Erste Bank JPMorgan Merrill Lynch International

The Vienna Insurance Group operates its Austrian property and casualty insurance business
primarily through Wiener Städtische AG and DONAU. To a more limited extent, BA-CA Versicherung
offers accident insurance. The Vienna Insurance Group pursues a two-brand strategy, i.e., Wiener
Städtische AG and DONAU are independent companies, each with its own line of products. They
collaborate only in the administrative area, separately using the same electronic data processing for
portfolio maintenance. In addition, internal support services, such as those performed by the personnel
department, the legal department, the investment and accounting departments, and the corporate
customer and reinsurance areas, are combined into Group-wide service groups. Both companies offer
coverage in all significant business segments and classes of property and casualty insurance, and
both are represented throughout Austria (Wiener Städtische AG focuses on the east, while DONAU
focuses more on the west).
The following table sets forth information on premium income, loss and expense ratios, and the
combined ratio in the Austrian property and casualty business:
Fiscal year ended December 31,
2007 2006 2005
Wiener Städtische AG
Gross written premiums (EUR million) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,126.5 1,007.9 943.7
Ceded reinsurance premiums as a percentage of earned premiums (%) . . 28.8 24.9 25.6
Net earned premiums (EUR million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794.6 757.8 688.7
Net loss ratio (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.4 67.1 67.5
Net expense ratio (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.5 27.3 26.7
Net combined ratio (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DONAU
92.9 94.4 94.2
Gross written premiums (EUR million) . . . . . . . . . . . . . . . . . . . . . . . . . . . 461.7 447.4 433.6
Ceded reinsurance premiums as a percentage of earned premiums (%) . . 15.1 13.6 12.3
Net earned premiums (EUR million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393.0 385.4 378.6
Net loss ratio (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.8 68.0 65.6
Net expense ratio (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.5 30.7 30.2
Net combined ratio (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97.3 98.7 95.8
Areas of Activity and Classes of Business
The Vienna Insurance Group offers a comprehensive range of insurance coverage and related
customer services in property and casualty insurance. In the motor vehicle insurance segment,
product lines include motor vehicle liability insurance, collision insurance and passenger accident
insurance. In the non-motor vehicle insurance, product lines include accident and various liability and
property products as well as legal costs insurance; typical products are for instance household,
homeowners, liability, residential property, commercial and agricultural package insurance for commercial
customers. For non-motor vehicle insurance class corporate customers, the Group offers individual
solutions in the fire, technology, aviation, liability, and transit insurance classes. Accident insurance
offers coverage for permanent disability, accident benefits, accident costs, and accidental death.
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