2007 Information on

the Business Year 2007

Key Figures at a Glance

DONAU Versicherung AG Vienna Insurance Group

amounts in million EUR

Gross earned premiums Profit on ordinary activities Investments (without fund- and index-linked life insurance) Current investment income

2007

2006

718.9

683.8

44.0

27.9

2,122.7

2,023.7

98.4

102.0

Average interest yield in percent

4.7%

5.1%

Capital, reserves and supplementary capital

186.1

172.4

2,145.7

2,038.9

Technical provisions Social capital Employees

55.1

75.6

1,356

1,296

Administration

538

516

Sales

774

739

44

41

Trainees

2 | Donau Business Year 2007

Information on the Business Year 2007

Donau Versicherung AG Vienna Insurance Group

140th Business Year

presented by the Board of Management

Vienna, March 2008

Donau Business Year 2007 | 3

Foyer, Foto: Gerald Zugmann

4 | Donau Business Year 2007

Table of Contents

Mission Statement

page

6

Introduction by the Board of Management

page

7

Vienna Insurance Group

page

9

The Insurance Industry in 2007

page

13

The Donau in 2007

page

14

Outlook

page

19

Balance Sheet

page

20

Profit and Loss Account

page

22

Contacts

page

27

Branch Offices

page

28

Board of Management

page

29

Publishers’ Imprint

page

29

Donau Business Year 2007 | 5

Mission Statement

Donau - The Company

Donau Versicherung AG Vienna Insurance Group is among the Top Ten insurance companies of Austria. Traditionally our focus is on private clients, agriculture as well as trade and industry. In the last few years Donau has strengthened its position in the life insurance sector and is represented in the market with modern and innovative products.

We are represented throughout Austria in eight provincial headquarters, in approximately 60 branch offices and service outlets with about 1400 staff.

Donau Versicherung was founded in 1867, in the same year in which the famous waltz with the same name was composed. This means we have gained 140 years of experience over a rather turbulent span of time and are looking forward to meeting the challenges of the future with great commitment.

For our Clients

It is in line with our entrepreneurial spirit that we constantly strive to meet the requirements of our customers. Together with the customer we determine his personal need for protection and provisions for the future. This way we build up a long-term positive relationship, trust and satisfaction on a mutual basis.

For our Staff

Our senior managers are setting an example for all their staff. They delegate responsibility and competence and involve their staff in decision-making processes. Every one of our employees can depend on the entire team. The experience, the training and the security of a large insurance company are the basis on which Donau staff are giving expert advice to customers.

For our Shareholders

Our prudent business strategy makes it possible to increase our earnings and to improve our financial strength. We welcome the economic challenges with new ideas and improved business solutions. We adapt to the changing times and utilize our potential to improve business results.

For Society

We are well aware of our responsibility as an important factor of the Austrian economy. We are permanently engaged in communicating information and transparency of our business is a constant major concern. In addition to fulfilling our responsibilities as a business company within the national economy we sponsor cultural and social institutions.

6 | Donau Business Year 2007

Introduction by the Board of Management

Ladies and Gentlemen, dear Customers of Donau,

with the present report we would like to give you an overview on the development of Donau Versicherung AG Vienna Insurance Group during the past business year.

The year 2007 started with the storm Kyrill. In large parts of Europe normal life came to a standstill. This storm and other extraordinary weather phenomena point to a worldwide and unstoppable climatic change. This only emphasizes the importance of having an appropriate insurance cover.

In the sector of provisions for the future, private insurers have become more and more important in the last few years. The reduction of benefits provided by the state in all areas makes it clear how important private insurance protection is and how it benefits society and the economy.

As a successful Austrian insurance company we offer personal service, flexibility in our sales organization, efficiency in our administrative processes and utilization of all available technical resources.

In the life insurance sector Donau has taken advantage of the market potential, establishing itself in the market with a flexible product line. The most recent investment trends, such as sustainable funds, environmental and ethical funds were included in 2007 in the fund programme of the StarInvest – a fund-linked life insurance product of the Donau.

In 2008 Donau stresses its commitment to the environment. In motor third party insurances Donau offers a special nature bonus to those clients who are contributing to the campaign to safeguard the environment by driving a car using alternative propulsion methods.

In special actions such as the trade campaign 2007 we have focussed on small and medium sized companies as our target group. In addition the private clients and free lance professionals, small and medium sized companies constitute a significant segment of our client base.

Overall, the year 2007 was very successful for the Donau. With a premium growth of 4.8 percent we again exceeded the growth rate of the Austrian insurance industry as a whole. This way Donau has more than fullfilled its high ambitions.

The long-term aim is the continuous improvement and stabilization of the technical result. An efficient cost management and consistent optimization of administrative processes by means of modern information and communication technologies have upmost priority. With sustainable measures we are reaching significant results.

Donau Business Year 2007 | 7

Dkfm. Hans Raumauf, Dr. Rudolf Ertl, Mag. Robert Haider, Mag. Peter Höfinger, Dr. Franz Kosyna, Erich Leiß and Mag. Johanna Stefan (from left to right)

Inspite of the storm claims, the combined ratio (after reinsurance) remained well below the 100-percent mark in 2007. The Donau was able to improve its economic result significantly. The profit on ordinary activities increased by 57.7 percent to EUR 44.0 million.

The year 2007 was a year of change for the Donau. With the change of the logo and the company name to Donau Versicherung AG Vienna Insurance Group we are stressing our affiliation with the large family of the Vienna Insurance Group. With three new board members we are now ready for the challenges of the future. By planning for the longterm future, we have initiated a new generation in order to safeguard continuity and the further success of the company.

Not only in Austria our customers can depend on us. Within the framework of the Freedom of Services Directive and with the support of more than 40 insurance companies of the Vienna Insurance Group in CEE countries we are able to offer our clients international service at the high standard they are used to. The advantages of the largest insurance network in the fast growing CEE economies are thus directly accessible to our clients and sales partners. After the foundation in 2006 of our branch office in Italy we have been able to expand our position in 2007 as a competent and flexible partner for brokers and multiple agencies.

Our Donau success is only possible with highly motivated staff. We would therefore like to thank our staff for their commitment. We thank our clients, our shareholders and our business partners for their trust in us. Together with our staff we will continue to respond to the opportunities and challenges of the market.

The Board of Management, Donau Versicherung AG Vienna Insurance Group

8 | Donau Business Year 2007

VIENNA INSURANCE GROUP

The Vienna Insurance Group is the leading insurance Group in Austria and a top-player in Central and Eastern Europe (CEE). The Group is a composite insurer that offers its customers innovative products and modern insurance solutions in the property/casualty, life insurance and health insurance business.

