improve the company’s 

leading position. In order to achieve this, Wiener Städtische 

is focusing on a culture of customer orientation, high quality 

service and professional employees. The legal separation of 

Wiener Städtische and the holding company that was performed 

in 2010 allows the company to concentrate fully on 

the insurance business in Austria. 


The focus in 2011 will be on further targeted changes to 

the range of products. Innovation is one of the company's 

strengths. Wiener Städtische’s core business includes 

quickly identifying long-term market trends and developing 

product solutions that address customer needs. 

In addition to continuous improvements to the product 

portfolio, Wiener Städtische is also focusing on increasing 

service quality by means of rapid communications and 

quick handling of customer concerns. Wiener Städtische 

changed the structure of the company in 2010 in order to 

optimise customer service. Three new Service Centres were 

created to facilitate centralised handling of losses and 

benefit claims, thereby achieving even greater efficiency. 

And, as in 2010, additional modern services were once 

again added to the range of services offered. The company 

is also focusing on further strengthening distribution, which 

is a key factor in its success.

PROPOSED DISTRIBUTION OF PROFITS 


In November of the financial year, an interim dividend of EUR 80,000,000.00 was paid from net retained profits in accordance 

with the requirements of § 54a of the Austrian Stock Corporation Act (Aktiengesetz — AktG). 

WIENER STÄDTISCHE Versicherung AG VIENNA INSURANCE GROUP ended financial year 2010 with net retained profits of 

EUR 200,245,702.21. 

We propose that the 2010 net retained profits be used as follows: 

A dividend of EUR 154,100,000.00 should be paid from the net retained profits, and the remaining balance of 

EUR 46,145,702.21 carried forward. 

The dividend payment date has been set as 10 May 2011. 

Managing Board: 


Christine Dornaus Judit Havasi 


Vienna, 9 March 2011 

Erich Leiss 


C

AnnuAl FinAnciAl StAteMentS 2010 

Wiener StädtiSche Versicherung Ag Vienna insurance group 

Separate financial statements prepared in accordance with the Austrian corporate code (ugB) 

and the Austrian insurance Supervision Act 

AnnuAl FinAnciAl StAteMentS 

66 Balance sheet 

74 Income statement 

nOteS tO the SePArAte FinAnciAl StAteMentS 

81 General information on accounting policies 

81 Accounting policies 

86 Notes to the balance sheet items 

89 Notes to income statement items 

93 Profit participation 

100 Significant participations 

101 Other Information 

AuditOr´S rePOrt 

rePOrt BY the SuPerViSOrY BOArd 

StAteMent BY the MAnAging BOArd 


Wiener StädtiSche Versicherung Ag Vienna insurance group 

Seperate financial statements prepared in accordance with the Austrian corporate code (ugB) and 

the Austrian insurance Supervision Act (VAg) 

cOMPANY & STRATEgY | MAJOR TOPicS 2010 | MANAgEMENT REPORT 2010 | AnnuAl FinAnciAl StAteMentS 2010 

31.12.2010 

Reporting Period 1.1.2010 – 31.12.2010 

Balance sheet comparison date 31.12.2009 

income statement comparison date 1.1.2009 – 31.12.2009 

currency EUR 


41 

d

BALANCE SHEET FOR THE FINANCIAL YEAR ENDED 31 DEZEMBER 2010 

Assets Property/casualty 

in EUR 

A. Intangible assets 

I. Expenses for acquisition of an insurance portfolio 2,100,000.00 

II. Other intangible assets 14,943,528.24 

TOTAL INTANGIBLE ASSETS 17,043,528.24 

B. Investments 

I. Land and buildings 30,024,896.56 

II. Investments in affiliated companies and participations 

1. Shares in affiliated companies 1,160,513,409.28 

2. Bonds and other securities of affiliated companies and loans to affiliated companies 472,249,653.33 

3. Participations 14,896,944.09 

thereof reorganisation surplus 0.00 

4. Bonds and other securities of and loans to companies in which an ownership interest is held 5,790,118.83 1,653,450,125.53 

III. Other investments 

1. Shares and other non-fixed-interest securities 519,126,616.74 

2. Bonds and other fixed-interest securities 440,397,952.26 

3. Shares in joint investments 0.00 

4. Mortgage receivables 52,146,754.01 

5. Policy prepayments 0.00 

6. Other loans 47,973,228.91 

7. Bank balances 2,261,005.10 1,061,905,557.02 

IV. Deposits on assumed reinsurance business 668,237.73 

TOTAL INVESTMENTS 2,746,048,816.84 

C. Investments of unit- and index-linked life insurance 0.00 

Amount carried forward 2,763,092,345.08 

66 ANNUAL REPORT 2010 | WIENER STÄDTISCHE


Health Life Total business in 2010 2009 

in EUR '000 

0.00 0.00 2,100,000.00 0 

0.00 28,940.72 14,972,468.96 0 

0.00 28,940.72 17,072,468.96 0 

44,300,695.25 199,518,451.21 273,844,043.02 0 

11,523,077.80 312,220,711.62 1,484,257,198.70 300,035 

32,210,999.09 316,979,137.82 821,439,790.24 475,000 

23,482,413.11 237,688,946.93 276,068,304.13 0 

0.00 8,957,022.00 8,957,022.00 0 

16,157,371.29 83,373,861.29 15,358,520.88 882,247,317.25 37,306,011.00 2,619,071,304.07 0 

361,823,206.05 1,955,248,870.90 2,836,198,693.69 0 

251,759,637.08 3,078,002,539.74 3,770,160,129.08 0 

0.00 40,787,111.39 40,787,111.39 0 

65,685,545.60 253,970,445.07 371,802,744.68 0 

0.00 18,025,828.83 18,025,828.83 0 

23,618,181.14 150,406,160.13 221,997,570.18 0 

63,616,068.70 766,502,638.57 50,531,856.86 5,546,972,812.92 116,408,930.66 7,375,381,008.51 0 

1,452,843.97 16,185,409.82 18,306,491.52 0 

895,630,039.08 6,644,923,991.20 10,286,602,847.12 775,035 

0.00 2,223,989,314.98 2,223,989,314.98 0 

895,630,039.08 8,868,942,246.90 12,527,664,631.06 775,035 


D


Assets Property/casualty 

in EUR 


D. Receivables 

I. Receivables from direct insurance business 

1. from policiyholders 84,505,610.06 

2. from insurance intermediaries 70,216,238.42 

3. from insurance companies 32,213,613.20 186,935,461.68 

II. Receivables from reinsurance business 75,486,200.50 

III. Other receivables 139,682,011.71 

TOTAL RECEIVABLES 402,103,673.89 

E. Pro rata interest 

F. Other assets 

20,730,750.11 

I. Tangible assets (not incl. land and buildings) and inventories 19,416,361.84 

II. Current bank balances and cash on hand 32,093,098.02 

III. Futher other assets 89,986,970.83 

TOTAL OTHER ASSETS 141,496,430.69 

G. Prepaid expenses 

I. Deferred taxes 50,822,608.45 

II. Other prepaid expenses 45,473,819.51 

TOTAL PREPAID EXPENSES 96,296,427.96 

H. Offsetting items between departments -875,450,326.99 

Total assets 2,548,269,300.74 




in EUR '000 

895,630,039.08 8,868,942,246.90 12,527,664,631.06 775,035 

3,085,681.15 24,203,882.81 111,795,174.02 0 

0.00 403,585.02 70,619,823.44 0 

960,280.33 4,045,961.48 571,353.73 25,178,821.56 33,745,247.26 216,160,244.72 0 

0.00 705,877.29 76,192,077.79 0 

2,231,301.79 8,016,515.87 149,929,829.37 128 

6,277,263.27 33,901,214.72 442,282,151.88 128 

5,697,381.61 91,199,439.49 117,627,571.21 0 

0.00 231,765.25 19,648,127.09 0 

23,856,249.86 29,097,315.48 85,046,663.36 9,952 

4,127,500.00 16,183,343.53 110,297,814.36 0 

27,983,749.86 45,512,424.26 214,992,604.81 9,952 

3,154,458.62 20,216,398.51 74,193,465.58 0 

17,000.00 5,248,910.60 50,739,730.11 0 

3,171,458.62 25,465,309.11 124,933,195.69 0 

203,388,959.58 672,061,367.41 0.00 0 

1,142,148,852.02 9,737,082,001.89 13,427,500,154.65 785,115 


D


Liabilities and shareholders' equity Property/casualty 

in EUR 

A. Shareholders' equity 

I. Share capital 

1. Par value 10,000,000.00 

II. Capital reserves 

1. Committed reserves 157,617,585.61 

III. Retained earnings 

1. Free reserves 1,000,000.00 

IV. Risk reserve as per § 73a VAG, taxed portion 15,301,745.25 

V. Net retained profits 132,935,976.92 

thereof brought forward -83,797.25 

thereof partial payment in accordance with § 54a AktG -30,000,000.00 

TOTAL SHAREHOLDERS' EQUITY 316,855,307.78 

B. Tax-exempt reserves 

I. Risk reserve as per § 73a VAG 19,406,564.75 

II. Valuation reserve for impairment losses 3,793,786.29 

TOTAL RESERVES 23,200,351.04 

C. Subordinated liabilities 

II. Supplementary capital bond 70,000,000.00 

TOTAL SUBORDINATED LIABILITIES 70,000,000.00 

D. Underwriting provisions - retained 

I. Unearned premiums 

1. Gross 105,239,791.63 

2. Reinsurers' share -13,498,510.02 91,741,281.61 

II. Mathmatical reserve 

1. Gross 0.00 

2. Reinsurers' share 0.00 0.00 

III. Provision for outstanding claims 

1. Gross 1,029,598,676.83 


IV. Provision for profit-unrelated premium refunds 

1. Gross 24,027,639.04 


V. Provision for profit-related premium refunds and policyholder profit participation 

1. Gross 196,912.47 

2. Reinsurers' share 0.00 196,912.47 

VI. Equalisation provision 154,222,739.00 

VII. Other underwriting provisions 

1. Gross 12,315,864.28 


TOTAL TECHNICAL PROVISIONS 1,015,840,434.37 

E. UNDERWRITING PROVISIONS OF UNIT- AND INDEX-LINKED LIFE INSURANCE 0.00 





in EUR '000 

0.00 0.00 10,000,000.00 10,000 

28,724,845.15 316,539,424.61 502,881,855.37 300,000 

0.00 0.00 1,000,000.00 0 

3,325,210.71 27,226,449.51 45,853,405.47 0 

24,811,961.26 42,497,764.03 200,245,702.21 -84 

0.00 0.00 -83,797.25 0 

-20,000,000.00 -30,000,000.00 -80,000,000.00 0 

56,862,017.12 386,263,638.15 759,980,963.05 309,916 

9,208,223.29 14,825,539.49 43,440,327.53 0 

3,078,673.15 71,414,198.75 78,286,658.19 0 

12,286,896.44 86,239,738.24 121,726,985.72 0 

10,000,000.00 195,000,000.00 275,000,000.00 0 

10,000,000.00 195,000,000.00 275,000,000.00 0 

2,106,573.80 35,972,471.28 143,318,836.71 0 

-210,657.38 1,895,916.42 -47,718.39 35,924,752.89 -13,756,885.79 129,561,950.92 0 

841,899,176.00 6,347,091,836.00 7,188,991,012.00 0 

-85,425,640.10 756,473,535.90 -14,359,062.17 6,332,732,773.83 -99,784,702.27 7,089,206,309.73 0 

44,412,425.00 44,459,573.07 1,118,470,674.90 0 

-4,409,599.60 40,002,825.40 -141,000.00 44,318,573.07 -295,057,334.62 823,413,340.28 0 

14,960,000.00 0.00 38,987,639.04 0 

-1,496,000.00 13,464,000.00 0.00 0.00 -5,769,666.77 33,217,972.27 0 

0.00 51,660,860.59 51,857,773.06 0 

0.00 0.00 0.00 51,660,860.59 0.00 51,857,773.06 0 

0.00 0.00 154,222,739.00 0 

756,898.79 1,830,722.11 14,903,485.18 0 

0.00 756,898.79 0.00 1,830,722.11 -1,482,277.07 13,421,208.11 0 

812,593,176.51 6,466,467,682.49 8,294,901,293.37 0 

0.00 2,141,430,179.12 2,141,430,179.12 0 

891,742,090.07 9,275,401,238.00 11,593,039,421.26 309,916 


D

Liabilities and shareholders' equity Property/casualty 

in EUR 


F. Non-underwriting provisions 

I. Provision for post-employment benefits 0.00 

II. Provision for pensions 0.00 

III. Tax provisions 29,258,575.00 

IV. Other provisions 63,445,385.89 

TOTAL OTHER PROVISIONS 92,703,960.89 

G. Deposits from ceded reinsurance business 

H. Other liabilities 

I. Liabilities from direct insurance business 

36,783,363.85 

1. from policiyholders 110,766,901.79 

2. from insurance intermediaries 17,480,228.47 

3. from insurance companies 6,901,993.36 135,149,123.62 

II. Liabilities from reinsurance business 21,796,784.51 

III. Liabilities from bonds (not including supplementary capital) 0.00 

III. Liabilities to financial institutions 90,665.97 

IV. Other liabilities 831,332,471.94 

TOTAL LIABILITIES 988,369,046.04 

I. Prepaid expenses 4,516,836.77 

Total assets 2,548,269,300.74 




in EUR '000 

891,742,090.07 9,275,401,238.00 11,593,039,421.26 309,916 

0.00 14,911,511.12 14,911,511.12 0 

0.00 89,653,732.00 89,653,732.00 0 

0.00 230,900.00 29,489,475.00 0 

10,720,879.00 7,647,823.04 81,814,087.93 7 

10,720,879.00 112,443,966.16 215,868,806.05 7 

87,212,116.45 14,406,780.56 138,402,260.86 0 

3,556,271.77 79,420,626.16 193,743,799.72 0 

0.00 4,372,010.64 21,852,239.11 0 

339,462.08 3,895,733.85 19,837.46 83,812,474.26 7,261,292.90 222,857,331.73 0 

9,073,206.93 1,399,834.45 32,269,825.89 0 

0.00 150,000,000.00 150,000,000.00 0 

34,001,630.57 4,417,944.04 38,510,240.58 0 

105,491,142.95 8,340,835.11 945,164,450.00 475,192 

152,461,714.30 247,971,087.86 1,388,801,848.20 475,192 

12,052.20 86,858,929.31 91,387,818.28 0 

1,142,148,852.02 9,737,082,001.89 13,427,500,154.65 785,115 


D

INCOME STATEMENT FOR THE FINACIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2010 

Property/casualty insurance 2010 2009 


in EUR in EUR '000 

Underwriting account 

1. Net earned premiums 

Premiums written 

Gross 1,046,516,324.80 0 

Ceded reinsurance premiums -387,299,601.68 659,216,723.12 0 

Change due to unearned premiums 

Gross 7,190,603.99 0 

Reinsurers' share -7,617,562.28 -426,958.29 0 

TOTAL PREMIUMS 658,789,764.83 0 

2. Investment income from technical business 52,778.58 0 

3. Other underwriting income 6,335,128.50 0 

4. Expenses for claims and insurance benefits 

payments for claims and insurance benefits 

Gross 698,492,901.45 0 

Reinsurers' share -226,266,525.63 472,226,375.82 0 

Changes in provision for outstanding claims and insurance benefits 

Gross -16,435,839.28 0 

Reinsurers' share -3,606,639.80 -20,042,479.08 0 

TOTAL CLAIMS AND INSURANCE BENEFITS -452,183,896.74 0 

5. Increase in underwriting provisions 

Other underwriting provisions 

Gross 982,700.00 0 

Reinsurers' share -27,394.24 955,305.76 0 

TOTAL INCREASE IN UNDERWRITING PROVISIONS -955,305.76 0 

6. Expenses for profit-unrelated premium refunds 

Gross 13,165,970.00 0 


TOTAL EXPENSES FOR PROFIT-UNRELATED PREMIUM REFUNDS -8,708,005.90 0 

7. Administrative expenses 

Acquisition expenses 191,487,072.23 0 

Other administrative expenses 44,834,247.37 0 

Reinsurance commissions and profit commissions from reinsurance cessions -62,356,010.75 0 

