WIENER STÄDTISCHE GROUP

The VIENNA INSURANCE GROUP (V.I.G.) adheres to the Austrian Code of Corporate Governance. For years, the Company has followed a clear strategy of creating added value for all stakeholders. In this sense, compliance with the rules of the Code to ensure transparency and strengthen investor confidence is an important concern of management.

The uniform capital structure created in 2005, when non-voting preferred shares were converted to ordinary shares according to the principle of “one share – one vote”, represents a clear step toward equal treatment of all shareholders. In the interests of investors, a 1-to-7 share split was performed in 2004 to make the shares more readily tradable.

Complete information on the Group is available to the public on the VIENNA INSURANCE GROUP (V.I.G.) website, providing shareholders and potential investors quick and easy access to the current financial calendar, expanded information on the Supervisory Board, regular presentations of results, details of the Annual General Meeting, etc.

A new service was offered to shareholders for the first time for the Annual General Meeting in May 2006. An independent proxy from the Interessenverband für Anleger (IVA) assisted shareholders who were unable to personally attend the Annual General Meeting to exercise their voting rights. It is planned to also have this service available to shareholders for future Annual General Meetings.

The practical implementation of Corporate Governance is a continuous process, in which management receives support from a number of departments in the Group. All of the activities involved in putting Corporate Governance into actual practice focus on open and transparent communication with all stakeholders, and this is the area where the VIENNA INSURANCE GROUP (V.I.G.) strives to make continuous improvements in its Corporate Governance and welcomes a refinement of existing rules.