euro adhoc: Wiener Städtische / Mergers - Acquisitions - Takeovers / Acquisition of companies strengthens operations of Wiener Städtische in Poland (E)

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27.06.2005

Wiener Städtische will acquire the Polish Benefia non-life and life insurance
companies. Austria's leading insurance group in Central and Eastern Europe thus
further consolidates its market position in Poland in 2005.

Wiener Städtische will acquire 100% of the non-life insurance company Benefia
Towarzystwo Ubezpieczen Majatkowych S.A., founded in 1999, and of the life
insurance company Benefia Towarzystwo Ubezpieczen Zycie S.A., founded in 1992,
from the Italian insurance group TORO Assicurazioni (sole owner).

In 2004, the two insurance companies with headquarters in Warsaw achieved a
volume of gross premiums written in the total amount of PLN 128 million (about
EUR 31 million). The focus of Benefia non-life insurance is on the motor
insurance business.

Both companies are firmly positioned on the Polish insurance market, with a
total of about 60 employees and a well developed nation-wide sales network
throughout Poland.

The transactions were effected subject to the approval of the Austrian and
Polish authorities.

Says Günter Geyer, CEO of Wiener Städtische, "The acquisition of the two
companies helps us strengthen our position in Poland and allows us to
participate even more in the expected future dynamic growth of the Polish
insurance market."

To date, Wiener Städtische Group was present in Poland with the steadily growing
companies Compensa property insurance and Compensa life insurance, both
headquartered in Warsaw. Wiener Städtische acquired in both companies -
according to an today’s Ad Hoc News Release - the shares held by the German
HUK-COBURG group. Wiener Städtische will thus own 99.86 percent of Compensa
Non-Life and 100 percent of Compensa Life. The transactions have been effected
subject to the approval of the cartel and regulatory authorities.

With growth rates clearly above market average, Compensa property insurance and
Compensa life insurance achieved a total volume of premiums earned of approx.
EUR 100 million, thus ranking tenth on the market.

With the acquisition of Benefia non-life insurance and Benefia life insurance,
Wiener Städtische Group moves up to the ninth place from its excellent tenth
position in Poland (as of 2004); in the non-life business the group can further
consolidate its excellent seventh market position in Poland.

During the past five years, the Polish insurance market posted an annual growth
of approx. 10 percent. In 2003, the insurance density (premium per capita per
year) in Poland amounted to USD 162 as compared to USD 2,100 in Western Europe.
Poland thus offers a high growth potential. Poland's economic boom with a 5.4
percent growth of the real gross domestic product is proof of this expectation.

Wiener Städtische Allgemeine Versicherung AG
A-1010 Vienna, Schottenring 30
ISIN: AT0000908520

Our press releases can be found also under http://www.wienerstaedtische.at

Further inquiry note:
Wiener Städtische Presseabteilung
Mag. Barbara Hagen-Grötschnig
Tel.: (01) 531 39-1027
Fax: (01) 531 39-3134
E-Mail: [email protected]

end of announcement euro adhoc 27.06.2005 18:59:50
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emitter: Wiener Städtische
Schottenring 30
A-1011 Wien
phone: +43(0)1 53139 1027
FAX: +43(0)1 53139 3134
mail: [email protected]
WWW: www.wienerstaedtische.at
ISIN: AT0000908504
indexes:
stockmarkets:
sector: Insurance
language: English

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