Erste Bank JPMorgan Merrill Lynch International

Private customer activities. Private customer activities consist of essentially stable insurance
portfolios having calculable results that are marked, above all, by a stable frequency of claims.
Thus, frequent claims are only reinsured by exposed segments, for example storm insurance,
with a targeted use of proportional reinsurance to reduce the effects on retention. The effects
of fewer than expected major claims on retention are insured by non-proportional reinsurance.
Even in this business segment, the maximum net loss of Wiener Städtische AG is between
EUR 1.0 and 2.0 million, according to the sector.
NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS
1. INTANGIBLE ASSETS
The detail of intangible assets:
Detail
in EUR ’000
31.12.2005 31.12.2004
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,259 27,377
Purchased insurance portfolios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,625 31,872
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,018 56,293
Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,426 26,449
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,592 29,844
Total ........................................................ 316,902 115,542
Goodwill developed as follows during the reporting period:
Development of goodwill
in EUR ’000
31.12.2005 31.12.2004
Acquisition costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,583 1,254
Cumulative depreciation 31.12. of the previous year . . . . . . . . . . . . . . . . . . . . . �206 �207
Book value as of 31.12. of the previous year ........................ 27,377 1,047
Exchange rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,291 �6
Book value as of 1.1. ........................................... 28,668 1,041
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,591 26,336
Book value as of 31.12. ......................................... 200,259 27,377
Cumulative depreciation 31.12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307 206
Acquisition costs .............................................. 200,566 27,583
The goodwill changes essentially result from the acquisition of subsidiaries described in the
section “Scope and methods of consolidation.”
Development of the present value of insurance in force
in EUR ’000
31.12.2005 31.12.2004
Acquisition costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,665 14,298
Cumulative depreciation 31.12. of the previous year . . . . . . . . . . . . . . . . . . . . . �18,793 �3,130
Book value as of 31.12. of the previous year ........................ 31,872 11,168
Exchange rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,222 750
Book value as of 1.1. ........................................... 33,094 11,918
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,714 35,617
scheduled depreciations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . �14,183 �15,663
Book value as of 31.12. ......................................... 44,625 31,872
Cumulative depreciation 31.12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,741 18,793
Acquisition costs .............................................. 77,366 50,665
The purchased insurance portfolio results from the acquisition of existing portfolios and the
securities acquired as part of the acquisition of the insurance companies described in the section
“Scope and methods of consolidation.”
F-188