ANNUAL REPORT - Česká podnikatelská pojišťovna, a.s.

2006
ANNUAL REPORT

ČESKÁ PODNIKATELSKÁ POJIŠŤOVNA, a. s.
ANNUAL REPORT

ČPP - ANNUAL REPORT FOR 2006
ESSENTIAL COMPANY INFORMATION
Business name Česká podnikatelská pojišťovna, a. s.
Address Budějovická 5, 140 21 Praha 4
Internet www.cpp.cz
E-mail pojistovna@cpp.cz
Company ID no. 639 98 530
Date established The Company was founded on June 22, 1995,
Company registration entry date
on November 6, 1995
Insurance licence October 26, 1995
Operations
launch date November 6, 1995
Registered capital 1 billion CZK
Number of
full-time
employees
(as of 31. 12. 2006) 874
Single shareholder
(from 1. 7. 2005) Kooperativa, pojišťovna, a. s.
Templová 747, 110 01 Praha 1
Company ID no.: 471 16 617

SHAREHOLDER DESCRIPTION
Business name Kooperativa, pojišťovna, a. s.
Description Kooperativa is the 2nd largest insurer on the
Czech market, with total premium written
market share of 23% (as of 31. 12. 2006). It is a
universal insurance company offering full range
of services and all standard insurance types for
individuals, as well as business clients from the
small traders through to large industrial firms.
Registered capital 2.8 billion CZK
Address Templová 747, 110 01 Praha 1
Telephone 800 105 105
E-mail info@koop.cz
Establishment Kooperativa, pojišťovna, a. s., was established
through registration in the Commercial Register
on March 1, 1993.
Company
shareholders
(as of 31. 12. 2006) WIENER STÄDTISCHE Versicherung AG
VIENNA INSURANCE GROUP ................. 85.46 %
Number of
employees
(as of 31. 12. 2006) 3,630
Svaz českých a moravských výrobních družstev,
Praha ............................................... 12.33 %
VLTAVA majetkoprávní a podílová spol. s r. o.,
Praha ................................................. 2.21 %

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ANNUAL REPORT 2006
CONTENT
1. Address by the Supervisory Board Chairman 6
2 . Introduction by the Chairman of the Board of Directors 7
3 . Members of the Board of Directors and Supervisory Board 9
4. Contacts 11
1.Company profile 14
a/ company profile 14
b/ strategic partners 15
c/ reinsurance 16
d/ sponsoring 17
e/ awards 19
2. ČPP products 20
a/ product trends in 2006 20
b/ ČPP product offer 24
c/ insurance register structure in 2006 25
3. Business operations 2006 26
a/ business results in 2006 26
b/ sales according to product lines 27
c/ internal and external sales networks
co-operation with business partners
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d/ Strategy for year 2007 30
1. Vienna Insurance Group 32
a/ Vienna Insurance Group 33
b/ Vienna Insurance Group goals and strategy 34
c/ CEE - market with growth potential 35
d/ insurance coverage in Europe in 2006 36
1. Auditors’ report 40
2. Company balance sheet as at 31.12.2006 44
3. Profit and loss account as at 31.12.2006 47
4. Notes to the financial statements as at 31.12.2006 50
5. Report on relations between associated entities 71
6. Supervisory Board report 76
1.Contacts 78
2. ČPP service cover map 80

1. ADDRESS BY THE SUPERVISORY BOARD CHAIRMAN
2. INTRODUCTION BY THE CHAIRMAN OF THE BOARD OF DIRECTORS
3. MEMBERS OF THE BOARD OF DIRECTORS AND SUPERVISORY BOARD
4. CONTACTS
Do you want to excel?
You have to work,
whilst others are having fun.
Winston Churchill

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Looking back at year 2006 in terms of the results achieved by
the Česká podnikatelská pojišťovna and her 100% owner, the
Kooperativa we can state quite unequivocally that it was a successful
year. Following the demanding changes in 2005, last year was for
Česká podnikatelská pojišťovna a year of dynamic growth, translating
significantly into the business and financial results. Capital entry
of Kooperativa in 2005 has proven to be clearly a step in the right
direction.
In terms of general market conditions, taking into consideration
unsatisfactory premium growth and repeated natural disasters,
year 2006 was one of the most difficult years on the record. Total
premium income has increased by 3.75%, which adjusted for
2.5% inflation is only a 1% real growth. Although the insurance
market continues to grow, but the rate of growth is low, taking into
consideration the country’s potential. Looking at individual business
lines, the life insurance regular premium business has produced
satisfactory result
of 34.6 bln CZK, posting a year-on-year growth of 6.7%. On the
contrary single premium insurance, which represents ¼ of the life
insurance premium income was stagnant and resulted in a decline
below the 2005 levels. Non-life insurance has grown last year by 3%
to 72.8 bln CZK, which also can not be considered as satisfactory.
Long-term goal of Kooperativa as well as Česká podnikatelská
pojišťovna is to support and develop a role of an active player on the
Czech insurance market, therefore remaining also as members of the
Vienna Insurance Group trustworthy and reliable partners for all our
clients and employees of both companies.
Despite many achievements over the past several years, we realise
only too well that there is still a lot to improve and a lot of work
ahead of us. Whether it is the stabilisation and detailed finalisation
of all reorganisation steps, improved communication between the
companies and their departments, or closer co-operation with other
companies across the Vienna Insurance Group concern.
In closing I would like to thank all those who have contributed to
the success of the last year. In addition to our closest colleagues, all
employees and partners, I want to say thank you in particular to our
clients, who have shown their long-term confidence in us. Thanks
to their support ČPP is a modern, dynamically growing insurance
company, with ambition to be a reliable partner and advisor, standing
by you in the good times, as well as when things don’t turn out well.
ADDRESS BY THE
SUPERVISORY
BOARD
CHAIRMAN
Ing. Vladimír Mráz
Supervisory Board Chairman

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Dear ladies and gentlemen,
it is with pleasure that I can say – and the key financial data has
confirmed this – that also in 2006 we have proven yet again
that we are a strong and stable company able to succeed in
tough competitive environment.
For more than a year ČPP has been part of the major
international financial group Vienna Insurance Group (VIG),
which is the largest Austrian insurance concern operating in the
Central and Eastern European countries. As a group member,
ČPP operates on the regional market under its own business
name with emphasis on common international umbrella.
Year 2006 was very successful for ČPP. We have achieved
significant year-on-year profit increase, totalling 184.7 mln
CZK, as reported in IAS terms. This result was a significant
contribution factor to the financial stability of the company.
The company’s registered capital of 1 bln CZK represents, in
terms of total premium income, a value with above-average
capital adequacy. In 2006 ČPP achieved year-on-year growth
of total premium income by 8.3%, outperforming the overall
growth rate of the insurance market by more than 2-fold. We
have, yet again, achieved our best results in the motor vehicle
insurance. MTPL register had more than 615,000 insurance
policies at the year-end, which represents a year-on-year
increase by 51,000 contracts. Hence, ČPP has confirmed its
3rd market position. In comparison with previous year we
have more than doubled the number of comprehensive car
insurance policies. We have recorded major success also in
business insurance where, despite a slight market decline, we
have posted an increase by 5.6%. ČPP is providing insurance
cover to approximately 40% of the Top 100 largest industrial
enterprises in the Czech Republic. Life insurance segment had
recorded also strong growth. Premium income had increased
in year-on-year terms by 21.8%, whilst the market overall has
grown only by 4.8%. With these results ČPP has strengthened
its market position and at the same time increased its market
share to 3.6%.
Year 2006 has brought principal business strategy changes in
segments with highest premium volume – compulsory liability
insurance. We have introduced a new insurance premium tariff,
so-called segmentation, which takes into account multiple
risk criteria. The insurance rates are determined not only by
the engine size, but also by the age of the vehicle and the
INTRODUCTION
BY THE CHAIRMAN
OF THE BOARD OF
DIRECTORS
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Introduction by the
Chairman of the
Board of Directors
driver and region. In the MTPL insurance line our company has the broadest and most detailed segmentation
among all insurers. Specially developed new product “SPOROPOV”, introduced during the autumn campaign
provides additional discounts for older and more experienced drivers.
During the past year we have recorded increased interest in life insurance products. In September 2006 we
have launched life insurance product “Životní pojištění s Filipem KOMFORT”. High variability of this capital
life insurance offers not only tailor-made insurance cover amount, but also maximum flexibility with respect to
the client’s current circumstances.
The number of clients who have decided to entrust the protection of their property and health to our
company is growing. Increasing number of new clients is inter alia also the result of a pro-active and strongly
client-oriented approach in all aspects of our operations. In March 2006 we have extended the business hours
of our Customer Hotline and we have introduced a new easy-to-remember telephone number 841 444 555.
As of July last year we have, together with SAZKA, a. s., provided our clients with option of insurance premium
payments via payment terminals. Through these measures, but also by professional personal approach of
our staff we have achieved efficiency increase and quality improvement of our services, which meet, in all
respects, the highest criteria for modern and quality service.
In the sales networks area last year we have focussed on quality improvements of our SUS sales software.
Already during the 1st half of the year the installation has produced improvements of activities related to
contract processing and administration, possibility of immediate access to current information and faster
communication. Introduction of the system has resulted mainly in the service quality improvements. The
system was received favourably not only by our staff, but mainly those who were the primary beneficiaries
– our sales people and business partners. Fast access together with guarantee of security of stored data and
elimination of errors by electronic processing by the system – in this regard the ČPP maintains its unique
market position. During 2006 more than 2 /3 of the contracts were sold using the software application.
Currently the number is growing significantly in favour of the on-line version, which in comparison with off-line
version, accounts for 90% of the SUS production.
In closing I would like to say my thanks mainly to you, our clients, business partners and brokers for your
interest and cooperation. We value very much your confidence by using our services. I would also like to
take this opportunity to thank all our employees for their effort, involvement, co-operation and goal-oriented
approach focused on client needs.
We are entering year 2007 with new expectations and ambitious plans. We will to continue in the trend of
process quality and competitiveness improvements. Our goal is to achieve further improvements of our market
position.
Dr. Franz Kosyna
General Manager
and Chairman of the
Board of Directors

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MEMBERS OF THE BOARD OF DIRECTORS
2006
Dr. Franz Kosyna
General Manager
and Chairman of the
Board of Directors
RNDr. Jakub Strnad, Ph.D.
Deputy General Manager
and Deputy Chairman of the
Board of Directors
Ing. Jaroslav Besperát
Head Director for sales and marketing
and member of the Board of Directors
SUPERVISORY BOARD
Members of the Supervisory Board as of 31. 12. 2006
Ing. Vladimír Mráz
Chairman since June 22, 2005
Ing. Konštantín Alexejenko
Member since October 1, 2006
Prof. Ing. Jaroslav Daňhel, CSc.
Member since April 1, 2005
Mag. Peter Höfinger
Member since November 23, 2005
Jiří Nedvídek
Member since April 1, 2005
Ing. Jaroslav Sirotek
Member since April 1, 2005
Ing. Zdeněk Srp
Member since April 1, 2005
SOLE SHAREHOLDER
Kooperativa, pojišťovna, a. s.
(since July 1, 2005)
MEMBERS OF THE
BOARD OF DIRECTORS
AND SUPERVISORY
BOARD
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CHANGES IN THE COMPANY MANAGEMENT
DURING 2006
During the year there have been personnel changes at the top
company management level. As of March 31, 2006 Ing. Zdeněk
Šťástka has resigned from his position of General Manager and
Chairman of the Board. Dr. Franz Kosyna was appointed as the new
General Manager on April 1, 2006, who was previously a member
of Kooperativa, pojišťovna, a. s. Board of Directors. Pursuant to his
appointment Dr. Franz Kosyna has resigned as of October 31, 2006
from his position of the company’s Supervisory Board member,
with new member being appointed Ing. Konstantin Alexejenko
on October 1, 2006. As of October 10, 2006 Jaroslav Dostal, CSc
has terminated his membership of the Board of Directors. From
November 1, 2006 the 3-member Board of Directors of ČPP consists
of Dr. Franz Kosyna, General Manager and Chairman of the Board
of Directors, RNDr. Jakub Strnad, Ph.D., Deputy General Manager
and Deputy Chairman of the Board of Directors, Ing. Jaroslav
Besperát, sales manager and board member. Strategic changes at
the top management layer of the company have initiated an overall
transformation into a modern insurance company.
In June 2007 the company Board of Directors approved additional
changes in the company’s organisational structure.
members of the
Board of Directors and
Supervisory Board

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CONTACTS
General Manager ger Dr. Franz Kosyna
Tel. 261 022 170
E-mail l franz.kosyna@cpp.cz
f k
Deputy General Manager RNDr. Jakub Strnad, Ph.D.
Tel. 261 022 170
E-mail jakub.strnad@cpp.cz
Head Director for sales and marketing Ing. Jaroslav Besperát
Tel. 261 023 168
E-mail jaroslav.besperat@cpp.cz
General secretary – General Manager section Ing. Tomáš Neumann, CSc.
Tel. 261 023 331
E-mail tomas.neumann@cpp.cz
Casualty insurance division manager JUDr. Václav Hönig
Tel. 261 022 285
E-mail vaclav.honig@cpp.cz
Life insurance division manager Bc. Marek Woitsch
Tel. 261 022 553
E-mail marek.woitsch@cpp.cz
Motor vehicle insurance division manager Miloš Velíšek
Tel. 261 023 081
E-mail milos.velisek@cpp.cz
Finance division manager Ing. Petr Brabenec, MBA
Tel. 261 023 301
E-mail petr.brabenec@cpp.cz
IT division manager Ing. Ladislav Zámečník
Tel. 261 023 303
E-mail ladislav.zamecnik@cpp.cz
Reinsurance section head Ing. Roman Brablec
Tel. 261 023 338
E-mail roman.brablec@cpp.cz
External networks section head Mgr. Tomáš Ženíšek
Tel. 261 023 214
E-mail tomas.zenisek@cpp.cz
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contacts
Internal networks section head Ing. Jiří Zahálka
Tel. 261 022 294
E-mail jiri.zahalka@cpp.cz
Business risk section head Pavel Wiesner
Tel. 261 023 191
E-mail pavel.wiesner@cpp.cz
Motor vehicle claims settlement division manager Tomáš Klofát
Tel. 261 022 299
E-mail tomas.klofat@cpp.cz
Legal section manager JUDr. Jana Mejtská
Tel. 261 023 264
E-mail jana.mejtska@cpp.cz
Actuarial department head Mgr. Jan Šváb
Tel. 222 827 500
E-mail jan.svab@cpp.cz
Treasury department head Ing. Luděk Marek
Tel. 221 000 406
E-mail ludek.marek@cpp.cz
Personnel department head Marcela Novotná
Tel. 261 023 294
E-mail marcela.novotna@cpp.cz
Internal audit and control department head Ing. Ludmila Přibilová
Tel. 261 023 213
E-mail ludmila.pribilova@cpp.cz
Controlling department head Bc. Martina Kapinosová
Tel. 261 022 561
E-mail martina.kapinosova@cpp.cz
Sales controlling manager Ing. Zdeněk Kolář
Tel. 261 022 602
E-mail zdenek.kolar@cpp.cz

