Erste Bank JPMorgan Merrill Lynch International

Wiener Städtische AG offers products in all lines of business and classes to retail, commercial,
and corporate customers, see above “– Insurance Business – Austria”. In the property and casualty
insurance business, Wiener Städtische AG offers a large variety of small, medium and large custom
tailored products. In the life insurance business, Wiener Städtische AG sells a large share of group
insurance as compared to the other Group affiliates. Moreover, Wiener Städtische AG has positioned
itself well with its state-subsidized pension plan product, Premien Pension. Health insurance is offered
exclusively by Wiener Städtische AG. For more details, see above “– Insurance Business – Austria”.
Wiener Städtische AG has a broad customer base among both retail and corporate customers.
Its customer structure broadly reflects the structure of the Austrian population: men and women are
represented in approximately equal proportions. The distribution of Wiener Städtische AG’s customers
among the various occupational groups and phases of life (single persons, families, working people
and retirees) is also relatively uniform.
DONAU Versicherung AG Vienna Insurance Group
DONAU is the largest fully consolidated Austrian insurance affiliate of the Vienna Insurance
Group. Wiener Städtische AG directly and indirectly holds approximately 89% of DONAU. Erste Bank
and Sparkassen Versicherung each hold approximately 5%. In 2007, DONAU ranked fifth in the
property and casualty insurance market, as measured by gross premiums written, and tenth in the life
insurance market (Source: Internal analysis based on preliminary data 2007 of the VVO). DONAU has
eight regional offices and 60 offices covering all of Austria.
The following table sets forth DONAU’s gross premiums written, results of ordinary business
activities, and capital assets for fiscal years 2007 and 2006:
Fiscal year ended
December 31,
2007 2006
(in EUR million)
Gross premiums written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717.7 685.0
Property/casualty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461.6 447.4
Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256.1 237.6
Results of ordinary business activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.0 27.9
Capital Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,126.3 2,024.9
Similar to Wiener Städtische AG, DONAU offers retail and corporate customers an extensive
range of products in the property and casualty insurance and life insurance segments. In the property
and casualty insurance segment, DONAU primarily offers products tailored to retail customers. In its
life insurance business, DONAU developed a flexible approach under which one can include any size
fund of traditional premium reserve funds in order to supplement the unit-linked life insurance,
depending on the guarantee required. As a result, expenses are kept low as compared to other usual
market products, since an external guarantor is not necessary. With its StarBond line, DONAU offers
single-premium insurance products with a capital guarantee. Products in the retirement pension area
include the BonusPension, DONAU’s state-subsidized pension plan and pension plans and bridge
pension models (StarPension). In the company retirement pension area, DONAU offers tailored
solutions for companies.
As a large Austrian insurance company, DONAU directs itself toward retail and corporate
customers throughout the country. However, DONAU focuses on retail and commercial business. In
the corporate customer business, DONAU has a select group of corporate customers, which it has
served for many years. Customer support is provided by the appropriate on-site DONAU consultant.
In addition, DONAU offers its customers on-line policy information. At the My Don@u domain on its
company website, customers can inspect information on their insurance policies on-line. Those
customers holding unit-linked life insurance policies can see the daily status of their funds.
Bank Austria Creditanstalt Versicherung AG
In August 2007, the ownership ratios for BA-CA Versicherung changed as a result of the merger
of BA-CA Versicherung with the acquiring UNION Versicherungs-AG. Since then, Wiener Städtische
AG has held a 60.5% stake, ERGO International AG a 29.5% stake, and Bank Austria Creditanstalt
AG a 10% stake. On March 28, 2008 Wiener Städtische AG has agreed to sell 50.5% of its 60.5%
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