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euro adhoc: WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group
Mergers - Acquisitions - Takeovers
Wiener Städtische Versicherung AG Vienna Insurance Group ("Vienna Insurance Group")enters the Turkish insurance market

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.
New Insurance Market
20.03.2007
Ad hoc
20 March 2007
Please note: this is a translation; only the German version of this 
release is legally binding.
Vienna Insurance Group enters the Turkish insurance market. TBIH 
Financial Services Group N.V. (TBIH), in which Wiener Städtische 
Versicherung AG Vienna Insurance Group holds a majority share*, has 
signed a purchase agreement for the acquisition of 58.2 percent of 
the shares of Ray Sigorta A.S.  The shares will be purchased from the
current majority owner, the Turkish Dogan Sirketler Grubu Holding 
A.S. (Dogan) for the amount of 81.5 million US dollars (about 62 
million Euro). Dogan, one of the largest industrial conglomerates in 
Turkey, will continue to hold 20 percent of the shares in Ray Sigorta
A.S., the remaining shares being free float.
"Following this transaction the Vienna Insurance Group will be the 
first Austrian insurance group to start operations in Turkey. With 
more than 70 million inhabitants the country is one of the largest 
and most promising markets and saw dynamic economic growth in recent 
years," comments Günter Geyer, CEO of Vienna Insurance Group. 
"Through Ray Sigorta, which is well established in the local market, 
we will be able to participate in the high growth potential of the 
country as Turkey is another CEE market with low insurance 
penetration. Also, we will bring to Ray Sigorta our rich integration 
know-how gained in the CEE region in order to strengthen the 
company."
Moreover, TBIH plans to file a public tender to acquire the remaining
approx. 22 percent free float of Ray Sigorta A.S. for the maximum 
total amount of 30.5 million US dollars (about 23 million Euro). 
Furthermore the agreement contains a capital increase for Ray Sigorta
A. S. of up to 30 million US dollars.
The transaction was concluded subject to a due diligence review and 
the approval by the authorities.
Ray Sigorta A.S. is a listed Turkish insurance company with its 
headquarters in Istanbul and 220 employees. Founded in 1958, the 
company is operative in non- life insurance with a focus on motor 
business and recorded total premiums of about 180 million US dollars 
(about 136 million Euro) in 2006 according to preliminary data. This 
corresponds to a strong growth of approx. 30 percent compared to the 
previous year.
With five regional offices and about 530 insurance agents Ray Sigorta
A.S. has a well established nationwide distribution network. A 
predominant part of the premium volume is generated in retail 
business which is expected to show high growth rates going forward.
The Turkish insurance market
In 2006, the Turkish insurance market recorded a total premium volume
of 6.6 billion US dollars (about 5 billion Euro), growing by approx. 
13 %. With a penetration rate of 1.6% (insurance premiums as a 
percentage of GDP) Turkey has a long term catch-up potential in 
relation to the more mature markets in Western Europe (EU-15 
countries with a 8.6% penetration rate).
* TBIH is a financial services group specialising in CEE and has a 
business focus on insurance and pension funds. Wiener Städtische 
Versicherung AG Vienna Insurance Group has been a shareholder in TBIH
since 2006 and now holds a 60% share in the company (subject to the 
approval of the authorities).
Wiener Städtische Versicherung AG
Vienna Insurance Group
A-1010 Wien, Schottenring 30
ISIN: AT0000908504
You will also find this press release on 
http://www.wienerstaedtische.at
end of announcement                               euro adhoc 20.03.2007 08:04:26

Further inquiry note:

Mag. Birgit Reitbauer
Unternehmenskommunikation
WIENER STÄDTISCHE Versicherung AG
Vienna Insurance Group
A-1010 Wien, Schottenring 30
Tel.: +43 (0)50 350-21336
Fax: +43 (0)50 350 99-21336
E-Mail: b.reitbauer@staedtische.co.at

Branche: Insurance
ISIN: AT0000908504
WKN: A0ET17
Index: ATX Prime, ATX, WBI
Börsen: Wiener Börse AG / official market

Original content of: Wiener Städtische Allgemeine Versichererungs AG, transmitted by news aktuell

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