1. COMPANY PROFILE
2. ČPP PRODUCTS
3. BUSINESS OPERATIONS 2006
Success is an ongoing process of
trying to become something better. It
is an opportunity to grow emotionally,
socially, spiritually, physiologically,
intellectually and financially and at the
same time to contribute in a positive
manner to other people. Road to success
is always under construction.
Anthony Robbins

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1 COMPANY
PROFILE
ČESKÁ PODNIKATELSKÁ POJIŠŤOVNA, A. S. COMPANY PROFILE
Česká podnikatelská pojišťovna, a. s., (hereinafter the “ČPP”) operates on the Czech insurance market since
November 1995. Achieved results have reiterated the steady growth and stability of a company, which is a
major player on the Czech insurance market.
In the compulsory insurance segment the company has achieved 3rd place in terms of number of policies
and no. 4 in terms of premium income.
ČPP is servicing almost 900,000 client policies with more than 40,000 new policies written every month.
Share capital of 1 billion CZK.
The company is a full member of the Czech association of insurance companies, the Czech Bureau of Insurers
and other associations.
ČPP maintains reinsurance contracts with leading reinsurance companies.
Sole shareholder of ČPP is Kooperativa, pojišťovna, a. s.
Major shareholder of the Kooperativa, pojišťovna, a. s., is WIENER STÄDTISCHE Versicherung AG VIENNA
INSURANCE GROUP. ČPP has become member of major international finance group under the umbrella
name Vienna Insurance Group (hereinafter the “VIG”).
VIG is the largest Austrian insurance concern operating Central and Eastern European countries, with leading
position on insurance markets in Austria, Czech Republic, Romania and Slovakia.
Other key markets of the VIG group are Poland, Hungary, Croatia, Serbia and Bulgaria. Overall the concern
operates in 20 European countries servicing more than 17 million clients.
Standard & Poor´s rating agency has awarded Vienna Insurance Group a “A+” rating with stable outlook.

ČPP is universal insurance company offering all types of insurance – life, accident, liability, property and travel.
Our key motor vehicle insurance product remains MTPL coverage SPECIÁL Plus and SUPER Plus. In life insurance
segment the key products are still Life insurance with Filip Plus, Life insurance with Filip Variant, and
newly launched variable product Life insurance with Filip Komfort. In the household and individual liability
segment ČPP is offering several special products in various modifications according to individual needs and
preferences of our clients. Significant part of ČPP portfolio is industrial and business insurance.
Year-on-year comparison 2005 – 2006:
Premium income 4.4 bln CZK (year-on-year increase by 8.3%)
Profit 106.1 mln CZK according to IAS (year-on-year increase by 95.1 mln CZK)
Major improvement of financial stability during 2006 :
• Share capital - 1 bln CZK
• Technical reserves – 5.6 bln CZK (increase by 1 bln CZK)
• Financial placements – 5.7 bln CZK (increase by 1.3 bln CZK)
• Balance sheet total - 6.6 bln CZK (increase by 1.3 bln CZK)
Strategic partners
VŠEOBECNÁ ZDRAVOTNÍ POJIŠŤOVNA ČR
branch network, joint marketing events
POJIŠŤOVNA VZP
joint products, joint marketing events
HASIČSKÁ VZÁJEMNÁ POJIŠŤOVNA, A. S.
joint products, joint marketing events
GLOBAL ASSISTANCE, A. S.
motor vehicle insurance assistance services
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
MAKLER SERVICE BOHEMIA INTERNATIONAL S. R. O.
sale of joint life insurance product
ŠKODA AUTO, A. S.
employee insurance, joint marketing events
SAZKA, A. S.
premium payments for ČPP clients
via Sazka payment terminals
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Reinsurance
Reinsurance programme for 2006 with its parameters represented
for ČPP another step towards improving the company’s financial
stability and significant strengthening of ability to honour the client
obligations. Conservatively low net own excess levels and sufficient
reinsurance capacities for individual insurance classes contributed
to an optimum environment for further company development. Arrangement
of adequate reinsurance coverage for cumulative natural
disaster damages was one of the significant priorities of reinsurance
terms and conditions for 2006. Renewed co-operation with Benfield,
one of the biggest reinsurance brokers, played a positive role,
in particular in the flood risk modelling area. With the benefit of
this know-how, ČPP was setting the scope of reinsurance coverage
against natural disasters.
In defining the reinsurance programme for 2006 we have achieved
quality improvement and broadening of the reinsurer portfolio, as
well as major positive changes in key parameters of reinsurance
coverage.
The most important reinsurance partner became the largest reinsurer
Swiss Re, which at the same time became the leading reinsurer of
the property and transportation reinsurance treaty. Leading reinsurer
of the liability reinsurance treaty was the 2nd largest reinsurer
Munich Re.
Other major partners of our reinsurance programme were Partner Re,
Hannover Re, SCOR, XL Re Europe, Odyssey Re, Axa Re, MAPFRE,
Transatlantic Re and a host of other reinsurers. Selection criteria for
reinsurance companies were mainly their financial stability according
to international classification by Standard & Poor‘s, which was in
majority of ČPP reinsurers at the highest level, i.e., “AA” or “A”.
company profile

Sponsoring
ČPP sees one of its most important roles also in supporting projects
with social benefit impact. We focus mainly in the area of culture,
sport, development of healthy lifestyle, support for charity programmes
and events, youth support and damage prevention.
Most important projects supported by ČPP:
Divadlo Ta Fantastika – theatre general partner
Divadlo Hybernia – partner of the Golem musical
Václav Hybš Christmas concerts
Skier Association of the Czech Republic – cross-country section
National football team fan club Prague
Medea Kultur, s. r. o.
Communication series, focussing on primary prevention against
drug dependency.
Alpine Rescue Service CR
ČPP is working together with Alpine Rescue Service in creating
instructions video tapes, competitions and seminars.
Water rescue service of the Czech Red Cross
ČPP is working together on projects, which are helping to provide
trained rescue personnel in all water location of the Czech
Republic.
Police and firemen foundation – Joint emergency assistance
Support for the foundation with its objective to improve the lives
of orphaned children of police force and fire brigade, whose parents
died on duty or as a consequence of their work duties.
SDH – Voluntary Fire Brigade
ČPP supports individual fire brigade units in organising fire brigade
competitions and balls, contributions towards the purchases of
technology.
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
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Road safety activities:
Motor vehicle insurance represents major portion of the ČPP
insurance policy register. Therefore we have decided to work closely
with projects, addressing the loss prevention and positive education
of road participants, including children.
Foundation Malina
Since 2004 ČPP is the foundation’s main partner. Goal of this
foundation, established by car racing driver Roman Krest and
singer Daniel Landa, is to achieve improved road traffic safety on
our roads. The foundation distributes free of charge high-quality
educational films, and in co-operation with experts developing
projects aimed not only towards drivers, but also children – being
the group of traffic participants most at risk.
High Car Training v.o.s. (hereinafter the “HCT”)
– Safe driving school – School of skid
HCT organises courses and trainings for drivers of passenger
vehicles or trucks at special trainings circuits and practical driving
sessions on special wet surfaces. “Safe driving courses” are
designed to familiarise drivers with habits for handling critical
situations and safe driving methods.
Selection from regional activities:
• Foundation Bariéry
• Exhibition of the author Robert Walser
• Czech Rescuers Championship
• Czech International championship in road motorcycles
- support for motorcycle racing driver Igor Kaláb
• Raceway Markéta
• Basketball club Synthesia Pardubice
• FC Slovan Liberec
• FC Hradec Králové
• SK Třebechovice
company profile

Awards
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
In 2006 ČPP was recognised in the “Insurance company of the year” survey, organised by the Czech Association
of insurance brokers. In category “Insurance product of the year 2006” we have finished in the 5th place.
The same result was achieved by ČPP also in the category “Co-operation with brokers”, “Industrial and business
insurance” and “Insurance for general public”.
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PRODUCT TRENDS IN 2006
MOTOR VEHICLE INSURANCE
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Compulsory insurance (MTPL)
2 ČPP PRODUCTS
In the motor vehicle third-party liability insurance, the so-called compulsory insurance, we have continued
throughout the year implementation of so-called “segmentation”, which had allowed majority of our clients to
achieve significantly improved insurance terms and at the same time we were able to attract new customers
for optimal price. Towards the end of 2005 we have introduced a new rate setting mechanism. The insurance
rate is co-determined not only by the engine size, but also the age of the vehicle, driver’s age and permanent
residential/business address. Segmentation has resulted in favourable treatment of experienced drivers and
certain regions, it is taking into account the vehicle year of manufacture and with respect to the engine size it
allows application of broader scale compared to our competition. ČPP is offering eight rate groups based on
the engine size and against the standard five groups. Introduction of segmentation has without a doubt contributed
towards our business results in 2006.
Segmentation was offered for two basic rates - SPECIÁL Plus and SUPER Plus. Part of the offer was assistance
service provided free of charge covering even the vehicle breakdown, 24-hour assistance in the Czech language
covering also calls from abroad. Speciál Plus included also driver accident insurance free of charge, Super
Plus included not only extended assistance service, but also high insurance limit for driver accident insurance
and coverage of the driver’s hospital treatment expenses abroad.
Newly defined company strategy was supported by autumn campaign promoting MTPL by introduction of a
new special segmentation feature SPOROPOV. The product is priced very competitively for drivers over 35
years of age, residing in township with population under 10,000 people and passenger vehicle older than eight
years or Czech-made truck also older than eight years.
In the assistance area ČPP has started to co-operate in 2006 with a new partner, company Global Assistance,
a. s., and has extended its assistance services offer to include also commercial vehicles over 3.5 t, trailers,
buses and trolley buses.
In October ČPP has reached a major success in the MTPL insurance segment - the number of insurance
contracts has exceeded 600,000 which is a year-on-year policy register growth by 51,000 contracts and an
increase in premium income to 2.238 mln CZK. In terms of the number of insurance vehicles the company has
strengthened its 3rd market position in MTPL segment.
Results from the 1st year of segmentation are showing that it was a step in the right direction, allowing the
company to record a significant increase in new business. By offering attractive insurance policies in 2007 we
want to approach new, as well as existing clients, and to ensure further sales increases by supporting crossselling.
We want to maintain confidence and interest of our business partners by constant increases in quality
of provided services with emphasis on speed, flexibility, professional approach and quality claim settlement
process.

Comprehensive insurance
ČPP is offering comprehensive Motor vehicle insurance, offered
together with MTPL as a Insurance package or stand-alone Theft
risk insurance designed for older vehicles.
Simple, successful and variable motor vehicle insurance is offered
in 3 variations, according to the combination of risk covered:
1. ALL RISK - comprehensive motor vehicle and
equipment insurance for:
• damage or destruction in accident
• theft and vandalism
• damage or destruction by natural disaster
2. ACCIDENT + NATURAL DISASTER - motor vehicle and
equipment insurance for:
• damage or destruction in accident
• damage or destruction by natural disaster
3. THEFT + NATURAL DISASTER - motor vehicle and
equipment insurance for:
• theft and vandalism
• damage or destruction by natural disaster
In combination with MTPL the company was offering discounts
on optional insurance cover in the year 2006. Clients were able
to receive 50% discount on Insurance Package (insurance cover
for front windshield, collision involving wild animal and extended
accident insurance for the driver’s seat) or separate Insurance
against theft of older vehicle (with maximum claim limit of
50,000 CZK and excess of 5,000 CZK).
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
21

LIFE AND ACCIDENT INSURANCE
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ČPP products
Last year we have posted a significant success in the life insurance segment by producing a year-on-year
growth h bby 21 21.8%. 8%
Key products remained to be Life insurance with Filip Plus, Life insurance with Filip Variant, Accident insurance
with Filip Plus and Accident insurance with Filip Variant.
Life insurance Filip Plus is a brand name, which consists of 5 separate products, and has in addition to the
main life insurance, i.e., coverage of oneself and the family, also other risks in the form of extensive rider selection.
Although product Filip Variant has a lower number of risks covered, it is more flexible in terms of selecting the
total premium and distribution of this premium between maturity and premature death. This product is offered
exclusively by broker company Makler Service Bohemia International s.r.o. (hereinafter the “MSBI”).
Savings with Filip and Budoucnost are products developed for a specific target group and the risks covered
were designed according to the current market requirements. During the year our product portfolio was extended
by products Life insurance with Filip Komfort, combining market-tested features of products Life insurance
with Filip Plus and Life insurance with Filip Variant.
Accident insurance is offered either separately or as a rider attached to life insurance. Accident insurance
with Filip Plus includes individual, group and discounted, so called family insurance. It is designed to cover
the risk of accident-related death and permanent injuries caused by accident. Daily benefit amount payment is
also available. In co-operation with broker MSBI ČPP offers individual Accident insurance with Filip Variant,
offering also daily compensation during hospital stay following an accident and fixed amount insurance rider
covering children fractures.
ČPP offers quality life and accident insurance supported by professional services. Our approach is focussing
primarily on individual needs of our clients.
As the market is developing we too are constantly introducing new products for specific and neglected insurance
market segments. In 2007 we are preparing to launch a new product - investment life insurance.
With respect to the developments in the retirement and health insurance we are preparing to respond by gradual
introduction of relevant products as they become relevant.

