-Operating profit increased by 42.7% to €340 million
-Dividend increase by 43% to 50 cents is suggested
-Group premiums climbed by 3.6% to €5.3 billion
-continued strong growth impulses from Eastern Europe
-strong Austrian business expanded further
-premium increases in 1st quarter of 2008
-stock repurchase programme planned

For the UNIQA Group Austria, the fiscal year 2007 was exceedingly successful.On the premium side, market growth was exceeded in nearly all regions - also in Austria and Germany - and the disproportionate increase of earnings to €340 million enables a further increase of the dividend by 43%, from 35 to 50 cents -- which corresponds to a dividend payment of approximately €60 million. 

UNIQA CEO Konstantin Klien comments: "With a clear increase to profit of 43% to €340 million with premium growth of 3.6%, we clearly confirmed our earnings-oriented growth course once again in fiscal 2007. Since 2002, we have - roughly - doubled our premiums, yet at the same time multiplied our earnings more than eight times over.In the same time we also advanced the internationalisation of the Group so far that today we are represented in 20 European markets, and with €1,758 million, we are generating nearly six times the premiums outside of Austria as we did five years ago.The high degree of geographical diversification and diversification on the product level makes us increasingly resistant to disturbances in individual markets.At the same time, this circumstance forms the basis for our ongoing ProfitImprovementProgramme, with which we, under our own power, without additional acquisitions and without additional capital want to increase profits to €430 million by 2010." 

Significantly-improved financial figures in a difficult year
In 2007, the basis for these good profits was an operating profit improved by 43.3% to €378 million. Earnings (before taxes) thus increased by 42.7% to €340 million, net profit (after taxes) by 53.7% to €269 million.After deducting minority interests, there arose from this for 2007 Group profits increased by 62.7% in the amount of €247 million. At €2.07, the earnings per share were 80 cents above the previous year's value; earnings per share are thus five times greater than they were four years ago.

Klien: "In 2007, UNIQA achieved the best earnings in its history, in what certainly was one of the most difficult years in recent memory for financial companies. With outstanding operating profit and naturally also with the support of the positive extraordinary effects from shareholdings - keyword STRABAG - we succeeded in more than balancing out the negative influences from capital market turbulence and the significant storm damage. Today, the UNIQA Group is larger and especially more profitable than ever.“

Premium growth of 3.6% above increase in benefits
For the consolidated premiums (including the savings portion from the unit- and index-linked life insurance), the UNIQA Group achieved growth of 3.6% to €5,276 million.
Naturally the strongest growth impulses came with an increase of 27.6% to €816 million from the markets in Central and Eastern Europe (Poland, the Czech Republic, Slovakia, Hungary, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Bulgaria, Ukraine). Those companies in the Ukraine, Albania, Macedonia, Kosovo and Rumania in which UNIQA holds only minority shares or held such until the consolidation cut-off date - are not included according to the accounting policies. In Romania, the stockpiling of shares in ASTRA S.A. from 27% to 50% decided upon in 2007 and a company share has not been completed thus far, because there are currently negotiations with the majority owners for a complete takeover of the company in order to be able to better exploit the great growth potential of the market and advance the integration process into the UNIQA Group faster than originally planned. With respect to the SIGAL Group active in Albania, Macedonia and Kosovo, UNIQA has, in addition to its 46% share of the share capital also secured an option for majority acquisition in 2010. The closing for the majority takeover (61%) at the Ukranian Credo-Classic took place in February 2008 - the UNIQA Group has held the majority in the Ukranian UNIQA LIFE for a while already.
Even in the core market Austria, a pleasing premium increase of 2.8% to €3,517 million was achieved.In Western European countries (Germany, Italy, Switzerland, Liechtenstein), the market-wide decrease in single premium business in Italy alone caused a premium decrease of 8.7% to €942 million, while the recurring premium income showed a corresponding development, climbing by 4.5%.
Overall, the international share of Group premiums amounted to 33.3% by the end of 2007 (2006: 32.8%). There was a clear increase especially in the share of markets in Central and Eastern Europe - from 15.5% (2006: 12.6%).

The consolidated retained insurance benefits of the UNIQA Group decreased in 2007 despite storm damage and the increased business volume by 3.2% to €3,597. In Austria, they decreased by 2.4% to €2,739 and in Western European markets by 15.3% to €493 million. Only in the regions Central and Eastern Europe did they grow according to the increased business volume by 12.0% to €365 million.

Klien: "In the markets of Eastern Europe, the dynamisation projects for encouraging organic growth have shown a clear effect - in most cases, our premium increases are significantly above the market growth - in some countries, they are even twice as high. But in Austria, thanks to a flexible product and sales policy, we have succeeded in exceeding market growth of 1.9% - and the same applies for Germany. At the same time, despite high storm damage, we were able to take advantage of the opposite movement of premiums and benefits and improve our benefit and loss ratio significantly from 80.3% to 74.9%."

Cost ratio in Austria reduced further
In Austria, the cost ratio was successfully reduced again - from 19.8% to 19.6%. On the international level, the cost ratio increased due to sales expansion and strong growth from 23.3% to 27.0%. On the segment level too, the cost reduction programmes were largely successful: in both property and casualty insurance as well as in health insurance, some of the premiums have increased much faster than the costs. The corresponding cost ratios thus declined to 32.6% (2006: 33.2%) and 14.3% (15.4%). Only in life insurance was there - essentially due to the disproportionate growth in Eastern and South-eastern Europe and new companies in Serbia, Ukraine and Montenegro - an increase from 12.9% to 15.7%.

