Erste Bank JPMorgan Merrill Lynch International

interest in BA-CA Versicherung to the ERGO International AG. The sale is expected to become
effective in the second half of 2008. Vienna Insurance Group will continue to hold a 10% plus one
share participation in BA-CA Versicherung.
In the life insurance area, BA-CA Versicherung primarily uses the branches of Bank Austria
Creditanstalt AG as its distribution channel. The merger created the fifth largest Austrian life insurance
company as measured by gross premiums written (Source: Internal analysis based on preliminary
data 2007 of the VVO). Other important distribution channels include, for instance, cooperative
arrangements with brokers and agents.
The following table sets forth BA-CA Versicherung’s gross premiums written, results of ordinary
business activities and capital assets for 2007 compared with the consolidated figures for 2006:
Fiscal year ended
December 31,
2007 2006
(in EUR million)
Gross premiums written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 544.9 543.6
Property/casualty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3 6.3
Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 538.6 537.3
Results of ordinary business activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.3 38.6
Capital assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,068.9 2,993.9
Retail life insurance is BA-CA Versicherung’s primary business focus. BA-CA Versicherung offers
a wide spectrum of retirement and investment products, including pension plans, capital accumulation
and investment as well as traditional risk protection.
In the occupational area, products include the insurance of pension commitments, severance pay
provisions and provisions for the future.
In the property and casualty segment, BA-CA Versicherung only provides accident insurance,
offering various accident insurance policies tailored to the special needs of different target groups with
different types of benefits.
Description of the individual group companies in the CEE region
Czech Republic
The Czech insurance market is the Vienna Insurance Group’s largest market outside of Austria.
With income from gross premiums written amounting to EUR 1,130.5 million, the Czech subsidiaries
earned 16.4% of its total gross premiums written of the Vienna Insurance Group in fiscal year 2007.
For details on the Czech insurance market, see “Management’s Discussion and Analysis of Financial
Condition and Results of Operations – Significant Factors Affecting Business Operations”.
The Vienna Insurance Group handles its insurance business in the Czech Republic through the
following operating companies:
Kooperativa pojisˇt’ovna, a.s., Vienna Insurance Group (“Kooperativa Prague”). The company
emerged in 1993 from its predecessor company, founded in the former Czechoslovakia in 1990,
and offers primarily products in the property and casualty insurance and life insurance areas.
Health insurance products are offered on a very limited basis.
Česká podnikatelská pojisˇt’ovna, a.s. Vienna Insurance Group (“CPP”). CPP was founded in
1995 as a multi-line insurance company and offers primarily motor vehicle liability insurance
and corporate insurance, but also increasingly products in the life and accident insurance
segments.
The Vienna Insurance Group pursues a two-brand policy in the Czech Republic. After the
acquisition of CPP by Kooperativa Prague in 2005, CPP remained an independent company on the
Czech market. As a result, the Vienna Insurance Group can approach different customer groups and
can take advantage of existing cooperative distribution agreements. Common use of back office
services results in additional synergies.
In fiscal year 2007, gross premiums written of the Vienna Insurance Group in the Czech Republic
amounted to EUR 1,130.5 million and in fiscal year 2006 EUR 1,048.0 million. 74.1% of the gross
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