Erste Bank JPMorgan Merrill Lynch International

in the area of pension funds in Bulgaria, Croatia, Serbia and Montenegro, Russia, the Ukraine and
Georgia. In addition, new distribution channels also become available for the Vienna Insurance
Group’s insurance products, including in the Leasing and Asset Management areas. All in all, this
enables the Vienna Insurance Group to establish new customer relationships and expand its insurance
business.
Wiener Städtische has received the green light from the Polish supervisory and cartel authorities
and the Austrian cartel authority for its acquisition of a majority interest in the Polish company
Towarzystwo Ubezpieczén i Reasekuracji CIGNA STU S.A. This finalises Wiener Städtische’s acquisition
of a total interest of approx. 63% in the Warsaw-based non-life insurer.
REPRESENTATION OF THE EFFECTS OF THE CONVERSION TO THE IFRS ACCOUNTING
STANDARDS
As concerns principles of company accounting, this consolidated financial statements has been
drawn up for the first time according to the principles of the IFRS in order to provide a basis for
comparison with the results drawn up for the period ending 31 December 2005, which will appear
according to IFRS for the first time. The consolidated financial statements for 31 December 2004 was
provided according to Austrian commercial law and insurance law principles.
The stated balance and evaluation principles were used uniformly for the balance-sheet reporting
date of 31 December 2004 and for the transition date of the group to IFRS, on 1 January 2004.
The following representations show how the conversion of Austrian commercial law and Insurance
law principles to IFRS affected the represented asset -, finance - and earnings status. A representation
of the effect on the cash flow is not included as no company capital flow calculation had to be
provided according to Austrian standards.
Additionally it is marked by the fact that, according to IFRS, no obligatory classification scheme
for the elements of a yearly - or interim statement is given. This concerns in particular the
representation of the balance and the profit and loss calculation.
Carry-Over of equity capital
The carry-overs of equity capital on the reporting dates of 31 December 2004 and 1 January
2004 are as follows:
in EUR ’000
31.12.2004 1.1.2004
Equity capital in the company report according to Austrian standards. . 445,102 333,411
Changes to the scope of consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . �4,342 �35,935
Inclusion and valuation of capital investments . . . . . . . . . . . . . . . . . . . . . . . . 668,681 475,584
Benefits for employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . �209,167 �211,998
Underwriting provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . �63,625 11,939
Deferred taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . �182,121 �178,492
Tax-free reserves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259,050 276,796
Other changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 11,000
Equity capital according to IFRS ................................ 913,778 682,305
Changes to the scope of consolidation
In accordance with the conditions of IAS 27, in an IFRS report, one company was partiallyconsolidated
and two enterprises were fully consolidated. These had been classed only as at equity in
the previous reports drawn up according to Austrian standards.
In accordance with the regulation of SIC 12 shares in special funds are to be fully consolidated, if
the special fund is controlled by the reporting company, or if it is liable for the majority of the risks and
chances of the special fund.
Accordingly, since Wiener Städtische holds the majority stakes in special funds, these special
funds have been fully consolidated.
The other changes concern shares held in Wüstenrot Versicherungs- AG, which had previously
been classed as at equity, and which in the IFRS report have been classed as securities available for
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