TOTAL OPERATING EXPENSES -173,965,308.85 0 

8. Other underwriting expenses -7,077,516.12 0 

9. Change in the equalisation provision 10,409,867.60 0 

UNDERWRITING RESULT (AMOUNT CARRIED FORWARD) 32,697,506.14 0

COMPANY & STRATEGY | MAJOR TOPICS 2010 | MANAGEMENT REPORT 2010 | ANNUAL FINACIAL STATEMENTS 2010 

Property/casualty insurance 2010 2009 


Underwriting result (amount carried forward) 32,697,506.14 0 

Non-underwriting account 

1. Investment and interest income 

Income from participations 26,893,062.66 0 

Income from land and buildings 2,518,246.72 0 

Income from other investments 61,886,064.16 53 

Gains from disposal of investments 43,775,174.28 0 

Other investment and interest income 3,879,393.28 1 

TOTAL INVESTMENT INCOME 138,951,941.10 54 

2. Expenses for investments and interest expenses 

Expenses for asset management 2,535,544.53 0 

Depreciation of investments 2,879,490.36 0 

Interest expenses 39,892,720.43 53 

Losses from disposal of investments 30,012.88 0 

Other investement expenses 3,189,508.32 0 

TOTAL INVESTMENT EXPENSES -48,527,276.52 -53 

3. Investment income transferred to the underwriting account -52,778.58 0 

4. Other non-underwriting income 567,690.45 0 

5. Other non-underwriting expenses -297,577.44 -113 

Result from ordinary activities, property/casualty insurance 123,339,505.15 -112 


D


Health insurance 2010 2009 





premiums written 

Gross 327,762,919.92 0 

Ceded reinsurance premiums -40,693,060.12 287,069,859.80 0 


Gross -309,604.54 0 

Reinsurers' share 15,144.95 -294,459.59 0 

TOTAL PREMIUMS 286,775,400.21 0 

2. Investment income from technical business 19,530,134.97 0 

3. Other underwriting income 6,853.19 0 


Payments for claims and insurance benefits 

Gross 212,094,106.73 0 



Gross -560,507.00 0 

Reinsurers' share 58,069.90 -502,437.10 0 



Mathematical reserve 

Gross 51,509,148.00 0 


TOTAL INCREASE IN UNDERWRITING PROVISIONS -46,216,009.00 0 


Gross 11,472,412.40 0 


TOTAL EXPENSES FOR PROFIT-UNRELATED PREMIUM REFUNDS 


-10,344,935.88 0 


Other administrative expenses 

Reinsurance commissions and profit shares 

13,689,504.06 0 

From reinsurance cessions -4,402,416.76 0 


8. Other underwriting expenses -81,657.52 0 








Income from participations 293,400.46 0 










Losses from disposal of investments 43.73 0 

Other investement expenses 702,770.31 0 

TOTAL INVESTMENT EXPENSES -21,777,216.21 0 

3. Investment income transferred to the underwriting account -19,530,134.97 0 

Result from ordinary activities, health insurance 23,586,378.59 0 


D


Life insurance 2010 2009 






Gross 1,058,516,363.15 0 

Ceded reinsurance premiums -3,312,928.66 1,055,203,434.49 0 


Gross 1,169,136.75 0 

Reinsurers' share -1,075.97 1,168,060.78 0 

TOTAL PREMIUMS 1,056,371,495.27 0 

2. Investment income from technical business 278,442,323.19 0 

3. Unrealised gains on investments shown under balance sheet asset item C 186,807,456.37 0 

4. Other underwriting income 


Payments for claims and insurance benefits 

558,247.94 0 

Gross 738,968,634.56 0 

Reinsurers' share 


-1,236,482.85 737,732,151.71 0 

Gross 4,086,350.73 0 

Reinsurers' share 40,000.00 4,126,350.73 0 



mathematical reserve 

Gross 564,824,212.26 0 

Reinsurers' share -415,644.54 564,408,567.72 0 

TOTAL INCREASE IN UNDERWRITING PROVISIONS 


and policyholder profit participation 

-564,408,567.72 0 

Gross 15,700,000.00 0 

Reinsurers' share 0.00 15,700,000.00 0 

TOTAL PROFIT PARTICIPATION 


-15,700,000.00 0 


Other administrative expenses 35,258,518.11 0 

Reinsurance commissions and profit commissions from reinsurance cessions -532,934.71 0 


9. Unrealised losses on investments shown under balance sheet asset item C -11,978,963.39 0 

10. Other underwriting expenses -801,911.78 0 











Income from appreciations 29,004,878.50 0 








Losses from disposal of investments 1,852,348.94 0 

Other investment expenses 20,634,727.58 0 

TOTAL INVESTMENT EXPENSES -101,654,696.51 0 



Result from ordinary activities, life insurance 40,630,740.84 0 


D


Property/Casualty + Health + Life = Total Business 2010 2009 


Underwriting result, property/casualty 32,697,506.14 0 

Underwriting result, health 23,586,378.59 0 

Underwriting result, life 40,623,001.31 0 

TOTAL UNDERWRITING RESULT 96,906,886.04 0 

Non-underwriting account: 





Income from appreciations 29,004,878.50 0 






depreciation of investments 62,187,904.00 0 


Losses from disposal of investments 1,882,405.55 0 

Other investment expenses 24,527,006.21 0 

TOTAL INVESTMENT EXPENSES -171,959,189.24 -53 



5. Other non-underwriting expenses -297,577.44 -113 

6. Result from ordinary activities 187,556,624.58 -112 

7. Taxes on income -51,953,230.72 28 

8. Profit for the period 135,603,393.86 -84 

9. Release of reserves 

Release of valuation reserve for impairment losses 30,726,105.60 0 

Release of investments 115,000,000.00 0 

TOTAL RELEASE OF RESERVES 145,726,105.60 0 

10. Transfer to reserves 

Transfer to risk reserve as per § 73a VAG 1,000,000.00 0 

TOTAL TRANSFER TO RESERVES -1,000,000.00 0 

11. Profit for the year -80,000,000.00 

12. Partial payment in accordance with § 54a AktG 200,329,499.46 -84 

13. Retained profits brought forward -83,797.25 0 

Net retained profits 200,245,702.21 -84 


The insurance business operations of VIENNA INSURANCE 

GROUP Wiener Städtische Versicherung AG (now VIENNA 


FN 75687f) were spun off to VERSA-Beteiligungs AG 

(now WIENER STÄDTISCHE Versicherung AG Vienna 

Insurance Group, FN 333376i) with retroactive effect as of 

1 January 2010 under a demerger and acquisition agreement 

of 10 May 2010, while claiming the reorganisation tax 

privileges provided for under Art. VI of the Austrian 

Reorganisation Tax Act (Umgründungssteuergesetz). The 

General Meeting resolution was adopted on 29 June 2010 

and the demerger of the insurance business operations 

from the holding company acquired legal force on 

3 August 2010 after approval by the Austrian Financial 

Market Authority (FMA). 

WIENER STÄDTISCHE Versicherung AG Vienna Insurance 

Group therefore continues to be the largest individual company 

in the group and continues to operate the property/casualty, 

life and health insurance business in Austria. 

VIENNA INSURANCE GROUP AG Wiener Versicherung 

Gruppe is a listed group holding company, and focuses on 

international management responsibilities. 

The balance sheet and income statement figures for 

31 December 2009 for the acquiring company, VERSA- 

Beteiligungs AG, have limited comparability and informational 

value because of the completely different structure of 

the business. 

As a result of the transfer of the insurance operations during 

the financial year, the annual financial statements of 

VERSA-Beteiligungs AG as at 31 December 2009, which 

were prepared in accordance with the classification 

requirements of the Austrian Corporate Code (Unternehmensgesetzbuch 

— UGB), were changed over to the classification 

requirements of the Austrian Insurance Supervision 

Act (Versicherungsaufsichtsgesetz — VAG) for the purpose 

of presenting previous year figures in the company's annual 

financial statements as at 31 December 2010. 

I. GENERAL INFORMATION ON ACCOUNTING POLICIES 

The annual financial statements were prepared in accordance 

with Austrian generally accepted accounting principles 

and the general standard of presenting a fair and 


true view of the net assets, financial position and results of 

operations. 

The precautionary principle was satisfied in that only profits 

that had been realised as at the balance sheet date were 

reported and all identifiable risks and impending losses are 

recorded in the balance sheet, with the exception of the 

less strict measurement of bonds and other fixed interest 

securities as provided for in § 81h(1) VAG and use of the 

measurement options provided for in § 81h(2a) VAG for 

units of special funds. As a rule, figures are shown in thousands 

of euros (EUR ’000). Figures from the previous year 

are indicated as such or shown in parentheses. 

II. ACCOUNTING PRINCIPLES 

Land is valued at cost, buildings at cost less depreciation 

and any write-downs. As a rule, repair costs for residential 

buildings are spread over ten years. 

Investments for unit-linked and index-linked life insurance 

are valued according to the current cost principle. Unitlinked 

life insurance investments are made in the following 

funds: E+S Erfolgs-Invest Miteigentumsfonds gem. Para 20, 

RT Osteuropa Absolute ReturnMiteigentumsfonds T, Schöllerb.Zinsstruk.Plus, 

Schoellerbank Zinsstruktur Plus Miteigentumsf., 

Schoellerbank Aktienfonds währungsgesichert, 

SCHOELLERBANK Aktienfonds WÄHR.(T), RT Osteuropa 

Aktienfonds Miteigentumsanteile T, RT Absolute Return 

Bond Fund T, RT Euro Cash Plus (T) Fonds, C-Quadrat 

ARTS Total Return Special T, PIA Euro Plus Bond VT, PIA 

TRADERENT (T), SCHOELLERBANK NETTO RENT, 

SCHOELLERBANK NETTORENT-T, Schoellerbank Liquid 

(A), Schoellerbank Liquid (T), REAL INVEST AUSTRIA-A, C- 

Quadrat Arts Total Return Balanced, WSTV ESPA DYNA- 

MISCH, WSTV ESPA PROGRESSIV, WSTV ESPA TRADI- 

TIONELL, TRADECOM FONDSTRADER, RT ZUKUNFTVOR- 

SORGE AKTIEN-T, Schoellerbank Realzins Plus (Ausschütter), 

SCHOELLERBANK REALZINS PLUS T, PIONEER AUS- 

TRIA-CORP TR IN-A, FAIR INVEST BALANCED Miteigentumsanteile, 

Wiener Privatbank Premium Ausgewogen T, 

Wiener Privatbank Premium Dynamisch T, ESPA STOCK 

ISTANBUL-T, VPI World Invest § 20 InvFG, CRYSTAL ROOF 

RUBIN FUND (T), CRYSTAL ROOF SMARAGD FUND (T), 

CRYSTAL ROOF SAFIR (T), ALL JAPAN T MITEIGENTUM- 

SANTEILE, SUCCESS ABSOLUTE (T), SUCCESS RELATIVE 


D

FONDS (T), ALL ASIA MITEIGENTUMSANTEILE GEM § 20 

INFG T, ALL EUROPE-THESAURIERUNGS-ANTEILE, GLO- 

BAL HEALTH CARE (ALL PHARMA) MITEIGENT, ESPA 

BOND DOLLAR CORP T, Ecofin Index Aktien - Thesaurierungs-Anteile, 

RAIFFEISEN-EURASIEN-AKTIEN-A, SemperProperty 

Europe T, All Trends (T), ESPA STOCK PHAR- 

MA-T, PIONEER CENTRAL EUROPE BD-A, RT ACTIVE 

GLOBAL TREND (T), RINGTURM PIF DYNAMISCH 

FONDS(T), RINGTURM PIF TRADITIONELL FONDS(T), 

AUSTRIA STOCK-T, SPAR TRUST CORPORATE (T), GOL- 

DEN ROOF BRANCHEN (T), PIA MASTER FONDS TRADI- 

TIONELL (T), PIA MASTER FONDS DYNAMISCH (T), PIA 

MASTER FONDS PROGRESSIV (T), ALL WORLD (T) MITEI- 

GENTUMSANTEILE, Raiffeisen Euro Rent (T), ESPA Bond 

Emerging Markets, SCHOELLERBANK USD RENTEN- 

FONDS (AUSSCH., EUR NO), PIA AMERICA STOCK FONDS 

(T), PIA EURO CORPORATE BOND FONDS (T), PIA DOLLAR 

BOND FONDS (T), ESPA PORTFOLIO BOND (T), ESPA 

CASH EURO-PLUS (T) (SPARFONDS), SCHOELLERB GLO- 

BAL PENSION FONDS, SEMPERSHARE AUSTRIA (THE- 

SAURIEREND), GOLDEN ROOF WELT (T), C-QUADRAT- 

ACTIVE BALANCED-T, C-QUADRAT-ACT GLOB EQUIT-T, CI 

Global Mix 50, ESPA SELECT STOCK, SCHOELLERBANK 

AKTIENFONDS T, SCHOELLERBANK EURO ALTERNATIV T, 

SCHOELLERBANK ANLEIHEFONDS T, Schoellerbank Vorsorgefonds 

T Miteigentumsanteile, SCHOELLERBANK USD 

RENTENFONDS T, Schöllerbank (Lemberger) USD Rentenfonds 

(T), SCHOELLERBANK KURZINVST T, Schoellerbank 

USD Kurzinvest (T), SCHOELLERBANK KURZINVEST T, 

SCHOELLERBANK PIF-T, Schöllerbank Global Pension, PIA 

MASTER FONDS DYNAMISCH (A) ANTEILE, PIA SELECT 

EUROPE STOCK (T), C-Quadrat ARTS Best Momentum T, 

CPB ZZ 2 FUND, SCHOELLERBANK USD KURZINVST A, 

SCHOELLERBANK USD RENTENFONDS (A), Schoellerbank 

USD Kurzinvest Anteile (A), PIA SELECT EUROPE 

STOCK (A) Miteigentumsanteile, BAWAG PSK GLOBAL 

BOND FOND, Gutmann Vorsorge Fonds, PIA MÜNDEL 

BOND (A) Miteigentumsanteile, CAPITAL INVEST GOLD 

STOCK-A, CAPITAL INVEST SWISS STCK-A, ESPA STOCK 

VIENNA-A, Espa Cash Euro Midterm (A), RT VORSORGE 

RENTENFONDS Miteigentumsanteile, RT VIF VERSICHE- 

RUNG INT. FONDS THESAURIEREND, RT VORSORGE- 

RENTENFONDS (T), PIA EURO BOND FONDS, RAIFFEISEN 

OESTERREICH AK A, SemperBond Euro (A), Schoellerbank 

Vorsorgefonds, Superior 3 Ethik Miteigentumsfonds gem. 

