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.

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
developments, future market conditions, capital markets and other
circumstances could result in actual events or results differing
significantly from these forward-looking statements. Vienna Insurance
Group assumes no obligation to update these forward-looking
statements or modify them based on future events or developments.

The following securities of VIG are admitted for trading on a
regulated market:

Issue title ISIN Trading segment

Aktie AT0000908504 Vienna and Prague Stock
Exchange, Official Market
VIG nachrang. Anl. 15 AT0000A1D5E1 Luxembourg Stock Exchange,
Second Regulated Market
VIG nachrang. Schuldv.13-43 AT0000A12GN0 Vienna Stock Exchange, Second
Regulated Market
Wr.Staedt. Hybridkap-Anl. 08 AT0000A09SA8 Vienna Stock Exchange, Second
Regulated Market

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

Wolfgang Haas
Head of Group Communications & Marketing, Spokesperson of the Group
Tel.: +43 (0)50 390-21029
Fax: +43 (0)50 390 99-21029
E-Mail: wolfgang.haas@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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issuer: Vienna Insurance Group Wiener Versicherung Gruppe
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

Original-Content von: Vienna Insurance Group Wiener Versicherung Gruppe, übermittelt durch news aktuell