NON-LIFE INSURANCE
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
In the property operty and business liabi liability ability segment we have again achieved market share increase among, posting a
progressive i growth h iin
excess of f 5% iin a segment, which hi h was more or lless
stagnant.
Our products are designed not only for various business and industrial sectors but a number of clients has also
taken advantage of quality products designed for non-manufacturing companies and complexes of various
type (e.g., hotels, trading companies, municipalities, villages and regions).
In property and liability insurance for business customers segment, ČPP is concentrating mainly on covering
insurance risk of FLEXA type (fire, lighting, explosion and crash of an airplane), theft, high water and flood-related
high water. Frequently insured risk is also industrial equipment liquids leakage.
New product launched in 2006 was Podnikatel Plus, extending our business insurance portfolio providing
small and medium businesses a “package” of insurance coverage against most frequently required risks in a
simple and easy to understand form. In business liability insurance segment we have responded to the legislative
change and at the end of the year we have launched on the market Liability insurance for providers of
social services.
In 2007 we are preparing new forms of insurance for businesses together with electronic processing of
contracts.
Last year ČPP continued in updating the property and liability insurance for private individuals with the aim to
address, in the greatest possible degree, insurance needs of individual clients. As a response to market requirements
we have introduced Student/pupil part-time job liability insurance and Bicycle insurance.
In travel insurance segment we have continued our co-operation with PVZP. In 2006 ČPP has responded very
well to the changing market situation by introducing a Mountain emergency rescue cover in Slovakia.
In the travel insurance segment we will continue also in 2007 to offer comprehensive insurance cover not only
for the travelling members of our public but also for their pets.
In relation to the snow calamities in the spring of 2006 and the subsequent floods ČPP had processed 104
insurance claims. Considering these repeating natural disasters, and environmental accidents and other unexpected
events which will continue to search for new procedures and approach in relation to the property and
liability insurance with respect to new insurance threats. Our goal is to offer to the public the broadest possible
portfolio of services, supported by individual treatment of each client. We expect significant growth also in
the liability insurance coverage, mainly in relation to the legislative developments.
23

ČPP PRODUCT OFFER
24
ČPP products
Motor vehicle insurance
• MTPL insurance
• Comprehensive motor vehicle insurance
• Insurance package (windshield, animal collision and extended driver accident insurance cover)
• Insurance against theft
Life insurance
• Life insurance with Filip Plus
• Life insurance with Filip Variant (MSBI)
• Savings with Filip
• Life insurance Budoucnost
Accident insurance
• Accident insurance with Filip Plus (individual, family, group)
• Accident insurance with Filip Variant (MSBI)
• Additional health insurance VZP
Property insurance
• Household and property insurance for private individuals
• Property insurance for business against natural disaster, technology break-down, theft and vandalism
• Building construction insurance
• Cargo and shipment insurance
• Business interruption insurance
• Exhibitions insurance
• Financial adequacy insurance for transport companies
Liability insurance
• General liability insurance for private individuals, in a position as property owner or manager,
professional liability as animal handler
• Liability insurance for hunters
• General liability insurance for business people
• Professional liability insurance for business people
• Faulty product liability insurance
Travel insurance
• Acquisition through travel agencies
• Over the counter and on-line insurance sales
Compulsory bankruptcy insurance for travel agencies

INSURANCE REGISTER STRUCTURE IN 2006
8,7%
11,6%
1,2%
3,3%
51,5%
1,2%
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
24,9%
0,9%
Register structure in 2006
Life insurance total
MTPL insurance
Comprehensive motor vehicle insurance
Industrial and business insurance
Other
Other - detail
Travel insurance
Citizen’s insurance
Accident and health insurance
25

26
3
BUSINESS RESULTS IN 2006
ČPP has achieved a year-on-year r-on-year increase of 8.3% in the total premium
written which is, yet again, higher than the overall growth on the domestic
market. ČPP has exceeded the market growth by 4.6%, hence strengthening
its market share to 3.6%. Overall the company has finished 4th in terms of
market share.
RATE OF INCREASE
Premium income rate of increase comparison
with the market in 2006
Graph shows a rate of growth exceeding the market by 4.6%.
ČPP – TOTAL PREMIUM INCOME
(IN TCZK)
The graph is showing continuous progress of the premium
income level. In comparison with previous year a major
improvement is evident again.
BUSINESS
OPERATIONS
2006

SALES ACCORDING TO PRODUCT LINES
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
MTPL (IN TCZK)
In MTPL segment we have recorded
a year-on-year increase by 2.9%. In terms of the
number of contracts ČPP is maintaining 3rd place
among other insurers. ČPP market share is 10.2%.
LIFE INSURANCE (IN TCZK)
One of the major successes achieved last year was
in the life insurance segment, producing the highest
rate of year-on-year increase, mainly by 21.8%, with
the market growing at 4.8%. Exceeding the market
growth rate by 17% has meant strengthening of our
market share to 2.3%, i.e.,
doubling the value from 2005.
27

INDUSTRIAL AND BUSINESS INSURANCE (IN TCZK)
ČPP has recorded a successful year in this segment where,
despite the slight market decline,
we have managed a growth by 8,5%.
28
business operations
2006

Česká podnikatelská pojišťovna, a. s. - annual report for 2006
INTERNAL AND EXTERNAL SALES NETWORKS, CO-OPERATION WITH BUSINESS PARTNERS
During 2006 we have managed successfully to develop internal sales network for the sale of life insurances.
Thanks to attractive work and social benefit packages and pro-active approach by managers at the regional
centres, we are able to recruit during the year the planned number of new sales agents. A multi-level training
programme has been designed to provide these new recruits with specialist, as well as sales know-how. At the
end of 2006 this network consisted of 200 salespeople, including 30 sales team managers.
We can also conclude that restructuring of regional centres with their number being reduced to 10, with
concurrent re-naming to area management centres, which took place as of 1. 3. 2006, has resulted in higher
efficiency. Those regional centres, which had to absorb the biggest changes have shown, already during the
2nd quarter, stabilisation of their operational and personnel units. This has laid the foundations for successful
execution of the annual target and achievement of our goals.
During the year we have continued in quality improvements of the internal network’s operations by
functionality improvements of operating systems and expansion of the sales training for existing staff, as well
as new recruits. Under the new system processing of an insurance application via internal network has been
carried out by more than 85% through SUS software, resulting in major decline of error rate in application
process and processing time reduction.
One of the most significant business partners remains Makler Service Bohemia International s.r.o. (MSBI).
Business emphasis is placed mainly on the sale of life insurance but currently they are developing their
operations to cover also other lines of insurance, which is supported also by electronic sale of insurance
contracts directly to the ČPP system. In the area of MTPL sales our successful co-operation continued with the
Hasičská vzájemná pojišťovna. Joint sale of travel and health insurance products in conjunction with Pojišťovna
VZP and Všeobecná zdravotní pojišťovna continued to develop further as well. On 31 July 2006 the Company
has come an agreement with a long-term partner, the Czech Post, to terminate co-operation. At the end of the
year we have signed a co-operation contract with network of financial advisors OVB Allfinanz, a. s.
Co-operation with more than 300 insurance brokers and agents recorded during the year further growth, in
motor vehicle and industrial and business insurance in particular. In relation to the Act no. 38/2004 Coll.,
regulating the terms under which an individual against her selling insurance is a new insurance agent or
insurance company employee more than 2,300 people have completed training course with final exam
certifying that they meet the basic criteria, conducted by the sales network training centre. The company
had continued to support filing of insurance intermediary registration applications. At the same time we have
increased the number of external agents using the proprietary sales software. By the end of the year the
software was installed in more than 3,200 locations processing more than 70% of all contract applications.
This has resulted in significant reduction of corrections, contract registration in the system, as well as the
commission payments have been faster.
We have further increased the number of major business partners by providing individual treatment,
complemented by faster service, system support and various motivational competitions, regular meetings and
trainings.
29

STRATEGY FOR YEAR 2007
Our main strategic goals for the upcoming period are:
Premium income of 4.6 bln CZK
Market share increase
Recruitment of new brokers and insurance agents
30
business operations
2006
Maintaining the growth rate of MTPL insurance above the industry level, sale of segmented MTPL products
SPECIÁL Plus and SUPER Plus
Introduction of a new investment life insurance product
Maintaining the sales growth of property and liability insurance for private clients
Increase in the sales volume of property and liability insurance for corporate clients
Sales development of insurance products for private individuals through proprietary software
Support for the sale of selected products via Internet
Further utilisation of cross-selling effect by approach and sales to existing clients

1. VIENNA INSURANCE GROUP
Obstacles are
those things we see
when we loose
the sight of our goal.
Henry Ford

VIENNA INSURANCE GROUP
Umbrella brand Vienna Insurance Group
VIENNA
INSURANCE
GROUP
Starting in early 2006, the Wiener Städtische Group introduced the umbrella brand Vienna Insurance
Group. In May 2006 it was decided to change the company name from Wiener Städtische AG to WIENER
STÄDTISCHE Versicherung AG VIENNA INSURANCE GROUP. The new umbrella brand is intended to
demonstrate the cohesion of the insurance companies in the Group, which will continue to operate under the
names and brands they have established in their local markets as part of the Group’s successful multi-brand
strategy. The Vienna Insurance Group is a big family, in which each Group company bears its own brand as a
given name and the Group brand Vienna Insurance Group as a family name.
Vienna Insurance Group – leading in Central and Eastern Europe (CEE)
With a premium volume of approximately EUR 6,1 billion, the Vienna Insurance Group is the leading Austrian
insurance group in the CEE region, occupying an outstanding number 2 ranking in comparison with international
insurance groups. The insurance companies in the Vienna Insurance Group offer high-quality insurance
services in both the life and non-life segments. The key objective is to deliver innovative local insurance solutions
for all areas of life with optimal customer service.
Presence in 20 countries*
The employees of the Vienna Insurance Group are working to ensure the insurance coverage of its customers
in 20 countries* of Central and Eastern Europe. Outside its Austrian home market, the Vienna Insurance Group
operates (through subsidiaries) in Albania*, Belarus, Bulgaria, Croatia, the Czech Republic, Georgia, Germany,
Hungary, Liechtenstein, Macedonia*, Poland, Romania, Russia, Serbia, Slovakia, Turkey* and Ukraine. Branch
offices are maintained in Italy and Slovenia.
* subject to a due dilligence review and the approval by the authorities
Pure Play in CEE
The Vienna Insurance Group is in the best possible position to participate in the rising standard of living in the
CEE countries and the increased need for insurance that goes with it. The share of CEE companies’ premiums
is already close to 40% of the total Group premiums. In the Property/Casualty segment, the CEE share is approximately
more than half of Group premiums. No other international listed insurance group generates such
a large percentage of its premiums in the CEE region.
Standard & Poor’s “A+”-rating
The excellent financial strength of the Vienna Insurance Group was reconfirmed in 2006 by the international
rating agency Standard & Poor’s which has again given the Group a rating of “A+” with a stable outlook. S&P
emphasised the favourable competitive position of the Group, its strong operating performance in the core
markets, its outstanding financial strength, and overall conservative risk management, including in the new
markets, as the deciding factors for this attractive rating. For this reason the Vienna Insurance Group maintained
its status in 2006 as the best rated of all Austrian insurance groups.
33

34
Traded on the Vienna Stock Exchange
The stock of WIENER STÄDTISCHE Versicherung AG VIENNA INSURANCE GROUP is listed on the Vienna
Stock Exchange, where it is one of the most actively traded and highly capitalised shares. The stock is also
represented in the ATX (Austrian Traded Index), the blue-chip index of the Vienna Stock Exchange.
GOALS AND STRATEGIES OF THE VIENNA INSURANCE GROUP
Clear orientation
The Vienna Insurance Group has pursued a clear strategy for many years, and continued its successful implementation
in the financial year 2006. The core competence of the Vienna Insurance Group is the insurance
business which it is expanding continuously over the long term. In doing so, the Vienna Insurance Group
seeks to continue on this proven path of value-oriented growth.
Clear ambition
Motivation of management and employees is to be the leader. The Vienna Insurance Group aims to be among
the market leaders in every market in which it operates, while at the same time directing its any action toward
achieving leadership in terms of the customer services it provides. This is the foundation for the Vienna Insurance
Group’s core strategies:
Expansion of number 1 position in Austria: The Vienna Insurance Group intends to maintain its position as
number 1 in Austria in both the Life and Property/Casualty segments, and to continue to expand this position
by winning more market share in the future.
Targeted expansion in the CEE region: The Vienna Insurance Group follows a strategy of entering selective
markets in the CEE region, followed by continuous expansion of its market position. In its core markets –
i.e., those with a high level of economic and political stability – the Vienna Insurance Group strives to be
at least one of the top five insurers in the country. In its endeavour to create shareholder value, the Vienna
Insurance Group generally leaves profits that are earned in a CEE country within that country to further
strengthen the Group companies and enable their dynamic expansion.
Clear management principles
Vienna Insurance Group
The core strategies followed by the Vienna Insurance Group are accompanied by the following management
principles, which are intended to ensure optimal access to customers, mutual benefit from synergies and broad
risk diversification throughout the entire Group:
Think globally – act locally: The Vienna Insurance Group has set a goal of promoting the mutual exchange
of know-how between all Group companies. This is intended to allow the experience and ideas of employees
in individual markets to be used throughout the Group. This also applies in a unique way to the management
of Vienna Insurance Group. In addition to functional responsibilities, every member of the Managing
Board is also responsible for individual countries in the CEE region and is a member of the Supervisory
Board of the corresponding Group companies.