Para 20, SCHOELLERBANK ANLEIHEFONDS A, Schoellerbank 

Aktienfonds (Ausschütter), RAIFFEISEN-OSTEUROP- 


AKTIEN-A, Schoellerbank Kurzinvest (Ausschütter), 

Schoellerbank Euro Alternativ, PIA DOLLAR CASH FONDS, 

CPB ZZ1 FUND, TOP VARIO MIX-T, VPI World Select TM 

gem.Par.20 InvFG, SCHOELLERBANK - TOP BAL M-T, 

SCHOELLERBANK GLOBAL DYNAMIK (T), SPECIAL PLUS T, 

WSTV ESPA Garantie Miteigentumsfonds, C-QUADRAT 

BEST FONDS BASIC-T, Unternehmensanleihenfonds 2014 

gem §20 InvFG (A), Unternehmensanleihenfonds 2014 

gem §20 InvFG (T), WSTV ESPA GARANTIE II, SCHOEL- 

LERBANK ANLHFNDS-14-A, SCHOELLERBANK 

ANLHFNDS-14-T, SCHOELLERBANK GLOB RESORCS-A, 

SCHOELLERBANK GLOB RESORCS-T, Dexia Sustainable 

European Balanced Medium T, KBC EQUITY FD FOOD & 

BEV-C, KBC ECO FUND-WATER-C, Dexia Equities B European 

Property Securities, iShares eb.rexx Jumbo Pfandbriefe, 

iShares DJ Euro Stoxx SD 30, ISHARES DAX DE, 

ISHARES DJ EURO STOXX 50 DE, PSM GROWTH UI, Nord 

Concept Anteile, INVESCO UMWELT UND NACHHALTIG, 

COMINVEST FONDAK-P, Cominvest Fondis, DWS INVESTA, 

DWS INTER-RENTA, DWS ENERGY TYP O, DEKARENT 

INTERN. FONDS, INDUSTRIA-A, ALL-PMC-INTL RENTEN- 

FONDS-A, ALLIANZ VERMOEGENSBILD DEU-A, ALLIANZ 

PIMCO EUROPAZINS-A, DWS VERMOEGENSBILDUNGS- 

FOND I (A), ALLIANZ RCM BIOTECHNOLOGIE-A, BW Renta 

International Universal Fonds, OP Food Anteile (A), UNI- 

FONDS, UNIGLOBAL, UNIDEUTSCHLAND, UNIJAPAN, 

PIONEER EURO BOND MEDIUM, DWS Top 50 Asien T, 

DWS HEALTH CARE TYP O, DWS AKTIEN STRAT 

DEUTSCHLAND, DWS Biotech-Aktien Typ 0 (Deutschland), 

Acatis Aktien Global Fonds (T), StarCapital Universal Bondvalue 

UI, Nordasia Fund T, CS EUROREAL A, DEGI EUROPA, 

DWS &Top Dividende Anteile, C-Quadrat ARTS Total Return 

Global – AMI, Berenberg-Balkan-Baltikum-Universal Fonds 

(A), PSM VALUE STRATEGY UI, iShares S+P Listed private 

Equity, Lyxor Euro MTS 3-5Y, Carmignac Patrim.A 3D, 

CARMIGNAC INVESTISSEMENT, Lyxor ETF Euro MTS, Lyxor 

ETF DJ Buywrite – Parts de Capitalisation/Di, Lyxor ETF 

Euro 5-7Y, LYXOR ETF EUROMTS CBA, Lyxor ETF World 

Water, BARING EUROPE SELECT-INC, Baring German 

Growth Trust (T), Threadneedle European Select Fund, 

THREADNEEDLE EM MK B USD 3, LLOYDS TSB MF - NEW 

ZEALAND, M & G 1 Global Basic Accum.Shs.Class A, M G 

ASIAN FUND A ACC, BARING GLB EMG MKTS FD USD INC, 

Invesco Funds Series 1 Japanese Equity A, Invesco Funds 

Series 2 - Invesco Emerging Markets, METZLER EUROP SM 

COMPANIES-A, INVESCO PACIFIC EQUITY-A, INVESCO 

GLOBAL TECHNOLOGY-A, Invesco Funds Ser. 4 Invesco

Japanese Small/Mid Ca, INVESCO GLB HEALTH CARE-A, 

BARING EASTERN EUROPE FUND, BARING HONG KONG 

CHINA FD A, DIT-GL. MKT. BOND – UNITS, COMGEST 

GROWTH INDIA, MAGNA-TURKEY FUND-A, BlackRock 

Global Funds-European Opportunity Fund A, BlackRock 

Global Fund-Japan Small+Midcap Opportuni, Allianz dit 

Bondspezial FCP (A), UBS LUX BOND FUND-CHF-P ACC, 

BGF EUROPEAN FUND A2, BGF EMERGING EUROPE 

FUND A2,Invesco Funds - Invesco Pan European Equtiy A, 

Invesco Funds Pan European Small Cap Equity A, Templeton 

Emerging Markets FD-A YDIS, UBS LUX BOND FUND- 

US (T), VONTOBEL-EURO BOND-A, VONTOBEL FUND US 

DOLLAR BOND B-USD-CAP, UNIASIA-T, HSBC GIF- 

CHINESE EQUITY-AD, VONTOBEL FUND EMERGING 

MARKETS EQUITY B-USD CAP, CS EF(LUX)SMALL CAP 

USD FUND (T), BlackRock Global Funds-Emerging Markets 

Fund A2, Global Advantage Emerging Markets High Value 

(T), FIDELITY EUROPEAN GROWTH FUND (A), FIDELITY 

EURO BOND FUND, FIDELITY FUNDS INTERNATIONAL 

USD-FUND, FIDELITY JAPAN JPY FUND, FIDELITY JAPAN 

SMALL.COMP.JPY FUND, FIDELITY FDS SOUTH E ASIA A 

USD, Fidelity Funds SICAV - Pacific Fund, CREDIT SUISSE 

BF LUX Sfr-B, UBS (Lux) Strategy Fund FCP Balanced (T), 

BlackRock Global Funds-Euro Bond Fund A2, Fidelity 

Funds SICAV - Latin America Fund, JPMORGAN F EAST 

EURO E A, JPMORGAN-JF PACIFIC EQUITY A DIST - USD 

FUND, JPMORGAN AMERICA EQUITY A Dis-USD FUNDS, 

JP MORGAN US Small Growth Cap A Dist USD, JPMORGAN 

F EMERG MKTS EQ A USD, JP MORGAN FLEMING EURO- 

PE SMALL CAP FUND, JPMORGAN F LATIN AME E A USD, 

JPMORGAN F JAPAN EQTY JF A USD, Fidelity Switzerland 

Fund A, BlackRock Global Funds - World Gold Fund, FIDE- 

LITY GROWTH FPS EUR FUND, FIDELITY MODERATE FPS 

EUR FUND, UBS LUX MD TRM BND EUR-P-ACC, JPMorgan 

JF India Fund (A), CREDIT SUISSE BF LUX ST SF-B, 

Threadneedle US Equities, OEKOWORLD-OEKOVISION 

CLASSIC, DWS Osteuropa FCP Units Capitalisation (T), 

HSBC Global Indian Equity, Fidelity Funds World Fund, 

FIDELITY FDS SOUTH E ASIA A, HENDERSON HORIZ GLBL 

TECH A2, BlackRock Global Funds Latin American Fund (T), 

JPMorgan-Emerging Markets Debt A INC EUR, MORGAN 

STANLEY EMERGING MKTS USD FUND(T), MORGAN 

STANLEY EM.MKTS.DEBT USD FUND (T), MLIIF World 

Mining Shs A2 Capitalisation, NORDEA I SICUSD RSRV-BP- 

USD, FORTIS L FUND-EQ ENRGY WD-CC, FIDELITY GLO- 

BAL FPS USD FUND, JPMORGAN F US TECHNOLOGY A 

USD, PEH Strategie Flexibel, FI Alpha Renten Global, AXA 


WF-FRM SWITZERLND-ACSfr, PICTET FUNDS FCP- 

BIOTECH ANT. –P, BGF GBL HI YIELD BD HED A2, KBC 

RENTA NZD-RENTA-CAP, FIDELITY FNDS GL TECH FD A, 

Multi Invest OP, PICTET WATER I, Pictet Funds (LUX) Sicav 

Water, JPMorgan Europe Strategic Value A, Allianz PIMCO, 

FIDELITY FNDS GL CONS IND A, FIDELITY FNDS GLO FIN 

SVC A, Templeton Growth Fund EURO, FIDELITY FND II- 

AUD CURRENCY, PIONEER FUNDS CORE EU EQ A, VON- 

TOBEL-SWISS MONEY-B, BlackRock Global Funds World 

Energy Fund (T), BNPP L1-EQ EU ENRGY-CD, BGF NEW 

ENERGY FUND USD A2, PICTET GLOBAL EMERG DEBT P 

USD, PIONEER FUNDS US DOL S T A USD, ABERDEEN GL 

EMMKT EQTY A2, Ethna Aktiv E Units, FRANK TE IN FR GL 

SMC G-AACC, DWS Invest European Equities (T), DWS 

INVEST TOP 50 ASIA-LC, DWS Invest Top 50 Asia (T), ACTI- 

VEST TOTAL RETURN D, Dexia Quant Equities Europe, 

BLUEBAY HIGH YIELD BOND B, BlackRock Global Funds 

US Flexible Equity Fund A, DJE-ABSOLUT-P, DJE-RENTEN 

GLOBAL-P, DJE-INTERCASH-P, Dexia Bond Euro Inflation 

Linked C, PICTET-EMERGING DEBT-HP, BlackRock Global 

Funds New Energy Fund (T), BlackRock Global Funds- 

World Mining Fund-A2- EUR, FIDELITY FUND-CHINA FC-A 

USD, DWS Flex Pens 2014 Fonds (neu), DWS Flexpension 

2015, DWS Flex Pens 2016 Fonds (neu), DWS Flexpension 

2017, DWS Flexpension 2018, WALSER PORTFOLIO GER- 

MAN SCT, SCHRODER INT EME ASIA A USD ACC, JPMorgan 

Global Total Return Fund, DWS Flexpension Sicav 2019, 

Gartmore Continental European Shs A1, AMUNDI-LATIN 

AMERICA EQ-CC, PIONEER INVESTMENTS EUROPEAN 

BOND SPECIAL, PICTET WATER PDY, BlackRock Global 

Funds-Global Allocation Hedge A2, DWS Flexpension Sicav 

2020, Multi Invest Spezial OP, FRANKLIN TEMPLETON 

ASIA GROWTH FUND, FRANK TP INV BRIC-A YDISGBP, 

FRANKLIN TEMPLETON BRIC FUND, FRANKLIN TEMPLE- 

TON INDIA FUND, GOLDMAN SACHS EUROP COR E-BA, 

FIDELITY GLOBAL PROPERTY FUND, Fidelity Funds European 

Fund, INVESCO ASIA INFRASTRUCT A A, Market 

Access Jim Rogers Int Commodity Index, AXA WORLD EU- 

RO 5 7 CAP, DWS Flexpension 2021, Pictet Funds (Lux) 

Sicav Security, CS EF (LUX) GLB VALUE-R CHF, PIONEER 

FDS GLOBAL SEL A A, PIONEER FDS GLBL ECOLG A AC, 

DWS INVEST CHINESE EQUITY-LC, DWS Invest Global 

Agribusiness (T), DBX-TRACKERS DJ EU STX 50-1D, Pioneer 

Em. M., Julius Baer Multistock Black Sea Fund (A), 

ABERDEEN GL EMERG MKT SM I2 USD, DWS Flexpension 

2022, dbxt DBLCI, Pioneer Euro Aggregate Bond, 

BlackRock Global Funds World Gold Fund, DkLT Em Bd 


D

Units CF Distribution, ARERO-DER WELTFONDS, DWS 

Flexpension 2023, ComStage ETF Dow Jones Euro STOXX 

50 TR, DWS FlexPension II 2019 Shs 2009-31.12.2019 

Capita, DWS FLEXPENSION II 2021, DWS FlexPension II 

2024 -Shs 2009-31.12.2024 Capit, ETHNA - AKTIV E-T, 

DWS FLEXPENSION II 2025, CS FUNDS-LUX-MNY MKT 

Sfr-B, INVESCO II-JAP VALUE EQ-AYen, ABER GL II-EURO 

GOV BD-A2A, ROBECO INT. ASSET MANAGM. BV. 

Shares and other non-fixed-interest securities (with the 

exception of units of special funds that exclusively or predominantly 

hold bonds or other fixed-interest securities), 

and shares in affiliated companies are valued according to 

the strict lower-of-cost-or-market principle (strenges Niederstwertprinzip). 

Starting in 2008, bonds and other fixedinterest 

securities have been valued using the less strict 

lower-of-cost-or-market principle (gemildertes Niederstwertprinzip) 

provided for in § 81h(1) VAG. Valuation using 

the less strict lower-of-cost-or-market principle resulted 

in EUR 59,833,000 of write-downs not being performed. 

With respect to bonds and other fixed-interest securities, 

Greek government bonds with a nominal value of 

EUR 35,000,000 were written down by 25% as a precaution.The 

valuation options provided for in § 81h(2a) VAG 

were used to value units in special funds that exclusively or 

predominantly hold bonds or other fixed-interest securities. 

Use of this less strict measurement principle resulted in 

EUR 0 of write-downs not being performed for units of special 

funds. 

The company invests in fixed-interest securities, real estate, 

participations, shares, and structured investment products, 

taking into account the overall risk position of the company 

and the investment strategy provided for this purpose. The 

risk inherent in the categories specified and market risks 

were taken into account when determining exposure volumes 

and limits. 

The investment strategy is laid down in the form of investment 

guidelines that are continuously monitored for compliance 

by the corporate risk controlling and internal audit 

departments. The corporate risk controlling department 

reports regularly to the tactical and strategic investment 

committee. The internal audit department reports continuously 

to the Managing Board. 


As a rule, investments are largely low-risk. The strategic 

investment committee decides on possible high-risk investments 

based on the inherent risk of each individual 

investment after performing a full analysis of all related 

risks and liquidity at risk and considering all assets currently 

in the portfolio and the effects of the individual investments 

on the overall risk position. 

All known financial risks are assessed regularly and specific 

limits or reserves are used to limit exposure. Security price 

risk is reviewed periodically using value-at-risk and stress 

tests. Default risk is measured using both internal and external 

rating systems. 

An important goal of investment and liquidity planning is to 

guarantee that the return on investment remains continuously 

above the minimum rate of return for the life insurance 

class and that adequate amounts of liquid, valueprotected 

financial investments are maintained for all 

classes. Liquidity planning therefore takes into account the 

trend in insurance payments and the majority of investment 

income is generally reinvested. 

The company reported assets whose interest payments 

were not guaranteed and whose principal repayment might 

be defaulted in whole or in part in the balance sheet asset 

item “shares and other non-fixed interest securities” with a 

book value of EUR 32,345,000 and a fair value of 

EUR 33,996,000 as at 31 December 2010. 

An interest rate swap running until 12 January 2017 with a 

notional amount of EUR 120 million was entered into for 

the supplementary capital bond issued on 12 January 2005 

that became a variable supplementary capital bond after 

the first year (AT0000342704). 

Austrian banks have the option to tender previously subscribed 

bank bonds with a value of EUR 15,000,000 in 

2013. It is currently not expected that these options will be 

exercised. 

As a rule, mortgage receivables and other loans, including 

those to affiliated companies and companies in which 

an ownership interest is held, are valued at the nominal 

value of the outstanding receivables. Discounts deducted 

from loan principal are spread over the term of the loan and

shown under deferred income on the liabilities side of the 

balance sheet. 

Valuation allowances of adequate size are formed for 

doubtful receivables and deducted from their nominal 

values. Property, plant and equipment (not including land 

and buildings) are valued at cost less depreciation. Lowcost 

assets are written off in full in the year of acquisition. 

Unearned premiums for property/casualty insurance were 

essentially calculated by prorating over time after applying 

a cost deduction of EUR 16,859,000. Unearned premiums 

for life insurance are formed according to the amounts 

prescribed in the business plan. No cost deduction is applied. 

Unearned premiums for health insurance are calculated 

by prorating over time without applying a cost deduction. 

The mathematical reserve is calculated using the formulas 

and calculation bases contained in the business plans 

approved by or submitted to the supervisory authority. 

The provision for outstanding claims for direct business in 

the property/casualty and life insurance segments is calculated 

for losses reported by the balance sheet date by individually 

evaluating claims that have not yet been settled 

and adding lump-sum safety margins for large unascertainable 

losses. Lump-sum provisions based on past experience 

are formed for losses incurred but not reported. 

In health insurance, provisions for outstanding claims are 

calculated by applying lump-sum percentages to payments 

made for claims during the financial year. The percentage 

rates were unchanged compared to the previous year. 

In indirect business, provisions for outstanding claims are 

primarily based on reports from ceding companies as at the 

31 December 2010 balance sheet date. The reported 

amounts were supplemented by additional amounts if considered 

necessary in light of past experience. 

The equalisation provision is calculated in accordance with 

the Directive of the Austrian Federal Finance Minister, BGBl. 

(Federal Gazette) No. 545/1991 in the version in BGBl. II No. 

66/1997. Use was made of the release provision in § 13. 


The provision for profit-related premium refunds and 

policyholder profit participation contains the amounts 

earmarked for policyholder premium refunds based on the 

business plans and the articles of association and over 

which no disposition had been made as of the balance 

sheet date. 

The provisions for severance pay, pensions, and anniversary 

bonuses are based on the pension insurance calculation 

principles of the Actuarial Association of Austria (AVÖ), 

AVÖ 2008-P (Employees), using a discount rate of 4%. 

company pension plan obligations are measured using the 

actuarial entry age normal method (Teilwertverfahren). The 

retirement age used to calculate the provisions for anniversary 

bonuses and severance pay is the statutory minimum 

retirement age as stipulated in the Austrian General Social 

Security Act (ASVG) (2004 reform) for the provision for 

anniversary bonuses, subject to a maximum age of 62 years. 

The retirement age used to calculate the retirement age for 

the provision for pensions depends on each individual 

agreement. The following percentages were used for employee 

turnover based on age:

company is reported in the provisions for severance pay in 

the balance sheet. 

Amounts denominated in foreign currencies are converted 

into euros at the relevant mean rate of exchange. 

A portion of the underwriting items for assumed reinsurance 

business and the associated retrocessions for property/casualty 

and life insurance is deferred for one year 

before being shown in the annual financial statements. 

The following disclosures are provided for off-balance 

sheet liabilities: Letters of comfort and liability undertakings 

totalling EUR 38,904,000 have been issued in connection 

with a real estate purchase and borrowing. Liability 

undertakings totalling EUR 72,000 have been issued 

in connection with loan repayments. A total of 

EUR 29,149,000 relates to letters of comfort with affiliated 

companies. 

III. NOTES TO THE BALANCE SHEET 

The value of developed and unimproved properties was 

EUR 73,788,000 as of 31 December 2010.The book value 

of property for own use was EUR 53,444,000. 

Other loans not secured by insurance contracts were comprised 

of the following: loans to the Republic of Austria in 

the amount of EUR 31,813,000, loan receivables from 

other public bodies in the amount of EUR 30,885,000 and 

loan receivables from other borrowers in the amount of 

EUR 159,300,000. 