Burden managed through financial market turbulence
Actual losses from sub-prime portfolio unchanged at €9 million since  November
The total investments of the UNIQA Group increased at the end of 2007 by €389 million or 1.8% to €21,544 million.The net investment income climbed simultaneously by 10.4% to €955 million. Here, UNIQA profited from extraordinary earnings from the two capital increases of STRABAG SE.However, the effects of the sub-prime crisis could still also be seen.

The actual losses suffered by UNIQA in the sub-prime portfolio totalled €9 million and have remained unchanged since November. The total reduction made on the valuation basis of the sub-prime portfolio - on the “mark-to-market” basis - totalled €101 million in 2007.

Klien: “It is worth noting that the extremely low share of actual losses corresponds to only 9% of the total fall in value. The remaining over 90% is exclusively due to the lack of liquidity on the de facto non-existent markets but not due to fundamental economic principles – the repayments and interest payments are being made in line with the contractual requirements.” 

Level of own funds further improved
The total equity of the UNIQA Group climbed by €202 million to €1,532 million in 2007.

Klien: "At 26.2%, the return on equity is not just one-quarter higher than in the previous year and five times as high as in 2002, this is also a very good value even in the international environment.” 

Segments
In property and casualty insurance, the premiums Group-wide climbed by a considerable 7.9% to €2,198 million.

In Austria, despite the intensive competitive pressures especially in motor vehicle insurance, it was possible to record a significant increase of 2.8% with premiums of €1,268 million.
In Central and Eastern Europe, the rapid development continued, the premiums grew by 23.6% to €528 million.Thus, this region has increased its significance within the UNIQA Group and accounts for 24.0% of the Group premiums in this segment.
In the Western European countries (especially Italy and Germany), the members of the UNIQA Group succeeded in eluding the stagnating market tendencies - with premiums of €402 million, they achieved an increase of 6.9%.
The entire international share of the Group premiums increased in this branch from 39.4% to 42.3%.

The life insurance premiums (incl. the savings portion of unit- and index-linked life insurance) climbed in 2007 by 0.3% to €2,170.Given the further reduction of single premium policies in classic life insurance by 39.1% and the loss of premium income from contracts with a limited premium payment period, this was a completely satisfactory development.
In Austria, despite the high expirations, especially in bank sales, the UNIQA Group achieved a significant premium increase of 3.1% to €1,525 million.
Much more dynamic was the life insurance business in the Central and Eastern European regions, where it was possible to increase premiums by 35.7% to €285 million.The share of this region in Group life insurance thus climbed from 9.7% to 13.1%.
In Western Europe, the premium volume declined due to the market-wide decrease in single premium business in Italy by 24.3% to €360 million.The recurring premium volume developed positively in contrast to the single premium business with growth of 3.4%.
The share of life insurance premiums in the overall international business was 29.7% in 2007.

Premium income in health insurance increased by 2.0% in comparison to the previous year to €908 million.
In Austria where UNIQA is the clear market leader by far the Group recorded premium volumes totalling €724 million in 2006 (+2.3%). In Western Europe, the health insurance premiums remained on the previous year's level, €180 million. In the countries of Central and Eastern Europe, private health insurance, with a premium volume of €4 million (+51.8%) still plays a subordinate role. Overall, the international share of total premiums in the area of health insurance was 20.3% in 2007.

Current financial year – substantial premium increases in the 1^st quarter of 2008
The growth of UNIQA Group Austria was very positive in the 1^st quarter of the current year. In total, the companies increased premium income from direct business (including the savings portion of unit- and index-linked life insurance) by around 14% to over €1.4 billion - based on local accounting procedures and preliminary data.

The strongest growth impulses came from life insurance with premium growth of around a quarter to substantially over €600 million. But pleasing developments were also seen across all regions in property, casualty and health insurance.

Premiums for the Austrian UNIQA Group companies after the first three months of the current year totalled €930 million and were thus around 5% above the corresponding value last year. Here, too, life insurance recorded the strongest growth.

At 35%, growth in the markets outside Austria continues to exceed the market averages and reached roughly €500 million, yielding a further increase in the share of international business. The most dynamic developments were seen in the markets of Eastern and South-eastern Europe, with growth rates on the order of 50%. The UNIQA Group was also able to substantially increase revenue in all divisions in the Western European markets, contrary to the general market trend.

Share repurchase programme
In addition to the dividend increase from 35 to 50 cents mentioned above, the annual general meeting on May 19 will suggest the starting of a share repurchase programme. The Executive Board should be empowered, with the agreement of the Supervisory Board, to purchase up to 11,977,780 individual shares (including the 350,000 individual shares which UNIQA still owns from previous repurchase programmes) of UNIQA Versicherungen AG within 30 months. The suggested price band for the repurchase lies between EUR 8 and EUR 25 per share. The purpose of the repurchase is the improvement of supply and demand for UNIQA shares on the Vienna Stock Exchange. The shares acquired can either be resold via the stock market, used for an employee share option programme or used as payment for the acquisition of companies domestically and abroad.

Reservations for future statements
This notification contains statements relating to the future development of UNIQA Group Austria. These statements are appraisals that are made based on all information available to us at the current point in time. If the assumptions on which they are based do not occur, the actual events may vary from the results currently expected. For this reason, we cannot accept liability for these statements.