Group results (pre-tax) after nine months at EUR 191.2 million, more than 21% above the previous year's level

Operating profit improved by 18.9% (EUR 210.0 million) by lowering cost and claim ratios

Premiums earned (incl. savings portion) at EUR 3.4 billion after nine months – an increase of 8.4% / strong growth in international business 

Investments at EUR 20.4 billion, for the first time over EUR 20 billion – UNIQA largest asset manager in the Austrian insurance industry

The Supervisory Board approves of issuance by UNIQA Versicherungen AG of a supplementary capital bond with a volume of EUR 250 million 

The UNIQA Group was successful in implementing its strategy of profitable growth in the third quarter of 2006.  With a rise in group premiums earned (incl. the savings portion) of 8.4% to EUR 3,401.0 million and, at the same time a reduction in the cost and claim ratios, pre-tax profit  could be increased by 21.2% to EUR 191.2 million.  This already puts the profit on ordinary activities after only nine months at the level of the entire year 2005. Earnings in Austria rose sharply by 20.0% (to EUR 139.6 million); this figure was even outdone by the foreign companies in Western and Eastern Europe, whose strong growth brought them a 24.4% increase in earnings (to EUR 51.6 million).  After nine months, the UNIQA companies outside of Austria have contributed 27.0% to earnings. 

UNIQA CEO Konstantin Klien comments: “We have clearly proved our high level of profitability in the first nine months of the year. For the third quarter, profit on ordinary activities of Euro 191.2 million gives a pre-tax ROE of 18.0%, which will of course be higher at year-end with an expected profit on ordinary activities of around Euro 230 million. Looked at in an international context, this excellent figure is more than just a symbol of the valuation and fantasy of our earnings-oriented strategy. As a logical continuation of the path we have chosen, we have set ourselves the target to increase profit by a further Euro 200 million from Euro 230 million to Euro 430 million between 2007 and 2010. The basis for this is formed by the currently familiar internal and external underlying conditions. Until then, the degree of internationalisation of the UNIQA Group will continue to rise strongly only as a result of disproportionately high growth on overseas markets. The expansion of recent years is securing valuable jobs in Austria. The UNIQA headquarters in Vienna currently already employs around one quarter of the 1,000 employees involved in the activities of our group companies in Western and Eastern Europe.

Where Austria is concerned, and on the basis of market data, I can also say that the UNIQA Group has been able to slightly extend market shares in life and non-life insurance in the first nine months of the current year. This is certainly also due to the increase in staff involved in sales.”

Premiums earned (incl. the savings portion from the unit-linked and index-linked life insurance) are, after three quarters, at EUR 3,401.0 million and 8.4% above the previous year's level.  The group companies in Austria contributed EUR 2,336.6 million (+1.6%).  The group companies outside of Austria continue to show particularly strong growth dynamics – increasing their premium volume by 26.8% to EUR 1,064.5 million, thus contributing 31.3% to the group's premium volume. In the CEE countries the UNIQA companies increased premiums by 31.5%.  In the foreign countries in Western Europe UNIQA continues to be on a growth path with its niche strategy and premiums were up by 23.7%. 

In life insurance  the volume of premiums earned rose by 13.4% to EUR 1,459.2 million. Outside of Austria, the companies of the UNIQA Group were able to increase their life insurance premiums by an impressive 58.4% to EUR 441.6 million.  Growth driver for this, in addition to the successful cooperation with Veneto Banca in Italy (+57.4%) was mainly the continuing dynamism in the CEE countries (+66.8%).  In Austria, premiums from policies with ongoing premium payments rose 3.7% to EUR 866.5 million. Influenced by the high expirations in bank sales and an additional reduction in lump-sum payments, total life insurance premiums in Austria rose by 0.9% to EUR 1,017.6 million.  The foreign share in the life insurance line is already at 30.3% after last year's 21.7%. 

The premiums earned in property and casualty insurance increased in the first three quarters of 2006 by 4.4% to EUR 1,276.8 million.  In foreign business they rose by 8.2% to EUR 489.0 million and in Austria by 2.2% to EUR 787.8 million.  This means that this year already 38.3% of premiums are from abroad, compared to 37.0% in the previous year.  The gross combined ratio was at 96.1% after nine months and thus markedly below the previous year's level of 98.8%. Adjusted for the claims relating to heavy snow loads from the 1^st quarter the gross combined ratio amounts to 92.8%.

In health insurance, the UNIQA Group achieved a rise in premiums of 5.8% to EUR 665.0 million.  In Austria, where UNIQA holds about a 50% share of the market in this segment, premium volume was up 2.2% to EUR 531.1 million.  Outside of Austria growth was at 23.1% and premiums reached EUR 133.9 million which is already 20.1% of the group's premium volume in health insurance. 

Reduced loss expenses and benefits paid / cost ratio lowered
By applying many diverse measures we have succeeded in slightly lowering the UNIQA Group's total loss expenses and benefits paid of EUR 2,752.5 million compared to the previous year (-0.2%).  Because expenses (before the change in the deferred acquisition costs) went up 7.6% to EUR 748.4 million which was clearly less than premiums, the overall cost ratio sank to 22.0%. 

Earnings increased after nine months by 21.4% to EUR 191.2 million / Earnings preview for 2006 confirmed at about EUR 230 million
As a result of the positive development, the UNIQA Group was able to increase its profit on ordinary activities in the first nine months compared to the same period of the previous year by 21.2% to EUR 191.2 million.   This means that the expectation of annual results for 2006 amounting to EUR 230 million can be confirmed and has been comfortably secured.

Supplementary capital bond
In light of the strong growth in the Group the Supervisory Board has given approval for UNIQA Versicherungen AG to issue subordinate capital in the form of a supplementary capital bond with a volume of EUR 250 million.The supplementary capital issue will be subordinate capital and will have no effect on ownership ratios or voting rights.