Annual Report 2006 - UNIQA Shares

Ongoing upwards trend on the stock markets

The upwards trend on the international stock markets continued in 2006, despite increasing volatility. Stock prices rose worldwide by an average of 13.8%. Once again, the stock markets in Europe developed better than those in North America. Amongst the emerging markets, the stock exchanges stood out in China (+130.4%), India (+46.7%) and Argentina (+35.5%).

On Wall Street, the DOW JONES INDUSTRIAL AVERAGE of the 30 largest industrial companies hit a new all-time high of 12,529.88 points. After a consolidation stage at mid-year, prices started to rise again and the DOW JONES closed at the end of 2006 with a gain of 16.3%. The S&P 500, which has a broader range of companies, was up 13.6% in 2006.

Europe beat the US again

In Europe, the DJ EURO STOXX 50 set the benchmark at the end of 2006, with earnings up 15.1% compared to the end of the previous year. The branch index, DJ EURO STOXX Insurance, consisting of eighteen European insurance companies, increased by 16.3%. The top performers in Europe were the stock exchanges in Oslo (+ 33.5%), Madrid (+31.8%), Frankfurt (+ 22.0%) and Vienna (+ 21.7%). The performance on the exchanges in Paris and Milan (+17.5%), Zurich (+15.8%) and London (+10.7%) were slightly weaker in 2006.

The Vienna Stock Exchange has been on a successful path since 2000, and remained that way in 2006. With 4,463.47 points, the ATX closed off the year just below its all-time high of 4,474.80 points. Thus, for the sixth year in a row, the leading index ATX finished trading with a healthy gain. The 21.7% increase in price compared to the pluses of 50.8% (2005) and 57.4% (2004) was still not bad despite the flattening in a European comparison.

Vienna once again one of the most successful exchanges in the world

At the end of January, the ATX broke through the 4,000 point mark already and in May it hit a new high with slightly over 4,300 points. It then completely relinquished these price gains, as a result of raging inflation fears and profit-taking, falling to almost 3,300 points. Not until November did a lastingly strong rise in prices set in, which went on to lead the ATX to new record highs by the end of the year.

Vienna proved, once again, to be one of the most successful stock exchanges in the world, overshadowing international financial centres like New York, London and Tokyo. The companies listed on the ATX owe a substantial part of this new success to their high commitment level in the new EU member countries and the emerging markets in Eastern and South-Eastern Europe. As the hub of the East-West integration, they profited more than usual from the economic dynamics of this region, which is developing into Europe’s growth driver.

Record influx of fresh capital

The Vienna Stock Exchange also struck an extremely positive balance in 2006, with a record influx of fresh capital. Through IPOs and capital increases € 11.9 billion were raised, almost double the amount of 2005. With an increase of about 36%, market capitalisation reached a record high of € 146 billion. And this despite a rise in the monthly trading volume to an average of more than € 10.6 billion, an increase of almost 75%.

The strategy for winning foreign investors and trading members played an essential role in this success story. In 2006 alone, six international members joined the Vienna Stock Exchange for direct trading. In the meantime, about 56% or more than half of turnover is already with foreign traders.

This year the Vienna Stock Exchange plans to continue its road shows to international financial centres and meetings with institutional investors, in order to maintain the successes that have already been achieved. The goal is to consolidate average monthly volume as well as the annual influx of fresh capital on a level of between € 11 and € 12 billion.

Key figures

Share key figures	2006 €	2005 €	2004 €
Stock market price of UNIQA shares as at 31 Dec.	25.09	23.40	10.60
High	29.86	23.65	11.00
Low	22.35	10.60	7.85
Ø Trading volume/day (in million €)	4.7	3.1	0.2
Market capitalisation as at 31 Dec. (in million €)	3,005.2	2,802.8	1,269.6
Earnings per share	1.29	0.94	0.74
Pre-tax earnings per share	1.80	1.44	0.92
Dividend per share	0.35	0.26	0.22

Information on UNIQA shares

Securities abbreviation	UQA
Reuters	UNIQ.VI
Bloomberg	UQA.AV
ISIN	AT0000821103
Market segment	Prime Market der Wiener Börse
Trade segment	Amtlicher Handel
Indices	ATX, ATXPrime, WBI, VÖNIX
No. shares	119.777.808

Consolidation phase of UNIQA shares

With a price explosion and a gain of 120.8%, UNIQA shares were the top performers on the Vienna Stock Exchange in 2005. This past year ushered in a phase of consolidation. Following a very promising start and an all-time high of € 29.86 on 11 May 2006, the shares could not withstand the period of general weakness that then developed and recorded a correction – hitting an annual low of € 22.35 in mid-June.

Development of UNIQA shares
in %

The powerful recovery that later set in did not, however, persist until the end of the year. At € 25.09 apiece, UNIQA shares thus closed on the market at the end of the 2006 year with a gain of 7.2% in comparison with the year before. This brought the company’s capitalisation up further, to about € 3 billion.

Analysts discover UNIQA

In addition to the numerous visits we paid to investors and analysts in Vienna, in 2006 we participated in a great number of Austrian and international road shows and investor conferences. As a result of this ongoing communication with the capital market, numerous investment banks and analysts took up the coverage of the UNIQA Group and evaluated us on a regular basis.

A current overview of the recommendations can be found in English on the Internet at www.uniqagroup.com

Investor Relations

UNIQA Shares

Research Coverage. Researchers >from the following companies have written reports about the UNIQA Group:

Raiffeisen Centrobank
UBS
Erste Bank
JPMorgan
CA IB

Shareholder structure unchanged

The structure of our core shareholders remained basically unchanged compared to 2005. Austria Versicherungsverein Beteiligungs-Verwaltungs GmbH owns 35.24%, BL Syndikat Beteiligungs GmbH 31.95%, UQ Beteiligung GmbH 6.97%, NÖ Landes-Beteiligungsholding GmbH 5.22% and Collegialität Versicherung auf Gegenseitigkeit 3.23% of the share capital of the Group’s parent company UNIQA Versicherungen AG. Due to their voting commitment, the shares of Austria Versicherungsverein Beteiligungs-Verwaltungs GmbH, BL Syndikat Beteiligungs GmbH and Collegialität Versicherung auf Gegenseitigkeit are counted together.

The portfolio of own shares amounted to 0.29% at the end of 2006. The free float thus continues to be just over 17%. Of the total share capital, 95% is held in Austria and 5% in other countries of Europe and North America.

Shareholder structure of
UNIQA Versicherungen AG
in %

Shareholder structure by country

in %

Shareholder structure by investor type
in %

Continued inclusion in the sustainability index VÖNIX

Even after the new configuration of the sustainability index, VÖNIX, we are amongst the now 27 listed names that are leaders regarding their social and ecological achievements. This means that we may display the VÖNIX membership label for another year.

The development of VÖNIX has shown that corporate citizenship and corporate social responsibility also pay off for investors, as an element of modern corporate management. In the first index year 2005/2006, which ended on 16 June 2006, the VÖNIX achieved a performance of 17.85% and clearly beat the benchmark of the ATXPrime of the Vienna Stock Market by about 3.5 percentage points.

Optimum shareholder information

gb2006.uniqagroup.com

Our Group Report is published in German and English and is also available in an interactive online version.

Our modern Investor Relations instruments have also enabled us to provide the financial community and the shareholders with comprehensive and up-to-date information in 2006. We continue to make our annual and quarterly reports as well as ad-hoc releases available not only on our website www.uniqagroup.com but also in written form, if desired. For investors, analysts and institutional investors around the world this information can also be obtained from our Investor Relations Department in English.