Multi-brand policy: Under the conscious application of the Vienna Insurance Group’s multi-brand strategy,
newly acquired companies keep their previous brand names as a matter of principle. These names have
been optimally introduced in local markets and are well anchored in customer awareness. The multi-brand
policy is rounded out and reinforced by the Vienna Insurance Group umbrella brand. Each Group company
bears its own brand as a given name and the Group brand as a family name, thereby displaying its dual
strength to the outside world.
Multi-channel distribution: The Vienna Insurance Group strives to use a broad selection of distribution channels
in all markets to obtain the best possible access to customers and fully exploit its business potential.
The creation of a powerfully effective field sales force is considered the foundation of an optimal distribution
structure.
Diversification: The goal of the Vienna Insurance Group is to keep risks low by means of broad diversification
in all areas. Geographic diversification and broad diversification through a variety of distribution channels
are intended to achieve this goal.
CEE – THE GROWTH MARKET
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
The CEE region offers highly attractive growth prospects for the insurance sector. The Vienna Insurance
Group’s expansion into the CEE countries pursues business potential that is essentially based on two factors.
Insurance density in the CEE region (premiums per capita) is only a fraction of the level in Western Europe and
further exhibits above-average annual growth rates. In addition, rapid economic growth is creating a significant
increase in the affluence of the population in the CEE countries, leading to a disproportionately high demand
for financial services to protect this standard of living. The economic convergence process taking place in the
region is expected to continue over the long term. In a dynamically changing economy, the insurance market
normally grows at a significantly faster rate than the overall economy. These are factors that make Central and
Eastern Europe very attractive for the Vienna Insurance Group. The long-term convergence potential of the
CEE region can be illustrated by using the example of insurance density. In the CEE region, this indicator is only
1/16 of the Western European level. In 2005, insurance density for the CEE countries was USD 176 (excluding
Russia and Belarus) versus USD 2,879 for the EU-15 countries.
35

INSURANCE DENSITY IN EUROPE IN 2006
v USD
3 000
2 500
2 000
1 500
1 000
500
0
36
2,879
EU-15*
2,343
AUSTRIA
978
SLOVENIA
478
CZECH REPUBLIC
*Weighted average value for the CEE area, excluding Russia and Belarus
(Source: Swiss Re, Sigma Nr. 5/2006)
334
HUNGARY
315
SLOVAKIA
275
CROATIA
245
POLAND
Vienna Insurance Group
Detailed information about the individual Group companies is available
on our website at www.viennainsurancegroup.com - About Us -The Group, or in the Group annual report
of the WIENER STÄDTISCHE Versicherung AG VIENNA INSURANCE GROUP.
88
BULGARIA
70
ROMANIA
53
UKRAINE
49
SERBIA
176
CEE*

VIENNA
INSURANCE
GROUP
as of 31. 12. 2006
COUNTRY COMPANY CORE BUSINESS SHAREHOLDING
AUSTRIA
CZECH REPUBLIC
SLOVAKIA
WIENER STÄDTISCHE VERSICHERUNG AG
VIENNA INSURANCE GROUP
LIFE / NON-LIFE
DONAU ALLGEMEINE VERSICHERUNG AG LIFE / NON-LIFE 89.47 %
BANK AUSTRIA CREDITANSTALT VERSICHERUNG AG LIFE 90.00 %
UNION VERSICHERUNG AG LIFE 45.00 %
KOOPERATIVA, POJIŠŤOVNA, A.S. LIFE / NON-LIFE 87.67 %
ČESKÁ PODNIKATELSKÁ POJIŠŤOVNA, A.S. LIFE / NON-LIFE 87.67 %
KOOPERATIVA POISTOVNA A.S. LIFE / NON-LIFE 100.00 %
KOMUNALNA POISTOVNA A.S. LIFE / NON-LIFE 95.06 %
KONTINUITA POISTOVNA A.S. LIFE 100.00 %
OTHER CEE MARKETS
BULGARIA BULSTRAD INSURANCE & REINSURANCE PLC. * NON-LIFE
BULSTRAD LIFE INSURANCE JOINT-STOCK COMPANY * LIFE
BULGARSKI IMOTI NON-LIFE PLC. NON-LIFE 98.36 %
BULGARSKI IMOTI LIFE PLC. LIFE 98.35 %
GEORGIA GEORGIAN INSURANCE PENSION HOLDING LTD. * LIFE / NON-LIFE
IRAO * NON-LIFE
CROATIA KVARNER WIENER STÄDTISCHE OSIGURANJE D.D. LIFE / NON-LIFE 98.75 %
COSMOPOLITAN LIFE D.D. ZA OSIGURANJE LIFE 73.00 %
HELIOS OSIGURANJE D.D. * LIFE / NON-LIFE
POLAND TU COMPENSA S.A. NON-LIFE 99.87 %
TU NA ZYCIE COMPENSA S.A. LIFE 100.00 %
TUIR CIGNA STU S.A. NON-LIFE 92.77 %
ROYAL POLSKA TU NA ŻYCIE SA LIFE 95.44 %
BENEFIA TU MAJĄTKOWYCH S.A. NON-LIFE 100.00 %
37

38
BENEFIA TU NA ZYCIE S.A. LIFE 100.00 %
ROMANIA OMNIASIG S.A. NON-LIFE 98.17 %
OMNIASIG ASIGURARI DE VIATA S.A. LIFE 69.98 %
UNITA S.A. NON-LIFE 100.00 %
AGRAS ASIGURARE REASIGURARE S.A NON-LIFE 88.68 %
RUSSIA MSK - LIFE LIFE 25.01 %
SERBIA WIENER STÄDTISCHE OSIGURANJE A.D.O. BEOGRAD LIFE / NON-LIFE 100.00 %
UKRAINE UIC KNIAZHA NON-LIFE 50.01 %
IC GLOBUS NON-LIFE 51.00 %
CJSC JUPITER LIFE 73.00 %
HUNGARY UNION BIZTOSITO ZRT. LIFE / NON-LIFE 100.00 %
BELARUS SBA ZASO KUPALA NON-LIFE 94.50 %
ZASO VICTORIA NON-LIFE 100.00 %
OTHER MARKETS
GERMANY INTERRISK VERSICHERUNG AG NON-LIFE 100.00 %
INTERRISK LEBENSVERSICHERUNG AG LIFE 100.00 %
LIECHTENSTEIN VIENNA-LIFE LEBENSVERSICHERUNG AG LIFE 100.00 %
BRANCHES
ITALY WIENER STÄDTISCHE VERSICHERUNG AG ITALIA LIFE / NON-LIFE -
SLOVENIA WIENER STÄDTISCHE ZAVAROVALNICA, PODRUŽNICA V LJUBLJANI LIFE / NON-LIFE -
* THESE INSURANCE PARTICIPATIONS ARE HELD VIA KARDAN FINANCIAL SERVICES. AS OF DECEMBER 31, 2006
WIENER STÄDTISCHE VERSICHERUNG AG VIENNA INSURANCE GROUP OWNS 40% OF KARDAN FINANCIAL SERVICES B.V.
DETAILED INFORMATION ABOUT THE PARTICIPATIONS OF THE WIENER STÄDTISCHE IS AVAILABLE IN THE CONSOLIDATED FINANCIAL STATEMENTS OF THE
WIENER STÄDTISCHE VERSICHERUNG AG VIENNA INSURANCE GROUP.

1. AUDITORS’ REPORT
2. COMPANY BALANCE SHEET AS AT 31. 12. 2006
3. PROFIT AND LOSS ACCOUNT AS AT 31. 12. 2006
4. NOTES TO THE FINANCIAL STATEMENTS AS AT 31. 12. 2006
5. REPORT ON RELATIONS BETWEEN ASSOCIATED ENTITIES
6. SUPERVISORY BOARD REPORT
Success is achieved
through detail.
Polykleitos from Argos

40
4
AUDITORS’
REPORT REPO

Česká podnikatelská pojišťovna, a. s. - annual report for 2006
41

42
auditors’ report

Česká podnikatelská pojišťovna, a. s. - annual report for 2006
COMPANY BALANCE SHEET AS OF 31. 12. 2006
43

44
4
COMPANY
BALANCE SHEET
AS AAT
31. 12. 2006
Company: Česká podnikatelská pojišťovna, a. s.
IČO: 63998530 in thousands of Czech crowns TCZK
(without decimal places)
Description
ASSETS
Line
number
Last
period
Gross Adjustment Net
1 2 3 4
A. Receivables for subscribed registered capital 1 0 0 0 0
B. Intangible assets, thereof: 2 42 571 110 899 -80 890 30 009
a) Incorporation costs 3 0 0 0 0
b) Goodwill 4 0 0 0 0
C. Financial placements (investments) 5 4 414 941 5 694 504 0 5 694 504
I. Land and buildings (real estate), thereof: 6 0 0 0 0
a) Land and buildings - self-occupied 7 0 0 0 0
II. Investments in affiliated undertakings and
participating interests
8 0 0 0 0
1. Participating interests with controlling influence 9 0 0 0 0
2. Debt securities issued by, and loans to,
undertakings - controlling influence
10 0 0 0 0
3. Participating interests with significant influence 11 0 0 0 0
4. Debt securities issued by, and loans to,
undertakings - significant influence
12 0 0 0 0
III. Other financial placements 13 4 414 941 5 694 504 0 5 694 504
1. Shares and other variable-yield securities, other
shares
14 42 592 175 208 0 175 208
2. Bonds and other fixed-income securities 15 2 484 448 4 583 998 0 4 583 998
3. Financial placements in investments companies 16 1 296 0 0 0
4. Other loans 17 0 0 0 0
5. Deposits with financial institutions 18 1 886 605 935 298 0 935 298
6. Other financial placements 19 0 0 0 0
IV. Deposits with ceding undertakings 20 0 0 0 0
D. Financial placements for the benefit of life assurance
policyholders who bear the investment risk
21 0 0 0 0

Česká podnikatelská pojišťovna, a. s. - annual report for 2006
E. Debtors 22 517 594 740 637 -213 451 527 186
I. Recievables arising from direct insurance operations 23 404 403 585 568 -207 904 377 665
1. receivables due from the policyholders 24 348 145 582 681 -206 322 376 360
2. receivables due from intermediaries 25 56 259 2 887 -1 582 1 305
II. Receivables arising from reinsurance operations 26 45 077 36 514 0 36 514
III. Other recievables 27 68 113 118 555 -5 547 113 008
F. Other assets 28 61 380 165 381 -82 343 83 038
I. Tangible fixed assets other than land and buildings
(real estate), and inventories
29 46 248 125 444 -82 343 43 101
II. Cash on accounts in financial institutions and cash
in hand
30 15 131 39 937 0 39 937
III. Other assets 31 0 0 0 0
G. Temporary asset accounts 32 277 241 308 429 0 308 429
I. Accrued interest and rent 33 1 064 329 0 329
II. Deferred acquisition costs, thereof: 34 224 990 221 735 0 221 735
a) in life assurance 35 36 686 48 403 0 48 403
b) in non-life insurance 36 188 304 173 332 0 173 332
III. Other temporary asset accounts, thereof 37 51 188 86 365 0 86 365
a) Estimated receivables 38 42 408 79 570 0 79 570
TOTAL ASSETS 39 5 313 727 7 019 850 -376 684 6 643 166
LIABILITIES
A. Equity 40 825 557 925 832
I. Registered capital, thereof: 41 1 000 000 1 000 000
a) changes in registered capital 42 0 0
b) own shares or own scrips, own share in a
bussines
43 0 0
II. Share premium 44 0 0
III. Revaluation fund 45 0 0
IV. Other capital funds 46 7 801 2 010
V. Statutory reserve fund and other funds from profit 47 672 1 221
VI. Profit or loss brought forward 48 -193 893 -183 464
VII. Profit or loss for the financial year 49 10 978 106 066
B. Subordinated liabilities 50 0 0
C. Technical provisions 51 3 887 159 5 606 132 -547 156 5 058 975
1. Provision for unearned premiums, thereof: 52 581 631 804 480 -75 381 729 099
a) Provision for unearned premiums
related to life assurance
53 22 336 22 688 0 22 688
b) Provision for unearned premiums
related to non-life insurance
54 559 295 781 792 -75 381 706 411
2. Life assurance provision 55 1 329 097 1 890 399 0 1 890 399
3. Provision for outstanding claims, thereof: 56 1 443 713 2 314 109 -468 765 1 845 343
45

a) Provision for outstanding claims related
to life assurance
57 21 631 32 025 -100 31 925
b) Provision for outstanding claims related
to non-life insurance
58 1 422 082 2 282 084 -468 665 1 813 418
4. Provision for bonuses and rebates, thereof: 59 16 482 17 742 -2 866 14 876
a) Provision for bonuses and rebates
related to life assurance
60 9 000 12 520 0 12 520
b) Provision for bonuses and rebates
related to non-life insurance
61 7 482 5 222 -2 866 2 356
5. Equalisation provision 62 6 509 16 784 0 16 784
6. LAT reserve 63 0 0 0 0
7. Non-life insurance provision, thereof: 64 1 465 288 -144 144
a) Non-life insurance provision related to
life assurance
65 0 0 0 0
b) Non-life insurance provision related to
non-life insurance
66 1 465 288 -144 144
8. CKP provision 67 508 263 562 330 0 562 330
9. Other technical provisions, thereof: 68 0 0 0 0
a) Other technical provisions related to life
assurance
69 0 0 0 0
b) Other technical provisions related to
non-life insurance
70 0 0 0 0
D. Life assurance technical provision where the investment
risk is borne by the policyholder
71 0 0 0 0
E. Provisions for other risks and losses 72 0 0
1. Provisions for pensions and similar obligations 73 0 0
2. Provisions for taxation 74 0 0
3. Other provisions 75 0 0
F. Deposits received from reinsurers 76 6 514 15 423
G. Creditors 77 330 725 340 511
I. Payables arising from direct insurance operations 78 187 137 208 179
II. Payables arising from reinsurance operations 79 67 661 40 278
III. Debenture loans, thereof: 80 0 0
a) convertible loans 81 0 0
IV. Amounts owed to credit institutions 82 0 0
V. Other payables, thereof: 83 75 927 92 054
a) tax liabilities and payables due to social security 84 18 500 18 580
VI. Guarantee fund of the Office 85 0 0
H. Temporary liability accounts 86 263 772 302 424
I. Accrued expenses and deferred revenues 87 229 328 203 934
II. Other temporary liability accounts, thereof 88 34 443 98 490
a) estimated payables 89 34 443 98 490
TOTAL LIABILITIES 90 5 313 727 6 643 166
46

4
PROFIT AND LOSS
ACCOUNT AS AT
31. 112.
2006
Company: Česká podnikatelská pojišťovna, a. s.
IČO: 63998530 in thousands of Czech crowns TCZK
(without decimal places)
Line
number
2006
Base
2006
Subtotal
2006
Result
B 1 2 3
I. TECHNICAL ACCOUNT FOR NON-LIFE INSURANCE
1. Earned premiums, net of reinsurance: 1 x x x
a) Gross premiums written 2 3 262 339 x x
b) Outward reinsurance premiums 3 385 178 2 877 161 x
c) Change in the gross provision for unearned premiums (+/-) 4 71 378 x x
d) Change in the gross provision for unearned premiums,
reinsurers‘ share (+/-)
5 -75 738 147 116 2 730 045
2. Allocated investment return transferred from the non-technical
account (entry III.6.)
6 x x 86 646
3. Other technical income, net of reinsurance 7 x x 69 480
4. Claims paid, net of reinsurance: 8 x x x
a) Claims paid: 9 x x x
aa) gross amount 10 1 498 408 x x
ab) reinsurers‘ share 11 190 635 1 307 773 x
b) change in the provision for outstanding claims (+/-): 12 x x x
ba) gross amount 13 330 091 x x
bb) reinsurers‘ share 14 -61 245 391 336 1 699 109
5. Change in other technical provisions, net of reinsurance (+/-) 15 x x 47 620
6. Bonuses and rebates, net of reinsurance 16 x x 5 808
7. Net operating expenses 17 x x x
a) Acquisition costs 18 x 677 606 x
b) Change in deferred acquisition costs (+/-) 19 x 14 972 x
c) Administrative costs 20 x 390 313 x
d) Commission from reinsurers and profit participations 21 x 99 067 983 824
8. Other technical costs, net of reinsurance 22 x x 98 335
9. Change in the equalisation provision (+/-) 23 x x 10 275
10. Sub-total on the technical account for non-life insurance
(item III.1.)
24 x x 41 200
47

