Direct, unconsolidated written premiums earned by Vienna Insurance Group in 2012 amounted to EUR 9.9 billion, up by 9.5% y-o-y. CEE's share in premiums grew to about 56%, while profit (before taxes) totaled about EUR 585 million (up by ~ 5% y-o-y). Peter HAGEN, Chairman of the Managing Board and CEO of the Group, attributed the Group's achievements in 2012 to "the strong sales network and the multi-brand strategy," as well as to "the intensive cooperation with ERSTE Group in bancassurance operations."

In the life insurance segment VIG reported a sharp raise of 17.8%, driven by the strong demand for single-premium products, which has been reported predominantly in Poland. Also, the Group succeeded in boosting premiums in the property/casualty line ( up 2.5%) as well as in the health segments (up 8.6%).

Despite the heavy financial burden caused by the severe weather conditions, the group will record an excellent combined ratio of around 97% for the year 2012.

HIGHLIGHTS FROM VIENNA INSURANCE GROUP'S MARKETS

A sound basis in Austria

Despite the difficult economic environment, VIENNA Insurance Group companies managed to expand their market leadership in Austria. WIENER Staedtische Versicherung, DONAU Versicherung and Versicherung recorded a growth of 8.5 % in the non-life segment. The increase in corporate business as well as the contribution of the branch offices of WIENER Staedtische in Slovenia and of DONAU Versicherung in Italy were particularly pleasing.

In life insurance, the extension of the minimum lock-up period for single premiums (under tax law) to 15 years continues to have negative effects. This has led to a slowdown in the entire segment.

The Czech Republic - the most important CEE market of the Group

The Czech companies of VIG are number one, both in life and non-life insurance, holding a market share of 32.2 %.

In 2012 the three companies of the group in the Czech Republic earned premiums amounting to EUR 1.9 billion. In total, the Czech Group companies are already contributing about 20 % to the Group's premium volume.

Slovakia - sales via banks strengthen life insurance business

As the market leader in Slovakia, the VIG companies succeeded in increasing the total premiums by 3.3 % and in strengthening their leading position through organic growth.

The non-life segment premiums went up by 2.0 %. In life insurance the group's companies achieved an increase of 4.4 %. The strategy of selling life products via the local subsidiary of ERSTE Group has proven highly successful (a significant increase of 19.7 %).

Poland - high single-premium payments

In Poland, VIENNA Insurance Group companies earned premiums totaling about EUR 1.7 billion. This was mainly due to the strong demand in the single-premium business.

Romania - difficult market conditions

At present, the Romanian insurance market is under the impact of fierce price competition. VIG continues to pursue its strategy of a risk-based as well as return-oriented price policy in order to restructure its portfolio. Despite this challenging market environment, Vienna Insurance Group has generally succeeded in maintaining its number one position.

Due to the excellent cooperation with BCR, a subsidiary of ERSTE Group, the favorable development in the life business is going on. Through this sales channel, BCR Life has managed to increase premiums by 17.5 %.

Increase in premiums on the remaining markets

The premium volume in the remaining CEE markets of Vienna Insurance Group continued to develop in a highly favorable way. The Group achieved an increase in premiums by 11.1 % up to a total volume of EUR 985.2 million.

In Hungary the non-life segment reported a growth of 16.8 %, which was driven by the strong demand in the household and corporate business.

In Ukraine, the Group succeeded in boosting premiums in the non-life segment by 22.1% and in life insurance by 19.8%.

The Group has also continued its business expansion successfully outside the core markets, achieving in part double-digit growth rates, e.g. in Macedonia (up 20.2 %) and in Turkey (up 20.5%). In the Baltic States, the group reported an increase in life premiums of 28.8%.