Leading position in CEE The Vienna Insurance Group was one of the first insurance groups to recognise and quickly take advantage of the growth opportunities offered by a unified Europe. Today, the Group is one of the most important players in the CEE region. The Vienna Insurance Group now operates in 23 markets*, extending from Turkey in the south to Estonia in the north, and Vaduz in the west to Vladivostok in the east, thereby achieving broad geographic diversification. In Austria, the Czech Republic, Slovakia, Romania, Bulgaria, Albania and Georgia the Vienna Insurance Group is one of the leading insurers in the markets. In a comparison with other international insurance groups the Vienna Insurance Group is number 1 in its core markets in CEE in non-life insurance and occupies an outstanding second place in the overall market. * subject to approval of authorities

Clear growth strategy The Vienna Insurance Group has followed a clear strategy of value-oriented growth for many years. The central objective has been to be the leader. This applies at the level of the Group as a whole, to management and to each employee. The strategy of the Vienna Insurance Group has been to push forward expansion in the high-growth CEE region using selective market entries and organic growth, and to develop its leading positions in service and customer satisfaction through continuous improvements to the range of services offered. In addition to its strong market position, the Group is also using multi-channel distribution, systematic utilisation of synergies and broad risk diversification to optimise its access to customers. For example, the broad diversification over markets and products creates a correspondingly solid business structure, which is also reflected in an excellent rating, among other things (Standard & Poor’s: A+; stable outlook). Another key success factor of the Vienna Insurance Group is its multibrand policy, which relies on the effectiveness of using proven brand names with a rich tradition in all markets.

Pure play in the CEE region The Vienna Insurance Group is well positioned to participate in the increasing needs for insurance accompanying the rising standard of living in the countries of the CEE region. In 2007, the proportion of total Group premiums* contributed by group companies in the CEE already exceeded 40%, even rising to rough 60% in the property / casualty area. No other international insurance company generates such a high proportion of its premiums in this high-growth region. * preliminary, unconsolidated figures 2007

10 | Donau Business Year 2007

Listing on the Vienna and Prague Stock Exchanges Since 2005 the Vienna Insurance Group has been listed on the Prime Market sector of the Vienna Stock Exchange and is a part of the ATX leading share index. The company’s very pleasing performance over the past few years reflects the confidence felt by financial markets towards the business. In order to make the Group even more attractive to investors and reflecting its CEE presence also on capital markets, the shares have also been listed on the Prague Stock Exchange since the beginning of February 2008. As of February 1, 2008 the Group’s shares will be traded under its international name Vienna Insurance Group using the ticker symbol VIG.

We keep our promises The figures for recent years show that the Vienna Insurance Group is implementing its strategy successfully. The average annual growth in premiums of 19.8% for the Vienna Insurance Group as a whole during the 2004–2006 period is even surpassed by the profit before taxes, which grew on average by 43.5% per year during the same period, thereby exceeding the Group’s original targets by a wide margin. Dynamic growth in the CEE region also made a decisive contribution to this result. The Vienna Insurance Group is benefiting from its early involvement in CEE, which is already providing a solid contribution to profit. In particular, premiums written in the CEE region increased on average by 36.8% per year during the 2004–2006 period, while the average growth in profit before taxes was 40.3% over the same period.

Central and Eastern Europe – our growth market with a future The CEE region represents a significant growth opportunity for the insurance industry. The development of business potential resulting from the Vienna Insurance Group’s expansion into the CEE countries is based primarily on two factors: The insurance density in the CEE region (premiums per capita) is considerably below the Western European level, and the insurance markets exhibit above-average growth rates. In addition, rapid economic growth and continuing integration of the CEE countries into the European Union is increasing the wealth of the population. The demand for financial services to insure the assets that have been created and safeguard the standard of living has been growing at an above-average rate. The insurance market in a dynamically growing economy such as the CEE region therefore exhibits greater growth potential than the overall market. These are the factors that make Central and Eastern Europe so attractive for the Vienna Insurance Group.

Our plans for the future are manifold The Vienna Insurance Group has ambitious plans for the coming years. By consistently adhering to its strategy, the Vienna Insurance Group aims to achieve a premium volume of approximately EUR 10 billion for 2010. Compared to the current level, this corresponds to an average annual increase of approximately 14%. Profit before tax is expected to grow at an average annual

Donau Business Year 2007 | 11

Objectives and strategy of the Vienna Insurance Group

rate of approximately 21%, thereby continuing to surpass the growth rate in premiums to reach EUR 770 million by 2010.

More

detailed

information

on

individual

Group

companies

is

available

on

the

www.viennainsurancegroup.com website under “About Us – The Group” or in the WIENER STÄDTISCHE Versicherung AG VIENNA INSURANCE GROUP Annual Report.

in USD 3,500

3.305

3,000

2,500

2.397

2,000

1,500

1,000

520 310 212

101

95

89 Turkey

337

Romania

376

Bulgaria

500

60 CEE average

Ukraine

Poland

Slovakia

Hungary

Czech Republic

Austria

0 EU-15 average

2006 Insurance Density

(Source: Sigma 4/2007)

12 | Donau Business Year 2007

The Insurance Industry in 2007

The Austrian insurance industry achieved a total premium income of EUR 15.9 billion. This represents an increase of 1.9 percent. During the same period claims

Business Results of Private Insurers

increased by 10.7 percent to EUR 10.7 billion.

In 2007 the Austrian economy as a whole grew by 3.4 percent in real terms. For the year 2008 the Institute for Economic Research forecasts an increase of the GDP by 2.2 percent.

In 2007 the Austrian life insurance sector grew by 0.4 percent reaching a total

Life Insurance

premium volume of EUR 7.2 billion. The growth rate of total premium income from regular premium policies amounted to 2.8 percent.

According to information provided by the Association of Austrian Insurance Companies approximately 1.1 million contracts were concluded from the introduction of the government subsidized pension schemes until December of last year, with assets in the amount of almost EUR 2 billion.

Overall benefits paid out in the life insurance sector increased by 23.9 percent to EUR 4.9 billion.

In property and casualty business the premium volume of 2007 amounted to EUR 7.2 billion. This represents an increase of 3.1 percent. Yet again, the year 2007 suffered from extreme weather conditions. Several storms caused heavy damage. Property and casualty claims increased by 1.3 percent to EUR 4.8 billion.

Donau Business Year 2007 | 13

Property & Casualty Insurance

The Donau in 2007

Balance Sheet Structure

The relevant financial performance indicators shown in the balance sheet of an insurance company are the investments under assets, the capital & reserves and the technical provisions under liabilities.

Assets in EUR million Investments (incl. investments of fund- and index-linked life insurance) Other assets

Liabilities Capital and reserves Technical provisions (incl. technical provisions of fund- and index-linked life insurance) Other liabilities

2007 2,317.1 203.8 2,520.9

2006 91.9% 8.1% 100.0%

2,188.6 213.7 2,402.3

83.8

3.3%

67.3

2.8%

2,145.7 291.4 2,520.9

85.1% 11.6% 100.0%

2,038.9 296.1 2,402.3

84.9% 12.3% 100.0%

in EUR million

2007

91.1% 8.9% 100.0%

2006

The capital and reserves developed as follows over the last two years: in EUR million Amount 1/1/2006 Dividend Transfer/release Profit for the financial year Amount 31/12/2006 Dividend Transfer/release Profit for the financial year Value 31/12/2007

share capital

capital reserves

profit reserve

risk reserve per sect 73a ISA

balance sheet profit

total

16.6 16.6 16.6

6.6 6.6 6.6

7.1 7.1 7.3 14.4

9.5 1.3 10.8 1.0 11.8

20.2 -15.3 21.3 26.2 -18.0 26.2 34.4

60.0 -15.3 1.3 21.3 67.3 -18.0 8.3 26.2 83.8

Total Business

In 2007 the Donau achieved a total written premium income of EUR 705.8 million. As compared to the previous year this represents an increase of 4.8 percent. Modern and innovative products, as well as the high service standard with risk-adequate insurance protection, individual pension products and flexible, local service all over Austria contributed significantly to the success of the year 2007.

