Erste Bank JPMorgan Merrill Lynch International

General Information ............... 1
Forward-Looking Statements . . . . . . . . 1
Reference to Sources of Market
Information and Other Statistical
Information. . . . . . . . . . . . . . . . . . . . 2
List of Sources With Definitions for
Later Use in the Prospectus . . . . . . . 2
Financial Data . . . . . . . . . . . . . . . . . . . 3
Embedded Value . . . . . . . . . . . . . . . . . 3
Rounding. . . . . . . . . . . . . . . . . . . . . . . 3
Definitions . . . . . . . . . . . . . . . . . . . . . . 3
Summary of the Prospectus ......... 7
Company Profile . . . . . . . . . . . . . . . . . 7
Strategy . . . . . . . . . . . . . . . . . . . . . . . . 8
Risks . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Summary of the Offering . . . . . . . . . . . 10
Selected Financial Data for the Vienna
Insurance Group . . . . . . . . . . . . . . . 14
Selected Indicative Financial Data of
the Target Companies . . . . . . . . . . . 15
Risk Factors ..................... 16
Risks Related to the Business . . . . . . . 16
Risks Relating to the Acquisition of the
Target Companies . . . . . . . . . . . . . . 23
Risks Associated with the Controlling
Shareholder . . . . . . . . . . . . . . . . . . . 25
Risks Arising from the Offering . . . . . . 26
The Offering ..................... 28
General . . . . . . . . . . . . . . . . . . . . . . . . 28
Exercise of Subscription Rights . . . . . . 29
Special Considerations for the Rights
Offering and Global Offering in the
Czech Republic . . . . . . . . . . . . . . . . 30
Special Considerations for U.S.
Shareholders regarding the Rights
Offering...................... 30
Plan of Distribution ................ 32
Scope of and Agreements on the
Subscription of Shares . . . . . . . . . . . 32
Fees, Expenses. . . . . . . . . . . . . . . . . . 32
Stabilization, Share Lending and Over-
Allotment Option . . . . . . . . . . . . . . . 33
Lock-up . . . . . . . . . . . . . . . . . . . . . . . . 33
Termination, Indemnification . . . . . . . . 34
Other Relationships . . . . . . . . . . . . . . . 34
Own Account Trading . . . . . . . . . . . . . 34
Selling Restrictions . . . . . . . . . . . . . . . 35
Restrictions on Resale. . . . . . . . . . . . . 36
Market Price of Wiener Städtische AG
Shares ........................ 37
Capitalization .................... 38
Dilution ......................... 39
TABLE OF CONTENTS
i
Use of Proceeds .................. 40
Recent Developments .............. 41
Dividend Policy ................... 42
Acquisition of the Target Companies
and Long-Term General Distribution
Agreement ..................... 43
Description of the Acquisition and the
Long-Term General Distribution
Agreement . . . . . . . . . . . . . . . . . . . . 43
Disposition of Assets in Connection
with the Acquisition . . . . . . . . . . . . . 45
Description of the Target Companies . . 46
Strategy and Reasons for the
Acquisition . . . . . . . . . . . . . . . . . . . . 51
Financing the Acquisition . . . . . . . . . . . 52
Selected Financial Data ............ 54
Management’s Discussion and
Analysis of Financial Condition and
Results of Operations ............ 55
Introduction . . . . . . . . . . . . . . . . . . . . . 55
Significant Factors Affecting Business
Operations . . . . . . . . . . . . . . . . . . . . 56
Factors Having a Significant Effect on
the Company’s Results of
Operations . . . . . . . . . . . . . . . . . . . . 63
Comparison of Fiscal Years 2007,
2006 and 2005 at the Group Level . . 68
Comparison of Fiscal Years 2007,
2006 and 2005 at the Segment
Level ........................ 73
Liquidity . . . . . . . . . . . . . . . . . . . . . . . . 79
Investments . . . . . . . . . . . . . . . . . . . . . 80
Off-Balance Sheet Commitments . . . . . 83
Embedded Value of Wiener Städtische
Versicherung AG Vienna Insurance
Group ......................... 84
Introduction . . . . . . . . . . . . . . . . . . . . . 84
Summary of Results . . . . . . . . . . . . . . 85
External Review. . . . . . . . . . . . . . . . . . 87
Business ........................ 88
Overview....................... 88
Business Lines . . . . . . . . . . . . . . . . . . 89
Strategy . . . . . . . . . . . . . . . . . . . . . . . . 90
The Companies of the Vienna
Insurance Group . . . . . . . . . . . . . . . 93
History of the Vienna Insurance
Group. . . . . . . . . . . . . . . . . . . . . . . . 95
Insurance Business . . . . . . . . . . . . . . . 98
Capital Assets . . . . . . . . . . . . . . . . . . . 125
Employees. . . . . . . . . . . . . . . . . . . . . . 129
Credit Rating . . . . . . . . . . . . . . . . . . . . 131
Legal and Arbitration Proceedings . . . . 131