1. Vienna Insurance Group Financing of Investments
5th Vienna Economic Forum: November 10th, 2008
Vienna Insurance Group Financing of Investments
Franz Kosyna,
Member of the Executive Board of Vienna Insurance Group
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2. Vienna Insurance Group
Operating in 23 countries of Central and Eastern Europe
Largest Insurance Group in Central- and Eastern Europe*
No other Insurance Group has
a higher CEE-share of premiums
Around 23,000 employees
* VIG-definition CEE: CZ, SK, PL, RO, BG, HR, HU
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3. Think globally – act locally
Since more than 180 years successful in Austria –
More than 15 years of success in CEE
Continuous expansion by organic growth and through acquisitions
Local management
Exchange of know-how within the Group
Multi-brand policy
Multi-channel distribution
Vienna Insurance Group reinvests
profits earned in a CEE country within that country
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4. Investments
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5. VIG follows a long-term and selective strategy
VIG Investment Strategy
VIG follows a long-term and selective strategy
Long term – engagements
Stakes in insurance companies (national and international) to expand business
Stakes in non-insurance companies to support insurance business development (e.g. private hospitals, laboratories, hotels)
Selective engagements
Selective market entrance in CEE regions and expansion in already entered markets through acquisitions and organic growth
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6. CEE Region Offers Multiple Growth
Insurance Density (USD)
Versicherungsd
Insurance
BIP Wachstum
GDP Growth
urchdringung
Penetration
2007
2007 – –
2009F
2009F
2007
2007 1 1
CEE
CEE 2 2
5,0%
5,0%
3,3%
3,3% Ö Ö
sterreich
sterreich
2,3%
2,3%
5,8%
5,8%
EU 15
EU 15
1,8%
1,8%
9,2%
9,2%
Spain
population: 10mn
GDP per Capita (USD)
1 Premiums in % of GDP.
2 Weighted average for CEE. CEE is defined as Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia and Ukraine.

7. Stepwise expansion
to the family of
Vienna Insurance Group

8. Vienna Insurance Group
Vienna Insurance Group – Number 1 in CEE
Top market positions in the countries
Vienna Insurance Group
Poland: 4. position
Czech Rep.: 2. Position
Ukraine: 2. position MTPL
Austria: 1. position
Slovakia: 2. position motor vehicle ins.: 1. position
Bulgaria: 1. position
Romania: 1. position
Georgia: 1. position
Croatia: 4. position 2. position Life
Albania: 2. position
Serbia: 4. position 1. position Life
Core markets

9. Investment example
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10. Transaction Erste Bank
Acquisition of the Erste Group insurance companies
Enormous customer potential
Expansion of market position in Central and Eastern Europe
General Distribution Agreement between Erste Group and the Vienna Insurance Group
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11. Issue of a hybrid bonds with an volume
Financing
Successful Capital Increase 2008: largest ever share offering by an insurance Group on the Vienna Stock Exchange.
Placement of 23 million shares
Volume of the capital increase: approx. EUR 1.14 billion
Issue of a hybrid bonds with an volume
of EUR 250 million
to strengthen equity capital
to finance acquisitions in Central and Eastern Europe
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12. Thank you for your attention!12