II. TECHNICAL ACCOUNT FOR LIFE ASSURANCE
1. Earned premiums, net of reinsurance: 25 x x x
a) gross premiums written 26 x 1 082 819 x
b) outward reinsurance premiums 27 x 7 457 x
c) change in the gross provision for unearned premiums,
reinsurers‘ share (+/-)
28 x 352 1 075 010
2. Income from financial placements (investments): 29 x x x
a) income from participating interests, with a separate
indication of that derived from controlling influence
30 x 0 x
b) income from other investments, with a separate indication
of that derived from controlling influence
31 x x x
ba) income from land and buildings (real estate) 32 0 x x
bb) income from other financial placements (investments) 33 67 269 67 269 x
c) value adjustments on financial placements 34 x 0 x
d) income from disposal of financial placements 35 x 10 273 77 542
3. Unrealised gains on financial placements 36 x x 0
4. Other technical income, net of reinsurance 37 x x 17 746
5. Claims paid, net of reinsurance: 38 x x x
a) claims paid: 39 x x x
aa) brutto 40 283 486 x x
ab) reinsurers‘ share 41 150 283 336 x
b) change in the provision for outstanding claims (+/-): 42 x x x
ba) brutto 43 10 294 x x
bb) reinsurers‘ share 44 0 10 294 293 630
6. Change in other technical provisions, net of reinsurance (+/-): 45 x x x
a) change in the life assurance provision: 46 x x x
aa) brutto 47 561 302 x x
ab) reinsurers‘ share 48 0 561 302 x
b) change of other technical provisions 49 x 3 520 564 822
7. Bonuses and rebates, net of reinsurance 50 x x 0
8. Net operating expenses: 51 x x x
a) acquisition costs 52 x 164 646 x
b) change in deferred acquisition costs (+/-) 53 x -11 717 x
c) administrative costs 54 x 79 735 x
d) commission from reinsurers and profit participations, net 55 x 3 229 229 435
9. Expenses connected with financial placements (investments): 56 x x x
a) investment management charges, including interest 57 x 741 x
b) value adjustments on financial placements 58 x 0 x
c) book value of disposed financial placements 59 x 16 624 17 365
10. Unrealised losses on financial placements (investments) 60 x x 0
11. Other technical costs, net of reinsurance 61 x x 20 422
12. Allocated investment return transferred to the non-technical
account (item III.4.)
62 x x 0
13. Subtotal, Result of the technical account for life insurance
(entry III.2.)
63 x x 44 624
48

III. NONTECHNICAL ACCOUNT
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
1. Result of the technical account for non-life insurance (entry I.10.) 64 x x 41 200
2. Result of the technical account for life insurance (entry II.13.) 65 x x 44 624
3. Income from financial placements: 66 x x x
a) income from participating interests, with a separate
indication of that derived from controlling influence
67 x 0 x
b) income from other investments, with a separate indication
of that derived from controlling influence
68 x x x
ba) income from land and buildings 69 0 x x
bb) income from other financial placements (investments) 70 119 093 119 093 x
c) value adjustments on financial placements 71 x 0 x
d) income from disposal of financial placements 72 x 506 761 625 854
4. Allocated investment return transferred from the technical account for
life assurance (item II.12.)
73 x x 0
5. Expenses connected with financial placements: 74 x x x
a) investment management charges, including interest 75 x 2 706 x
b) value adjustments on financial placements 76 x 0 x
c) book value of disposed financial placements 77 x 536 502 539 208
6. Allocated investment return transferred to the technical account for
non-life insurance (item I.2.)
78 x x -86 646
7. Other income 79 x x 2 005
8. Other expenses 80 x x 9 806
9. Income tax on ordinary activities 81 x x -29 214
10. Profit or loss on ordinary activities after tax 82 x x 107 237
11. Extraordinary expenses 83 x x 0
12. Extraordinary income 84 x x 706
13. Extraordinary profit or loss 85 x x -706
14. Income tax on extraordinary activities 86 x x 0
15. Other taxes and fees 87 x x 465
16. PROFIT OF LOSS FOR THE FINANCIAL YEAR (ENTRY III.3.) 88 x x 106 066
49

50
4
NOTES TO THE
FINANCIAL
STATEMENTS
AS AAT
31. 12. 2006
I GENERAL CONTENTS ............................................................................................................................. 52
I. 1. Description and principal activities ....................................................................................................52
I. 2. Compliance with legislation ................................................................................................................54
I. 3. Basis of preparation of the financial statements ................................................................................54
I. 4. Significant accounting policies............................................................................................................54
(a) Gross premiums written ...................................................................................................................................... 54
(b) Claims paid ............................................................................................................................................................ 54
(c) Acquisition costs ................................................................................................................................................... 54
(d) Deferred acquisition costs .................................................................................................................................. 54
(e) Provision for unearned premiums ..................................................................................................................... 55
(f) Provision for outstanding claims ....................................................................................................................... 55
(g) Provision for bonuses and rebates .................................................................................................................... 55
(h) Equalisation provision .......................................................................................................................................... 56
(i) Life assurance provision ...................................................................................................................................... 56
(j) Non-life insurance provision............................................................................................................................... 56
(k) Other technical provisions ................................................................................................................................. 56
(l) Reinsurers’ share of technical provisions ......................................................................................................... 56
(m) Investments ............................................................................................................................................................ 57
(n) Expenses and income from financial placements .......................................................................................... 58
(o) Tangible and intangible fixed assets .................................................................................................................. 58
(p) Foreign currency translation ............................................................................................................................... 58
(q) Adjustments ........................................................................................................................................................... 58
(r) Method of allocation of items between life assurance and non-life insurance ........................................ 59
(s) Income tax ............................................................................................................................................................. 59
I. 5. Change in accounting policies and procedures ................................................................................59
II. SPECIAL CONTENTS ............................................................................................................................... 60
II. 1. Non-life insurance ................................................................................................................................60
II. 2. Life assurance ....................................................................................................................................... 61
II. 3. Total amount of Gross premiums written by country .......................................................................61
II. 4. Summary of commissions .................................................................................................................... 61
III. OTHER DISCLOSURES ............................................................................................................................ 62
III. 1. Intangible fixed assets ..........................................................................................................................62
III. 2. Investment.............................................................................................................................................62
(a) Carrying amount and fair value of investments .............................................................................................. 62
III. 3. Receivables and payables ....................................................................................................................62

Česká podnikatelská pojišťovna, a. s. - annual report for 2006
(a) Adjustments to receivables................................................................................................................................. 62
(b) Long-term payables and receivables (maturity over 5 years) ....................................................................... 63
(c) Payables and receivables due to or from the reinsurer ................................................................................. 63
III. 4. Tangible fixed assets .............................................................................................................................63
III. 5. Other assets and temporary asset or liability accounts ....................................................................63
(a) Deferred acquisition costs .................................................................................................................................. 63
(b) Foreign exchange losses and gains ................................................................................................................... 63
III. 6. Equity .....................................................................................................................................................63
(a) Share capital .......................................................................................................................................................... 63
(b) Other changes in equity......................................................................................................................................64
(c) Other funds ...........................................................................................................................................................64
III. 7. Technical provisions .............................................................................................................................64
(a) Technical provisions summary ...........................................................................................................................64
(b) Provision for unearned premiums .....................................................................................................................64
(c) Life assurance provision ...................................................................................................................................... 65
(d) Provision for outstanding claims ....................................................................................................................... 65
(e) Provision for bonuses and rebates .................................................................................................................... 65
(f) Equalisation provision .......................................................................................................................................... 66
(g) Other technical provisions ................................................................................................................................. 66
III. 8. Off-balance sheet liabilities .................................................................................................................66
(a) Commitments under leasing contracts ............................................................................................................ 66
III. 9. Contingent liabilities ............................................................................................................................66
(a) Law suits ................................................................................................................................................................. 66
(b) Membership in the Czech Bureau of Insurers (the Bureau) ........................................................................ 66
(c) Czech Nuclear Pool ............................................................................................................................................. 67
III. 10. Additional disclosures in respect of the profit and loss account .....................................................67
(a) Administrative expenses ..................................................................................................................................... 67
(b) Employees and management ............................................................................................................................. 67
(c) Statutory, Executive and Supervisory Board members’ remuneration ...................................................... 68
(d) Expense and revenues allocation between technical accounts and non-technical account................. 68
(e) Result of non-technical account ........................................................................................................................ 68
(f) Result before tax ................................................................................................................................................... 68
III. 11. Taxation .................................................................................................................................................69
51

I.
52
GENERAL CONTENTS
I. 1.
Description and principal activities
Česká podnikatelská pojišťovna, a.s. („the Company“ or „the Insurance Company“) was entered
into the Commercial Register on 6 November 1995.
Identification Number of the Company: 63 99 85 30
• Principal business activities:
1.
2.
3.
insurance activities pursuant to Section 7 (3) of Act No. 363/1999 Coll., on Insurance and
Amendments to Related Legislation (the Insurance Act), as amended
• in the scope of life assurance classes 1, 2, 3, 4 and 6 listed in Part A of the Annex to the
Insurance Act
• in the scope of non-life assurance classes 14, 15, 16 and 18 listed in Part B of the Annex to the
Insurance Act
• in the scope of non-life assurance groups a), b), c), d) and e) listed in Part C of the Annex to
the Insurance Act.
reinsurance activity pursuant to Section 3 (3) of the Insurance Act only in the scope of facultative
reinsurance pursuant to Section 9 (5) of the Insurance Act
• in the scope of non-life assurance classes 3 and 7 listed in Part B of the Annex to the
Insurance Act.
activities related to insurance and reinsurance activities pursuant to Section 3 (4) of the
Insurance Act
• intermediary activity performed in relation to insurance activities in compliance with the
Insurance Act
• advisory activity related to insurance of natural persons and legal entities in compliance with
the Insurance Act
• investigation of claims performed based on a contract entered into with the insurance
company in compliance with the Insurance Act
•
•
pursuit of intermediary activity
pursuit of intermediary activity in terms of construction savings
• pursuit of intermediary activity in terms of supplementary pension insurance with state
contribution
•
Notes to the
financial statements
as at 31. 12. 2006
(Year ended 31. 12. 2006.
In thousends of Czech crowns „TCZK“)
educational activities for insurance intermediaries and independent loss adjusters

• Registered office of the Company
Česká podnikatelská pojišťovna, a. s.
Budějovická 5
140 21, Praha 4
• Members of the Board of Directors and Supervisory Board as at 31 December 2006:
• Members of the Board of Directors
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
Chairman: Dr. Franz Kosyna, Vienna, Weimarerstrasse 93/1, 1190, Austria
(since 19 May 2006)
Deputy Manager: RNDr. Jakub Strnad, Ph.D., Praha 9, Semilská 926/54a
(Member of the Board of Directors since 22 July 2005 and Deputy Manager
of the Board since 28 March 2006)
Member: Ing. Jaroslav Besperát, Praha 9, Černovická 2142
(since 11 March 2005)
• Supervisory Board:
Chairman: Ing. Vladimír Mráz, Praha 7, U letenského sadu 6/1294
(since 22 July 2005)
Members: Prof. Ing. Jaroslav Daňhel, CSc. Praha 10, Vršovice, K louži 1261/9,
(since 1 April 2005)
Mag. Peter Höfinger, Vienna, Dammhaufen 58a, Austria
(since 23 November 2005)
Jiří Nedvídek, Ostrava – Vítkovice, Nerudova 9,
(since 1 April 2005)
Ing. Jaroslav Sirotek, Praha 8, Bojarova 1252,
(since 1 April 2005)
Ing. Zdeněk Srp, Praha 6, Nevanova 1053,
(since 1 April 2005)
Ing. Konštantín Alexejenko, Bratislava, Koprivnická 14, Slovak Republic
(since 1 October 2006)
• Sole shareholder:
Kooperativa, pojišťovna, a. s.
Templová 747, 110 01, Praha 1
Identification number: 471 16 617
The Board of Directors acts in the name of the Company. Two members of the Board must
always act together on behalf of the Board of Directors in the name of the Company outward
and bind the Company together. In order to sing on behalf of the Company their signatures, their
printed name, surname, title and function, are required alongside the printed or written name of
the Company.
53

I. 2.
I. 3.
I. 4.
54
(a)
(b)
(c)
(d)
Compliance with legislation
At the balance sheet date the Company fully complied with Act No. 363/1999 Coll., on Insurance,
as amended (“the Insurance Act”), Act No. 37/2004 Coll., on Insurance Contracts, as
amended, Act No. 38/2004 Coll., on Insurance Intermediaries and Independent Loss Adjusters,
Act No. 168/1999 Coll., on Liability Insurance for Losses Caused by the Operation of a Motor
Vehicle, as amended (“the Act on Motor Third-Party Liability Insurance”), including the applicable
implementing regulations, and with other legislation in force.
Basis of preparation of the financial statements
The accounting records of the Company are maintained and the financial statements of the
Company have been prepared in accordance with Act No. 563/1991 Coll., on Accounting,
in accordance with Regulation No. 502/2002 Coll., to implement certain provisions of Act
No. 563/1991 Coll., on Accounting, and with the Czech Accounting Standards for insurance
companies.
The accounting records of the Company are maintained in such a manner that the financial
statements prepared based on these records present a true and fair view of the accounting and
financial position of the accounting unit.
Significant accounting policies
Gross premiums written
Gross premiums written comprise all amounts due during the financial year in respect of insurance
contracts regardless of the fact that such amounts may relate in whole or in part to future
financial years.
Claims paid
Claims paid comprise the amount assessed for payment based on the claims investigation process,
external claims handling costs and a deduction for the salvage value and other recoveries.
Claims paid are recorded upon completion of the investigation of the claim and in the amount of
the assessed settlement (proportional, full).
Acquisition costs
Acquisition costs comprise all direct and indirect costs arising from the conclusion of insurance
contracts.
Deferred acquisition costs
Notes to the
financial statements
as at 31. 12. 2006
(Year ended 31. 12. 2006.
In thousends of Czech crowns „TCZK“)
Deferred acquisition costs represent the proportion of the acquisition costs incurred during the
current financial year that relates to the revenues of subsequent financial years.
• Non-life insurance
In respect of non-life insurance, deferred acquisition costs are based on total acquisition costs
incurred in the current period and the ratio of the gross provision for unearned premiums at the
balance sheet date to the total gross premiums written for the financial year.

