EANS-Adhoc

2016 preliminary results for Vienna Insurance Group *) - Profit more than doubled - Seite 2

Due to the good results, the Managing Board will propose to the
statutory bodies that the dividend for the financial year 2016 be
increased from EUR 0.60 in the previous year to EUR 0.80 per share.
This corresponds to an increase of 33 percent and maintains the
dividend policy VIG has followed since 2005, which provides for a
minimum distribution of 30 percent of net Group profits (after
minority interests).

New "Agenda 2020" work programme

The examination of VIG's 25 markets for new potential as announced in
the previous year was effected. This resulted in a strategic work
programme. In addition to taking advantage of profitable market
potential, VIG is also focusing on areas that will ensure future
viability of the Group and optimise the business model to increase
cost efficiency. This includes creating cost benefits by merging
back-office functions and companies in the Group when the long-term
benefits outweigh the benefits of a diversified market presence.

In addition to the growth opportunities in health and reinsurance VIG
sees great potential in the bank insurance business. A project group
is being formed with the bank insurance partner Erste Group. The goal
of the project is to optimise products, distribution and profits for
the bank and insurance companies in all countries where Erste Group
and VIG cooperate. The focus is on customer needs and desires, easily
understandable products and the integration into the bank's
digitisation initiative. This also includes organisational and
structural considerations on the insurance side that will improve
communications and service for customers and banking partners.

Outlook for the period to 2019

VIG plans to steadily increase its premium volume to EUR 9.5 billion
by 2019. In spite of the low interest rate environment and the
continued negative effect this is expected to have on the financial
result, VIG aims to increase its profit (before taxes) to EUR 450 to
470 million by 2019. The medium-term target of 95 percent continues
to apply for the combined ratio. Dividend per share development to
follow results increase.

*) Note The information in this press release for the financial year
2016 is based on preliminary unaudited data. The final audited
information for the financial year 2016 will be published with the
Group Annual Report 2016 on 19 April 2017.

Disclaimer This press release contains forward-looking statements
that concern future developments in Vienna Insurance Group. These
statements are based on current assumptions and forecasts by the
management of Vienna Insurance Group. Changes in general economic