Erste Bank JPMorgan Merrill Lynch International

Life insurance
The following table shows the change in holdings of endowment insurance (not including risk
insurance), risk, pension, and unit and index-linked insurance, government-sponsored future pension
plans, and the total of these amounts.
Change in holdings
Endowment insurance
(not including
risk insurance)
No. of
policies
Amt.
ins.
No. of
policies
Risk
insurance
Amt.
ins.
Pension
insurance
No. of
policies
Amt.
ins.
Unit-linked and
index-linked
insurance
No. of
policies
Amt.
ins.
Governmentsponsored
future
pension plans Total
No. of
policies
Amt.
ins.
No. of
policies
Number of policies/Amount insured in EUR ’000
As of 1.1.2006 ........2,537,697 19,498,238 597,709 14,503,846
2006 additions
538,747 6,106,488 201,255 4,329,571 169,402 2,816,087 4,044,810 47,254,232
New business. ....... 243,853 3,242,768 175,820 4,012,675 63,450 912,904 86,629 1,284,680 51,714 793,404 621,466 10,246,433
Premium increases . . . . 2,575 186,529 82 47,187 0 108,486 114 53,772 0 252,795 2,771 648,771
Total additions ........
2006 changes
246,428 3,429,298 175,902 4,059,862 63,450 1,021,391 86,743 1,338,453 51,714 1,046,199 624,237 10,895,205
Changes in additions . . . 27,475 753,843 18,673 365,562 5,092 146,180 10,868 859,108 1,521 24,731 63,629 2,149,426
Changes in reductions . . �27,843 �652,044 �19,608 �421,147 �4,746 �174,372 �11,884 �934,221 �3,297 �67,815 �67,378 �2,249,600
Total changes ........
Reductions due to maturity
Due to contract
�368 101,799 �935 �55,584 346 �28,192 �1,016 �75,112 �1,776 �43,083 �3,749 �100,174
expiration . . ....... �40,499 �336,637 �25,863 �850,176 �6,200 �85,062 �373 �3,670 0 0 �72,935 �1,275,546
Due to death . .......
Total reductions due to
�16,182 �63,541 �1,183 �15,998 �1,204 �15,960 �397 �4,679 �123 �1,847 �92,124 �1,377,574
maturity ...........
Premature reductions
�56,681 �400,178 �27,146 �866,174 �7,404 �101,023 �770 �8,349 �123 �1,847 �92,124 �1,377,574
Due to non-redemption . .
Due to cancellation
�19,069 �272,274 �9,165 �431,272 �2,615 �35,907 �3,564 �96,714 �2,398 �47,210 �36,811 �883,379
without payment ..... �40,397 �391,914 �23,931 �666,104 �119,746 �97,730 �5,560 �76,585 �244 �1,445 �89,878 �1,233,680
Due to redemption .....
Due to premium
�92,297 �741,043 �7,096 �144,515 �17,459 �100,162 �8,709 �99,433 �26 �140 �125,587 �1,085,294
release . . ........
Total premature
�1,074 �208,262 �43 �62,314 �3 �56,625 �1,025 �11,690 �1,007 �130,021 �3,152 �468,519
reductions .........�152,837 �1,613,494 �40,235 �1,304,207 �39,823 �290,425 �18,858 �284,324 �3,675 �178,817 �255,428 �3,671,270
As of 31.12.2006 .......2,574,239 21,015,661 705,295 16,337,742 555,316 6,708,238 267,354 5,300,237 215,542 3,638,538 4,317,746 53,000,418
Embedded Value sensitivity analysis for the life insurance business
The Embedded Value will be determined in accordance with the European Embedded Value
Principles published by the CFO Forum on 6 April 2004, and will be published separately on 25 April
2007.
The Embedded Value consists of two components: the adjusted net assets at market value and
the value of the insurance portfolio, which equals the present value of distributable after-tax profits
minus the capital commitment cost of the solvency capital. Thus, Embedded Value is an actuarial
measurement of the value of a company, assuming the continuation of current operations (going
concern), but explicitly excluding the value of future new business. In addition to the Embedded Value
the increase in value induced by the new business recorded during the reporting period is calculated.
The estimated trend of future profits is based on “best estimate” assumptions, i.e., a realistic
assessment of economic and operational conditions based on future expectations and historical data,
in which future risk is taken into account using stochastic models and an explicit calculation of capital
commitment costs.
When calculating the embedded value, numerous assumptions are made about operational and
economic conditions, as well as other factors, some of which lie outside of the control of the Vienna
Insurance Group. Although the Vienna Insurance Group considers these assumptions sound and
reasonable, future developments may differ materially from expectations. Publication of the embedded
value is therefore no guarantee or commitment that the expected future profits on which this value is
based will be realised in this fashion.
F-113
Amt.
ins.