(e)
(f)
(g)
A proportion of acquisition costs on the individual marketing activities in respect of which it is
possible to determine the length of the period in terms of which they were spent are deferred
during this period.
A proportion of acquisition costs on launch of new products the entire revenues from which
relate to the subsequent accounting periods are deferred in these periods at maximum for the
period of 12 months.
• Life assurance
In life assurance the Company determines deferred acquisition costs using the zillmerisation
method, which is the method used to calculate the life assurance provision.
Provision for unearned premiums
The provision for unearned premiums represents that part of gross premiums written which is to
be allocated to subsequent financial years. It represents the sum of all amounts calculated for
individual contracts using the “pro rata temporis” method.
Provision for outstanding claims
The provision for outstanding claims in respect of both life and non-life insurance comprises the
amount of expected costs in respect of claims:
a)
b)
Reported but not settled during the period (RBNS),
Incurred but not reported during the period (IBNR).
The provision for outstanding claims reported by the end of the year represents the sum of all
amounts calculated for individual claims.
The provision for outstanding claims incurred but not reported as at the balance sheet date is
determined using the actuarial methods.
The provision for outstanding claims includes all relating estimated external claims handling costs
including the value of salvages.
Where for individual types of insurance the claim payment is provided in the form of annuities,
the provision for outstanding claims is established based on actuarial methods.
Although the Company considers that the provision for outstanding claims is fairly stated on the
basis of the information currently available to them, the ultimate liability may vary as a result
of subsequent events or new information, which may result in significant adjustments to the
amounts provided for. Adjustments to the amounts of the provisions are reflected in the financial
statements for the period in which the adjustments are made. The procedures and methods used
in making estimates are reviewed regularly.
Provision for bonuses and rebates
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
The provision for bonuses and rebates is created in accordance with the respective terms set
out in insurance contracts. In respect of non-life insurance, the provision is created principally in
cases where the Company is liable to refund to policyholders a portion of the premiums relating
to the current financial year due to favourable claims experience.
In respect of life assurance, the provision for bonuses and rebates includes shares of surpluses
arising as at 31 December of the current period, which have not been allocated to individual
insurance contracts and thus are not included within the life assurance provision.
55

56
(h)
(i)
(j)
(k)
(l)
Equalisation provision
The equalisation provision is created for individual classes of non-life insurance and is intended
to equalise the increased claims costs arising due to fluctuations in the claims ratio caused by
events beyond the Company’s control. The creation and release of this provision is in compliance
with Regulation No. 303/2004 Coll.
Regulation No. 303/2004 Coll. prescribes the method and criteria for calculating the equalisation
provision, the amounts to be added to the provision and the amounts to be released, and the
maximum level of the provision for individual classes of non-life insurance.
Life assurance provision
The life assurance provision comprises the sum of the provisions for individual life assurance policies.
The life assurance provision is calculated using actuarial methods, including profit shares
declared and allocated and a provision for expenses, related to the administration of contracts,
after deducting the value of future premiums.
The Company accounts for the provision using the zillmerisation method in accordance with the
calculation of individual tariffs approved by the Czech National Bank (“ČNB”). The zillmerisation
method results in the deferral of acquisition costs for life assurance contracts. These costs are
included within the life assurance provision through actuarial methods after eliminating temporary
negative balances, which are capitalised and presented as deferred acquisition costs. The acquisition
costs are capitalised and deferred in accordance with the prudence principle and taking
into account the risk of lapses and cancellations.
Non-life insurance provision
The non-life insurance provision is created for those classes of non-life insurance where the premium
amount depends on the entry age of the insured. This provision represents the value of the
insurance company’s liabilities calculated using actuarial methods, including already allocated
profit shares or contractual claims for premium refunds and maintenance expenses deducting the
present value of future premiums.
Other technical provisions
As at the balance sheet date Other technical provisions include the provision for the liabilities
of the Czech Bureau of Insurers created pursuant to Section 15a of Act No. 363/1999 Coll., as
amended, on Insurance. The amount of this provision is determined on the basis of information
provided by the Czech Bureau of Insurers. This provision has replaced another technical provision
for the liabilities of the Czech Bureau of Insurers created under Act No. 168/1999 Coll.,
on Motor Third Party Liability Insurance, that had been created by the Company pursuant to
Section 13 (4) of Act No. 363/1999 Coll., as amended, on Insurance, based on an application
approved by the Ministry of Finance.
Reinsurers’ share of technical provisions
Notes to the
financial statements
as at 31. 12. 2006
(Year ended 31. 12. 2006.
In thousends of Czech crowns „TCZK“)
Technical provisions are presented as a net liability, i.e. after deduction of the reinsurers’ share.
The amount of this share is calculated based on the terms of the related reinsurance contracts,
the method of settlement with reinsurers and in consideration of the prudence principle.
As at the balance sheet date the Company presents the reinsurers’ share of the provision for
unearned premiums, the provision for outstanding claims, the non-life insurance provision and
the provision for bonuses and rebates. The reinsurer does not participate in the other technical
provisions.

(m)
Investments
• Debt securities
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
At the acquisition date debt securities are stated at acquisition cost. Debt securities are revalued
at their fair value as at the balance sheet date.
Acquisition cost is the amount for which a debt security has been acquired and includes a proportionate
part of any accrued interest and expenses directly associated with the acquisition.
Fair value means the price published by a public market (domestic or foreign) while liquidity of
the security is reflected. Where the security is traded on more than one domestic market, the
market price of the Prague Stock Exchange (Burza cenných papírů Praha) is applied. If there is no
available price or if it does not sufficiently represent the fair value, the fair value is determined
on the basis of a qualified estimate.
Debt securities are classified as securities valued at fair value through profit and loss or available
for sale and securities held to maturity.
A change in the fair value of debt securities valued through profit and loss or available for sale is
recognised in the profit and loss account.
A change in the fair value of debt securities held to maturity is recognised in equity.
Where debt securities are denominated in a foreign currency, their value is translated based
on the current exchange rate published by the Czech National Bank (“ČNB”). The appropriate
exchange rate difference is included in the fair value.
• Shares and other variable-yield securities
At the acquisition date, shares and other variable-yield securities are accounted for at acquisition
cost.
Acquisition cost is the amount for which the shares or other variable-yield securities were acquired
and includes all expenses directly associated with the acquisition.
At the balance sheet date, shares and other variable-yield securities are revalued at their fair
value.
Fair value means the price published by a domestic or foreign stock exchange or other public
market. If no market price is available or if it does not sufficiently represent the fair value, the fair
value is determined on the basis of a qualified estimate.
The change in fair value of shares or other variable-yield securities is recognised in the profit and
loss account.
Where shares and other variable-yield securities are denominated in a foreign currency, their value
is translated based on the current exchange rate published by ČNB. The appropriate exchange
rate difference is included in the fair value.
• Other investments
Deposits with banks and provided loans are stated at nominal value. At the balance sheet date,
these assets are revalued at their fair value.
As at 31 December 2006 foreign exchange gains and losses are reflected in respect of foreign
deposits.
57

58
(n)
(o)
(p)
(q)
Expenses and income from financial placements
• Method of allocation of expenses and income from financial placements between
life assurance and non-life insurance accounts
Expenses and income from financial placements, which are directly related to life assurance activities,
are recorded in the technical account for life assurance.
Other expenses and income from financial placements, which are not related to life assurance
activities, are recorded in the non-technical account and the result is transferred to the technical
account for non-life insurance.
• Expenses and income from disposal of financial placements
The disposal of financial placements is presented on a gross basis, whereby the revenues from
disposal in the amount of the selling price of the relevant financial instruments are recorded
separately from the carrying value of the related part of the financial placements.
Tangible and intangible fixed assets
Tangible and intangible fixed assets are stated at acquisition cost.
Tangible fixed assets costing less than TCZK 40 are recorded as low-value tangible assets. Intangible
fixed assets costing less than TCZK 60 are charged to the profit and loss account in the
year in which they are acquired. The annual depreciation rate reflects the assets’ expected useful
lives.
The following depreciation rates are used for the individual asset classes:
Fixed assets Method Number of years
Software straight-line 3
Other intangible fixed assets straight-line 3
Low-value tangible fixed assets straight-line 3
Tangible fixed assets straight-line 4 — 50
(grouped according to material subclasses with the same depreciation rate)
Foreign currency translation
Transactions during the year are recorded at the ČNB rate effective on the transaction date or at
the rate at which the transaction was realised.
At the balance sheet date, foreign currency assets and liabilities are translated at the ČNB official
rate on that date.
Adjustments
Notes to the
financial statements
as at 31. 12. 2006
(Year ended 31. 12. 2006.
In thousends of Czech crowns „TCZK“)
The Company creates adjustments to receivables and other assets except for financial placements.
Adjustments represent a temporary decrease in value of individual assets. The amount
of the decrease is determined on the basis of a professional risk assessment carried out by the
management of the Company.
The Company accounts for adjustments by recording the difference between the opening and
closing balance in the profit and loss account at the balance sheet date.

(r)
(s)
(t)
• Adjustments to receivables from policyholders
Adjustments to receivables from policyholders are calculated based on an analysis of their recoverability
and ageing structure. The analysis includes an ageing analysis of the receivables and
assessment of the risk of non-payment of specific receivables.
Method of allocation of items between life assurance and non-life insurance
In order to account for items common to both life assurance and non-life insurance, the Company
uses a method approved by the Ministry of Finance. Under this method individual items are
grouped according to the class of insurance to which they relate. For items that cannot be allocated
directly, the following basis is used: the ratio of gross non-life insurance premiums written
and gross life assurance premiums written excluding additional deposits.
• Expenses and revenues from financial placements
Directly attributable expenses and revenues from financial placements are accounted for using
the method stated in point I.2.(m). Other expenses and revenues from financial placements are
allocated between life assurance and non-life insurance in the ratio of total life assurance/non-life
insurance provisions to total technical provisions. The minimum amount of net revenue on the
life assurance technical account equals to the amount of revenues allocated to insured persons
and recorded in the life assurance provision and the provision for bonuses and rebates of life
assurance. The other expenses relating to placement of technical provisions are allocated in the
same manner as well.
Income tax
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
Income tax on the profit for the year comprises current income tax and the change in deferred
tax. Current income tax comprises the tax liability calculated from the tax base using the effective
tax rate and any additional payments or refunds of tax for previous years.
Deferred tax is provided on temporary differences between the carrying amounts of assets for
accounting purposes and the amounts used for taxation purposes multiplied by the expected tax
rate prescribed for the following period.
A deferred tax asset is recognized only to the extent that there is no doubt that future taxable
profits will be available against which this asset can be utilized.
Change in accounting policies and procedures
The Company did not change its accounting policies and procedures.
59

II.
60
SPECIAL CONTENTS
II. 1.
Non-life insurance
Non-life insurance for 2005 and 2006 divided by classes of insurance:
Gross
premiums
written
Travel insurance
Gross
premiums
earned
Gross
claims
paid
Notes to the
financial statements
as at 31. 12. 2006
(Year ended 31. 12. 2006.
In thousends of Czech crowns „TCZK“)
Gross
operating
expenses
Reinsur.
balance
2006 38 636 38 575 27 174 7 920 0
2005 35 616 35 928 17 473 4 490 0
Accident and sickness
2006 50 858 48 177 29 040 7 772 -3 345
2005
Motor – liability
36 262 36 126 22 523 5 034 -305
2006 2 237 934 2 232 980 954 758 256 511 -92 049
2005 2 295 166 2 237 072 931 476 219 642 -2 411
Property insurance
2006 346 869 325 976 127 332 43 101 -144 620
2005 327 016 304 299 65 132 93 780 -82 423
Liability insurance
2006 200 594 185 997 100 437 32 022 -25 757
2005 176 226 166 163 55 803 37 485 1 268
Collision insurance
2006 376 263 349 163 259 126 42 050 -191
2005
Nuclear pool
244 502 234 752 152 661 12 600 -10 605
2006 11 185 10 093 541 937 -203
2005 7 000 7 883 0 1 101 -3 364
Insurance of travel agencies against bankruptcy - pool
2006 0 0 0 0 0
2005
Total
-4 -4 0 0 2
2006 3 262 339 3 190 961 1 498 408 390 313 -266 165
2005 3 121 784 3 022 219 1 245 068 374 132 -97 838
The methodology applied to Gross operating expenses changed year-on-year and it retroactively
influenced also the 2005 figures. The impact of this change consists in more accurate allocation
of expenses to the individual classes of insurance.