Written premiums, in EUR million Property & casualty, direct Life insurance, direct Total, direct business Property & casualty, indirect Life insurance, indirect Total, inward reinsurance Property & casualty, reinsurance direct Property & casualty, reinsurance indirect Life insurance, reinsurance direct Life insurance, reinsurance indirect Total, outward reinsurance Net retained written premiums

2007 457.6 248.3 705.8 4.1 7.8 11.9 67.6 1.9 2.2 0.0 71.7 646.0

14 | Donau Business Year 2007

2006 442.8 231.0 673.8 4.6 6.6 11.2 58.9 2.0 2.1 0.0 63.0 622.0

Change in percent 3.3 7.5 4.8 -10.9 18.2 6.3 14.8 -13.6 4.8 0.0 13.8 3.9

Claims payments (including claims handling expenses) relating to direct business increased by 10.2 percent to EUR 493.6 million.

Claims paid, in EUR million Property & casualty, direct Life insurance, direct Total, direct business Property & casualty, indirect Life insurance, indirect Total, inward reinsurance Property & casualty, reinsurance direct Property & casualty, reinsurance indirect Life insurance, reinsurance direct Life insurance, reinsurance indirect Total, outward reinsurance Net retained claims paid

2007 303.8 189.8 493.6 2.1 1.3 3.4 55.7 0.8 2.0 0.0 58.5 438.5

2006 306.4 141.4 447.8 2.4 0.9 3.3 55.1 0.7 2.0 0.0 57.8 393.3

Total operating expenses amounted to EUR 184.1 million, remaining at the

Change in percent -0.9 34.2 10.2 -12.5 44.4 3.0 1.1 14.3 0.0 0.0 1.2 11.5

Operating Expenses

same level as the year before. Staff costs could be kept at the same moderate level as in 2006 by the implementation of measures to improve efficiency. The completion of IT projects and the development of new IT programmes affected the material costs position.

Investment Income

The amount of capital investments (minus deposit receivables, plus cash in banks) was EUR 2,313.5 million as at December 31st, 2007 (+ 5.8 percent). EUR 190.8 million thereof are allocated to the fund- and index-linked life insurance portfolio (+16.6 percent). Current investment income decreased by 3.5 percent to EUR 98.4 million in the year of account.

Combined Ratio

The combined ratio (after reinsurance) was again significantly below the 100.0 percent mark.

Profit on ordinary activities in EUR million Profit on ordinary activities

In 2007 the direct premium income of property and casualty business amounted to EUR 457.6 million. This represents an increase of 3.3 percent as compared to the previous year. In non-motor business the increase amounted to 4.4 percent. The premium income of motor business grew by 2.2 percent.

Extreme weather conditions could be observed already in the last few years and again caused discussions on the worldwide climatic changes in 2007. January 2007 will be remembered as a month of storms. Within only a week three different storms passed over central Europe, the storm Kyrill caused the greatest damage. The mild winter of 2006/2007 helped to mitigate the claims situation so that the insurance industry did not suffer further losses.

Donau Business Year 2007 | 15

2007

2006

44.0

27.9

Property & Casualty

Written premiums, in EUR million Non-Motor business Motor business Total, property & casualty insurance

2007 244.1 213.5 457.6

2006 233.9 208.9 442.8

Change in percent 4.4 2.2 3.3

Claims paid, in EUR million Non-Motor business Motor business Total, property & casualty insurance (without claims settlement and claims prevention expenses)

2007 161.8 129.8 291.6

2006 166.1 128.6 294.7

Change in percent -2.5 0.9 -1.0

in EUR million

2007

2006

Change in percent

Operating expenses

122.4

116.0

5.5

in EUR million

2007

2006

42.9

26.3

Profit on ordinary activities

Life Insurance

Life insurance continued its highly positive development also in 2007. Premium income of direct life insurance business increased by 7.5 percent to EUR 248.3 million. Premium income from regular premium business amounted to EUR 158.6 million in 2007. This corresponds to an increase of 6.2 percent. The single premium increased by 9.8 percent to EUR 89.7 million.

With saving products which suit the client’s desire for flexibility and innovative guarantee components catering to his desire for safety, Donau offers tailor-made products which are designed to meet the individual requirements of the customer. Written premiums, in EUR million Regular premiums One time premiums Total, life insurance

2007 158.6 89.7 248.3

2006 149.4 81.6 231.0

Change in percent 6.2 9.8 7.5

Benefits paid, in EUR million Whole life Endowment Annuities Redemption surrenders Total, life insurance

2007 8.0 140.4 10.9 28.8 188.1

2006 7.4 103.9 8.0 20.5 139.8

Change in percent 7.8 35.2 35.6 40.5 34.6

2007

2006

Change in percent

33.0

37.1

-11.1

2007

2006

1.0

1.6

in EUR million Operating expenses in EUR million Profit on ordinary activities

Successful Partnership with the Savings Bank Sector

For many years now Donau has been maintaining a successful partnership with the savings bank sector. The sales organizations of the Donau and of Erste Bank und Sparkassen offer products of both companies to their customers. Through this cooperation the Donau sales force has the advantage of being able to offer competent advice and service in all important financial areas.

16 | Donau Business Year 2007

Donau focusses on a life-cycle adapted product policy. Depending on the

Flexible Product Range

actual situation Donau offers flexible individual insurance covers.

In 2007 provisions for the future were again a subject of discussion for both the younger and the older generation. The reduction of state financed pensions makes provisions for old age a personal concern for all Austrians. With modern and flexible products Donau responds to the increased consciousness of the need for provisions and security.

The BonusPension, the state-subsidized retirement plan, is an excellent highly developed product of the Donau in this segment. Capital guarantee, life expectancy statistics guarantee, protection for dependants, as well as further additional elements, which may be freely chosen, have become standard features of the product range.

Likewise Donau is highly successful with its occupational disability insurance which adapts the insurance protection to the actual situation in life. The quality of this product was awarded top marks by the German rating agency Franke & Bornberg already shortly after its launch in 2005.

In 2007 the funds included in the successful StarInvest were expanded to cover interesting investment regions and the most recent investment trends, such as environmental and ethical funds. This fund-linked life insurance offers optimum returns on investment, and at the same time protection for the future, leaving hardly any wish of the investor unfullfilled.

StarBond 07BestEdition was launched as a limited one time premium product in 2007, thus continuing the successful StarBond-line of the Donau combining the elements security and investment returns in the investment concept.

The subject of provisions for personal care has become more important in the last few years. Donau has been responding to this development by launching the StarPflegeRente as a single premium product and the Lebensqualitätsversicherung, a dread disease insurance, which pays out benefits in case of severe diseases and recently also in case of need of personal care.