The fair values of investments are: 

Items under § 81c Abs.2 VAG 

Market value 

31/12/10 

Market value 

31/12/09 

In EUR ´000 

Land and buildings 373,548 0 

Shares in affiliated companies 1,743,071 300,035 

Bonds and other securities of and loans 

to affiliated companies 821,908 0 

Participations 350,939 0 

Bonds and other securities of and loans 

to other companies in which an 

ownership interest exists 37,306 475,000 

Shares and other non-fixed-interest 

securities 3,066,979 0 

Bonds and other fixed-interest securities 3,897,843 0 

Shares in joint investments 40,787 0 

Mortgage receivables 371,803 0 

Policy prepayments 18,026 0 

Other loans 221,998 0 

Bank balances 116,409 0 

Deposit receivables 18,306 0 

11,078,923 775,035 

Hidden reserves totalled EUR 792,320,000 in the reporting 

year. The fair value of the shares in affiliated companies 

and shares in companies in which an ownership interest is 

held is equal to the stock market value or other available 

market value (up-to-date internal valuation calculations). If 

no stock market or other available market value exists, the 

purchase price is used as the fair value, if necessary reduced 

by any write-downs or a proportionate share of the 

publicly reported equity capital, whichever is greater. For 

shares and other securities, stock market values or book

values (purchase price, reduced by write-downs if necessary) 

are used as the fair value. The remaining investments 

were valued at their nominal values, where necessary reduced 

by write-downs. 

The fair values of land and buildings were determined in 

accordance with the recommendations of the Austrian 

Association of Insurance Companies. All properties are 

individually valued during a 5-year period. 

The fair value of EUR 373,548,000 for land and buildings is 

comprised of market value appraisals for the years 2007 to 

2010 as follows: 2010: EUR 124,275,000, 2009: 

EUR 69,547,000, 2008: EUR 99,124,000, 2007: 

EUR 80,602,000. 

In health insurance, the mathematical reserve is calculated 

using actuarial principles in accordance with 

§ 18c VAG for all portfolio groups. 

For individual insurance, the mathematical reserve is calculated 

exclusively for each individual policy. This also applies 

to new business in the group insurance area affected by the 

1994 amendment to the Austrian Insurance Contract Act 

(Versicherungsvertragsgesetz — VersVG). A lump-sum 

mathematical reserve is formed for the remaining group 

policies. The mathematical reserve is primarily calculated 

using the prospective method. The calculation of the 

mathematical reserve takes into account the fact that the 

mathematical reserve for a policy is forfeited in favour of 

the community of the insured (Versichertengemeinschaft) 

in the event of early policy termination or death of the insured. 

The claims frequencies used for the actuarial calculation of 

the mathematical provision are primarily derived from 

analyses of the group’s own claims experience. Mortality 


rates were mainly taken from the Austrian 2000/2002 general 

mortality tables. Consistent with the premium calculation, 

the mathematical reserve is largely calculated using a 

discount rate of 3% p.a. 

In life insurance, the mathematical reserve is calculated 

using principles laid down in business plans and approved 

by the supervisory authority and using bases submitted to 

the supervisory authority. 

The mathematical reserve is calculated for each individual 

case, with the prospective method being used almost exclusively. 

The main probability tables are as following: 

For endowment insurance policies DM 24/26 

ÖVM 80/82 

ÖVM/ÖVF 90/92 

ÖVM/ÖVF 00/02 

For annuity insurance policies EROM/EROF 

AVÖ 1996 R 

AVÖ 2005 R 

For a large portion of the portfolio, the mathematical reserve 

is calculated using a discount rate of 3% p.a. Starting 

in 1995, a discount rate of 4% p.a. was used for certain 

policies, and between 1 July 2000 and 31 December 2003 

a discount rate of 3.25% p.a. was used. In the case of policies 

with an inception date on or after 1 January 2004 the 

discount rate is 2.75% p.a.; on or after 23 September 2005 

the discount rate is 2.25% for employer group policies. In 

the case of policies purchased after 1 January 2006 the 

discount rate is 2.25%. 

The amount shown under other liabilities includes 

EUR 22,953,000 in tax liabilities and EUR 3,167,000 in 

social security liabilities. 


D

The following balance sheet items are accounted for by affiliated companies and companies in which an ownership 

interest is held: 

Affiliated companies 

Companies in which an ownership 

interest exists 

In EUR ´000 2010 2009 2010 2009 

Mortgage receivables 37,761 0 5,064 0 

Deposit receivables 10,452 0 0 0 

Receivables from direct insurance business 12,356 0 1,358 0 

Receivables from reinsurance business 23,521 0 114 0 

Other receivables 105,269 81 195 0 

Liabilities from reinsurance business 122,532 0 0 0 

Liabilities from direct insurance business 436 0 50 0 

Liabilities from reinsurance business 12,132 0 10 0 

Other liabilities 905,918 475,192 0 0 

Liabilities arising from the use of off-balance sheet tangible assets were EUR 25,097,000 for the following financial year 

and EUR 148,922,000 for the following five years. 

The book values of intangible assets, land and buildings, investments in affiliated companies and ownership interests 

have changed as follows: 


Intangible 

assets 

Land and 

buildings 

Shares in 

affiliated 

companies 

Bonds and other 

securities of and 

loans to 

affiliated 

companies Participations 

Bonds and other 

securities of and 

loans to 

companies in 

which an 

ownership 

interest is held 

In EUR ´000 

As of 31 December 2009 0 0 300,035 475,000 0 0 

Appreciation 17,181 317,838 911,161 345,511 268,006 37,448 

Additions 3,819 27,480 314,579 13,763 9,575 1,674 

Disposals 47 63,207 2,804 4,237 1,513 1,816 

Appreciation 3,881 8,267 38,714 

Change due to value adjustments -8,597 

As of 31 December 2010 17,072 273,844 1,484,257 821,440 276,068 37,306

IV. NOTES TO THE INCOME STATEMENT 


The premiums written, earned premiums, expenses for insurance claims, operating expenses and reinsurance balance in 

property/casualty insurance in 2010 are broken down as follows: 

Gross 

Premiums 

written 

Net earned 

premiums 

Expenses for claims 

and insurance 

benefits 

Adminitrative 

expenses 

Reinsurance 

balance 

In EUR ´000 

Direct business 

Fire and fire business interruption insurance 204,463 207,415 126,411 40,414 -60,435 

Liability insurance 112,038 112,112 58,115 29,927 -5,210 

Household insurance 75,787 76,100 36,065 21,022 -2,518 

Motor liability insurance 191,531 192,951 138,929 36,043 -12,564 

Legal expenses insurance 26,531 26,629 13,562 6,841 -13 

Marine, aviation, and transport insurance 27,974 28,234 17,673 6,653 -3,006 

Other insurances 30,738 32,798 28,497 5,867 -702 

Other motor vehicle insurance 120,527 120,361 88,407 25,719 -2,969 

Other non-life insurance 154,644 155,067 104,113 40,358 -14,612 

Casuality insurance 92,858 92,535 59,105 21,614 -674 

1,037,091 1,044,202 670,877 234,458 -102,703 

Indirect business 

Marine, aviation, and transport insurance 101 101 71 -3 -49 

Other insurances 9,324 9,403 11,109 1,866 65 

9,425 9,504 11,180 1,863 16 

Total business direct and indirect 1,046,516 1,053,706 682,057 236,321 -102,687 

Premiums written for health insurance in 2010 are broken down as follows: 

2010 2009 

In EUR ´000 


Individual insurance 230,122 0 

Group insurance 97,566 0 


Group insurance 75 0 

327,763 0 


D

Premiums written for life insurance in 2010 are broken down as follows: 

In EUR ´000 


2010 2009 

Direct business 1,055,076 0 

Indirect business 3,440 0 

For life insurance, premiums in the direct business are made up as follows: 

1,058,516 0 

2010 2009 

In EUR ´000 

Individual insurance 984,289 0 

Group insurance 70,787 0 

1,055,076 0 

Single premium policies 408,703 0 

Policies with regular premium payments 646,373 0 

1,055,076 0 

policies with profit participation 449,253 0 

policies without profit participation 3,260 0 

Unit-linked life insurance policies 556,730 0 

Index-linked life insurance policies 45,833 0 

1,055,076 0 

For the branch office in Italy, direct premiums written are EUR 59,653,000 and the underwriting result is EUR 4,798,000. 

The exception rule of § 81o(6) VAG was used. 

The reinsurance balance for life insurance was negative in 2010, with a value of EUR 1,717,000. The result from indirect 

business was EUR 540,000. The reinsurance balance for health insurance was negative in 2010, with a value of 

EUR 9,109,000. The result from indirect business was EUR 64,000. A portion of the earned premiums of EUR 9,504,000 

from indirect property/casualty insurance business was deferred for one year before being shown in the income statement. 

Of the EUR 3,443,000 in earned premiums from indirect life insurance business, EUR 391,000 was deferred for one year 

before being shown in the income statement.


Of the income from ownership interests, income from other investments, and income from land and buildings shown in 

the income statement, affiliated companies account for the following amounts: 

In EUR ´000 

2010 2009 

Income from participations 

Property/casualty insurance 26,061 0 

Life insurance 4,388 0 

Total 30,449 0 

Income from other investments 

Property/casualty insurance 20,415 0 

Health insurance 2,112 0 

Life insurance 14,909 0 

Total 37,436 0 

Income from land and building 



Total 607 0 

All of the investment income in the life insurance and health insurance segments was transferred to the underwriting account, 

as investment income is a component of the underwriting calculations in both segments. In the property/casualty 

segment, only deposit interest income for indirect business was transferred to the underwriting account. 

The expenses for insurance claims, expenses for operating expenses, other underwriting expenses and investment 

expense items contain: 

2010 2009 

In EUR ´000 

Wages and salaries 112,932 0 

Expenses for severance benefits and payments to company pension plans 7,980 0 

Expenses for retirement provisions 

Expenses for statutory social contributions and income-related contribution and 

13,428 0 

mandatory contributions 46,788 0 

Other social security expenses 1,807 0 

Commission expenses of EUR 174,553,000 were incurred for indirect business in 2010. 

Losses on disposals of investments were EUR 1,882,000 in financial year 2010. 


D

The valuation reserve shown on the balance sheet as at 31 December 2010 and releases over the fiscal year are broken 

down by asset item as follows: 


As of 

31/12/09 Rebooking Release 

As of 

31/12/10 

In EUR ´000 

Land and buildings 0 81,502 29,897 51,605 

Shares in affiliated companies 0 226 0 226 

Participations 0 26,456 0 26,456 

Shares and other non-fixed-interest securities 0 829 829 0 

0 109,013 30,726 78,287 

The formation and release of untaxed reserves resulted in an increase in income tax expenses of EUR 7,682,000 during the 

financial year.

V. PROFIT PARTICIPATION 

HEALTH INSURANCE 

All policies with an adjustment clause whose premiums 

were not increased by the required actuarial amount when 

2010 premium adjustments were performed receive a 

special profit share on 31 December 2010. 

The size of the profit share equals the single-premium 

amount that is necessary to provide relief to older persons 

covered by health insurance. 

According to § 7 of the Regulation of the Financial Market 

Authority (FMA) on profit participation in the health insurance 

sector (Verordnung der FMA über die Gewinnbeteiligung 

in der Krankenversicherung — GBVKVU) of 

12 June 2007, the Regulation is applicable to policies 

whose actuarial bases were submitted after 30 June 2007 

and whose terms provide for profit participation. The expenses 

for profit-related premium refunds plus any direct 

credits must be at least 85% of the assessment basis for 

the health insurance policies concerned. 

The assessment basis within the meaning of § 3(1) 

GBVKVU is calculated as follows for health insurance policies 

entitled to participate in profits: 

in EUR ´000 

Earned premiums 5,085 

Expenses for insurance claims 

including changes to underwriting reserves -4,340 

Operating expenses -1,962 

Other underwriting and 

non-underwriting income/expenses -1 

Investment and interest income 

and expenses 121 

Assessment base as at 31/12/2010 -1,097 

As a general rule, the listed income and expense items 

were calculated directly. Where this was not possible, an 

allocation was performed as far as possible on the basis of 

origin in accordance with the provisions of § 3(2) GBVKVU. 

As provided for in § 3(3) GBVKVU, the entitlement to apply 

a prior deduction to the calculation of the assessment basis 

was used. 


Since the assessment basis is negative, the percentage rate 

specified in § 6(1) GBVKVU was not calculated. 

LIFE INSURANCE 

Under the FMA regulation on profit participation in the life 

insurance sector (GBVVU) of 20 October 2006, the expenses 

for profit-related premium refunds and policyholder 

profit participation plus any direct credits must be at least 

85% of the assessment base. 

The assessment basis within the meaning of § 3(1) GBVVU 

is calculated as follows for life insurance policies entitled to 

participate in profits: 

in EUR ´000 

Earned premiums 441,410 

Expenses for insurance claims 

including changes to underwriting reserves -560,072 

Operating expenses -68,166 

Other underwriting and 

non-underwriting income/expenses -4,119 

Investment and interest income 

and expenses 214,530 

Assessment base as at 31/12/2009 23,583 

As a general rule, the listed income and expense items 

were calculated directly. Where this was not possible, an 

allocation was performed as far as possible on the basis of 

origin in accordance with the provisions of § 3(2) GBVVU. 

The expenses for profit participation, including direct credits, 

were EUR 21,279,000 in 2010, that is, 90.2% of the 

assessment basis. 

The Managing Board of Wiener Städtische Versicherung AG 

has adopted a resolution providing the following earnings 

appropriation as at 31 December 2010 for the insurance 

policies in the following various profit classes depending on 

the guaranteed actuarial interest rate: 


D

Profit Class A 

1. In accordance with policy terms and conditions, all insurance 

policies in Profit Class A that belong to Settlement 

Class 92 will receive the following profit shares: 

a) an interest bonus equal to 0.25% of the mathematical 

reserve specified in the business plan at the commencement 

of the current insurance year. 

b) a total bonus equal to 2.5‰ of the sum insured on 

death for policies that have a proper adjustment letter 

and no regular premium payments outstanding, and 

1‰ for all other policies. 

c) a final bonus on maturity of the endowment sum in 

2011 equal to an interest bonus as per point a) on the 

total matured capital. 


policies in Profit Class A that belong to Settlement 

Class 96 (single-premium insurance policies) will receive 

the following profit shares: 




b) a final bonus on maturity of the endowment sum in 




policies in Profit Class A – excluding policies in 

Settlement Classes 92 and 96 – will receive the following 

profit shares: 




b) a total bonus equal to 3.5‰ of the sum insured on 

death for policies that have a proper adjustment letter 

and no regular premium payments outstanding, and 

2‰ for all other policies. 





Profit Class B 

In accordance with policy terms and conditions, all insurance 

policies in Profit Class B will receive profit shares 

equal to 15% of the annual net premium. 

Ordinary life insurance policies with an insured sum of at 

least EUR 726.73 and a policy term of at least 12 years that 

are included in Profit Class B will also receive a final bonus 

equal to 20% of the sum insured on maturity of the sum 

insured in 2011 in the event of survival. The special bonuses 

approved in the years 1983 and 1984 will be offset 

against this final bonus. 

Profit Class D 

In accordance with policy terms and conditions, all insurance 

policies in Profit Class D will receive the following 


a) an interest bonus equal to 0% of the mathematical 

reserve specified in the business plan on commencement 


b) a total bonus equal to 2‰ of the sum insured on death 

for policies, that have a proper adjustment letter and 

no regular premium payments outstanding, and 1‰ 

for all other policies. 


2011 equal to a single interest bonus as per point a) on 

the total matured capital for single-premium policies, 

and equal to a single interest bonus as per point a) on 

the total matured capital for policies with regular premiums 

and a premium payment period of less than 

20 years, or equal to double the interest bonus amount 

for policies with a premium payment period of 20 years 

or more. 

Profit Classes F, H, I, J, L, X, Y and S 


policies in Profit Classes F, H, I, J, L, X, Y and S that 

belong to Settlement Class 2004, will receive the following 

profit shares:

a) an interest bonus equal to 0.5% of the contractual 

mathematical reserve on commencement of the current 

insurance year. 

b) a total or additional bonus equal to 1‰ of the sum 

insured upon death, or of the annuity present value or 

of the survival sum for policies with no regular premium 

payments outstanding. 



contractual mathematical reserve, regardless of 

whether the payout is made in the form of an annuity or 

a lump-sum payment. 



belong to Settlement Class 2006, will receive the following 


a) an interest bonus equal to 1% of the contractual 

mathematical reserve at the commencement of the 

current insurance year. 







the contractual mathematical reserve for singlepremium 

policies, and equal to a single interest bonus 

as per point a) on the contractual mathematical reserve 

for policies with regular premiums and a premium 

payment period of less than 15 years, or equal to 

double the interest bonus amount as per point a) on 

the contractual mathematical reserve for policies with 

a premium payment period of 15 years or more. In the 

case of annuity contracts, the corresponding final bonus 

will be allocated only if the payout is made in the 

form of an annuity. 

d) Special bonus as additional final bonus upon maturity 

of the endowment sum for policies with regular premium 

payments equal to the interest bonus applicable 

at the time. In the case of annuity contracts, the cor- 


responding final bonus will be allocated only if the payout 

is made in the form of an annuity. 



belong to Settlement Class 2007 will receive the following 





b) a total or additional bonus for policies with no regular 

premium payments outstanding, equal to 1‰ of the 

sum insured upon death, or the annuity present value, 

or the survival sum, plus an administrative cost bonus 

equal to 0.15% of the sum insured upon death, or the 

annuity present value or the survival sum for each year 

of the policy term and/or period of deferment, distributed 

over the last five years of the policy term and/or 

period of deferment. 

c) a final bonus upon maturity of the endowment sum in 

the year 2011 equal to a single interest bonus as per 

point a) on the contractual mathematical reserve for 

single-premium policies, or equal to double the interest 

bonus amount as per point a) on the contractual 

mathematical reserve for policies with regular premium 

payments. For annuity contracts the corresponding 

final bonus will be allocated only if the payout is 

made in the form of an annuity. 


policies in Profit Class F that belong to Settlement 





b) a total or additional bonus for policies with no regular 

premium payments outstanding, equal to 1‰ of the 

sum insured upon death, or the annuity present value, 

or the survival sum, plus an administrative cost bonus 

equal to 0.15% of the sum insured upon death, or the 

annuity present value or the survival sum for each year 

of the policy term and/or period of deferment, distrib- 


D

uted over the last five years of the policy term and/or 

period of deferment. 

c) a final bonus upon maturity of the endowment sum in 


the contractual mathematical reserve. In addition to 

this final bonus, a "goal bonus" of EUR 73.00 for each 

EUR 50.00 of monthly premiums will be credited to policies 

with Annex TBL, provided the requested premium 

is paid as agreed until expiry of the policy. 


policies in Profit Classes F, H, I, J, L, X, Y and S – 

excluding policies in Settlement Classes 2004, 2006, 2007 

and 2008 – will receive the following profit shares: 










contractual mathematical reserve, regardless of 

whether the payout is made in the form of an annuity or 

a lump-sum payment. 

