EANS-News: Vienna Insurance Group / VIENNA INSURANCE GROUP IN FIRST HALF OF 2015:

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Financial Figures/Balance Sheet/Half Year Results

* Top rating A+ with stable outlook confirmed
* Premiums excluding single-premium product: a solid increase of 2.2%
* Half-year combined ratio of 95.9% best in 5 years

* Record profit for Remaining Markets region: EUR 30.9 million (increase of
11.5%)
* Profit (before taxes) at around EUR 250 million

In the current environment, Vienna Insurance Group is focusing on
profitable lines of business in property and casualty and on regular
premium products in life insurance, which grew well with an increase
of 6.3 percent. The restraint out of earnings aspects in offering
single premium life insurance led to a decrease in this area of 15.7
percent. Overall, Vienna Insurance Group wrote EUR 4.9 billion in
consolidated premiums in the first six months of 2015 (minus 1.5
percent), without single premium policies a solid increase of 2.2
percent compared to the previous year.

"We have reason to be satisfied with the course of business so far
this financial year: VIG has taken steps to expand in the promising
markets of the Baltic region. Proof of our stability was provided by
another confirmation of our excellent rating, and the improvement of
an important key performance indicator -the combined ratio - shows
that the Group's underwriting is highly profitable. This is
particularly important in a low interest rate environment." Peter
Hagen, CEO Vienna Insurance Group

All countries and segments once again made positive contributions to
earnings. The Remaining Markets region made a particularly large
contribution, with a record profit of EUR 30.9 million (increase of
11.5 percent). The CEE share of Group profit (before taxes) rose once
again in the first half of 2015 to 67 percent.

The achieved profit (before taxes) of EUR 250.5 million was within
the expected range and was strongly affected by declining financial
results. This was due to the historically low level of interest
rates, which also made it necessary to form personnel provisions in
Austria.

Vienna Insurance Group reduced its combined ratio (after reinsurance)
by 1.2 percentage points. The excellent level of 95.9 percent was the
best value achieved in the last five comparison periods.

Vienna Insurance Group held EUR 31.3 billion in investments
(including cash and cash equivalents) as at 30 June 2015. The Group
financial result was EUR 524.5 million. The decrease of 7.2 percent
was due to the low level of interest rates.

Highlights from the Group

The Standard & Poor's rating agency once again confirmed its A+
rating with stable outlook. This means that VIG continues to have the
best rating of all companies in the ATX index. The agency stressed
VIG's excellent competitive position as market leader in Austria and
Central and Eastern Europe, its portfolio, which is diversified
across all lines of business, and its multi- channel distribution
strategy. It has an excellent capital base and exceeds the S&P
benchmark for AAA in 2014.

In Austria, the good growth of 3.0 percent achieved by Wiener
Städtische in property and casualty insurance compensated for the
premium decrease of Donau Versicherung in Italy. In life, Vienna
Insurance Group acted with restraint in the area of single-premium
products. Overall premiums generated by the Austrian group companies
declined by 2.3 percent. The combined ratio improved significantly by
more than 3 percentage points to a 96.6 percent in the first half of
2015.

Profitable CEE markets generate profit before taxes of around EUR 167
Million

The Group companies in the Czech Republic made the largest
contribution to Group profit (before taxes) in the first half of
2015. Kooperativa, CPP and PCS generated EUR 88.1 million,
corresponding to an increase of 2.7 percent. Property and casualty
premiums remained stable, with distribution activities being
particularly successful in the motor segment. In life, the companies
in the Czech Republic also acted with restraint in the single-premium
business due to the low level of interest rates, leading to a
decrease in premiums. At 89.8 percent, the combined ratio was once
again at an excellent level.

The Group companies in Slovakia increased their premiums written
slightly in the first half of 2015. Bank distribution via the local
Erste Group subsidiary was particularly successful, with premiums
generated by PSLSP growing sharply by 19.5 percent. Profit (before
taxes) rose 2.0 percent to EUR 26.2 million, and the combined ratio
was 95.6 percent.

In Poland, Vienna Insurance Group wrote EUR 449.4 million in premiums
(a decrease of 20.5 percent). Price competition was intense in the
motor segment, causing average premiums to fall, particularly in
fleet and leasing business. Because of its earnings-oriented
underwriting policy, VIG accepted a loss of premiums in the property
and casualty segment. In life insurance, the low-margin short-term
single-premium business was also intentionally reduced again. When
adjusted for single-premium business, total premiums increased 10.3
percent. Profit (before taxes) reached EUR 28.2 million, and the
combined ratio stood at 96.8 percent.

The systematic implementation of restructuring measures continued to
have an effect on premiums and earnings in Romania, where Group
companies recorded a major premium increase of 17.6 percent in the
first half of 2015. Positive growth was achieved in both life and
non-life. Profit (before taxes) rose to EUR 3.5 million. The combined
ratio improved again by around 5 percentage points, and is now only
slightly higher than the 100 percent mark.

Remaining Markets a growth Driver

In the countries forming the Remaining Markets region, Group
companies recorded a record result in the first six months of the
current year. Profit (before taxes) rose by 11.5 percent over the
previous year to EUR 30.9 million. Serbia, Bulgaria and the Baltic
region were particularly successful in raising profits. The combined
ratio improved again to 96.6 percent in the first half of 2015.

A significant increase of 18.4 percent, raising premiums to EUR 668.6
million, was particularly pleasing. Group companies in Bulgaria,
Hungary, Serbia, Albania, Turkey and the Baltic region, for example,
achieved double-digit growth rates.

VIG takes steps to expand in the Baltic Region

The Baltic States have recently proven to be an attractive growth
market for Vienna Insurance Group. General economic conditions are
solid and market forecasts very positive. All three of the Baltic
States now belong to the Eurozone.

The VIG life insurance company Compensa Life SE operates successfully
in Estonia, Latvia and Lithuania and has grown rapidly in previous
years. Purchase of the largest insurance distribution company in
Lithuania, Finsaltas, by Compensa Life SE was the next step towards
achieving a position as a leading provider of life insurance in the
region.

Vienna Insurance Group will also promote its property and casualty
business in the future, which was previously mainly handled by
Compensa in Poland. The newly established company Compensa Non-Life
in Lithuania has received a license and the non-life insurance
company Baltikums AAS was acquired in Latvia. Subject to official
approval of the acquisition, Vienna Insurance Group now has a total
market share of around 7.5 percent of the insurance market in the
Baltic States.

Further inquiry note:
VIENNA INSURANCE GROUP AG
Wiener Versicherung Gruppe
1010 Wien, Schottenring 30

Alexander Jedlicka
Head of Public Relations, Spokesperson
Tel.: +43 (0)50 390-21029
Fax: +43 (0)50 390 99-21029
E-Mail: alexander.jedlicka@vig.com

Nina Higatzberger
Head of Investor Relations
Tel.: +43 (0)50 390-21920
Fax: +43 (0)50 390 99-21920
E-Mail: nina.higatzberger@vig.com

end of announcement euro adhoc
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company: Vienna Insurance Group
Schottenring 30
A-1010 Wien
phone: +43(0)50 390-21919
FAX: +43(0)50 390 99-23303
mail: investor.relations@vig.com
WWW: www.vig.com
sector: Insurance
ISIN: AT0000908504
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien, stock market: Prague Stock Exchange
language: English