You can depend on Donau as a partner for every phase of life with its personal accident insurance product SicherDurchsLeben, which was relaunched in 2007. A number of optional additional covers complement the individual insurance protection.

The trade offensive of 2007 was a focus in the property and casualty sector of the Donau. Small and medium-sized companies are the backbone of the Austrian economy and therefore a traditional target group of the Donau.

Donau stresses its positioning as an insurer for Austrian requirements with the well-known flexible Donau service. Besides its modern products, the high standard of service is a top priority of the Donau. Donau is present all over Austria with a high number of service outlets and customer-friendly opening hours as well as local service. It is also the ideal partner for fast and efficient claims settlement. Donau Business Year 2007 | 17

Local Service

In addition, Donau Brokerline cooperates with about 3000 independent insurance brokers and agents. The Brokerline supports independent sales outlets within an Austrian-wide organization, its response time is minimal and it offers the well-known high service level. Claims advices can be handled also via telephone under the Austrian hotline +43 (0)50 330 330. Optimized administrative processes and future-oriented IT-support complete the picture.

MyDon@u

A modern and future-oriented product line must include on-line information of contract details. MyDon@u is available to clients free of charge and offers access to their policy details via internet. Donau clients can register directly under www.donauversicherung.at. In addition to the possibility to view all policies with up-to-date information the client is informed on the value of his funds on a daily basis at the push of a button in the case of fund-linked life insurances. Donau has been offering a special service since the beginning of 2006: loading down the premium payment confirmation required by the tax authorities for the offsetting of premiums. The online service is being continuously extended and improved.

Donau established in Italy

Not only in Austria customers can depend on the Donau. After the foundation of an Italian branch office in 2006, Donau has successfully expanded its position in 2007 as a competent and flexible partner of brokers and multiple agencies. At present business activities concentrate on the north Italian market. In order to better develop it, the seat of the branch office was transferred from Bozen to Milan, the financial centre of Italy, in 2007. The special advantage of the Donau is its efficient and fast claims settlement service. Donau is presently active in Italy in property and casualty business.

The name of my provision for the future is Susi. Can it get more personal than that?

With the poster campaign of 2007 Donau was able to position itself as the insurer offering personal quality service on a local level. The campaign was greeted with much enthusiasm. The customer associates the Donau products and the company itself with each individual staff member, be it Susi, Walter, Robert, Julia or Robert!

In the radio spots aired in early summer and in autumn the theme of the poster campaign was reiterated, reminding customers again, supporting and strengthening the message. Donau clients should get the feeling that service is a personal matter, provided by their local representative, the staff of the sales organization and of the administration. All this is possible at the Donau!

Advertising for the Donau was complemented and strengthened in the summer of 2007 by summer festival give-aways, making many street festivals, company celebrations and similar events festivals of the Donau. All advertising efforts have contributed to the creation of a strong and eye-catching presence and to the promotion of its image of a flexible and personal quality insurer.

Media Award in Gold

In 2006 Donau was awarded the Media Award in Gold for its hand-painted poster campaign. The determining factor for the award was the inventiveness of the campaign, the ideas and their implementation. The challenging and innovative posters were hand-painted and included a reference to the neighbouring poster. 18 | Donau Business Year 2007

Outlook

According to a forecast of the Austrian Association of Insurance Companies

Forecast for 2008

the total premium income of the insurance industry will increase by approximately 1.9 percent in 2008. Compared to that the Institute for Economic Research expects an increase of 2.2 percent of the GDP in real terms for 2008.

Austrian life insurers expect a premium growth of 1.0 percent in 2008. As of January 1st, 2008 the state subsidy for premium subsidized pension products is increased to

Investment and provision trends

9.5 percent of the paid in premiums. Austrians are recognizing the importance of private old age provisions. More than one million Austrians have taken out a premium subsidized old age provision since 2003.

Starting in January 2008 Donau offers the StarKapitalGarant also as a single premium product. The StarKapitalGarant is a fund based life insurance with an absolute capital guarantee.

Provisions for personal care are becoming a matter of increased interest in the next few years. Donau is making an important contribution with its personal care provision products, the StarPflegeRente and the Lebensqualitätsversicherung.

For 2008 the premium growth in property & casualty business is forecast by the Association of Austrian Insurance Companies at 2.6 percent.

In January 2008 the new Donau motor tariff with several improvements will be launched. Donau focusses on sustainability and environment and actively contributes to protection of the climate by offering a nature bonus. Owners of motor cars with alternative propulsion systems make a valuable contribution to the protection of the environment and of the climate. Donau rewards the reduction of CO2 output with a premium bonus. It is planned to relaunch homeowners’ and householders’ insurance products in the middle of 2008, integrating ecological and environmental aspects.

Donau Business Year 2007 | 19

Property & Casualty Business

Balance Sheet as of December 31, 2007 Amounts in EUR, 2006 amounts in EUR thousand.

Assets

Property & Casualty A. Intangible Assets I. Expenditure for the acquisition of an insurance portfolio II. Other intangible assets Total intangible assets B. Investments I. Land and buildings II. Interests in associated undertakings and participating interests 1. Shares in associated undertakings 2. Participating undertakings 3. Bonds and other securities issued by and loans to undertakings in which a participating interest is held III. Other investments 1. Shares and other variable yield securities 2. Bonds and other fixed interest securities 3. Mortgage loans 4. Prepayments on policies 5. Other loans 6. Deposits with credit institutions IV. Deposit receivables associated with inward reinsurances Total Investments C. Assets held to cover linked liabilities D. Debtors I. Debtors arising out of direct insurance operations 1. policyholders 2. intermediaries 3. insurance companies II. Debtors arising out of reinsurance operations III. Other receivables Total Debtors E. Accrued interest

Life

Total 2007

Total 2006

1,021,965.00 4,385,444.76 5,407,409.76

0.00 0.00 0.00

1,021,965.00 4,385,444.76 5,407,409.76

1,277 5,078 6,355

38,518,017.09

18,363,076.65

56,881,093.74

83,816

39,886,163.09 12,582,539.61

29,593,533.91 15,809,028.39

69,479,697.00 28,391,568.00

40,313 21,465

6,285,424.64

65,240,908.48

71,526,333.12

65,022

147,605,852.23 181,135,846.70 463,465.98 0.00 32,683,653.11 46,132,895.21

346,502,174.76 1,004,197,623.06 0.00 2,925,038.87 120,466,892.06 0.00

494,108,026.99 1,185,333,469.76 463,465.98 2,925,038.87 153,150,545.17 46,132,895.21

497,321 1,092,806 587 2,016 181,512 25,591

46,657.82 505,340,515.48

17,827,917.03 1,620,926,193.21

17,874,574.85 2,126,266,708.69

14,450 2,024,898

0.00

190,860,859.40

190,860,859.40

163,752

25,044,625.58 6,174,561.65 1,486,587.54 9,118,974.05 36,092,652.12 77,917,400.94

3,256,930.39 0.00 188,932.30 3,093,223.50 1,707,343.74 8,246,429.93

28,301,555.97 6,174,561.65 1,675,519.84 12,212,197.55 37,799,995.86 86,163,830.87

