Vienna Insurance Group loans had a book value of EUR 1,187.4 million on 31 December 2007, and a book value of EUR 1,057.4 million on 31 December 2006. Investments in loans and credits used to create long-term positions for the insurance business are made only in mortgage loans and in instruments of first-class credit quality, particularly those of public institutions and non-profit housing development companies. In the CEE region, investments in loans and credits have much less importance. Loans in this region are made almost exclusively to the Group’s own real estate subsidiaries. The loan portfolio is declining in overall importance compared to the total investment portfolio. This development is due to the fact that the floating of loans has become less important to the federal government and local authorities in Austria, with public institutions instead increasingly obtaining financing through bonds.
A portfolio analysis and an analysis of remaining time to maturity for the Vienna Insurance Group’s loan portfolio are provided in Note 5, “Loans and other investments”, in the notes to the consolidated financial statements.