II. 2.
II. 3.
II. 4.
Life assurance
Gross premiums written in life assurance:
2005 2006
Individual (special) premium 888 764 1 082 819
Regular premium 885 663 1 050 849
Single premium 3 101 31 970
Premiums from profit-sharing contracts 881 901 967 873
Premiums from non profit-sharing contracts 6 863 114 946
Total 888 764 1 082 819
Reinsurance balance of life assurance -3 972 -4 078
In 2006 the methodology applied to presenting regular and single premium changed. The change
consists in more accurate allocation of the individual products to these two groups. It had impact
on the 2005 results as well.
Total amount of Gross premiums written by country
Most contracts were concluded in the Czech Republic.
Summary of commissions
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
The total amount of commission for direct insurance amounted to TCZK 594 455 in 2006 (2005:
TCZK 562 157) and is divided as follows:
2005 2006
Non-life insurance 413 530 469 822
Life assurance 148 627 124 633
Total 562 157 594 455
61

III.
62
OTHER DISCLOSURES
III. 1.
III. 2.
(a)
III. 3.
(a)
Intangible fixed assets
The net book value of intangible fixed assets of the Company as at 31 December 2006 was
TCZK 30 009 (2005: TCZK 42 571).
Software
Other
intangible
fixed assets Total
Acquisition cost at 1. 1. 2006 92 890 6 138 99 028
Additions for 2006 13 783 1 268 15 051
Disposals for 2006 1 433 1 747 3 180
Acquisition cost at 31. 12. 2006 105 240 5 659 110 889
Accumulated dep. at 1. 1. 2006 52 755 3 702 56 457
Depreciation 25 801 1 811 27 612
Disposals 1 432 1 747 3 179
Accumulated dep. at 31. 12. 2006 77 124 3 766 80 890
Net book value at 1. 1. 2006 40 135 2 436 42 571
Net book value at 31. 12. 2006 28 116 1 893 30 009
Investment
Carrying amount and fair value of investments
Carrying amount Fair value
Description 2005 2006 2005 2006
Fixed-income securities 2 473 907 4 581 353 2 484 448 4 583 998
Deposits with banks 1 886 605 935 298 1 886 605 935 298
Other investments 43 888 175 208 43 888 175 208
Total 4 404 400 5 691 859 4 414 941 5 694 504
Receivables and payables
Adjustments to receivables
As at 31 December 2006, the Company created adjustments to receivables from the insured persons
and insurance intermediaries of TCZK 198 452 (2005: TCZK 211 930). In 2006 the Company
decided to write off receivables from policyholders of TCZK 36 826 (2005: TCZK 34 725).
Adjustments to receivables from salvation were TCZK 9 452 (2005: TCZK 9 873).
Adjustments to other receivables were TCZK 5 547 (2005: TCZK 5 716).
Notes to the
financial statements
as at 31. 12. 2006
(Year ended 31. 12. 2006.
In thousends of Czech crowns „TCZK“)

(b)
(c)
III. 4.
III. 5.
(a)
(b)
III. 6.
(a)
Long-term payables and receivables (maturity over 5 years)
The Company does not have long-term payables and receivables with a remaining period to maturity
in excess of five years.
Payables and receivables due to or from the reinsurer
The Company has a net payable to reinsurers of TCZK 3 764 (2005: TCZK 22 583).
Tangible fixed assets
Tangible fixed assets
and low-value
tangible fixed assets
Acquisition of assets
and advances paid Total
Acquisition cost at 31. 12. 2005 111 617 3 015 114 632
Additions for 2006 20 651 34 592 55 243
Disposals for 2006 11 855 37 607 49 462
Acquisition cost at 31. 12. 2006 120 413 0 120 413
Accumulated depreciation
at 31. 12. 2005
72 105 72 105
Depreciation expense 22 093 22 093
Disposals 11 855 11 855
Accumulated depreciation
at 31. 12. 2006
82 343 82 343
Net book value at 31. 12. 2005 39 512 3 015 42 527
Net book value at 31. 12. 2006 38 070 0 38 070
Other assets and temporary asset or liability accounts
Deferred acquisition costs
2005 2006
Life assurance 36 686 48 403
Non-life insurance 188 304 173 332
Total 224 990 221 735
Foreign exchange losses and gains
As at 31 December 2006 the Company did not account for foreign exchange losses and gains.
Equity
Share capital
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
As at 31 December 2006 the Company’s share capital amounted to TCZK 1 000 000. It consists
of 10 000 common registered shares in booked form with a nominal value of TCZK 100. The
shares are transferable without limitation. 100 % of the share capital was paid-up.
63

64
(b)
(c)
III. 7.
(a)
(b)
Other changes in equity
Based on proposal of the Board of Directors, the 2005 profit of TCZK 10 978 was allocated by
decision of the sole shareholder as of 11 May 2006 as follows: TCZK 10 429 was allocated to
Retained profits and the remaining balance of TCZK 549 to the Reserve fund.
Other funds
In 2006 no additions to the social fund, fund of bonuses or other capital contributions were
made.
Technical provisions
Technical provisions summary
2005 Gross Reinsurers’ share Net
Provision for unearned premium 732 750 -151 119 581 631
Life assurance provision 1 329 097 0 1 329 097
Provision for outstanding claims 1 973 723 -530 010 1 443 713
Provision for bonuses and rebates 16 482 0 16 482
Equalization provision 6 509 0 6 509
Non-life insurance provision 2 930 -1 465 1 465
Other technical provisions 508 263 0 508 263
Life assurance technical provision where the
investment risk is borne by the policyholders
0 0 0
Total 4 569 754 -682 595 3 887 159
2006 Gross Reinsurers’ share Net
Provision for unearned premium 804 480 -75 381 729 099
Life assurance provision 1 890 399 0 1 890 399
Provision for outstanding claims 2 314 109 -468 765 1 845 343
Provision for bonuses and rebates 17 742 -2 866 14 876
Equalization provision 16 784 0 16 784
Non-life insurance provision 288 -144 144
Other technical provisions 562 330 0 562 330
Life assurance technical provision where the
investment risk is borne by the policyholders
0 0 0
Total 5 606 132 -547 156 5 058 975
Provision for unearned premiums
Notes to the
financial statements
as at 31. 12. 2006
(Year ended 31. 12. 2006.
In thousends of Czech crowns „TCZK“)
2005 2006
Non-life insurance 559 295 706 411
Life assurance 22 336 22 688
Total 581 631 729 099

(c)
(d)
(e)
Life assurance provision
2005 2006
Unzillmerised provision 1 363 195 1 933 164
Elimination/capitalisation of negative reserves -34 098 -42 765
Zillmerised provision presented in the balance sheet 1 329 097 1 890 399
Provision for outstanding claims
• Claims run-off result
The claims run-off result is the difference between the provision for outstanding claims as at
1 January 2006, the claims payments during 2006 (with respect to claims included within this
provision) and the residual amount of this provision as at 31 December 2006.
The net run-off result is as follows:
2005 2006
Motor 5 204 -1 238
Motor - liability 47 490 117 508
Fire and other damage to property 7 506 15 768
Liability 8 179 14 557
Accident and sickness -4 772 -98
Life assurance 255 409
Travel 0 635
Other 0 3 550
Total 63 862 151 091
• Provision for outstanding claims in the form of annuities
The gross provision for outstanding claims paid in the form of annuities is TCZK 336 734 (2005:
TCZK 254 922).
Provision for bonuses and rebates
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
Provision for bonuses and rebates is created in accordance with the condition stipulated in the
insurance contracts based on the methods described in Point I.4.(g). This table shows its segmentation
by individual classes of insurance:
2005 2006
Non-life insurance 7 482 2 356
Life assurance 9 000 12 520
Total provision for bonuses and rebates 16 482 14 876
65

66
(f)
(g)
III. 8.
(a)
III. 9.
(a)
(b)
Equalisation provision
2005 2006
Travel insurance 0 0
Accident and sickness insurance 0 38
Motor - liability 0 0
Liability insurance 1 792 0
Property insurance 3 944 7 940
Collision insurance 0 8 806
Other 773 0
Total equalisation provision 6 509 16 784
Other technical provisions
Based on approval of the Ministry of Finance No. 32/33112/2005-323 as of 12 April 2005 issued
based on the application as of 9 March 2005 which included a business plan the Company created
another technical provision for the liabilities of the Czech Bureau of Insurers (ČKP) following
from the deficit in provisions for the motor third-party liability insurance as at 31 December 2006
of TCZK 562 330 (2005: TCZK 508 263).
Off-balance sheet liabilities
Commitments under leasing contracts
As at the balance sheet date the Company was committed to make payments under a finance
lease for equipment over the following two years; the total value of this liability is approximately
TCZK 204 (2005: TCZK 1 810).
Contingent liabilities
Law suits
Until 31 December 2006 ČPP was the defendant in 217 law suits the proceedings in respect
of which have still not been terminated (usually due to disagreement with the amount of the
settlement for a handled claim or due to refusal to provide settlement or damages) with the total
amount of TCZK 300 498. The related provision amounts to TCZK 128 675. In 2006 160 new
actions were filed against the Insurance Company (the other actions are older) and 148 law suits
were terminated (of which 43 law suits in the very same year in which the action was filed - i.e. in
2006).
Membership in the Czech Bureau of Insurers (the Bureau)
Notes to the
financial statements
as at 31. 12. 2006
(Year ended 31. 12. 2006.
In thousends of Czech crowns „TCZK“)
As a member of the Bureau the Company is obliged to guarantee the liabilities of the Bureau
pursuant to Section 18 (5) of Act No. 168/1999 Coll. The Company contributes to the guarantee
fund and creates other technical provisions. The amount of the contribution and other technical
provisions is determined based on a calculation made by the Bureau.
As a result of its membership in the Bureau the Company may become liable for payment of a
settlement for a damage incurred as a result of operation of a vehicle where the person liable
for the damage has liability insurance with an insurer that cannot pay the settlement due to
bankruptcy.

(c)
Czech Nuclear Pool
As a member of the Czech Nuclear Pool, the Company, under a “Joint and Several Liability”
agreement, has assumed a liability, in proportion to the Company’s net retention for the given
contract, should one or more members of the Czech Nuclear Pool be unable to fulfil their
obligation. The total contingent liability of the Company including joint and several liability is
contractually limited to double the retention for the specific insured risk.
III. 10. Additional disclosures in respect of the profit and loss account
(a)
(b)
Administrative expenses
2005 2006
Personnel expenses (payroll, social and health insurance) 300 665 350 348
Rental 43 253 45 956
Consultancy 17 434 10 659
Energy consumption 6 762 7 762
Material consumption 8 827 8 570
Other administrative expenses 73 526 56 558
Total administrative expenses 450 467 479 853
Employees and management
The average number of employees and executives and remuneration for 2006 and 2005 are as
follows:
2005
Average number
of employees Payroll
Social and health
insurance
Executives 56 33 084 11 579
Employees 629 181 396 63 221
Total 685 214 480 74 800
2006
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
Average number
of employees Payroll
Social and health
insurance
Executives 55 47 544 16 592
Employees 752 205 460 71 191
Total 807 253 004 87 783
67

68
(c)
(d)
(e)
(f)
Statutory, Executive and Supervisory Board members’ remuneration
During the financial years 2006 and 2005 the statutory, executive and supervisory board members
were provided the following remuneration:
2005
Members of the
Board of Directors
Members of the
Supervisory Board
Remuneration determined 802 583
Remuneration paid 6 802 4 583
Old age pension scheme paid 0 0
Total remuneration paid 6 802 4 583
2006
Members of the
Board of Directors
Members of the
Supervisory Board
Remuneration determined 5 000 750
Remuneration paid 5 358 750
Old age pension scheme paid 0 0
Total remuneration paid 5 388 750
Expense and revenues allocation between technical accounts and non-technical
account
The expense and revenues dividend based on their purpose are recorded to the relevant technical
or non-technical account during the financial year. Expense and revenues which cannot be
allocated directly are first recorded on the non-technical account and subsequently allocated to
the technical accounts based on the ratio of gross non-life insurance Premium written and gross
life assurance Premium written. The total amount of expense and revenues allocated in this manner
is TCZK 568 824 and TCZK 5 902 respectively.
Expenses and income from financial placements (including expenses and income from disposal
of financial placements) used to cover the technical provisions of the Insurance Company are recorded
primarily in the technical account for life assurance (group 63). The proportion of income
belonging to the relevant accounts of the non-technical account was allocated in the ratio of life
assurance technical provisions and non-life insurance technical provisions. The total amount of
allocated income and expenses is TCZK 18 229 and TCZK 1 376 respectively. The Company also
allocated income from financial placement of TCZK 86 646 from the non-technical account to
the technical account for non-life insurance.
Result of non-technical account
The result of the non-technical account as at 31 December 2006 amounted to TCZK - 8 507
(2005: TCZK - 5 431).
Result before tax
Notes to the
financial statements
as at 31. 12. 2006
(Year ended 31. 12. 2006.
In thousends of Czech crowns „TCZK“)
The result before tax as at 31 December 2006 amounted to TCZK 77 317 (2005: TCZK 28 208).

III. 11.
Taxation
• Current income tax
Current income tax for 2006 amounts to TCZK 0 (2005: TCZK 0).
• Deferred tax assets and liabilities
Deferred tax liability for 2006 decreased to TCZK 5 017 (2005: TCZK 8 167).
Deferred tax asset for 2006 increased to TCZK 77 084 (2005: TCZK 48 768).
In Prague on 19 February 2007
Dr. Franz Kosyna RNDr. Jakub Strnad, Ph.D.
Chairman of the Board of Directors Deputy Chairman of the Board of Directors
and General Manager and Deputy General Manager
Prepared by: Ing. Katarína Lovasová,CSc., Finance Manager
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
69

EQUITY DEVELOPMENT IN 2006
70
Registered
capital
Notes to the
financial statements
as at 31. 12. 2006
(Year ended 31. 12. 2006.
In thousends of Czech crowns „TCZK“)
Revaluation Profit for Statutory
of current Retained reseve
securities period earnings funds
Other
funds Total
Balance at 1. 1. 2006 1 000 000 7 801 10 978 -193 893 672 0 825 557
Additions to funds
Current period profit
0
allocationí -10 978 10 429 549 0
Reduction of funds
Revaluation of securities at
0
fair value -5 791 -5 791
Dividends in CZK per share 0
Other changes 0
Profit for 2006 106 066 106 066
Balance at 31. 12. 2006 1 000 000 2 010 106 066 -183 464 1 221 0 925 832

REPORT BY THE COMPANY BOARD OF DIRECTORS
ON RELATIONS BETWEEN ASSOCIATED ENTITIES/PERSONS
PURSUANT TO PROVISIONS OF §66A OF THE COMMERCIAL CODE
PART I.
ENTITIES/PERSONS REPRESENTING THE HOLDING
1. Controlled entity/person
4
REPORT ON
RELATIONS BETWEEN
ASSOCIATED ASSO ENTITIES
Company Česká podnikatelská pojišťovna, a. s.,
with registered office at Budějovická 5, 140 21 Praha 4
Company ID: 63998530
registered in the Commercial Register maintained by the District Court in Prague,
section B, file 3433 (hereinafter the “ČPP”).
ČPP is a commercial insurance company, operating under the Insurance Act No. 363/1999
Coll. Business operations description is specified in the Company Articles and filed with the
Commercial Register.
2. Controlling entity/person
Company Kooperativa, pojišťovna, a. s.,
with registered office at Templová 747, 110 00 Praha 1
Company ID: 47116617
registered in the Commercial Register maintained by the District Court in Prague,
section B, file 1897 (hereinafter the “Kooperativa”).
Kooperativa is a commercial insurance company, operating under the Insurance Act No.
363/1999 Coll. Business operations description is specified in Company Articles and filed with
the Commercial Register.
3. Associated entity/person
WIENER STÄDTISCHE Versicherung AG VIENNA INSURANCE GROUP
List of Kooperativa subsidiaries, with business name, address, Commercial register number,
company holding in the share capital and business description are specified in Appendix No. 1.
71

PART II.
RELATIONS BETWEEN ENTITIES/PERSONS OF THE HOLDING
72
1. Method of control
Kooperativa owns ČPP shares, totalling 100% nominal value of share capital.
2. Personnel union
Kooperativa / ČPP
• Supervisory Board chairman in ČPP is Ing. Vladimír Mráz, who is at the same time the Chairman
of the Board of Directors and General Manager of Kooperativa.
• Supervisory Board member ČPP is Ing. Konštantín Alexejenko, who is at the same time a Member
of the Board of Directors of Kooperativa.
• Supervisory Board member of ČPP is Mag. Peter Höfinger, who is at the same time Member of
the Supervisory Board of Kooperativa and member of the extended Board of Directors in Vienna
Insurance Group and Board of Directors member in Donau Allgemeine Versicherungs AG.
• Deputy Chairman of the Board of Directors is RNDr. Jakub Strnad, Ph.D., who is at the same time
a Member of the Board of Directors of Kooperativa.
3. Connection structure
PART III.
DETERMINING PERIOD
Report on relations
between associated
entities
Kooperativa ownership shareholding in individual subsidiaries is listed in Appendix no.1.
This report refers to the last accounting period, i.e., a period from 1. 1. 2006 until 31. 12. 2006.