27,453 7,392 1,344 27,095 34,409 97,692

6,515,438.20

32,959,289.62

39,474,727.82

38,397

F. Other assets I. Tangible assets and inventory (not including land and buildings) II. Cash at banks and in hand III. Other Total other assets

2,814,178.20 7,016,231.87 17,446,088.09 27,276,498.16

0.00 7,227,633.67 0.00 7,227,633.67

2,814,178.20 14,243,865.54 17,446,088.09 34,504,131.83

3,095 13,229 15,899 32,224

G. Deferred expenses and accrued income I. Active tax deferral II. Other deferred expenses and accrued income Total deferred expenses and accrued income

28,813,644.70 5,113,616.45 33,927,261.15

3,689,933.28 624,965.83 4,314,899.11

32,503,577.98 5,738,582.28 38,242,160.26

32,900 6,050 38,950

H. Offset items between divisions

156,693,176.32

-156,693,176.32

0.00

0

Total Assets

813,077,700.01

1,707,842,128.62

2,520,919,828.63

2,402,268

20 | Donau Business Year 2007

Liabilities

Property & Casualty A. Eigenkapital A.I.Capital Grundkapital and reserves Nennbetrag share capital 150.000.000,00 I.1.Ordinary 1. Nominal amount 10,355,878.86 II.II.Kapitalrücklagen Capital reserves Tied 13.033.639,00 1,492,237.75 1.1.Gebundene 1,531,797.47 2. Not-tied III. III.Gewinnrücklagen Revenue reserves Legal reserve Rücklage per section gemäß 130 § Company 130 Aktiengesetz 1965 1.1.Gesetzliche 1965 jeweils as amended geltenden Fassung 2.100.000,00 152,612.95 Act in der 2.2.Freie FreeRücklagen reserves 122.698.054,00 10,601,702.49 IV. Risk reserve per section 73a Insurance Supervisory Act, taxed portion 5,609,066.77 Balance sheet profit 34,233,127.88 8.096.010,68 IVIV.V.Bilanzgewinn Gewinnvortrag profit carried forward 1.317.208,44 5,801,620.75 davon Thereof Summe Total capital Eigenkapital and reserves 295.927.703,68 63,976,424.17 B. B.Unversteuerte Untaxed reserves Rücklagen I.I.Risikorücklage Risk reserve per gem. section § 73a73a VAGInsurance Supervisory Act Valuation reserve onauf account Grund of von special Sonderabschreibungen write-downs II.II.Bewertungsreserve III. III.Sonstige Other untaxed unversteuerte reservesRücklagen Summe Total Reserves Rücklagen

Life

Total 2007

Total 2006

90.000.000,00 6,213,527.33

240.000.000,00 16,569,406.19

2 4 0 .0 0 0 16,569

327,027.75 0,00 3,226,673.84

13.033.639,00 1,819,265.50 4,758.471.31

1 31,819 .0 3 4 4,758

9.000.000,00 654,055.51 134.661.847,00 2,996,138.32 6,197,573.53 67.083.982,52 219,816.70 10.242.869,84 2,456,410.07 300.745.829,52 19,834,812.98

11.100.000,00 806,668.46 257.359.901,00 13,597,840.81 11,806,640.30 75.179.993,20 34,452,944.58 11.560.078,28 8,258,030.82 596.673.533,20 83,811,237.15

1 1 .1807 00 2 5 06,298 .7 4 1 10,760 726,258 1 . 5 60 1 54,942 .0 0 3 586.435 67,270

140.372.454,00 10,106,876.23 328.939.903,39 27,900.26 91.364.097,00 12,217,883.42 560.676.454,39 22,352,659.91

72.827.157,00 3,961,479.47 62.002.136,00 0.00 15.337.805,00 464,276.05 150.167.098,00 4,425,755.52

213.199.611,00 14,068,355.70 390.942.039,39 27,900.26 106.701.902,00 12,682,159.47 710.843.552,39 26,778,415.43

2 014,068 0 .8 1 7 28 4 . 8 59 28 1615,519 0 .2 63 645.938 29,616

37,750,000.00 0,00

192.644.200,00 37,750,000.00

192.644.200,00 75,500,000.00

75,500 0

627.299.067,89 60,534,399.49 -17.028.866,29 -665,252.82

182.340.610,00 11,133,738,37 -6.163.929,00 -140,898,00

809.639.677,89 71,668,137.86 -23.192.795,29 -806,150.82

815.394 72,954 - 29-1,622 . 49 6

0,00 0.00 0,00 0.00

12.181.868.206,82 1,340,682,204.65 -240.898.322,00 -7,731,491.00

12.181.868.206,82 1,340,682,204.65 -240.898.322,00 -7,731,491.00

1 11,280,581 . 20 0 . 2 83 - 25 4-8,705 . 3 86

6.361.179.773,67 467,456,661.99 -563.278.669,64 -62,221,539.17

42.439.450,00 2,794,174.59 -1.399.634,00 -179,177.76

6.403.619.233,67 470,250,836.58 -564.678.303,64 -62,400,716.93

6 .3460,691 19 . 11 1 - 55-61,895 6 . 8 71

23.107.000,00 1,449,175.24 -3.200.000,00 -280,380.10

0,00 0.00 0,00 0.00

23.107.000,00 1,449,175.24 -3.200.000,00 -280,380.10

2 41,562 .5 0 2 - 3 . 5-343 65

0,00 0.00 120,180,860.00 0,00 342.851.278,00 3,425,296.44 21.792.659,23 -273,036.77 589,606,184.30 -2.228.427,48

591.300.686,44 28,320,431.14 0,00 0.00 0,00 68,300.00 1.446.000,00 0.00 1,374,947,281.99 0,00

591.300.686,44 28,320,431.14 120,180,860.00 0,00 342.851.278,00 3,493,596.44 23.238.659,23 -273,036.77 1,964,553,466.29 -2.228.427,48

5 625,689 5 .9 7 9 111,198 0 3 1 4 .7 0 4 3,025 2 8 .0-241 69 1,882,893 - 3 . 2 43

0.00 0,00

181,101,104.03 48.751.776,65

181,101,104.03 48.751.776,65

156,028 2.094

0.00 283.268.704,24 0.00 693.656.168,65 9,515,800.00 2.336.000,00 17,534,233.50 218.981.134,29 27,050,033.50 1.198.242.007,18

26,151,244.00 35.120.519,76 25,606,680.00 132.047.242,32 5,403,100.00 72.101.503,94 11,255,675.61 33.680.681,31 68,416,699.61 272.949.947,33

26,151,244.00 318.389.224,00 25,606,680.00 825.703.410,97 14,918,900.00 74.437.503,94 28,789,909.11 252.661.815,60 95,466,733.11 1.471.191.954,51

3 325,705 6 .6 5 4 7746,525 7 . 0 31 314,919 4 .9 65 2 624,283 2.126 111,432 1.410.775