Profit Class WVN 

1. In accordance with policy terms and conditions, all whole 

life endowment insurance policies in Profit Class WVN that 






b) an additional bonus equal to 25% of the risk premium 

included in the total premium for the current insurance 

year for policies with no regular premium payments 

outstanding. 



life endowment insurance policies in Profit Class WVN that 



a) an interest bonus equal to 1% of the mathematical 






outstanding. 


life endowment insurance policies in Profit Class WVN – 

excluding policies in Settlement Classes 2004 and 2006 – 

will receive the following profit shares: 







outstanding. 

Profit Class FLV 


policies in Profit Class FLV that belong to Settlement 


0.3% p.a. of the assets of the fund in question will be distributed 

as profit for policies with no premium payments 

outstanding. 


policies in Profit Class FLV that belong to Settlement 


0.3% p.a. of the assets of the fund in question will be distributed 

as profit for policies with no premium payments 

outstanding. 


policies in Profit Class FLV – excluding policies in

Settlement Classes 2008 and 2010 – will receive the following 


a) Policies with regular premium payments: a bonus equal 

to 3% of the premium that is set for the insurance 

year commencing in 2011. 

b) Single-premium policies: a bonus amounting to 3‰ of 

the single premium of the master insurance policy at 

the commencement of the insurance year falling in the 

year 2011. 

4. For premium shares and capital shares invested in the 

cover fund (Deckungsstock) of the traditional life insurance 

policy, the approved total interest is distributed equally over 

all of the days of the calendar year and partial amounts 

credited continuously to their portion of the cover fund. 

Total interest of 3.25% p.a. will be credited to the corresponding 

mathematical reserve in 2011. 

Profit Class ZV – Retirement provision 

For premium shares and capital shares invested in the 

cover fund (Deckungsstock) of the traditional life insurance 

policy, the approved total interest is distributed equally over 

all of the days of the calendar year and partial amounts 


Total interest of 3.25% p.a. will be credited to the corresponding 

mathematical reserve in 2011. 

Profit Class BU with profit participation 

In accordance with policy terms and conditions, all occupational 

disability policies in Profit Class BU with profit participation 

will receive profit shares equal to 35% of the 

insurance premium, accumulated with interest at 3.25% 

and paid out on expiry of the policy term. 

Profit Class BU with premium bonus 

In accordance with policy terms and conditions, all occupational 

disability insurance policies and supplementary occupational 

disability insurance policies with regular premium 

payments in Profit Class BU with premium bonus will 

receive a premium bonus equal to 35% of the policy premium 

or supplementary policy premium that is set for the 

insurance year commencing in 2011. 

Profit Class K / DD supplementary insurance 


1. In accordance with policy terms and conditions, all term 

insurance policies with regular premium payments in Profit 

Class K that belong to Settlement Class 99 will receive a 

premium bonus equal to 65% of the premium that is set for 

the insurance year commencing in 2011. 


insurance policies with regular premium payments in Profit 

Class K that belong to Settlement Class 05 receive the 

following premium bonus: 

a) 65% of the premium that is set for the insurance year 

commencing in 2011 for tariffs 3GP, 3FP, H3P, H3G, 

K3P and K3G 

b) 20% of the premium that is set for the insurance year 

commencing in 2011, for all remaining tariffs. 


insurance policies with regular premium payments and 

supplementary term insurance policies in Profit Class K – 

excluding policies in Settlement Classes 99 and 05 – receive 

a premium bonus equal to 25% of the premium that is 

set for the insurance year commencing in 2011. 

4. In accordance with policy terms and conditions, all dread 

disease supplementary insurance policies with regular 

premium payments for lump-sum payment and premium 

waiver in the event of serious illnesses or need for extensive 

nursing care will receive a premium bonus equal to 10% of 

the supplementary policy premium that is set for the insurance 

year commencing in 2011. 

Profit Class R 


policies in Profit Class R (including policies in Settlement 

Classes 87 and 99) – excluding policies with annuity 

payments that have already started – will receive the 

following profit shares: 




b) an additional bonus equal to 1‰ of the annuity present 

value or of the survival sum for policies with no regular 

premium payments outstanding. 


D




2. In the case of insurance policies in Settlement Class 

2000 whose annuity payments have already started and 

are in their second year of payments or later, the annuity 

payments that have already started will receive an increase 

starting as of 1 January 2010 equal to 0% of the last annuity 

payment. The bonus interest rate is 3.25% for bonus 

annuity agreements. 





starting as of 1 January 2010 equal to 0.5% of the last annuity 







starting as of 1 January 2010 equal to 1% of the last annuity 



5. For insurance policies that are not in Settlement Classes 

2000, 2004 and 2006 whose annuity payments have already 

started and are in their second year of payments or 

later, the annuity payments that have already started will 

receive an increase starting as of 1 January 2010 equal to 

0.25% of the last annuity payment. The bonus interest rate 

is 3.25% for bonus annuity agreements. 

Profit Class Z 

1. In accordance with policy terms and conditions, all supplementary 

pension insurance policies in Profit Class Z – 

excluding policies whose annuity payments have already 

started – will receive the following profit shares: 

a) a bonus amounting to 0.25% of the mathematical 




b) an additional bonus equal to 1‰ of the annuity present 

value for policies with no regular premium payments 

outstanding. 



the total mathematical reserve. 

2. In the case of insurance policies in Profit Class Z whose 

annuity payments have already started and are in their 

second year of payments or later, the annuity payments 

that have already started will receive an increase starting as 

of 1 January 2010 equal to 0.25% of the last annuity payment. 

Profit Class FPZ 


policies in Profit Class FPZ in the “Single” policy 

form will receive profit shares equal to 25% of the risk premium 

at the commencement of the current insurance year 

– as long as the first annuity payment has not yet become 

payable. These will be transferred to an investment fund for 

the acquisition of fund units. 

2. Insurance policies in Profit Class FPZ are subject to the 

provisions of Profit Class Z starting as of the time of liquidation. 

Profit Class BKV 


policies in Profit Class BKV that belong to Settlement 


The profit share approved for the entire calendar year and 

the guaranteed minimum interest are distributed equally 

over all of the days of the calendar year and partial amounts 


Total interest of 4% p.a., equal to the sum of the profit share 

and guaranteed minimum interest, will be credited to the 

corresponding mathematical reserve in 2011.


policies in Profit Class BKV - classic that belong to 

Settlement Class 2006 will receive the following profit 

shares: 

An interest bonus equal to 1.75% of the mathematical 



3. In the case of insurance policies whose annuity payments 

have already started and are in their second year of 


payments or later, the annuity payments that have already 

started will receive an increase starting as of 1 January 

2010 equal to 1.75% of the last annuity payment. There is 

no increase for bonus annuity agreements. The bonus annuity 

interest rate is 4%. 

The following applies to all profit classes: 

The Managing Board will decide towards the end of 2011 

on the size of the profit allocation on 31 December 2011. 


D

VI. SIGNIFICANT PARTICIPATIONS 

Participations were held in the following companies as of 31 December 2010: 


Name, Location 

Direct share 

in % 

Net income for 

the year 

in EUR ´000 

Equity 

capital 

in EUR ´000 

Last Annual 

Financial 

Statements 

I. Direct interests in affiliated companies 

„Grüner Baum“ Errichtungs- und Verwaltungsges.m.b.H., Vienna 33.40 -5 -77 2010 

Andel Investment Praha s.r.o., Prague 100.00 854 27,888 2010 

ARITHMETICA Versicherungs- und Finanzmathematische 

Beratungs-Gesellschaft m.b.H., Vienna 75.00 23 385 2010 

BML Versicherungsmakler GmbH, Vienna 100.00 23,999 775,189 2010 

CENTER Hotelbetriebs GmbH, Vienna 55.00 -270 -945 2010 

DBR-Liegenschaften GmbH & Co KG, Stuttgart 100.00 -7,077 11,140 2010 

DBR-Liegenschaften Verwaltungs GmbH, Stuttgart 100.00 0 23 2010 

DIRECT-LINE Direktvertriebs-GmbH, Vienna 100.00 13 59 2009 

EXPERTA Schadenregulierungs-Gesellschaft m.b.H., Vienna 25.00 273 781 2009 

HORIZONT Personal-, Team- und 

Organisationsentwicklung GmbH, Vienna 76.00 50 197 2009 

KÁLVIN TOWER Immobilienentwicklungs- und 

Investitionsgesellschaft m.b.H., Budapest 100.00 103 1,914 2010 

PFG Holding GmbH, Vienna 60.05 -7,735 134,801 2010 

PFG Liegenschaftsbewirtschaftungs GmbH, Vienna 49.47 0 45 2009 

Projektbau Holding GmbH, Vienna 60.00 -20,000 21,348 2010 

Senioren Residenz gemeinnützige Betriebsgesellschaft mbH, Vienna 100.00 17 913 2009 

Senioren Residenz Veldidenapark Errichtungs- und Verwaltungs GmbH, Innsbruck 66.70 -368 9,798 2010 

Sparkassen Versicherung AG Vienna Insurance Group, Vienna 16.82 68,259 501,414 2010 

VICE-Beteiligungs AG, Vienna 100.00 -8 62 2009 

Wiener Verein Bestattungs- und Versicherungsservice Gesellschaft m.b.H., 

Vienna 100.00 39 1,470 2010 

WPWS Vermögensverwaltung GmbH, Vienna 100.00 4,620 381,777 2010 

II. More than 20%, ownership, where a direct ownership interest exists 

Österreichisches Verkehrsbüro Aktiengesellschaft, Vienna 35.46 17,113 143,245 2009 

The exception provision under § 241 (2) and (3) UGB was applied.

VII. OTHER DISCLOSURES 

The company has share capital of EUR 10,000,000.00. It is 

divided into 100,000 no-par value ordinary bearer shares 

with voting rights, with each share representing an equal 

portion of the share capital. 

The company has subordinated liabilities in the form of 

supplementary capital bond 2009 in accordance with 

§ 73c(2) VAG with a total nominal value of 

EUR 100,000,000.00. This bond does not have a fixed term. 

The interest rate during the first interest rate period (until 

29 June 2010) was 4.762% p.a., after which the bond pays 

variable interest. 

On 22 December 2010, the company issued supplementary 

capital bond 2010 in accordance with § 73c(2) VAG 

with a total nominal value of EUR 175,000,000.00. This 

bond does not have a fixed term. The bond has a fixed interest 

rate of 8% p.a. and can be called in starting as of 

28 December 2029. 

The auditor has verified legality as required under § 73b(2) 

no. 4 VAG. 

The company also issued bond 2010-2020 with a nominal 

value of EUR 150,000,000.00 in September 2010. The 

bond has a term of 10 years and has a fixed interest rate of 

3.63% p.a. 

IN THE BUSINESS YEAR 2010 THE SUPERVISORY BOARD 

WAS MADE UP OF THE FOLLOWING PERSONS: 

Chairman: 

Günter Geyer 

Deputy Chairman: 

Hans-Peter Hagen (beginning 24 June 2010) 

Martin Simhandl (until 24 June 2010) 

Members: 

Rudolf Ertl (beginning 24 June 2010) 

Hans-Peter Hagen (until 24 June 2010) 

Christian Haidinger (beginning 24 June 2010) 

Werner Muhm (beginning 24 June 2010) 


Gabriele Payr (beginning 24 June 2010) 

Martin Simhandl (beginning 24 June 2010) 

Karl Skyba (until 24 June 2010) 

Klaus Stadler (until 24 June 2010) 

Sonja Zwazl (beginning 24 June 2010) 

Employee representatives (beginning 3 August 2010): 

Peter Grimm 

Franz Urban 

Gerd Wiehart 

Peter Winkler 

IN THE BUSINESS YEAR 2010 THE MANAGING BOARD 

WAS MADE UP OF THE FOLLOWING PERSONS: 

Chairman: 


Members: 

Natalia Cadek, formerlyFichtinger (until 24 June 2010) 

Christine Dornaus (beginning 24 June 2010) 

Judit Havasi 

Peter Höfinger (beginning 24 June 2010) 

Helene Kanta (until 24 June 2010) 

Erich Leiss (beginning 24 June 2010) 

DURING THE BUSINESS YEAR 2009, THE FOLLOWING 

PERSONS WERE APPOINTED TO BE TRUSTEES PURSUANT 

TO § 22 (1) VAG: 

Trustees: 

(Life insurance department – § 20 (2;1) VAG): 

Oskar Ulreich 

Deputy: 

Nicole Plankenbüchler 

Trustees: 

(except life insurance department § 20 (2;1) VAG): 

Wolfgang Pechriggl 

Deputy: 

Michael Hysek 


D

The average number of employees (including cleaning 

staff) was 3,528. There average number of salaried 

employees was 3,442, of which 1,992 were in sales, resulting 

in personnel expenses of EUR 89,815,000, and 1,536 

in operations, resulting in personnel expenses of 

EUR 93,119,000. 

There were no loans outstanding to Managing Board members 

as of 31 December 2010. 

Supervisory Board members received no loans in 2010. 

No guarantees were outstanding for members of the Managing 

Board or Supervisory Board as of 31 December 2010. 

In 2010, the total expenses for severance pay and pensions 

of EUR 21,408,000 included severance pay and pension 

expenses of EUR 29,000 for members of the Managing 

Board and senior management in accordance with § 80(1) 

of the Stock Corporation Act (Aktiengesetz — AktG). 

The members of the Managing Board received compensation 

of EUR 2,195,000 (for members of the Managing 

Board after the demerger although relating to the entire 

year 2010) for their services in 2010 (2009: 

EUR 1,117,000 for the same members; EUR 3,769,000 

including Managing Board members of the current VIENNA 


before the demerger). Of this amount, EUR 436,000 

(EUR 0) was compensation from affiliated companies. 

In view of the difficult economic situation of many customers, 

the Managing Board, in spite of the good result 

achieved for 2009 and after having foregone variable compensation 

for 2008, also waived its claim to bonus payments 

for 2009. This meant that no bonuses were paid to 

the Managing Board in 2010. 


The Managing Board consisted of five members in 2010 

after the effective date of the demerger. The compensation 

of these members since the beginning of the year is presented. 

The total compensation paid to former members of the 

Managing Board (including surviving dependants) was 

EUR 1,655,000 in 2010. EUR 75,000 of this amount was 

paid by affiliated companies. 

Supervisory Board members received EUR 99,000 for 

their services to the company in 2010. 

A summary of auditing fees is provided in the notes to the 

consolidated financial statements. 

From 1 January 2005 to 31 December 2008, the company 

was the parent company of a group of companies within the 

meaning of § 9 of the Corporate Income Act (Körperschaftsteuergesetz 

— KStG). Since 1 January 2009, within the 

meaning of § 9 KStG, the company has been a group member 

of Wiener Städtische Wechselseitiger Versicherungsverein 

– Vermögensverwaltung – Vienna Insurance Group. 

The taxable earnings of the group members are attributed 

to the parent company. The parent company has entered 

into agreements with each group member governing the 

allocation of positive and negative tax amounts for the purpose 

of allocating corporate income tax charges according 

to their origin. A liability of EUR 11,792,000 is owed to the 

parent company for tax allocations. Use was made of the 

election to capitalise deferred profit taxes due to temporary 

differences between earnings under corporate law and 

taxable earnings. The tax rate chosen for deferred taxes is 

25%.

The company is a wholly-owned subsidiary of VIENNA IN- 

SURANCE GROUP AG Wiener Versicherung Gruppe, Vienna. 

