The past financial year

Dear shareholders, customers and business partners!

Christian Konrad Chairman of the Supervisory Board

The past financial year was again a very successful one for the UNIQA Group. For the first time, consolidated premium volume surpassed the € 5 billion mark and, with earnings before taxes of € 238 million, we achieved yet another record result.

In accordance with this positive trend we want our shareholders to profit from the improvement in the company’s result with an increase in dividends – from 26 cents to 35 cents per share.

We are pleased that all the corporate areas have contributed to this result. Although it cannot be overlooked that the markets in Eastern Europe and the life insurance business in Italy have clearly been the growth drivers during the past financial year. In contrast, the competitive environment is growing stiffer, particularly in the property insurance business in the Western European markets, and this is flattening the growth rates. This makes the further expansion steps that we took in 2006 – entry into the markets in the Ukraine and Serbia – all the more important. With these two countries and the new EU members, Romania and Bulgaria, we have concentrated our activities in the past two years on markets that are offering a high potential for growth.

Of course, a persistent strategy for growth and expansion also requires the right amount of financial strength to go with it. For this reason, we stocked up our capital base by taking up € 250 million of new subordinated debt. Beyond this, it is also very important that the company be in a position to finance its growth from funds it generates on its own. Therefore, it is necessary to pay particular attention to implementing the measures announced last year to lower costs and increase productivity. With the 2007–2010 profit improvement programme we want to optimally tap into the corporate Group’s potential, thus further increasing company value.

The goal must be to bring about a benefit for our customers, to strengthen our market position in Austria and Central Europe and position the UNIQA Group as a reliable insurer and financial investor throughout the region. With this, we want to make the profitable UNIQA company an even more attractive investment for our shareholders, ensuring that we, with strong internal financial power and attractive shares, can take advantage of all the opportunities that our markets offer us.

I would like to thank all our employees for the tremendous commitment you have brought to your work during the 2006 business year. And I ask you to continue in this same manner to support the further development of our company as it becomes one of the leading Central European insurance groups.

Vienna, April 2007

Christian Konrad