124.69 2.337.767,37

7,872,389.00 247.062.251,00

7,872,513.69 249.400.018,37

8,868 263.607

H.Sonstige CreditorsVerbindlichkeiten H. Creditors arising aus out dem of direct insurance operations I.I.Verbindlichkeiten direkten Versicherungsgeschäft policyholders 28,222,688.37 1.1.an Versicherungsnehmer 153.150.633,97 intermediaries 5,761,784.85 2.2.an Versicherungsvermittler 56.017.889,94 insurance companies 1,223,475.00 3.3.an Versicherungsunternehmen 1 7.924.656,66 Creditors arising out of reinsurance operations 1,003,358.70 II.II.Abrechnungsverbindlichkeiten ausdem Rückversicherungsgeschäft48.656.023,43 III.Verbindlichkeiten Amounts owed to creditKreditinstitute institutions III. gegen 6 8 . 31,303,007.20 79.667,20 IV.Andere Other creditors 34,555,437.82 IV. Verbindlichkeiten 225.100.658,14 Total creditors 72,069,751.94 Summe Verbindlichkeiten 569.229.529,34

4,137,024.84 13.514.247,82 0.00 0,00 0.00 1 1.797,00 71,028,820.57 .119.347,77 1,263,128.67 0,00 6,429,948.87 15.046.987,84 12,858,922.95 35.692.380,43

32,359,713.21 166.664.881,79 5,761,784.85 56.017.889,94 1,223,475.00 17.936.453,66 2,032,179.27 55.775.371,20 6 8 . 32,566,135.87 79.667,20 40,985,386.69 240.147.645,98 84,928,674.89 604.921.909,77

24,316 251.505 5 86,319 .013 1 4 . 3791 55 6 35,817 .428 2,557 617 3 229,798 2.941 69,598 710.859

C. C.Nachrangige Subordinated Verbindlichkeiten liabilities D. D.Versicherungstechnische Technical provisions, Rückstellungen im direct Eigenbehalt business Provision for unearned premiums I.I.Prämienüberträge 1.1.Gesamtrechnung Gross amount Reinsurers’ der Rückversicherer share 2.2.Anteil II.II.Deckungsrückstellung Long term business provision 1.1.Gesamtrechnung Gross amount Reinsurers’ der Rückversicherer share 2.2.Anteil Provision forfür outstanding noch nichtclaims abgewickelte Versicherungsfälle III. III.Rückstellung 1.1.Gesamtrechnung Gross amount 2.2.Anteil Reinsurers’ der Rückversicherer share IV. IV.Rückstellung Provision forfür premium erfolgsunabhängige refunds Prämienrückerstattung 1.1.Gesamtrechnung Gross amount 2.2.Anteil Reinsurers’ der Rückversicherer share V.V.Rückstellung Provision forfür profit erfolgsabhängige participation bonuses Prämienrückerstattung bzw. for policyholders Gewinnbeteiligung der Versicherungsnehmer 1.1.Gesamtrechnung Gross amount kversicherer VI. Claims equalization provision VI. VII.Schwankungsrückstellung Other technical provisions VII. Sonstige 1. Grossversicherungstechnische amount Rückstellungen 1.2.Gesamtrechnung Reinsurers’ share Total 2. Anteil technical derprovisions Rückversicherer E. Versicherungstechnische Rückstellungen E. Technical provisions for linked liabilities der fondsgebundenen Lebensversicherung Non-technical provisions F.F.Nichtversicherungstechnische Rückstellungen Provisions for severance payments I.I.Rückstellungen für Abfertigungen Provisions for pensions II.II.Rückstellungen für Pensionen III.Steuerrückstellungen Provisions for taxation III. IV.Sonstige Other provisions IV. Rückstellungen Total non-technical provisions Summe andere Rückstellungen G.Depotverbindlichkeiten Deposit liabilities associated with G. aus dem abgegebenen outward reinsurances Rückversicherungsgeschäft

Accruals and deferred income I.I.Rechnungsabgrenzungsposten Total liabilities Bilanzsumme

272,521.50 38.804.153,84

635,162.54 1.161.554,00

907,684.04 39.965.707,84

1,062 33.008

813,077,700.01 9.455.711.431,18

1,707,842,128.62 14.000.108.105,19

2,520,919,828.63 23.455.819.536,37

2,402,268 22.073.197

Donau Business Year 2007 | 21

Profit and Loss Account 2007 Amounts in EUR, 2006 amounts in EUR thousand.

Property & Casualty

2006

2007

Technical Account 1. Earned premiums Written premiums Gross written premiums Outward reinsurance premiums Change in the provision for unearned premiums Gross amount Reinsurers’ share Total net earned premiums

461,663,148.43 -69,530,298.28

392,132,850.15

386,497

852,508.69 392,985,358.84

-1,081 385,416

8,049.65

6

1,732,984.67

763

-249,429,736.92

-253,034

-9,180,851.61 -258,610,588.53

-8,927 -261,961

-380,334.49 -380,334.49

-311 -311

-855,095.55 -855,095.55

-966 -966

-107,805,342.09 -26,579,891.11 12,008,551.89 -122,376,681.31

-106,233 -26,555 16,774 -116,014

8. Other technical expenses

-2,049,942.53

-2,005

9. Change in equalization provision

-8,982,436.00

-13,137

1,471,314.75

-8,209

1,079,231.55 -226,722.86

2. Investment income allocated to the technical account 3. Other technical income 4. Claims incurred Claims paid Gross amount Reinsurers’ share Change in the provision for outstanding claims Gross amount Reinsurers’ share Total net incurred claims

-305,937,791.77 56,508,054.85 -10,274,420.03 1,093,568.42

5. Increase of technical reserves Gross amount Reinsurers’ share Total increase of technical reserves

-380,334.49 0.00

6. Expenditure for premium refunds Gross amount Reinsurers’ share Total expenditure for premium refunds

-1,030,471.53 175,375.98

7. Operating expenses Acquisition costs Other operating expenses Reinsurance commissions and profit participation associated with outward reinsurances Total operating expenses

Technical result (carried forward)

22 | Donau Business Year 2007

Property and Casualty Insurance

Non-Technical Account

2007

Ergebnis (Übertrag) Versicherungstechnisches Technical result (carried forward)

2006

1,471,314.75

-649.577 -8,209

1.1. Erträge aus Kapitalanlagen und Zinsenerträge Investment income and interest earned Erträge aus Beteiligungen, davon verbundene Unternehmen ATS 3.124.545,00 (1999: ATS 360.975,00) Income from participating interests, of which affiliated companies accounted for EUR 722,563.56 (2006: EUR 717,669.54) aus Grundstücken und Bauten Erträge Income from land and buildings, of which affiliated companies accounted for EUR 114,974.03 (2006: EUR 171,154.57) aus sonstigen Kapitalanlagen, davon verbundene Unternehmen ATSEUR 9.196.395,20 ATS 0,00) Erträge from other investments, of which affiliated companies accounted for 0.00 (2006:(1999: EUR 0.00) Income Gewinne aus the demsale Abgang von Kapitalanlagen Profit from of investments Sonstige Erträge ausincome Kapitalanlagen und Zinsenerträge Other investment and interest earned Summe Kapitalerträge income Total investment

856,321.60 4,154,572.62 19,294,976.29 24,678,337.78 4,827,410.83 53,811,619.12

11.105 5,910 124.885 6,992 438.937 19,724 297.624 10,523 18.713 3,623 891.264 46,772

