EANS-Adhoc

2016 preliminary results for Vienna Insurance Group *) - Profit more than doubled

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annual result
23.03.2017

- Premiums increased to around EUR 9.1 billion
- Profit (before taxes) more than doubled to around EUR 407 million
- Combined ratio at a good level of 97.3 percent
- Proposed dividend increased to EUR 0.80 per share
- Fit for the future with Agenda 2020

Preliminary premium volume of EUR 9,051 million showed a stable
development (+EUR 31 million compared to the previous year). Premiums
increased significantly in all lines of business, with the exception
of single-premium life insurance (- 19.2 percent). As in the previous
year, a restrictive underwriting policy was followed in most markets
in this area due to the low interest rate situation. Without
single-premium products, premiums increased + 4.4 percent across all
lines of business.

Premiums grew particularly strongly in the Remaining CEE segment (+
7.9 percent), including contributions from Serbia (+ 18.5 percent)
and Croatia (+ 9.4 percent), and in the segments Turkey/Georgia (+
14.5 percent) and Hungary (+ 9.8 percent). Growth in Romania was
exceptional, reaching the highest recorded level of 24.4 percent, in
part due to market adjustments.

With respect to profit (before taxes), the target set in the previous
year was to at least double the profit achieved in 2015 to up to EUR
400 million. "At EUR 406.7 million, we achieved the top end of our
target range, thereby far more than doubling our profit (before
taxes)," stated Elisabeth Stadler.

Compared to the combined ratio of 97.9 percent at the 3rd quarter
2016 a significant improvement of the combined ratio for the full
year 2016 was achieved. With 97.3 percent VIG's combined ratio
remains at the level of the previous year and is once again clearly
below the 100 percent mark. The cost ratio improved to 30.4 percent
compared to 30.6 percent in 2015. In the same dimension the claims
ratio increased from 66.7 percent to 66.9 percent.

Vienna Insurance Group generated a financial result of EUR 959
million in 2016. This represented a 7.8 percent year-on-year decrease
that was mainly due to lower realised gains on the disposal of
investments in bonds, loans and equities.