Erste Bank JPMorgan Merrill Lynch International

B&W Deloitte GmbH
Magnusstra�e 11
50672 Köln
Tel.: +49 (0)221 97324-0
Fax: +49 (0)221 97324-20
www.bw-deloitte.com
11th April 2008
Wiener Städtische Versicherung AG
Vienna Insurance Group
Schottenring 30
1010 Wien
Austria
Dear Dr. Geyer,
Review of the traditional embedded value results of Sparkassen Versicherung AG
We have been retained by Wiener Städtische Versicherung AG Vienna Insurance Group (VIG) to
review the Statements of traditional embedded value of the Sparkassen Versicherung AG (SVAG) and
its life insurance subsidiaries in the Czech Republic, Slovakia and Hungary as set out in Part H of the
prospectus prepared in connection with the capital raising activities of VIG, dated 21 st April 2008 (the
“Prospectus”) under the heading “Embedded Value of the Target Companies”. The non-life insurance
businesses of SVAG in Austria and the Czech Republic, and the Erste Bank der österreichischen
Sparkassen AG (Erste Bank) insurance companies in Croatia and Romania have been excluded from
the scope of our review.
The values shown in the Statements, including the traditional embedded values and the value of
new business, are on the basis of 100% shareholdings. No allowance has been made for either the
minority interests following the transaction or the VIG shareholdings in some of the SVAG companies
prior to the transaction. The pre and post transaction VIG shareholdings in the Erste Bank insurance
subsidiaries are shown in Appendix A of the Statements.
The scope of our review covered the methodology adopted together with the assumptions and
calculations made by SVAG in estimating the embedded value results.
The embedded value methodology is the sole responsibility of the Board of Directors of VIG. The
embedded value results have been prepared by SVAG on the basis of VIG’s methodology as
described in the Statements. The assumptions have been set by SVAG and agreed with VIG. The
methodology applied includes deterministic assumptions regarding future asset returns. Under the
traditional embedded value methodology adopted no explicit allowance has been made for the volatility
of future asset returns – instead the time value of options and guarantees has been allowed for
implicitly using a single risk discount rate. This approach is not consistent with the EEV Principles
developed by the CFO Forum.
Our review was conducted in accordance with generally accepted actuarial practices and
processes. It comprised a combination of such reasonableness checks, analytical review and checks
of clerical accuracy as we considered necessary to provide reasonable assurance that the Statements
have been compiled free of significant error. However, we have relied without verification upon the
completeness and accuracy of data and information supplied by SVAG on behalf of VIG, including the
value of net assets as disclosed in the audited local statutory accounts of SVAG and its subsidiaries.
The calculation of the embedded value necessarily makes numerous assumptions with respect to
economic conditions, operating conditions, taxes, and other matters, many of which are beyond the
control of VIG. Although the assumptions used represent estimates which the Directors of VIG believe
are together reasonable, actual experience in future may vary from that assumed in the calculation of
the embedded value results and any such variations may be material. Deviations from assumed
experience are normal and are to be expected. The embedded value does not purport to be a market
valuation and should not be interpreted in that manner since it does not purport to encompass all of
the many factors that may bear upon a market value.
H-14