Aufwendungen für Kapitalanlagen und Zinsenaufwendungen 2.2. Investment expenditures and interest paid Aufwendungen für dieexpenses Vermögensverwaltung Asset management Abschreibungen von Kapitalanlagen investments Write-downs on Zinsenaufwendungen Interest paid Verluste aus the demsale Abgang von Kapitalanlagen Loss from of investments Sonstige Aufwendungen für Kapitalanlagen Other investment expenses Summe Kapitalaufwendungen Total investment expenditures

-3,541,662.12 -3,889,751.79 -3,812,897.56 -2,993.52 -1,308,925.42 -12,556,230.41

23.785 -2,192 138.581 -3,421 895 -5,410 3.953 -194 14.009 -1,244 -181.223 -12,460

-8,049.65

-194-6

259,368.22

2.146 193

-3,097.17

-20.993 -15

42,974,924.86

26,275

3.3. InInvestment die versicherungstechnische Rechnung übertragene Kapitalerträge income transferred to the technical account 4.4. Sonstige nichtversicherungstechnische Erträge Other non-technical income 5.5. Sonstige nichtversicherungstechnische Aufwendungen Other non-technical expenditures

Ergebnis der gewöhnlichen Geschäftstätigkeit Profit on ordinary activities, Property and casualty insurance

Donau Business Year 2007 | 23

Life Insurance

Abgegrenzte Earned premiums Prämien 1.1. Prämien Verrechnete Written premiums Gesamtrechnung Gross written premiums Abgegebene Outward reinsurance Rückversicherungsprämien premiums durch provision Prämienabgrenzung for unearned premiums Veränderung Change in the Gesamtrechnung Gross amount Anteil Reinsurers’ der Rückversicherer share Prämien earned premiums Summe Total net

256,104,570.79 -2,191,575.97 85,505.37 -22,181.00

Kapitalerträge Investment income des technischen allocated to Geschäfts the technical account 2.2. 3.3. Nicht Non-realized realisierte profits Gewinne from aus investments Kapitalanlagen per item gemäß C. of Posten the assets C der (fund Aktiva and(fondsgebundene index linked life insurances) Lebensversicherung) 4.4. Sonstige Other technical versicherungstechnische income Erträge 5.5. Aufwendungen Claims incurred für Versicherungsfälle Zahlungen Claims paid für Versicherungsfälle Gesamtrechnung Gross amount Anteil Reinsurers’ der Rückversicherer share Veränderung Change in provision der Rückstellung for outstanding für nochclaims nicht abgewickelte Versicherungsfälle Gesamtrechnung Gross amount Anteil Reinsurers’ der Rückversicherer share Summe Total net Versicherungsfälle claims incurred 6.6. Erhöhung Increase von of technical versicherungstechnischen reserves Rückstellungen Deckungsrückstellung Long-term business reserve Gesamtrechnung Gross amount Anteil Reinsurers’ der Rückversicherer share Summe Total net Erhöhung increaseversicherungstechnische of technical provisions Rückstellungen 7.7. Aufwendungen Expenditure for fürprofit die erfolgsabhängige participation bonuses Prämienrückerstattung and profit bzw. sharing Gewinnbeteiligung schemes for policyholders der Versicherungsnehmer Gesamtrechnung Gross amount Anteil Reinsurers’ der Rückversicherer share Summe Total net Gewinnbeteiligung profit participation bonuses 8.8. Aufwendungen Operating expenses für den Versicherungsbetrieb Aufwendungen Acquisition costs für den Versicherungsabschluss Sonstige Other operating Aufwendungen expenses für den Versicherungsbetrieb Rückversicherungsprovisionen Reinsurance commissions and und profit Gewinnanteileaus participation associated Rückversicherungsabgaben with outward reinsurances Summe Total operating Betriebsaufwendungen expenses 9.

2006

2007

Technical Account

9. Non-realised losses from investments per item C. of the assets -150 (fund und index linked life insurance)

10. 10. Sonstige Other technical versicherungstechnische expenses Aufwendungen Technical result (carried forward)

24 | Donau Business Year 2007

-191,076,663.88 2,000,640.07 532,122.38 -121,624.21

-75,582,535.64 -923,786.58

- 12,695,000.00 0.00

253,912,994.82 2.063. 235,512 77 7

63,324,37 -211 46 253,976,319.19 2.063.823 235,302 62,196,513.35

924.355 57,704

1,733,642.65

5.461 10,669

225,071.54

12315

-189,076,023.81 1.495. -140,310 69 8

410,498.17 -6. 5 8919 1 -188,665,525.64 -1.489.117 -139,390

-76,506,322.22 -76,506,322.22

657 -111,502 . 3 79 -657.379 -111,502

-12,695,000.00 -12,695,000.00

407 -12,360 . 4 00 -407.400 -12,360

-23,653,463.77 -9,734,027.03 417,544.06 -32,969,946.74

199 -27,779 .546 109 -9,634 .538 -6 . 8 7312 2 -302.212 -37,101

-5,936,158.76

-1,338

-346,117.79

-18.474 -420

1,012,475.58

1,578

Life Insurance

2007

Non-technical account Ergebnis (Übertrag) Versicherungstechnisches Technical result (carried forward)

2006

1,012,475.58

119.030 1,578

375,028.16 1,365,336.17 72,131,666.19 1,225,448.89 2,542,380.87 77,639,860.28

3. 3 80 375 1,081 7 52 86 5. 67,744 9 12 12 0. 10,399 5 75 5.2,289 6 34 996.253 81,888

2.2. Aufwendungen Investment expenditures für Kapitalanlagen and interest und Zinsenaufwendungen paid für dieexpenses Vermögensverwaltung Aufwendungen Asset management von investments Kapitalanlagen Abschreibungen Write-downs on Zinsenaufwendungen Interest paid Verluste Loss from aus the demsale Abgang of investments von Kapitalanlagen Sonstige Other investment Aufwendungen expenses für Kapitalanlagen Summe Total investment Kapitalaufwendungen expenditures

-2,317,743.05 -5,081,681.28 -7,436,254.81 -178,119.64 -429,548.15 -15,443,346.93

1 3.-1,208 4 11 4-16,252 2. 9 93 1 0.-6,292 3 02 -134 64 5. 1-297 28 -71.898 -24,184

3.3. InInvestment die versicherungstechnische income transferredRechnung to the technical übertragene account Kapitalerträge

-62,196,513.35

-924.355 -57,704

580.00

33

-363.44

00

1,012,692.14

1,611

Erträge Investment aus Kapitalanlagen income and interest und Zinsenerträge earned 1.1. aus from Beteiligungen, participatingdavon interests, verbundene of whichUnternehmen affiliated companies ATS 3.340.000,00 accounted (1999: for EUR ATS 0.00 3.380.000,00) (2006: EUR 0.00) Erträge Income Erträge Income aus from Grundstücken land and buildings, und Bauten of which affiliated companies accounted for EUR 3,661.13 (2006: EUR 4,839.05) Erträge Income aus from sonstigen other investments, Kapitalanlagen, of which davon affiliated verbundene companies Unternehmen accounted ATS for 0,00 EUR (1999: 0.00ATS (2006: 0,00) EUR 0.00) aus the demsale Abgang of investments von Kapitalanlagen Gewinne Profit from Sonstige Other investment Erträge ausincome Kapitalanlagen and interest und Zinsenerträge earned Summe Total investment Kapitalerträge income