PART IV.
CONTRACTS AND AGREEMENTS CONCLUDED BETWEEN ENTITIES/PERSONS IN THE HOLDING
1. Contracts and agreements concluded between controlling entities/persons
(Kooperativa) in relation to the controlled company ČPP.
• As of 31. 12. 2006 ČPP vehicles were insured with Kooperativa, under MTPL contract no.
6920339049.
• As of 31. 12. 2006 Kooperativa property was insured by ČPP under co-insurance contract no.
0006518133 and direct contract no. 0009509666. at the same time Kooperativa motor vehicles
were insured with ČPP under the fleet MTPL contract no. 3069331700 and comprehensive
fleet in contract no. 0009509844
The aforementioned contracts and agreements did not result in any losses for ČPP.
2. Contracts and agreements concluded between ČPP and other controlled
entities/persons, where the controlling entity was Kooperativa.
PART V.
In 2006 there were no such contracts entered into.
The aforementioned contracts and agreements did not result in any losses for ČPP.
OTHER LEGAL ACTIONS AND OTHER MEASURES IN THE INTERESTS OR INITIATED BY AFFILIATED
ENTITIES/PERSONS
PART VI.
CONFIDENTIALITY
Česká podnikatelská pojišťovna, a. s. - annual report for 2006
In 2006 there were no legal actions/steps nor other measures taken in the interests or initiated
by affiliated entities/persons.
Within the holding as confidential are treated information and facts, which are part of business
secret of Kooperativa, ČPP and other affiliated entities/persons, as well as information, which
was designated as confidential by any entity/person, which is part of the holding. Furthermore,
as confidential is treated all trading information, which could be separately or in relation to other
information or facts detrimental with respect to any entity/person within the holding.
In order to avoid losses on part of the controlled entity/person with respect to paragraph 1. of
this Part, the statutory body report does not contain financial details of concluded contracts and
agreements.
73

PART VII.
CONCLUSION
74
This report was prepared by the Board of Directors of the controlled entity/person, Česká podnikatelská
pojišťovna, a.s. submitted for perusal to the Supervisory Board and auditors BDO Prima
Audit, s.r.o., which will conduct verification of the company’s annual accounts. Considering the
fact that by law ČPP is obliged to issue annual report, this report will be attached as an integral
part.
ČPP Board of Directors will publish in the Commercial Gazette a notification, advising that the
annual report will be filed in deeds archive, maintained by the District Court in Prague.
In Prague on 31 March 2007
Report on relations
between associated
entities
Signatures of the members of the Board of Directors of controlled entity, company Česká podnikatelská
pojišťovna, a.s.
Dr. Franz Kosyna RNDr. Jakub Strnad, Ph.D.
Chairman of the Board of Directors Deputy Chairman of the Board of Directors
and General Manager and Deputy General Manager

Kooperativa, pojišťovna, a. s. - list of group companies as of 31. 12. 2006
Insurance companies Address
Česká podnikatelská
pojišťovna, a. s.
Budějovická 5
140 21 Praha
Other companies Address
Celetná 25 s. r. o. Celetná 590
CZ-110 01 Praha 1
KAPITOL pojišťovací
a finanční poradenství, a. s.
Rašínova 692/4
CZ-602 00 Brno
Česká Kooperativa London 201 Waterloo Gardens
2 Milner Square
London
KÁMEN OSTROMĚŘ s. r. o. Nádražní 414
CZ-507 52 Ostroměř
UNIGEO a. s. Místecká 329/258
CZ-720 00 Ostrava - Hrabová
Global Expert, s. r. o. Jana Palacha 1552
CZ-530 02 Pardubice
Benefita, a. s. U nákladového nádraží č.p. 3265/10
CZ-130 00 Praha 3
SURPMO, a. s. Opletalova 1626/36
CZ-110 00 Praha 1
KIP, a. s. Templová 5
CZ-110 01 Praha 1
Sanatorium Astoria a. s. Vřídelní čp. 92
CZ-360 01 Karlovy Vary
SHD - KOMES a. s. Moskevská 1/14
CZ-434 01 Most
SOLITER, a. s. Nádražní 10/148
CZ-466 45 Jablonec nad Nisou
GLOBAL ASSISTANCE, a. s. Dopraváků 749/3
CZ-184 00 Praha 8
Company
Register no.
639 985 30
section B
Company
Register no.
Appendix 1
to the Report on relations
between associated entities
Kooperativa a.s.
share holding
(%)
Kooperativa a.s.
share holding
(%)
Business
description
100,00 insurance
Business
description
25126890 100,00 real estate
60751070 100,00 broker
3144381 100,00 real estate
62024663 100,00 raw materials
processing
45192260 100,00 real estate
27472850 100,00 insurance claims
settlement
27225038 100,00 broker
45274886 99,91 real estate
49241788 86,43 consulting
45357242 75,06 spa
44569891 36,22 hotel
004 80 835 15,79 commercial activities
and services
27181898 15,00 assistance services
75

76
4
SUPERVISORY
BOARD BOA REPORT
ČESKÁ PODNIKATELSKÁ POJIŠŤOVNA, A.S. SUPERVISORY BOARD REPORT
Supervisory Board received and thoroughly examined the annual accounts for year 2006, including the Appendix
and company profit, management and business status report as of 31. 12. 2006. Result of this examination
is a unanimous Supervisory Board resolution to approve the company annual accounts prepared by the Board
of Directors and approval of the profit distribution proposal drafted by the Board of Directors.
Furthermore, the Supervisory Board informs that it had the opportunity to supervise the management of the
company individually, as well as a unit. During the past year the Board had met 4 times to review the company
results. In its assessment the Supervisory Board was guided by the documents submitted and information,
acquired during the course of its involvement with the company.
Furthermore, the Supervisory Board informs the sole shareholder that the company annual accounts for 2006
were approved by auditing firm BDO Prima Audit, s.r.o., that the Supervisory Board had received, reviewed
and reviewed the report and that the report conclusions do not give rise to any comments. The Supervisory
Board hereby declares that it does not have any additional comments to make with respect to the auditors’
report.
Furthermore, the Supervisory Board informs that pursuant to Article 18, par. 3), letter m) of the company
Articles, it is within the sole shareholder’s competence to grant approval to contracts concluded pursuant to
§196a of the Commercial Code. During the 2006 financial year the Supervisory Board did not deal with any
such contract.
In Prague on 31 March 2007
Ing. Vladimír Mráz
Supervisory Board Chairman

1. CONTACTS
2. ČPP SERVICE COVER MAP
Success visits
only those who lead
industrious lives.
Theodore Roosevelt
77

HEAD OFFICE:
Česká podnikatelská pojišťovna, a. s.
Praha 4, Budějovická 5,
Client telephone line: 841 444 555,
www.cpp.cz, E-mail: pojistovna@cpp.cz
BRNO
Area management centre:
Brno, Lidická 77, telephone: 541 233 660
Branches:
Břeclav, U Stadionu 2144, telephone: 519 322 853
Znojmo, nám. Svobody 16, telephone: 515 261 971
Hodonín, Národní třída 55c/3966, telephone: 518 342 444
Brno-město, Jakubské nám. 1, telephone: 545 217 648
Brno-město II., Příkop 6, telephone: 545 175 517
Brno-venkov, Pekařská 28, telephone: 542 215 140
Brno-venkov, Kapucínské nám. 14, telephone: 542 215 232
Jihlava, Žižkova 13, telephone: 567 300 255
Třebíč, Karlovo nám. 48/37, telephone: 568 843 448
Boskovice, nám. 9. května 10, telephone: 516 452 137
ČESKÉ BUDĚJOVICE
Area management centre:
České Budějovice, Průmyslová 1656, telephone:
386 360 268
Branches:
Strakonice, Komenského 105, telephone: 383 322 935
Písek, Fráni Šrámka 167, telephone: 382 217 082
Tábor, Fügnerova 822, telephone: 381 252 452
Jindřichův Hradec, Sládkova 309/II., telephone: 384 361 080
Český Krumlov, Horní Brána 511, telephone: 380 711 260
Prachatice, Pivovarská 284, telephone: 388 311 139
Pelhřimov, Arch. Janáka 2256, telephone: 565 322 449
HRADEC KRÁLOVÉ
Area management centre:
Hradec Králové, Škroupova 441/9, telephone: 495 704 400
Branches:
Hradec Králové, Šimkova 1223/2, telephone: 495 510 100
Trutnov, Bulharská 66, telephone: 499 813 359
Náchod, Krámská 29, telephone: 491 433 168
Jičín, Zahradní 28, telephone: 493 599 093
Turnov, 28. října 17, telephone: 481 322 854
78
5
OLOMOUC
CONTACTS
C
Area management centre:
Olomouc, Litovelská 17, telephone: 585 413 930
Branches:
Šumperk, Gen. Svobody 22/48, telephone: 583 224 827
Přerov, Čechova 13, telephone: 581 220 273
Prostějov, Nám.T. G. Masaryka 30, telephone: 582 337 735
Jeseník, 28. října 868, telephone: 584 413 100
Kroměříž, Komenského 370, telephone: 573 330 518
Uherské Hradiště, Na Splávku 1182, telephone: 572 540 602
Vsetín, Na Příkopě 814/15, telephone: 571 424 733
Zlín, Kvítková 476, telephone: 577 220 954
OSTRAVA
Area management centre:
Ostrava, Černá louka 78, telephone: 596 116 642
Branches:
Opava, Hradecká 1, telephone: 553 624 989
Třinec, 1. máje 398, telephone: 558 335 700
Frýdek-Místek, nám. Svobody 33, telephone: 558 436 796
Karviná, Svatováclavská 97, telephone: 596 320 224
Nový Jičín, Úzká 13, telephone: 556 706 765
Ostrava-Poruba, Opavská 823, telephone: 596 911 421
PARDUBICE
Area management centre:
Pardubice, Smilova 429, telephone: 466 068 304
Branches:
Chrudim, Palackého 55, telephone: 469 622 831
Havlíčkův Brod, Bělohradská 1128, telephone: 569 42 0 408
Ústí nad Orlicí, 17. listopadu 77, telephone: 465 526 290
Nové Město na Moravě, Vratislavovo nám. 13, telephone:
566 615 533
Žďár nad Sázavou, Nádražní 19, telephone: 566 629 899
Svitavy, nám. Míru 48, telephone: 461 530 317

PLZEŇ
Area management centre:
Plzeň, Prešovská 13, telephone: 377 831 111
Branches:
Klatovy, Denisova 212/I, telephone: 376 321 122
Plzeň-město, Skupova 24, telephone: 377 970 789
Domažlice, Vodní 31, telephone: 379 768 435
Tachov, Náměstí Republiky 60, telephone: 374 720 543
Cheb, Obrněné brigády 31, telephone: 354 544 944
Karlovy Vary, Majakovského 29, telephone: 353 563 902
Mariánské Lázně, Nádražní náměstí 299, telephone: 354 626 227
Sokolov, J. K. Tyla 275, telephone: 352 605 751
STŘEDOČESKÝ KRAJ
Area management centre:
Střední Čechy, Korunní 26/929, telephone: 222 511 702
Branches:
Mladá Boleslav, T. G. Masaryka 1078, telephone: 326 722 864
Kolín, Legerova 182, telephone: 321 716 931
Příbram I., nám. TGM č. 2, telephone: 318 627 195
Nymburk, Palackého třída 449, telephone: 325 516 370
Kladno, Tyršova 1396, telephone: 312 240 214
Rakovník, Poštovní 18, telephone: 313 502 589
Beroun, Plzeňská 27, telephone: 311 626 736
PRAHA
Area management centre:
Praha, Budějovická 3a, telephone: 261 023 135
Branches:
Praha 7, Milady Horákové 62, telephone: 233 380 605
Praha 5, J. Plachty 25, telephone: 257 319 003
ÚSTÍ NAD LABEM
Area management centre:
Ústí nad Labem, Hrnčířská 64/4, telephone: 475 220 001
Branches:
Teplice, Tržní nám. 241, telephone: 417 531 007
Most, Budovatelů 112/2, telephone: 476 744 980
Litoměřice, Dlouhá 35, telephone: 416 733 343
Chomutov, Revoluční 30, telephone: 474 621 903
Děčín, Palackého 823/4, telephone: 412 532 611
Litvínov, DS Chemopetrol, telephone: 476 162 800
Liberec, Rumunská 655/9, Palác Syner, telephone: 486 123 495
Česká Lípa, Čs. armády 1621, telephone: 487 853 984
Jablonec nad Nisou, E. Floriánové 810/2, telephone: 483 319 881
contacts
79

Liberec
Děčín
Jablonec n. Nisou
Litvínov
Ústí n. Labem
Teplice
Česká Lípa Turnov
Most
Chomutov
Litoměřice
Mladá Boleslav
Trutnov
Jičín
Náchod
Karlovy Vary
Hradec Králové
Cheb
Sokolov
Mariánské lázně
Rakovník
Kladno
Praha
Nymburk
Kolín
Pardubice
Beroun
Chrudim
Tachov
Domažlice
80
Plzeň
Klatovy
Strakonice
Prachatice
Jindřichův Hradec
Třebíč
Znojmo
Ústí n. Orlicí
Šumperk
Jeseník
Hodonín
Zlín
Uherské Hradiště
Opava
Ostrava
Karviná
Frýdek - Místek
Havlíčkův Brod
Svitavy
Žďár n. Sázavou
Olomouc
Nový Jičín
Třinec
Příbram Boskovice
Nové Město na Moravě
Přerov
Písek
Tábor Pelhřimov Jihlava
Prostějov
Kroměříž
Vsetín
České Budějovice
Český Krumlov
Brno
ČPP
SERVICE COVER
MAP
Břeclav

ANNUAL REPORT
2006
Česká podnikatelská pojišťovna, a. s. • Budějovická 5 • 140 21 Praha 4 • Česká republika • www.cpp.cz