It therefore is part of a group including its shareholders and 

affiliated companies. 

Wiener Städtische Wechselseitiger Versicherungsverein – 

Vermögensverwaltung – Vienna Insurance Group, Vienna, 

prepares consolidated financial statements that include 

most of the companies. These consolidated financial 

statements have been disclosed and are available for in- 


The Managing Board: 





spection at the business premises of this company at 

Schottenring 30, 1010 Vienna. 

VIENNA INSURANCE GROUP AG Wiener Versicherung 

Gruppe, Vienna, prepares consolidated financial statements 

for a small number of companies. These consolidated 

financial statements have been disclosed and are 

available for inspection at the business premises of this 

company at Schottenring 30, 1010 Vienna. 

Erich Leiss 


D

AUDITOR’S REPORT 

REPORT FOR THE ANNUAL FINANCIAL STATEMENTS 

We have audited the accompanying annual financial statements, 

including the accounting system, of WIENER 

STÄDTISCHE Versicherung AG Vienna Insurance Group 

(formerly VERSA-Beteiligungs AG), Vienna, for the financial 

year from 1 January to 31 December 2010. These annual 

financial statements comprise the balance sheet as at 

31 December 2010, the income statement for the financial 

year ended 31 December 2010, and the notes. 

Management’s responsibility for the annual financial statements 

and for the accounting system 

The company’s management is responsible for the accounting 

system and for the preparation of the annual financial 

statements, and for providing a true and fair presentation 

of the company's net assets, financial position and 

results of operations in accordance with Austrian Generally 

Accepted Accounting Principles. This responsibility includes: 

the structure, implementation and maintenance of 

an internal control system insofar as is relevant to the 

preparation of the annual financial statements and for providing 

a true and fair presentation of the company's net 

assets, financial position and results of operations, so that 

the annual financial statements are free of material misstatements, 

whether due to intentional or unintentional 

error, the selection and application of appropriate accounting 

policies, and the preparation of accounting estimates 

that appear appropriate under the given circumstances. 


Auditor’s responsibility and description of type and scope 

of the statutory audit 

Our responsibility is to express an opinion on these annual 

financial statements based on our audit. We conducted our 

audit in accordance with the statutory requirements applicable 

in Austria and Austrian generally accepted standards 

for financial statement auditing. Those standards require 

that we comply with professional guidelines and that we 

plan and perform the audit to obtain reasonable assurance 

that the annual financial statements are free from material 

misstatement. 

An audit involves performing procedures to obtain audit 

evidence about the amounts and disclosures in the annual 

financial statements. The procedures selected depend on 

the auditor’s judgement, including the assessment of the 

risks of material misstatement in the annual financial 

statements, whether due to intentional or unintentional 

error. In making those risk assessments, the auditor takes 

into account the internal control system, insofar as is relevant 

to the preparation of the annual financial statements 

and a true and fair presentation of the company's net assets, 

financial position and results of operations, in order to design 

audit procedures that are appropriate given the circumstances, 

but not for the purpose of expressing an opinion 

on the effectiveness of the company’s internal controls. 

An audit also includes assessing the appropriateness of the 

accounting policies used and significant estimates made by 

management as well as evaluating the overall presentation 

of the annual financial statements.

We believe that the audit evidence we have obtained is 

sufficient and appropriate to provide a reasonable basis for 

our audit opinion. 

Opinion 

Our audit did not give rise to any objections. In our opinion, 

which is based on the results of our audit, the annual financial 

statements comply with the statutory requirements and 

give a true and fair view of the net assets and financial position 

of the company as of 31 December 2010 and its results 

of operations for the financial year from 1 January to 31 

December 2010 in accordance with Austrian generally 

accepted accounting principles. 



PwC INTER-TREUHAND GmbH 

Wirtschaftsprüfungs- und 

Steuerberatungsgesellschaft 

Günter Wiltschek 

Austrian Certified Public Accountant 

COMMENTS ON THE MANAGEMENT REPORT 

The management report is to be audited based on the 

statutory requirements to determine whether it is consistent 

with the annual financial statements and whether the other 

disclosures in the management report create a misleading 

view of the company’s position. The auditor’s report also 

has to contain a statement as to whether the management 

report is consistent with the annual financial statements. 

In our opinion, the management report is consistent with 

the annual financial statements. 

Disclosure, publication and reproduction of the annual financial statements together with the auditor’s report within the 

meaning of § 281(2) UGB in a form that is not in accordance with statutory requirements and differing from the version 

audited by us is not permitted. Reference to our audit may not be made without prior written permission from us. 


D

REPORT BY THE SUPERVISORY BOARD 

The Supervisory Board reports that it has taken the opportunity 

to comprehensively review the management of the 

company, both acting as a whole and also regularly through 

its committees, Chairman and Deputy Chairman. Detailed 

presentations and discussions during meetings of the Supervisory 

Board and its committees were used for this purpose, 

as were repeated meetings with the members of the 

Managing Board, who used appropriate documentation to 

provide detailed explanations and records relating to the 

management and financial position of the company. The 

strategy, business development, risk management, internal 

control system and activities of the internal audit department 

of the company were also discussed in these meetings. 

The Supervisory Board formed four committees from its 

members. Information on the responsibilities and composition 

of these committees is available on the company’s 

website and in the corporate governance report. 

One ordinary General Meeting and five Supervisory Board 

meetings were held in 2010. Four meetings of the Audit 

Committee were also held. The Committee for Urgent Matters 

held no meetings in 2010 but was contacted in writing 

with regard to six matters. The Supervisory Board was informed 

of any resolutions passed by the committees at the 

next Supervisory Board meeting. The auditor, PwC INTER- 

TREUHAND GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft 

(PwC), attended four Audit Committee 

meetings and four Supervisory Board meetings, including 

the meeting dealing with the auditing of the annual 

financial statements and the formal approval of the annual 

financial statements, as well as the General Meeting. In 

addition, one meeting of the Committee for Managing Board 

matters was also held in 2010. 

No agenda items were discussed in the Supervisory Board 

and committee meetings without the participation of members 

of the Managing Board. No member of the Supervisory 

Board attended fewer than half of the Supervisory Board 

meetings. 


By the inspection of appropriate documents, meetings with 

the Managing Board and discussions with the auditor, the 

Supervisory Board Audit Committee was able to form a 

satisfactory view of the accounting process and found no 

reasons for objection. 

The Audit Committee also reviewed the effectiveness of the 

internal control system, the internal auditing system and the 

risk management system by requesting descriptions of the 

processes and organisation of these systems from the Managing 

Board, the auditor and the individuals directly responsible 

for these areas. The Audit Committee reported on 

these monitoring activities to the Supervisory Board and 

stated that no deficiencies had been identified. 

In order to prepare the Supervisory Board’s proposal for 

selection of the auditor for the annual financial statements, 

the Audit Committee requested that PwC INTER- 


submit documents relating to its 

license to audit. A written report was prepared stating that 

there were no grounds for exclusion or circumstances that 

could provide cause for concern regarding partiality. In 

addition, a list grouped by category of services showing the 

total revenues received by PwC from the company in the 

previous financial year was requested and reviewed, and it 

was verified that PwC was included in a statutory quality 

assurance system. The Audit Committee reported to the 

Supervisory Board on the knowledge gained from these 

investigations and proposed to the Supervisory Board and 

subsequently to the General Meeting that PwC INTER- 


be selected as auditor for the annual 

financial statements. 

The 2010 annual financial statements and management 

report were received from the Managing Board, and reviewed 

and carefully examined by the Supervisory Board 

Audit Committee. The Managing Board’s proposal for appropriation 

of profits was also debated and discussed in the 

course of this examination. As a result of this examination 

and discussion, a resolution was unanimously adopted to

ecommend unqualified approval to the Supervisory Board. 

The committee chairman informed the Supervisory Board 

of the resolutions adopted by the committee. 

The 2010 annual financial statements and management 

report, and the Managing Board's proposal for appropriation 

of profits were then addressed, thoroughly discussed, 

and examined by the Supervisory Board. In addition, the 

auditor’s reports prepared by PwC INTER-TREUHAND 

GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft 

for the 2010 annual financial statements and 2010 

management report were reviewed by the Audit Committee 

and the Supervisory Board, and debated and discussed 

in detail with PwC INTER-TREUHAND GmbH 


Wirtschaftsprüfungs- und Steuerberatungsgesellschaft. The 

final findings of the audit provided no reason for objections. 

The Supervisory Board declared that it had nothing to add 

to the auditor's reports. 

After a thorough examination, the Supervisory Board therefore 

unanimously adopted a resolution to approve the annual 

financial statements prepared by the Managing Board, 

to raise no objection to the management report, and to state 

its agreement with the Managing Board's proposal for appropriation 

of profits. 

The 2010 annual financial statements have therefore been 

approved in accordance with § 96(4) AktG. 

The Supervisory Board proposes to the General Meeting that it approve the appropriation of profits proposed by 

the Managing Board and formally approve the actions of the Managing Board and Supervisory Board. 

Vienna, March 2011 

The Supervisory Board: 

Günter Geyer 

(Chairman) 


D

STATEMENT BY THE MANAGING BOARD 

We declare to the best of our knowledge that the annual financial statements of WIENER STÄDTISCHE Versicherung AG 

Vienna Insurance Group prepared in accordance with the requirements of Austrian corporate law and the Austrian Insurance 

Supervision Act give a true and fair view of the company’s net assets, financial position and results of operations, that 

the management report presents the business development, performance and position of the company in such a way as to 

give a true and fair view of its net assets, financial position and results of operations, and that the management report provides 

a description of the principal risks and uncertainties to which the company is exposed. 


The Managing Board: 





Erich Leiss

PROVINCIAL ADVISORY COUNCILS 

The following persons belong to the advisory councils for 

the individual federal provinces designated in the Articles 

of Association for advising the Managing Board (status as of 

31 December 2010): 

PROVINCIAL ADVISORY COUNCIL FOR VIENNA 

Martin Bachlechner 

Peter Bosek 

Ilse Brandner-Radinger 

Ismail H. Ergener 

Michael Hafner 

René Alfons Haiden 

Peter Hanke 

Brigitte Jank 

Helmut Jonas 

Hans Judmann 

Willibald Keusch 

Michael Landau 

Michael Ludwig 

Sigi Menz 

Walter Nettig 

Ernst Nonhoff 

Carl Ludwig Richard 

Günter Wandl 

Udo Weinberger 

Wilhelm Wohatschek 

PROVINCIAL ADVISORY COUNCIL FOR LOWER AUSTRIA 

Christian Aichinger 

Gertrude Baumgartner 

Rupert Dworak 

Councillor of the consistory Burkhard Ellegast 

Wilhelm Gelb 

Helmut Guth 

Councillor of the consistory prelate Berthold Heigl 

Herwig Hofstätter 

Karl Jurtschitsch 

Herbert Kaufmann 

Herbert Klenk 

Hans Knoll 

Otto Korten 

Werner Magyer 

Josef Panis 


Elisabeth Schubrig 

Matthias Stadler 

Dietmar Steinbrenner 

Karl Th. Trojan 

Johann Trost jun. 

Wolfgang Wiedermann 

Gerhard Zinner 

PROVINCIAL ADVISORY COUNCIL FOR UPPER AUSTRIA 

Othmar Bruckmüller 

Herbert Brunsteiner 

Robert Ebner 

Othmar Friedl 

Alois Froschauer 

Peter Halatschek 

Norbert Haudum 

Heinz Hillinger 

Manfred Hochhauser 

Hermann Kepplinger 

Richard Kirchweger 

Markus Limberger 

Johann Mayr 

Josef Peischer 

Ludwig Scharinger 

Adolf Scheuchenpflug 

Wolfgang Schneckenreither 

Komm.-Rat Ernst Strauss 

Gerda Weichsler-Hauer 

PROVINCIAL ADVISORY COUNCIL FOR STYRIA 

Herbert Beiglböck 

Gerhard Deutsch 

Gerhard Fabisch 

Herbert Gritzner 

Horst Hilmer 

Karl Hofmeister 

Franz Huber 

Karl-Franz Maier 

Ernst Meixner 

Wolfgang Messner 

Paul Nussbaumer 

Hermann Retter 

Ulrike Retter 

Alois Samer 

Horst Schachner 


D

Christoph Stark 

Gerald Stoiser 

Josef Wallner 

Manfred Wegscheider 

PROVINCIAL ADVISORY COUNCIL FOR CARINTHIA AND 

EASTERN TYROL 

Ingo Appé 

Gerald Dietrich 

Helmut Eder 

Hermann Egger 

Horst Felsner 

Günter Goach 

Reinhard Iro 

Rudolf Kandussi 

Franz Kreuzer 

Johann Lintner 

Franz Liposchek 

Helmut Manzenreiter 

Claudia Mischensky 

Hans Michael Offner 

Anton Peternel 

Herwig Rettenbacher 

Hans Schönegger 

Oskar Seidler 

Arnold Sorger 

Andrea Springer 

Michael Stattmann 

PROVINCIAL ADVISORY COUNCIL FOR SALZBURG 

Wolfgang Bell 

Franz Blum 

Reiner Brettenthaler 

Jürgen Danzmayr 

August Hirschbichler 

Alois Johann Nindl 

Regina Ovesny-Straka 

Ferdinand Saller 

Günter Schied 

Harald Seiss 

Christian Stöckl 

Josef Treml 


PROVINCIAL ADVISORY COUNCIL FOR TYROL 

Martin Baltes 

Christian Bernard 

Manfried Gantner 

Hannes Gschwentner 

Markus Jochum 

Walter Kircher 

Hansjörg Mölk 

Hermann Nagiller 

Jakob Ringler 

Elmar Schmid 

Harald Schneider 

Karl Schranz 

Prelate Raimund Schreier 

Elisabeth Zanon 

PROVINCIAL ADVISORY COUNCIL FOR VORARLBERG 

Wilfried Berchtold 

Werner Böhler 

Michael Diem 

Horst Fritz 

Jürgen Gabrieli 

Werner Gunz 

Guntram Jäger 

Edgar Mayer 

Peter Mennel 

Wilhelm Muzyczyn 

Ewald Netzer 

Peter Oksakowski 

Kuno Riedmann 

Anton Steinberger 

Walter Thöny 

PROVINCIAL ADVISORY COUNCIL FOR BURGENLAND 

Mario De Martin De Gobbo 

Hannes Frech 

Oswald Hackl 

Erich Horvath 

Christian Illedits

Michael Koch 

Helmut Löffler 

Hans Lukits 

Hans Niessl 

Frank Pfnier 

Councillor of the consistory Matthias Reiner 

Ingrid Salamon 

Nikolaus Sauer 

Ernst Schmid 

Johann Schmidt 

Peter Schmitl 

Erwin Schneeberger 

Rudolf Simandl 

Gerhard Steier 

Georg Stiegelmar 

Csaba Szekely 

Robert Tauber 

Josef Wein 

ADVISORY BOARD FOR FUNERAL INSURANCE 

The following persons belong to the advisory council designated 

in the Articles of Association and established for 

advising the Managing Board on funeral matters and funeral 

issues (status as of 31 December 2010): 