4. Other non-technical income tversicherungstechnische 5. Other non-technical Erträge expenditures

Profit on of ordinary activities, Life insurance

Donau Business Year 2007 | 25

Total Business

2007 Technical result (Property & Casualty and Life carried forward)

2006

2,483,790.33

-6,631

1,231,349.76 5,519,908.79 91,426,642.48 25,903,786.67 7,369,791.70 131,451,479.40

6,285 8,073 87,468 20,922 5,912 128,660

2. Investment expenditures and interest paid Asset management expenses Write-downs on investments Interest paid Loss from the sale of investments Other investment expenses Total investment expenditures

-5,859,405.17 -8,971,433.07 -11,249,152.37 -181,113.16 -1,738,473.57 -27,999,577.34

-3,400 -19,673 -11,703 -327 -1,541 -36,644

3. Investment income transferred to the technical account

-62,204,563.00

-57,710

259,948.22

226

-3,460.61

-15

43,987,617.00

27,886

-12,283,491.38

-6,275

31,704,125.62

21,611

2,837,095.14 2,837,095.14

926 926

-1,046,777.00 -7,300,000.00 -8,346,307.00

-1,222 0 -1,222

26,194,913.76

21,316

8,258,030.82

4,942

34,452,944.58

26,258

Non-technical account 1. Investment income and interest earned Income from participating interests, of which affiliated companies accounted for EUR 722,563.56 (2006: EUR 717,669.54) Income from land and buildings, of which affiliated companies accounted for EUR 118,635.16 (2006: EUR 175,993.62) Income from other investments, of which affiliated companies accounted for EUR 0.00 (2006: EUR 0.00) Profit from the sale of investments Other investment income and interest earned Total investment income

4. Other non-technical income 5. Other non-technical expenditures

6. Profit on ordinary activities 7. Income tax

8. Profit after tax 9. Release of reserves Release of other untaxed reserves Total of reserve releases 10. Transfer to reserves Transfer to risk reserve per section 73a Insurance Supervisory Act Transfer to free reserve Total of reserve transfers

11. Profit for the financial year 12. Profit carried forward

Net Profit

26 | Donau Business Year 2007

Contacts

Property & Casualty Insurance - Motor

Asset Management

Günther Brandstätter

Mag. Gerald Weber

Property & Casualty Insurance - Non-Motor

Real Estate

Ing. Roman Pfisterer

Mag. Anton Werner

Claims Department

Legal Affairs

Prok. Dr. Jutta Frühberger

Mag. Helene Kanta

Reinsurance

Internal Audit

Mag. Gerald Klemensich

Dr. Herbert Allram

Life Insurance

Human Resources

Prok. Peter Stempel, Director

Prok. Mag. Gertrud Drobesch (extended Board of Management)

Employed Sales Staff and Agencies

Business Process Organization

Mag. Martin Buchberger

Mag. Wolfgang Unger

Donau Brokerline

Company Actuary

Mag. Alastair McEwen

Peter Stempel, Director

Marketing – Advertising

Deputy Actuary

Mag. Ulrike Promberger

Johannes Goldnagl

Accounting

General Secretary

Prok. Mag. Hans Meixner, Director

Dr. Johanna Lesjak

Donau Business Year 2007 | 27

Head Office & Branches

Head Office

Provincial Headquarter

Schottenring 15, A 1010 Vienna

for Upper Austria

P.O. Box 770, A 1011 Vienna

Volksgartenstrasse 15, A 4020 Linz

Tel.: +43 (0) 50330-70000

P.O Box 607, A 4021 Linz

E-Mail: [email protected]

Tel.: +43 (0) 50330-70160

Website: www.donauversicherung.at

E-Mail: [email protected] Johann Haidinger, Manager

Donau Brokerline Schottenring 15, A 1010 Vienna

Provincial Headquarter for Salzburg

P.O. Box 770, A 1011 Vienna

Friedenstrasse 11, A 5033 Salzburg

Tel.: +43 (0) 50330-70000

P.O. Box 17, A 5033 Salzburg

E-Mail: [email protected]

Tel.: +43 (0) 50330-70170 E-Mail: [email protected]

Provincial Headquarter for Vienna

Kurt Resl, Manager

Favoritenstrasse 82, A 1100 Vienna P.O. Box 219, A 1100 Vienna

Provincial Headquarter for Tyrol

Tel.: +43 (0) 50330-70110

Schlossergasse 1, A 6020 Innsbruck

E-Mail: [email protected]

P.O. Box 194, A 6010 Innsbruck

Andrew Glaser, Manager

Tel.: +43 (0) 50330-70180 E-Mail: [email protected]

Provincial Headquarter

Wolf-Dieter Bader, Manager

for Lower Austria Mariazeller Strasse 1 am Europaplatz,

Provincial Headquarter for Vorarlberg

A 3100 St. Poelten

Arlbergstrasse 15, A 6850 Dornbirn

Tel.: +43 (0) 50330-70120

P.O. Box 110, A 6850 Dornbirn

E-Mail: [email protected]

Tel.: +43 (0) 50330-70190

Georg Hartl, Manager

E-Mail: [email protected] Engelbert Wiedl, Manager

Provincial Headquarter for Styria Elisabethstrasse 59, A 8010 Graz

Branch Office for Italy

P.O. Box 664, A 8011 Graz

I 20122 Milano, Via V. Bellini 15

Tel.: +43 (0) 50330-70140

Tel.: +39 (02) 896003 1

E-Mail: [email protected]

E-Mail: [email protected]

Heimo Karpf, Manager

Antonio Caleari, Manager Mag. Thomas Haslinger, Manager

Provincial Headquarter for Carinthia and East Tyrol Karfreitagstrasse 24, A 9020 Klagenfurt P.O. Box 542, A 9010 Klagenfurt Tel.: +43 (0) 50330-70150 E-Mail: [email protected] Emanuel Dovjak, Manager

28 | Donau Business Year 2007

Board of Management

In 2007 the Board of Management was made up of the following members:

General Manager Dkfm. Hans Raumauf, Biedermannsdorf Chairman Deputy General Manager Dr. Rudolf Ertl, Vienna

Mag. Robert Haider, Vienna Member

Dr. Franz Kosyna, Vienna Member (since November 1st, 2007)

Erich Leiß, Laa an der Thaya Member (since November 1st, 2007) Mag. Johanna Stefan, Vienna Member (since May 1st, 2007)

Mag. Peter Höfinger, Vienna Member (until March 31st, 2007)

Publisher’s Imprint: Owner, publisher and editor: Donau Versicherung AG Vienna Insurance Group, Schottenring 15, A 1010 Vienna For further information please contact the General Secretariat/Company Communications on +43 (0) 05033-72542 Design: Werbeagentur Schürz & Lavicka Photos: Petra Spiola, Gerald Zugmann, Foto Wilke

Donau Business Year 2007 | 29