Erste Bank JPMorgan Merrill Lynch International

11.8%), with premiums increasing by 29.5% in the non-life area (Q1-3 2006: 8.0%) and 17.9% in the
life area (Q1-3 2006: 68.8%) (Source: Internal analysis based on nine-month data of the Bulgarian
Insurance Association).
Georgia
The Vienna Insurance Group operates in Georgia through its participation in TBIH, which holds
approximately 70% of the largest insurance company in the country, Georgian Pension and Insurance
Holding JSC. TBIH is also the majority owner of International Insurance Company IRAO Ltd.
Versicherung, the fifth largest in Georgia, which operates exclusively in the non-life area. Together the
Georgian subsidiaries of the Vienna Insurance Group sell products in all important insurance
segments. As part of the reform of the national pension system, GPIH became the first to sell private
pension products. The company has a large sales force comprised of agents and also cooperates with
the largest Georgian bank, TBC. IRAO had been operating strictly on the non-life side, where it sells a
comprehensive assortment of products in motor and industrial classes, but in 2007 it also started
operating on the life insurance side. The company marketed two products, coverage for borrowers
and life insurance for credit card holders. IRAO continues to pursue plans to sell health insurance
products to retail and corporate customers and has set up a separate department for health
insurance.
Croatia
The Vienna Insurance Group is represented in Croatia by three companies: Kvarner Vienna
Insurance Group d.d., based in Rijeka (Kvarner), Cosmopolitan Life Vienna Insurance Group d.d. za
osiguranje d.d. (Cosmopolitan Life), and Helios d.d. (Helios). Kvarner has operated on the Croatian
insurance market since September 1999 and sells both life insurance and non-life insurance. After the
additional purchase of Cosmopolitan Life, which was founded in 1998 and operates strictly in the life
insurance business, and the acquisition of a majority of Helios, which specializes in non-life, through
its participation in TBIH in 2006, the Vienna Insurance Group reached fourth place in the Croatian
insurance market in 2007 with a market share of 7.6% (2006: 7.0%), as measured by gross premiums
written (Source: Internal analysis based on preliminary data 2007 of the Croatian Financial Regulatory
Agency Statistics).
Kvarner has a widespread sales network consisting of more than 128 sales offices covering the
whole territory of Croatia. Sales are focused on the company’s own sales force, which accounts for
70% of sales. With the promotion of the expansion of its own sales force in the last five years, the
company has created a dynamic premium revenue trajectory with growth above market levels. In
addition, the Vienna Insurance Group benefits from various partnerships with Croatian banks, of which
the partnership with the Erste Bank Group is especially important.
In December 2006, Cosmopolitan Life was the first to introduce the index-linked product “Best of
Trend” with a capital guarantee and investment in international securities, which generated strong
customer interest.
With a view to Croatia’s anticipated entry into the EU, the legal environment in the insurance field
is being harmonized with the standards set by the European Union. In 2007, the growth in premiums
in the Croatian insurance market amounted to 10.5% (2006: 10.1%), with gross written premiums
growing by 9.4% in the non-life area (2006: 9.0%) and 13.6% in the life area (2006: 13.4%). In
comparison, the Vienna Insurance Group in Croatia recorded total premium growth of 18.6% in 2007
(2006: 8.1%), with premiums growing by 19.7% in the non-life area (2006: 11.4%) and 17.4% in the
life area (Q1-3 2006: 4.7%) (Source: Internal analysis based on preliminary data 2007 of the Croatian
Financial Regulatory Agency Statistics).
Russia
In October 2005, Wiener Städtische AG reached agreement with the Moscow insurance company
Moskovskaja Strachovaja Kompanija (MSK) to establish a joint life-insurance company in Russia,
Insurance Company MSK-Life Ltd. Wiener Städtische AG holds a 25% share of this life insurance
company and MSK holds a 75% share. MSK’s shareholders are the City of Moscow, which holds a
51% share, and Bank of Moscow, which holds a 49% share. MSK-Life obtained a license in August
2006 to begin operating in the life and health insurance businesses, and since then it has been selling
a wide array of life insurance products and casualty and health coverage. It sells insurance products
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