Walter Egger 

Christian Fertinger 

Wilhelm Fuchs 

Peter Kotzbauer 

Othmar Lechner 

Hansjörg Lein 

Peter Marent 

Ulrich Mayerhofer 

Franz Nechansky 

Gerfried Redlich 

Wolfgang Saiko 

Peter Schlaffer 

Eduard Schreiner 

Mario Wagenhuber 

Monsignor Karl Wagner 

Gregor Zaki 



D

PROVINCIAL HEAD OFFICES 

PROVINCIAL HEAD OFFICE FOR VIENNA 

1020 Vienna, Obere Donaustrasse 49-53 

Phone:: +43 (0) 50 350-40000 

Fax: +43 (0) 50 350 99-40000 

E-mail: ld-wien@staedtische.co.at 

Hermann Fried, Provincial Director 

PROVINCIAL HEAD OFFICE FOR LOWER AUSTRIA 

3100 St. Pölten, Europaplatz 2 

Phone: +43 (0) 50 350-41000 

Fax: +43 (0) 50 350 99-41000 

E-mail: ld-noe@staedtische.co.at 

Helmut Maurer, Provincial Director 

PROVINCIAL HEAD OFFICE FOR UPPER AUSTRIA 

4020 Linz, Untere Donaulände 40 

Phone: +43 (0) 50 350-42000 

Fax: +43 (0) 50 350 99-42000 

E-mail: ld-ooe@staedtische.co.at 

Günther Erhartmaier, Provincial Director 

PROVINCIAL HEAD OFFICE FOR STYRIA 

8010 Graz, Brockmanngasse 32 

Phone: +43 (0) 50 350-43000 

Fax: +43 (0) 50 350 99-43000 

E-mail: ld-stmk@staedtische.co.at 

Gerald Krainer, Provincial Director 

PROVINCIAL HEAD OFFICE FOR CARINTHIA AND 

EASTERN TYROL 

9020 Klagenfurt, St. Veiter-Ring 13 

Phone: +43 (0) 50 350-44000 

Fax: +43 (0) 50 350 99-44000 

E-mail: ld-ktn@staedtische.co.at 

Erich Obertautsch, Provincial Director 


PROVINCIAL HEAD OFFICE FOR SALZBURG 

5020 Salzburg, Max-Ott-Platz 3 

Phone: +43 (0) 50 350-45000 

Fax: +43 (0) 50 350 99-45000 

E-mail: ld-sbg@staedtische.co.at 

Hans Vierziger, Provincial Director 

PROVINCIAL HEAD OFFICE FOR TYROL 

6020 Innsbruck, Südtiroler Platz 4 

Phone: +43 (0) 50 350-46000 

Fax: +43 (0) 50 350 99-46000 

E-mail: ld-tirol@staedtische.co.at 

Ida Wander, Provincial Director 

PROVINCIAL HEAD OFFICE FOR VORARLBERG 

6800 Feldkirch, Waldfriedgasse 2 

Phone: +43 (0) 50 350-47000 

Fax: +43 (0) 50 350 99-47000 

E-mail: ld-vlbg@staedtische.co.at 

Burkhard Berchtel, Provincial Director 

PROVINCIAL HEAD OFFICE FOR BURGENLAND 

7000 Eisenstadt, Kalvarienbergplatz 7 

Phone: +43 (0) 50 350-48000 

Fax: +43 (0) 50 350 99-48000 

E-mail: ld-bgld@staedtische.co.at 

Gerold Stagl, Provincial Director

CONTACTS AND ADDRESSES 

ADVERTISING / SPONSORING 

Sabine Weiss 

Phone: +43 (0)50 350 21194 

Fax: +43 (0)50 350 99-21194 

E-mail: s.weiss@staedtische.co.at 

AKTUARIAL SERVICES 

Josef Hiller 

Phone: +43 (0)50 350 21721 

Fax: +43 (0)50 350 99-21721 

E-mail: j.hiller@staedtische.co.at 

ALTERNATIVE DISTRIBUTION 

Gerhard Heine 

Phone: +43 (0)50 350 22840 

Fax: +43 (0)50 350 99-22840 

E-mail: g.heine@staedtische.co.at 

AUDIT 

Herbert Allram 

Phone: +43 (0)50 350 21070 

Fax: +43 (0)50 350 99-21070 

E-mail: h.allram@staedtische.co.at 

BUSINESS ORGANISATION 

Wolfgang Unger 

Phone: +43 (0)50 350 21078 

Fax: +43 (0)50 350 99-21078 

E-mail: w.unger@staedtische.co.at 

COLLECTIONS SERVICE CENTRES 

Andreas Weninger 

Phone: +43 (0)50 350 21817 

Fax: +43 (0)50 350 99-21817 

E-mail: a.weninger@staedtische.co.at 


COMMUNICATIONS / INTERNAL COMMUNICATIONS 

Claudia Riebler 

Phone: +43 (0)50 350 21336 

Fax: +43 (0)50 350 99-21336 

E-mail: c.riebler@staedtische.co.at 

COMPANY LAW 

Helene Kanta 

Phone: +43 (0)50 350 21122 

Fax: +43 (0)50 350 99-21122 

E-mail: h.kanta@staedtische.co.at 

CONTROLLING 

Szabolcs Nagy 

Phone: +43 (0)50 350 21056 

Fax: +43 (0)50 350 99-21056 

E-mail: s.nagy@staedtische.co.at 

CORPORATE AND LARGE RISK BUSINESS 

underwriting 

Wolfgang Petschko 

Phone: +43 (0)50 350 21406 

Fax: +43 (0)50 350 99-21406 

E-mail: w.petschko@staedtische.co.at 

claims 

Josef Aigner 

Phone: +43 (0)50 350 26112 

Fax: +43 (0)50 350 99-26112 

E-mail: j.aigner@staedtische.co.at 

DISTRIBUTIONS 

Walter Wichtel 

Phone: +43 (0)50 350 22530 

Fax: +43 (0)50 350 99-22530 

E-mail: w.wichtel@staedtische.co.at 


D

EQUITY HOLDINGS MANAGEMENT, LOANS 

Christine Dornaus 

Phone: +43 (0)50 350 21126 

Fax: +43 (0)50 350 99-21126 

E-mail: c.dornaus@staedtische.co.at 

FINANCE AND ACCOUNTING 

Hans Meixner 

Phone: +43 (0)50 350 21810 

Fax: +43 (0)50 350 99-21810 

E-mail: h.meixner@staedtische.co.at 

HEALTH INSURANCE 

Peter Kranz 

Phone: +43 (0)50 350 21610 

Fax: +43 (0)50 350 99-21610 

E-mail: p.kranz@staedtische.co.at 

HUMAN RESOURCES / HUMAN RESOURCES 

DEVELOPMENT 

Robert Bilek 

Phone: +43 (0)50 350 21300 

Fax: +43 (0)50 350 99-21300 

E-mail: r.bilek@staedtische.co.at 

IT MANAGEMENT AND PROVIDER MANAGEMENT 

Klaus Krebs 

Phone: +43 (0)50 330 22106 

Fax: +43 (0)50 330 99-22106 

E-mail: k.krebs@staedtische.co.at 

LEGAL PROTECTION INSURANCE (CLAIMS) 

Günther Bauer 

Phone: +43 (0)50 350 21587 

Fax: +43 (0)50 350 99-21587 

E-mail: g.bauer@staedtische.co.at 


LIFE AND CASUALTY INSURANCE 

Mathias Frisch 

Phone: +43 (0)50 350 21600 

Fax: +43 (0)50 350 99-21600 

E-mail: m.frisch@staedtische.co.at 

MANAGING BOARD SECRETARIAT 

Doris Janik 

Phone: +43 (0)50 350 21059 

Fax: +43 (0)50 350 99-21059 

E-mail: d.janik@staedtische.co.at 

MOTOR VEHICLE INSURANCE (UNDERWRITING) 

Michael Schlögl 

Phone: +43 (0)50 350 21530 

Fax: +43 (0)50 350 99-21530 

E-mail: m.schloegl@staedtische.co.at 

NON-LIFE, GENERAL LIABILITY AND LEGAL EXPENSES 

INSURANCE – PRIVATE AND COMMERCIAL BUSINESS 

(UNDERWRITING) 

Robert Ulbing 

Phone: +43 (0)50 350 21421 

Fax: +43 (0)50 350 99-21421 

E-mail: r.ulbing@staedtische.co.at 

PERSONAL INSURANCE SERVICE CENTRE 

Sabine Pfeffer 

Phone: +43 (0)50 350 21313 

Fax: +43 (0)50 350 99-21313 

E-mail: s.pfeffer@staedtische.co.at 

PROPERTY INSURANCE SERVICE CENTRE 

Annemarie Ulbing 

Phone: +43 (0)50 350 27500 

Fax: +43 (0)50 350 99-27500 

E-mail: a.ulbing@staedtische.co.at

REAL ESTATE AND REAL ESTATE-RELATED HOLDINGS 

Anton-Leonhard Werner 

Phone: +43 (0)50 350 21050 

Fax: +43 (0)50 350 99-21050 

E-mail: a.werner@staedtische.co.at 

REINSURANCE 

Eduard Oberleithner 

Phone: +43 (0)50 350 21474 

Fax: +43 (0)50 350 99-21474 

E-mail: e.oberleithner@staedtische.co.at 

RISK MANAGEMENT 

Alexander Schuh 

Phone: +43 (0)50 350 21450 

Fax: +43 (0)50 350 99-21450 

E-mail: a.schuh@staedtische.co.at 

SECURITIES AND FUNDS 

Reza Kazemi Tabrizi 

Phone: +43 (0)50 100 75473 

Fax: +43 (0)50 100-975473 

E-mail: r.kazemi-tabrizi@staedtische.co.at 

SPECIAL DAMAGES 

Wolfgang Reisinger 

Phone: +43 (0)50 350 21500 

Fax: +43 (0)50 350 99-21500 

E-mail: w.reisinger@staedtische.co.at 

OMBUDSMAN 

Julia Christanell 

Phone: +43 (0)50 350 21088 

Fax: +43 (0)50 350 99-21088 

E-mail: ombudsstelle@staedtische.co.at 


BRANCH OFFICES 

ITALY 

Wiener Städtische Versicherung AG 

Vienna Insurance Group 

Via Cristoforo Colombo 149 

I-00147 Rome 

Phone: +39 (0) 6 510 70 11 

E-mail: wiener@wieneritalia.com 

Internet: www.wieneritalia.com 

SLOVENIA 

Wiener Städtische zavarovalnica podružnica 

Masarykova 14 

SI-1000 Ljublijana 

Phone: +386 (0) 1 300 17 00 

E-mail: info@wienerstaedtische.si 

Internet: www.wienerstaedtische.si 


D

BRANCH OFFICES 

Wiener Städtische is available throughout Austria for the cost of local call 24 hours a day, 7 days a week. 

Phone +43 (0) 50 350-direct dial ; Fax: +43 (0) 50 350 99-direct dial 

VIENNA 

Offices with motor vehicle reporting 

Headquarters 

Direct dial 20000 

Schottenring 30 

1010 Vienna 

kundenservice@staedtische.co.at 

Provincial Head Office Vienna 


Obere Donaustrasse 49-53 

1020 Vienna 

ld-wien@staedtische.co.at 

Kundenbüro Vorsorge 


Zelinkagasse 14 

1010 Vienna 

vorsorge@staedtische.co.at 

Donaustadt 


Bernoullistrasse 1 

1220 Vienna 

donaustadt@staedtische.co.at 

Floridsdorf 


Am Spitz 10 

1210 Vienna 

floridsdorf@staedtische.co.at 

Landstrasse 


Rochusgasse 3-5 

1030 Vienna 

landstrasse@staedtische.co.at 


Liesing 


Breitenfurter Strasse 393 

1230 Vienna 

liesing@staedtische.co.at 

Ottakring 


Thaliastrasse 44 

1160 Vienna 

ottakring@staedtische.co.at 

LOWER AUSTRIA 

Provincial Head Office 

Lower Austria 


Europaplatz 2 

3100 St. Pölten 

ld-noe@staedtische.co.at 

Amstetten 


Waidhofner Strasse 31 

3300 Amstetten 

amstetten@staedtische.co.at 

Aspang 


Mönichkirchner Strasse 3 

2870 Aspang 

aspang@staedtische.co.at 

Baden 


Bahngasse 9 

2500 Baden 

baden@staedtische.co.at 

Bruck/Leitha 


Fischamender Strasse 54 

2460 Bruck/Leitha 

bruck_leitha@staedtische.co.at 

Gänserndorf 


Bahnstrasse 15 

2230 Gänserndorf 

gaenserndorf@staedtische.co.at 

Gföhl 


Hauptplatz 1 

3542 Gföhl 

gfoehl@staedtische.co.at 

Gmünd 


Stadtplatz 17 

3950 Gmünd 

gmuend@staedtische.co.at 

Gross Enzersdorf 


Bischof Berthold-Platz 4 

2301 Gross Enzersdorf 

gr.enzersdorf@staedtische.co.at 

Herzogenburg 


St. Pöltner Strasse 26 

3130 Herzogenburg 

herzogenburg@staedtische.co.at

Hollabrunn 


Bahnstrasse 12 

2020 Hollabrunn 

hollabrunn@staedtische.co.at 

Horn 


Schützenplatz 2 

3580 Horn 

horn@staedtische.co.at 

Klosterneuburg 


Am Renninger 2 

3400 Klosterneuburg 

klosterneuburg@staedtische.co.at 

Korneuburg 


Wiener Ring 16 

2100 Korneuburg 

korneuburg@staedtische.co.at 

Krems 


Ringstrasse 11 

3500 Krems 

krems@staedtische.co.at 

Laa/Thaya 


Stadtplatz 38 

2136 Laa/Thaya 

laa.thaya@staedtische.co.at 

Lilienfeld 


Babenbergerstrasse 36 

3180 Lilienfeld 

lilienfeld@staedtische.co.at 

Melk 


Hauptstrasse 9 

3390 Melk 

melk@staedtische.co.at 


Mistelbach 


Ernstbrunnerstrasse 8 

2130 Mistelbach 

mistelbach@staedtische.co.at 

Mödling 


Klostergasse 14 

2340 Mödling 

moedling@staedtische.co.at 

Neulengbach 


Hauptplatz 27 

3040 Neulengbach 

neulengbach@staedtische.co.at 

Neunkirchen 


Schwarzottstrasse 2a 

2620 Neunkirchen 

neunkirchen@staedtische.co.at 

Poysdorf 


Brunngasse 4 

2170 Poysdorf 

poysdorf@staedtische.co.at 

Retz 


Hauptplatz 21 

2070 Retz 

retz@staedtische.co.at 

Scheibbs 


Rathausplatz 11 

3270 Scheibbs 

scheibbs@staedtische.co.at 

Schwechat 


Wiener Strasse 9 

2320 Schwechat 

schwechat@staedtische.co.at 

Stockerau 



2000 Stockerau 

stockerau@staedtische.co.at 

Ternitz 


Hans Czettel-Platz 1 

2630 Ternitz 

ternitz@staedtische.co.at 

Tulln 


Königstetter Strasse 60 

3430 Tulln 

tulln@staedtische.co.at 

Waidhofen/Thaya 


Bahnhofstrasse 8 

3830 Waidhofen/Thaya 

waidhofen.thaya@staedtische.co.at 

Waidhofen/Ybbs 


Riedmüllerstrasse 3a/1 

3340 Waidhofen/Ybbs 

waidhofen.ybbs@staedtische.co.at 

Wolkersdorf 



2120 Wolkersdorf 

wolkersdorf@staedtische.co.at 

Wr. Neustadt 


Ferdinand Porsche-Ring 2 

2700 Wr. Neustadt 

wr.neustadt@staedtische.co.at 

Zistersdorf 


Schlossgasse 2 

2225 Zistersdorf 

zistersdorf@staedtische.co.at 


D

Zwettl 


Neuer Markt 13 

3910 Zwettl 

zwettl@staedtische.co.at 

UPPER AUSTRIA 


Upper Austria 


Untere Donaulände 40 

4020 Linz 

ld-ooe@staedtische.co.at 

Bad Ischl 


Karl Wiesinger-Strasse 2 

4820 Bad Ischl 

bad_ischl@staedtische.co.at 

Bad Leonfelden 


Böhmerstrasse 7 

4190 Bad Leonfelden 

bad_leonfelden@staedtische.co.at 

Braunau/lnn 


Ringstrasse 47 

5280 Braunau/lnn 

braunau@staedtische.co.at 

Eferding 



4070 Eferding 

eferding@staedtische.co.at 

Freistadt 


Zemannstrasse 25 

4240 Freistadt 

freistadt@staedtische.co.at 


Gmunden 


Schiffslände 1 

4810 Gmunden 

gmunden@staedtische.co.at 

Grieskirchen 


Rossmarkt 30 

4710 Grieskirchen 

grieskirchen@staedtische.co.at 

Kirchdorf/Krems 


Linzer Strasse 2 

4560 Kirchdorf/Krems 

kirchdorf@staedtische.co.at 

Kremsmünster 


Rathausplatz 9 

4550 Kremsmünster 

kremsmuenster@staedtische.co.at 

Leonding 


Michaelsbergstrasse 5 

4060 Leonding 

leonding@staedtische.co.at 

Linz, Kleinmünchen 


Zeppelinstrasse 4 

4032 Linz,Kleinmünchen 

linz_kleinmuenchen@staedtische.co.at 

Linz, Rainerstrasse 


Rainerstrasse 22 

4020 Linz 

linz_rainerstrasse@staedtische.co.at 

Linz, Urfahr 


Freistädter Strasse 16 

4040 Linz,Urfahr 

linz_urfahr@staedtische.co.at 

Mondsee 


Herzog-Odilostrasse 14 

5310 Mondsee 

mondsee@staedtische.co.at 

Perg 


Dr. Schober-Strasse 25 

4320 Perg 

perg@staedtische.co.at 

Ried/lnnkreis 


Thurnerstrasse 16 

4910 Ried/lnnkreis 

ried@staedtische.co.at 

Rohrbach 


Pfarrgasse 4 

4150 Rohrbach 

rohrbach@staedtische.co.at 

Schärding 


Linzer Strasse 29 

4780 Schärding 

schaerding@staedtische.co.at 

Scharnstein 



4644 Scharnstein 

scharnstein@staedtische.co.at

Schörfling 


Marktplatz 12 

4861 Schörfling 

schoerfling@staedtische.co.at 

Steyr, Bahnhofstr. 



4400 Steyr 

steyr@staedtische.co.at 

Steyr, Leopold-Werndl-Str. 


