Erste Bank JPMorgan Merrill Lynch International

Expenses for insurance claims
The following table provides an overview of the expenses for insurance claims for the periods
presented:
Fiscal year ended December 31,
2007 2006
(in EUR million)
2005
Payments for insurance claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,424.5 996.7 896.7
Change in the provision for outstanding insurance claims . . . . . . . . . . . 13.8 2.5 13.3
Changes in actuarial reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,275.5 1,276.1 1,161.1
Changes in other technical reserves . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses for the refund of premiums related and unrelated to
0.3 0.3 8.2
results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286.1 159.0 107.2
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000.2 2,434.6 2,186.5
The increase in expenses for insurance claims from EUR 2,186.5 million in fiscal year 2005 to
EUR 2,434.6 million in fiscal year 2006 is in part the result of higher payments on maturing policies,
as well as larger transfers to actuarial reserves due to increased premiums. Expenditures for the
refund of premiums dependent and not dependent on profits also rose as a result of the better
investments result.
The increase in expenses for insurance claims from EUR 2,434.6 million in fiscal year 2006 to
EUR 3,000.2 million in fiscal year 2007 is in part the result of higher payments on maturing policies,
as well as the first time consolidation of BA-CA Versicherung. Expenses for the refund of premiums
dependent and not dependent on results rose as a result of the better investment result.
Operating expenses
The following table provides an overview of operating expenses for the periods presented:
Fiscal year ended
December 31,
2007 2006 2005
(in EUR million)
Commissions and other acquisition costs . . . . . . . . . . . . . . . . . . . . . . . . . . . 436.1 389.4 308.4
Administrative costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108.2 97.4 83.7
Reinsurance commissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -12.8 -12.2 -16.3
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531.4 474.6 375.7
Operating expenses rose from EUR 375.7 million in fiscal year 2005 to EUR 474.6 in fiscal year
2006, primarily due to an increase in acquisition expenses resulting from an increase in the volume of
business.
Operating expenses rose from EUR 474.6 million in fiscal year 2006 to EUR 531.4 million in fiscal
year 2007, primarily due to an increase in the volume of business.
Profit before taxes
Profit before taxes increased by 80.5% from EUR 73.4 million in fiscal year 2005 to EUR 132.5 million
in fiscal year 2006, primarily due to the increases in sales and the financial result.
Profit before taxes increased by 18.6% from EUR 132.5 million in fiscal year 2006 to
EUR 157.2 million in fiscal year 2007, primarily due to the increases in sales and the financial result.
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