Erste Bank JPMorgan Merrill Lynch International

The table below sets forth key financial data of BCR Non-Life for the periods presented. These
data are based on the unaudited IFRS reporting package of BCR Non-Life used for the audited
consolidated financial statements of Erste Bank AG:
Fiscal year ended
December 31,
2007 2006
(unaudited)
(in EUR million)
Gross premiums written accident . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8 —
Total gross premiums written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155.2 124.5
Net earned premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101.2 62.1
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6 2.3
Profit before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.8 8.9
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.7 7.6
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136.9 90.5
Underwriting provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79.0 51.5
Strategy and Reasons for the Acquisition
Creating the leading insurance group in Vienna Insurance Group’s CEE core markets and a
true pan-CEE insurance platform
The acquisition advances the Vienna Insurance Group’s strategy of sustaining and growing its
position in the CEE region. Prior to the acquisition of the Target Companies, the Vienna Insurance
Group ranked among the top five insurance companies by premium volume in most countries in the
CEE region in which the Target Companies operate. Vienna Insurance Group expects the economic
development in these countries to continue to be strong and the CEE household savings behavior to
continue to progress towards EU-15 standards. The following table sets forth the combined life market
rankings of the Vienna Insurance Group and the Target Companies in the CEE region for 2007:
Combined
total rank
in the life market
Czech Republic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Hungary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Slovakia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Croatia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Romania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
(Source: Internal analysis based on data published by national insurance associations (December 31,
2007))
Partnership with access to Erste Bank Group’s bank distribution network
Over the last four years the Vienna Insurance Group and the Erste Bank Group have started to
cooperate and determined to use their respective distribution and sales networks to promote each
other’s products. In order to continue and intensify this cooperation, Wiener Städtische AG and Erste
Bank AG entered into the General Distribution Agreement. The implementation of the General
Distribution Agreement will give the Vienna Insurance Group access to Erste Bank AG’s bank
distribution network. See “– General Distribution Agreement between Wiener Städtische AG and Erste
Bank AG”. Nevertheless, the Vienna Insurance Group will continue its multi-brand policy and allow the
newly acquired local companies to retain individual brands at first. Neither the Vienna Insurance
Group nor Erste Bank AG hold strategic shareholdings in the other and neither has any plans to do
so.
Rebalancing Vienna Insurance Group’s insurance business
The acquisition will rebalance Vienna Insurance Group’s business mix towards the life insurance
business. In fiscal year 2007, the Vienna Insurance Group derived 42.5% of its total gross written
premiums of EUR 6,911.9 million from life insurance and 57.5% from non-life insurance. In the same
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