Vienna Insurance Group

euro adhoc: Vienna Insurance Group
Capital measures
Successful EUR 1.14 Billion Capital Increase by Vienna Insurance Group Subscription and offer price set at EUR 49.50 per new share

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Not for distribution in the United States, Canada, Japan and Australia.

Please note: this is a translation; only the German version of this release is legally binding

Following today's close of bookbuilding, Wiener Städtische Versicherung AG Vienna Insurance Group ("Vienna Insurance Group") set the subscription and offer price for its new shares at EUR 49.50 per share. Based on the strong demand, all 23,000,000 new shares offered were placed. The capital increase of Vienna Insurance Group with gross proceeds of about EUR 1.14 billion represents the largest ever share offering by an insurance group on the Vienna Stock Exchange.

The global offering was several times oversubscribed with strong demand coming from both existing Vienna Insurance Group shareholders and a wide range of new retail and institutional investors. Demand from institutional investors was particularly strong in Austria, the UK, the US and Japan. Wiener Städtische Wechselseitige Versicherungsanstalt-Vermögensverwaltung has granted the Joint Bookrunners the option to purchase up to an additional 1,000,000 shares to cover overallotments.

Vienna Insurance Group CEO Günter Geyer comments: "The successful capital increase once again proves the attractiveness of Vienna Insurance Group's business model. Our strategy to position ourselves at the right time to capture the growth in the CEE region - right now in particular in life insurance - is appealing to investors."

Vienna Insurance Group intends to use the net proceeds to fund the recently announced acquisition of the insurance operations* of Erste Bank der oesterreichischen Sparkassen AG ("Erste Bank") including the long-term mutual distribution partnership with Erste Bank. The capital increase will also enable Vienna Insurance Group to expand in the dynamic growth markets in the CEE region and to finance further acquisitions in the region. The financing has been designed to maintain the strong capitalisation and financial position of Vienna Insurance Group following the transaction.

Trading of the new shares in the Prime Market segment of the Vienna Stock Exchange and in the Main Market segment of the Prague Stock Exchange is expected to commence on or about 9 May 2008. Closing and settlement is expected to take place on or about 13 May 2008. The new shares carry full dividend rights from the fiscal year 2008.

Erste Bank, JPMorgan and Merrill Lynch acted as Joint Global Coordinators and Joint Bookrunners of the offering.

*subject to approval by the authorities


This press release constitutes neither an offer to sell nor a solicitation to buy any securities of Wiener Städtische Versicherung AG Vienna Insurance Group. The securities have already been sold.

This release and the information contained herein are not for distribution in or into the United States of America and must not be distributed to U.S. persons (as defined in Regulation S of the U.S. Securities Act of 1933, as amended ("Securities Act")) or to publications with a general circulation in the United States. This press release does not constitute an offer to sell or a solicitation of an offer to purchase any securities in the United States. The securities of Vienna Insurance Group have not been and will not be registered under the Securities Act and may not be offered, sold or delivered within the United States or to U.S. persons absent registration under or an applicable exemption from the registration requirements of the Securities Act. There will be no public offer of securities of Vienna Insurance Group in the United States.

This release is directed only to persons (i) who are outside the United Kingdom or (ii) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as amended) (the "Order") or (iii) who fall within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations, etc.") of the Order (all such persons together being referred to as "Relevant Persons"). Any person who is not a Relevant Person must not act or rely on this communication or any of its contents. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with Relevant Persons.

end of announcement                               euro adhoc

Further inquiry note:

Mag. Barbara Hagen-Grötschnig
Vienna Insurance Group
A-1010 Wien, Schottenring 30
Tel.: +43 (0)50 350-21027
Fax: +43 (0)50 350 99-21027

Branche: Insurance
ISIN: AT0000908504
Index: WBI, ATX Prime, ATX
Börsen: Prague Stock Exchange / stock market
Wiener Börse AG / official market

Original-Content von: Vienna Insurance Group, übermittelt durch news aktuell

Weitere Meldungen: Vienna Insurance Group

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