- 5.1% growth in recurring premiums
- Eastern Europe is growth driver and there is a noticeably accelerated growth in premiums in Austria compared to the first half of the year
- Operating profit improved by almost 47% from €308 million
- Impressive increase in profit (before taxes) by about 46% to €280 million for the first three quarters (total year 2006:  €239 million)
-Net profit (Group profit) at €194 million 56% above the previous year’s value
- The forecast for the 2007 results has been increased again - from €320 million to  €340 million
- An increase in dividends has been announced

“After the first nine months of the current year the results of the UNIQA Group continue to confirm the success of our strategy targeting profit-oriented growth", explains Dr. Konstantin Klien, CEO of UNIQA.

Due to the accelerated growth rates in Austria in the 3^rd quarter (+2.6% / 1-6: +1.3%) and the continued above-average growth of the UNIQA companies in Eastern Europe (+36.2% / 1-6: +22.1%), the UNIQA Group increased its premium volume in the recurring premium business for the entire first nine months of 2007 by 5.1% to €3,483 million. At the same time, despite the storm damage from the first quarter (“Kyrill”), the benefit and loss ratio could be reduced in comparison with the same period in the previous year by more than five percentage points to 75.4%, and operating profit noticeably improved (€308 million/+47%). In the course of this positive development and, naturally, aided by the special influences of the participation in STRABAB SE, the pre-tax result for the first nine months could be increased by 46.3% to  €280 million. This puts it - after only three quarters - more than 40 million above the figure of the entire previous year (€239 million). A substantial portion of the special effects of the participation in STRABAG SE has been used to strengthen technical reserves and for investments in the new markets. Net profit even rose by 55.8% to  €194 million and the earnings per share as a result of this to  €1.63 – compared to the 2006 financial year this corresponds to an increase of about 28% after only nine months.
Klien: “The positive trend in operating business and the additional positive effects on profit from the participation in STRABAG SE in the 4^th quarter have induced us to increase the forecast for the 2007 profit on ordinary activities again, from €320 to 340 million. Compared to the 2006 financial year this corresponds to an increase of about  €100 million or 42%.

Recurring premium business extremely satisfactory
In the area of recurring premium products (incl. the savings portions of premiums from the unit- and index-linked life insurance), the UNIQA Group achieved an increase in premium volume in the first three quarters of 2007 of 5.1%, to €3,483 million. Single premiums in classic life insurance, on the other hand, due to the insufficient profitability of this segment, were reduced significantly according to plan by 8.8%, to  €450 million. All in all, premium volume written was up 3.3% to  €3,933 million.

In Austria, premium volume written rose by 3.3% to €2,682 million despite the unfavourable effect of the life insurance business caused by expirations and abbreviated premium payments for specialty products in the area of bank sales.

The growth of Group companies in Eastern Europe was also very strong in the 3rd quarter of 2007 - premiums rose by 24.1% to €579 million in the first nine months, thereby already contributing 14.7% to the Group premiums.

Caused by the overproportionally strong single premiums in Italy in the comparison period of the previous year the entire premium volume in Western Europe was taken back 9.5% to €672 million. The recurring premium business grew pleasantly by 5.8% to  €514 million. Overall, the international portion of the business shifted further towards Eastern Europe amounting to 31.8% at the end of the 3rd quarter of 2007.

Property and casualty insurance
The premium volume written in property and casualty insurance grew in the first three quarters of 2007 by 7.7% to €1,712 million. While premiums in Austria grew by 2.9% to €1,012 million, they climbed in the growth regions of Eastern and south-eastern Europe by 22.5% to €386 million, thereby contributing 22.6% to the total premiums in property and casualty insurance. But the Western European companies were also able, in view of the general market situation, to achieve an extremely satisfactory growth in premiums of 8.1% to €313 million.

The entire foreign share of the property and casualty business after nine months of 2007 totalled 40.9% (1-9/2006: 38.1%).

Life insurance
In life insurance, the situation showed a clear trend in the 3rd quarter of 2007 compared to the first half of the year - while premiums in the first half of the year sank by 4.1%, they rose from July until September by 7.4%. Over the entire first nine months of 2007 recurring premium payments rose by 3.0% to €1,084 million. Single premiums were taken back in particular in the classic life insurance, sinking by 8.8% to  €450 million. Overall, this meant that premium volume written incl. the savings portion of premiums from unit- and index-linked life insurance fell slightly by 0.8% to €1,534 million.

In Austria, revenue from life insurance rose by a total of 4.1% to €1,124 million. Unit–linked life insurance also grew overproportionally in the 3rd quarter of 2007, with premiums in this area rising by 49.6% to €355 million in the first nine months of 2007. With a premium increase of 25.8% to  €188 million, life insurance in Eastern and south-eastern Europe  continued to be very dynamic. The portion this region contributes to Group life insurance could thus be increased to 12.3% (1-9/2006: 9.7%). In Western Europe  life insurance premiums sank, due solely to the extremely high single premiums in Italy during the same period of the previous year, by 29.9% to  €222 million. However, the recurring premium business was pleasing, up 6.8% to  €64 million.

Health insurance
The premium volume written in health insurance increased in the reporting period 2007 by 2.3% to €687 million. In Austria, the premium volume grew by 2.3% to €546 million. Internationally, premiums rose by 2.5% to €141 million, contributing 20.5% to the Group’s health insurance premiums (1-9/2006: 20.5%).

Loss ratio lowered further
Even after three quarters of 2007, the loss expenses and benefits paid of the UNIQA Group was, at €2,645 million, below the level of the comparison period in the previous year (-3.9%). As a result, the benefit and loss ratio sank over all the insurance segments to 75.4% (1-9/2006: 80.9%).

The combined ratio (before reinsurance) in property and casualty insurance was at 98% after the first three quarters of 2007 - adjusted for the storm damage from the 1st quarter this figure was at 94.9%.

Investments and investment income
The UNIQA Group’s total investments as of 30 September 2007 were €21,943 million which was 7.6% above the comparative time of the previous year. Net investment income reached  €747 million.

The financial results were burdened on the one hand by the rising interest rates and the inefficient market situation in the Asset Backed Securities (ABS) segment. According to the conservative valuation of this investment that UNIQA has consciously chosen, which is oriented on the current low fair value and not on holding the securities until maturity, this represents encumbrances to the results for the first nine months of about €35 million. The fair value this is based on is significantly below the figures that take the actual economic basis of these investments into account. There have been no substantial real declines in the UNIQA Group’s ABS portfolio to date. Based on the conservative valuations according to fair value, from today’s point of view, if the capital market environment remains unchanged until the end of the year, additional valuation-dependant encumbrances of  €20 to 30 million could arise in this area.

Preview 2007
A further positive effect on the result arising from the shareholding in STRABAG SE is expected in the 4th quarter of 2007. The additional income will be used to reinforce the reserves and expand the market position in Eastern Europe by investing in organic growth. Assuming stable capital markets and the absence of extraordinary loss events, the forecast for the profit on ordinary activities in 2007 will be raised from €320 to €340 million.
Konstantin Klien, CEO of UNIQA: “For the 2007 financial year we are expecting a gross return on equity (ROE) figure of over 20% and, in accordance with our continuous policy, we will also be proposing a clear increase in dividend payments.

Reservation for future statements
This notification contains statements relating to the future development of UNIQA Group Austria. These statements represent estimates made on the basis of information available to us at the current time. If the assumptions on which they are based are not fulfilled, the actual results may vary from those currently expected. Therefore we cannot accept liability for these statements.