Leopold-Werndl-Strasse 10 

4400 Steyr 

steyr@staedtische.co.at 

Traun 


Kremstalerstrasse 20 

4050 Traun 

traun@staedtische.co.at 

Vöcklabruck 


Linzerstrasse 61 

4840 Vöcklabruck 

voeklabruck@staedtische.co.at 

Vorchdorf 


Lambacherstrasse 7 

4655 Vorchdorf 

vorchdorf@staedtische.co.at 

Wels 


Bauernstrasse 9 

4600 Wels 

wels@staedtische.co.at 

Windischgarsten 


Gleinkerseestrasse 1 

4580 Windischgarsten 

windischgarsten@staedtische.co.at 


STYRIA 

Provincial Head Office Styria 


Brockmanngasse 32 

8010 Graz 

ld-stmk@staedtische.co.at 

Bad Aussee 


Kirchengasse 31 

8990 Bad Aussee 

bad_Aussee@staedtische.co.at 

Bad Radkersburg 


Emmenstrasse 21-27 

8490 Bad Radkersburg 

bad_radkersburg@staedtische.co.at 

Bruck/Mur 


Mittergasse 4 

8600 Bruck/Mur 

bruck_mur@staedtische.co.at 

Deutschlandsberg 


Frauentalerstrasse 44 

8530 Deutschlandsberg 

deutschlandsberg@staedtische.co.at 

Feldbach 


Bismarckstrasse 18 

8330 Feldbach 

feldbach@staedtische.co.at 

Fürstenfeld 


Realschulstrasse 2a 

8280 Fürstenfeld 

fuerstenfeld@staedtische.co.at 

Gleisdorf 


Businesspark 4 

8200 Gleisdorf 

gleisdorf@staedtische.co.at 

Gratkorn 


Grazer Strasse 50 

8101 Gratkorn 

gratkorn@staedtische.co.at 

Graz, Andritz 


Andritzer Reichstrasse 26 

8045 Graz 

graz_andritz@staedtische.co.at 

Graz, Elisabethstrasse 


Elisabethstrasse 59 

8010 Graz 

graz_ld@staedtische.co.at 

Graz, Seiersberg 


Kärnterstrasse 525-527 

8054 Seiersberg 

graz_seiersberg@staedtische.co.at 

Gröbming 


Poststrasse 336 

8962 Gröbming 

groebming@staedtische.co.at 

Hartberg 


Ressavarstrasse 12-14 

8230 Hartberg 

hartberg@staedtische.co.at 

Judenburg 


Jägersteig 2 

8750 Judenburg 

judenburg@staedtische.co.at 


D

Kapfenberg 


Mariazellerstrasse 1 

8605 Kapfenberg 

kapfenberg@staedtische.co.at 

Kindberg 



8650 Kindberg 

kindberg@staedtische.co.at 

Knittelfeld 


Hauptplatz 15 

8720 Knittelfeld 

knittelfeld@staedtische.co.at 

Leibnitz 



8430 Leibnitz 

leibnitz@staedtische.co.at 

Leoben 


Franz Josef-Strasse 1 

8700 Leoben 

leoben@staedtische.co.at 

Liezen 


Werkstrasse 30 

8940 Liezen 

liezen@staedtische.co.at 

Murau 


Anna-Neumann-Strasse 9 

8850 Murau 

murau@staedtische.co.at 

Mürzzuschlag 



8680 Mürzzuschlag 

muerzzuschlag@staedtische.co.at 


Voitsberg 


Hauptplatz 1 

8570 Voitsberg 

voitsberg@staedtische.co.at 

Weiz 


Marburgerstrasse 47 

8160 Weiz 

weiz@staedtische.co.at 

CARINTHIA 


Carinthia 


St. Veiter-Ring 13 

9010 Klagenfurt 

ld-ktn@staedtische.co.at 

Feldkirchen 


Dr.-Arthur-Lemisch-Strasse 1 

9560 Feldkirchen 

feldkirchen@staedtische.co.at 

Ferlach 


Hauptplatz 5 

9170 Ferlach 

ferlach@staedtische.co.at 

Hermagor 



9620 Hermagor 

hermagor@staedtische.co.at 

Spittal/Drau 



9800 Spittal/Drau 

spittal_drau@staedtische.co.at 

St. Veit/Glan 


Platz am Graben 3 

9300 St. Veit/Glan 

st.veit_glan@staedtische.co.at 

Villach 


Moritschstrasse 5 

9500 Villach 

villach@staedtische.co.at 

Völkermarkt 


Klagenfurter Strasse 12 

9100 Völkermarkt 

voelkermarkt@staedtische.co.at 

Wolfsberg 



9400 Wolfsberg 

wolfsberg@staedtische.co.at 

EASTERN TYROL 

Lienz 


Andreas-Hofer-Strasse 1a 

9900 Lienz 

lienz@staedtische.co.at 

SALZBURG 

Provincial Head Office Salzburg 


Max-Ott-Platz 3 

5020 Salzburg 

ld-sbg@staedtische.co.at 

Abtenau 


Au 87 

5441 Abtenau 

abtenau@staedtische.co.at

Bad Gastein 


Bahnhofsplatz 7 

5640 Bad Gastein 

gastein@staedtische.co.at 

Bischofshofen 


Franz-Mohshammer-Platz 14 

5500 Bischofshofen 

bischofshofen@staedtische.co.at 

Hallein 


Bürgermeisterstrasse 13 

5400 Hallein 

hallein@staedtische.co.at 

Mattighofen (Oberösterreich) 


Stadtplatz 18 

5230 Mattighofen 

mattighofen@staedtische.co.at 

Saalfelden 


Bahnhofstrasse 12/Top4 

5760 Saalfelden 

saalfelden@staedtische.co.at 

Salzburg, Lasserstrasse 


Lasserstrasse 32 

5020 Salzburg 

salzburg@staedtische.co.at 

Seekirchen 



5201 Seekirchen 

seekirchen@staedtische.co.at 

St. Johann/Pongau 


Hans Kappacherstrasse 1 

5600 St. Johann/Pongau 

st.johann_pongau@staedtische.co.at 


Tamsweg 



5580 Tamsweg 

tamsweg@staedtische.co.at 

Zell am See 


Brucker Bundesstrasse 67 

5700 Zell am See 

zell.see@staedtische.co.at 

TYROL 

Provincial Head Office Tyrol 


Südtiroler Platz 4 

6020 Innsbruck 

ld-tirol@staedtische.co.at 

Imst 


Pfarrgasse 32 

6460 Imst 

imst@staedtische.co.at 

Kitzbühel 


Im Gries 27-31 

6370 Kitzbühel 

kitzbuehel@staedtische.co.at 

Kufstein 


Arkadenplatz 6 

6330 Kufstein 

kufstein@staedtische.co.at 

Landeck 


Malser Strasse 19 

6500 Landeck 

landeck@staedtische.co.at 

Reutte 


Mühlerstrasse 19 

6600 Reutte 

reutte@staedtische.co.at 

Schwaz 


Swarovskistrasse 25a 

6130 Schwaz 

schwaz@staedtische.co.at 

St. Johann/Tirol 


Kaiserstrasse 32 

6380 St. Johann 

st.johann_tirol@staedtische.co.at 

Telfs 


Anton Auer Str. 5 

6410 Telfs 

telfs@staedtische.co.at 

VORARLBERG 


Vorarlberg 


Waldfriedgasse 2 

6800 Feldkirch 

ld-vlbg@staedtische.co.at 

Bludenz 


Färberstrasse 10 

6700 Bludenz 

bludenz@staedtische.co.at 

Bregenz 


Rheinstrasse 42 

6900 Bregenz 

bregenz@staedtische.co.at 


D

Dornbirn 


Schwefel 91 

6850 Dornbirn 

dorbirn@staedtische.co.at 

BURGENLAND 


Burgenland 


Kalvarienbergplatz 7 

7000 Eisenstadt 

ld-bgld@staedtische.co.at 

Güssing 


Hauptplatz 10 

7540 Güssing 

güssing@staedtische.co.at 


Jennersdorf 


Eisenstädter Strasse 1 

8380 Jennersdorf 

jennersdorf@staedtische.co.at 

Mattersburg 


Schubertstrasse 42 

7210 Mattersburg 

mattersburg@staedtische.co.at 

Neusiedl/See 


Altenburgerstrasse 20/Top 1 

7100 Neusiedl/See 

neusiedl_see@staedtische.co.at 

Oberpullendorf 



7350 Oberpullendorf 

oberpullendorf@staedtische.co.at 

Oberwart 


Waldmüllergasse 6 

7400 Oberwart 

oberwart@staedtische.co.at

GLOSSARY 

Actuarial reserve 

A reserve calculated according to mathematical principles 

for future insurance payments in the life and health insurance 

segments. In the health insurance segment, this is 

also referred to as an ageing reserve. 

Annuity tables 

Annuity tables are the most important calculation tool used 

in life and health insurance. The annuity tables used by 

insurers are based on the mortality tables derived from the 

population census. These are revised every ten years to 

take into account changing conditions, such as medical 

advances and improved living conditions. For example, due 

to medical advancements, improved life circumstances or 

similar. 

Associated companies 

The parent company and its subsidiaries are considered to 

be associated companies if the parent company is able to 

exert control over the business policies of the subsidiary. 

Examples of this are where the parent company directly or 

indirectly holds more than half of all voting rights, a controlling 

agreement exists, or it is possible to appoint the majority 

of the members of the Managing Board or other executive 

bodies of the subsidiary (§ 244 UGB). 

Capital investments 

Assets such as securities, loans, real estate and company 

participations that are predominantly used to cover the 

commitments from the insurance business. 

Ceded reinsurance premiums 

Share of the premiums to which the reinsurer is entitled in 

return for reinsuring certain risks. 


Claim rate 

Ratio of expenses for the insurance incidents in comparison 

to capped premiums. 

Combined ratio 

Ratio for evaluation of the business development in the 

indemnity and accident insurance. All actuarial expenses, 

after deducting the reinsurance shares except for the 

change of fluctuation provision in percent of the capped 

premiums after deducting the reinsurance shares (=sum of 

net cost rate and net loss ratio). Does not include any financial 

revenues. 

Consolidation 

The financial assets of the parent company and those of the 

subsidiaries are combined when the consolidated financial 

statements are prepared by the parent company. During 

this process, intercompany capital combinations, interim 

profit/ loss, payables and receivables, and income and expenses 

between group companies are eliminated. 

Consolidation circle 

Consists of the parent company and all subsidiaries included 

in the consolidated financial statements. 

Consolidated financial statement 

Annual financial statement prepared by the parent company 

that presents the net assets, financial position, results 

of operations and cash flow of the corporate group. Refer to 

consolidation. 

Cost rate 

Ratio of expenses for the insurance operation in comparison 

to capped premiums. 


D

Delayed claims 

A loss that has occurred during the current business year 

but will not be reported until the following year. 


In-house acquired business, including co-insurance shares 

assumed, less surrendered co-insurance shares. 

Earned premiums 

The portion of premiums written which is allocated to the 

current fiscal year. 

EBT (Earnings before tax) 

Earnings before tax: Total of all actuarial earnings, financial 

results and other non-actuarial expenses and earnings 

before tax. 

Equity capital 

Consists of capital stock and reserves 

Expenses for insurance incidents 

Paid insurance benefits plus the change in provisions for 

losses that have already occurred, but are not yet processed, 

plus the costs for claim settlement, loss investigation 

(e.g. fees for expert witnesses, legal fees) and loss prevention. 

Expenses for the insurance operations 

Commissions, personnel costs, cost of materials and other 

expenses for selling and managing insurance policies. 

Financial Market Authority (FMA) 

Refer to insurance supervisory authority. 


Financial result 

Balances from revenue and expenses for capital investments 

and interest. This includes, for example, income from 

securities, loans, real estate and equity interests, as well as 

bank interest, and expenses incurred in the financial area, 

such as scheduled depreciation on owned real estate, unscheduled 

writedowns of securities to listed market prices, 

bank fees, etc. 

Fluctuation provision 

One of the actuarial provisions. It is built up in years with 

below average loss ratio and used in years with above average 

loss ration. 

Fund-linked life insurance 

In this special form of life insurance, the benefit amount 

depends on the change in value of the financial assets 

combined in one fund. The policy holder carries the capital 

investment risk, since he has the opportunity of directly 

participating in an above average value increase of the fund, 

but at the same time must take the risk of value losses into 

account. 

GBVVU 

Regulation of the Financial Market Authority (FMA) on the 

profit-sharing in the life insurance policy (Gewinnbeteiligungs- 

Verordnung - GBVVU) of 20 October 2006. 

Gross/net 

In insurance terminology, “gross/net” means before or after 

reinsurance has been deducted (“net” is also used to mean 

“for own account”). In connection with income from equity 

interests, the term “net” is used when related expenses 

have already been deducted from income (e.g., write-offs 

and losses from sale).Therefore, (net) income from equity 

interests equals the profit or loss from these interests.

Hidden reserves 

The actual value (market value) of an asset item in the balance 

sheet is above the book value (created for example by 

a price increase of securities). 

Index-linked life insurance 

Life insurance where the income depends upon the development 

of the underlying stock indices. 


Transactions accepted as reinsurance (active reinsurance 

Insurance benefits 

Refer to expenses for insurance incidents 

Loss provision 

Provision for not yet processed (= already occurred, but not 

yet or only partially paid) insurance incidents. 

NKS divisions 

NKS divisions are “non-vehicle insurance divisions” in the 

indemnity and accident insurance. 

Premium 

Agreed fee paid in exchange for assumption of risk by an 

insurance company. 

Premium carried forward 

The portion of the premium income that represents the 

remuneration for the insurance period after the balance 

sheet date, i.e. money that has not yet been earned on the 

balance sheet date. Premiums carried forward are reported 

in the balance sheet under actuarial provisions. 


Premium refund (profit-dependent) 

The policyholder’s profit participation in the profit of the 

insurance class in question (life/health/property and casualty) 

Premium refund (profit-independent) 

Contractually accorded refund of premiums to the policyholder. 


The premiums billed to the policy holders without tax, expense 

and fee shares. 

Profit participation 

See premium refund (profit-dependent). 

Reinsurance 

Insurance policy for insurance companies. An insurance 

company insures a portion of its risk through another insurance 

company, the reinsurer. 

Reinsurance companies 

Company that will assume the risks from a primary insurer 

or another reinsurer (retrocession) for an agreed premium. 


D

Risks/risk 

Insured individuals, objects, hazards or interests 

Retained earnings 

Retained earnings are the company earnings that have not 

been distributed as dividends or transferred to the following 

year as profit carried forward. 

Secondary market rate of return 

The secondary market rate of return indicates the average 

rate of return of fixed-interest rate securities in circulation 

with an agreed maturity of more than four years. The SMR 

mirrors the interest rate level of the capital market 

Single premium payment 

If the policyholder fulfils the obligation to pay the premium 

at the beginning of the policy period by making a lump sum 

payment for the entire insurance period. 

UGB 

Austrian Corporate Code 


Underwriting provisions 

These consist of the provision for outstanding claims, actuarial 

reserve, unearned premiums, provisions for profit dependent 

and profit-independent premium refunds, the 

equalisation provision, and other underwriting reserves. 

VAG 

The Austrian Insurance Supervision Act (Versicherungsaufsichtsgesetz) 

includes provisions governing the organisation 

and supervision of insurance companies. 

VersVG 

Insurance Contract Law, regulated the general insurance 

contract law. 

VVO 

Austrian Insurance Association: Umbrella association of the 

Austrian insurance companies in Austrian Federal Chamber 

of Commerce.

POSTAL ADDRESS 




1010 Vienna 

Phone: (0) 50 350 350 

Managing Board Secretariat 



Contact person: Doris Janik 


1010 Vienna 

NOTES 

This annual report also includes forward-looking statements 

based on current assumptions and estimates that 

are made by the Management of the VIENNA INSURANCE 

GROUP Wiener Städtische Versicherung AG up to the best 

of its knowledge. Information offered using the words “expectation” 

or “target” or similar formulations indicate such 

forward-looking statements. The projections that are related 

to the future development of the company represent 

estimates that were made on the basis of the information 

available as of the date on which this annual report went to 

press. Actual results may differ from the forecast if the 

assumptions underlying the forecast fail to materialise or if 

risks arise at a level that was not anticipated. 

Note regarding rounding: Calculation differences may arise 

when rounded amounts and percentages are summed 

automatically. 

The annual report was prepared with the greatest possible 

care in order to ensure that the information provided in all 

parts is correct and complete. Rounding, type-setting and 

printing errors can nevertheless not be completely ruled 

out. 

Editorial deadline: 28 February 2011 


GENERAL INFORMATION 

Editor and media owner 



Company register: 333376i 

Dpr-Number: 4001506 

Production & Design 

be.public 

Werbung Finanzkommunikation GmbH 

Produced in-house using FIRE.sys 

Michael Konrad GmbH Corporate Media Solutions 

English translation 

Bowne Translation Services 

Printing 

Gutenberg GmbH, Wiener Neustadt 

Photos 

Ian Ehm 

www.shutterstock.com 

www.istockphoto.com 

17PG001AGE10 


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