The Vienna Insurance Group’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). They cover fiscal year 2007 (1 January 2007 to 31 December 2007) and provide a comparison with fiscal year 2006.
A total of 70 companies are included in the consolidated financial statements. Subsidiaries that were not essential for a fair presentation of the Vienna Insurance Group’s net assets, financial position and results of operations due to their size were not included in the consolidation.
Changes in the scope of consolidation
The previously proportionally consolidated UNION Versicherungs-AG, Vienna, was fully consolidated in the first quarter since the ERGO Versicherungsgruppe renounced its intervention rights. Subsequently, the Bank Austria Creditanstalt Versicherung AG, Vienna, merged with the UNION Versicherungs-AG, Vienna, with the latter as the absorbing entity. The absorbing entity was renamed as Bank Austria Creditanstalt Versicherung AG, Vienna. Following completion of the merger, the WIENER STÄDTISCHE Versicherung AG VIENNA INSURANCE GROUP has a 60.5% stake in shares of Bank Austria Creditanstalt Versicherung AG. In the 2nd quarter of 2007, all of the shares in COUNTRY INN VIC Hotelerrichtungs- und Betriebsgesellschaft m.b.H., Vienna, were sold to a company not included in the consolidated financial statements. The company was therefore deconsolidated. In the 3rd quarter of 2007, Celetná 25, s.r.o., Prague, was merged into Kooperativa pojišt’ovna, a.s., Prague.
The following insurance companies were fully added to the consolidated group for the first time in 2007:
- STDV Globus
- CJSC Life Insurance Jupiter VIENNA INSURANCE GROUP
- CJS UIC Kniazha
Companies that are jointly managed by the Vienna Insurance Group and TBIH Financial Services Group N.V. are proportionally consolidated, with 60% of the operating investees included directly. This is because TBIH is a pure holding company, which means that its operating business is performed by its investees. Four companies (Bulstrad Life, Bulstrad Non-Life, Helios and for the first time Ray Sigorta) were proportionally included in the 2007 consolidated financial statements.
The following three non-profit housing development companies were also added to the consolidated group for the first time in 2007:
- GIWOG Gemeinnützige Industrie-Wohnungs-AG
- GEMYSAG Gemeinnützige Mürz-Ybbs-Siedlungsanlagen-GmbH
- “Schwarzatal” Gemeinnützige Wohnungs- und Siedlungsanlagen GmbH
These newly added companies generated a profit before taxes of EUR 15.278 million in fiscal year 2007. The annual profit of non-profit housing development companies is subject to statutory restrictions on distribution in Austria, and there is only limited access to the assets of such companies.
The management report initially provides a detailed description of business development and the results of operations of the Vienna Insurance Group. This is followed by an overview of the individual geographical segments of the Vienna Insurance Group. The geographical segment report for the Group is divided into
- Austria (incl. branch offices in Italy and Slovenia)
- Czech Republic
- Other CEE markets (Bulgaria, Croatia, Serbia, Turkey, Ukraine and Hungary)
- Other markets (Germany, Liechtenstein)
The companies in Albania, Estonia, Georgia, Latvia, Lithuania, Macedonia, Russia and Belarus are not included in the consolidated group. The subsidiaries in Ukraine and Turkey were added to the consolidated group for the first time.