Vienna Insurance Group embedded value up

VIENNA, Austria—Wiener Stadtische Versicherung A.G., the Vienna Insurance Group, said Wednesday its embedded value after taxes was €4.19 billion ($ 5.71 billion) as of the end of 2006, an increase of 14.3% from the previous year.

As a result, Vienna Insurance Group achieved a return on embedded value of about 17%, the company said.

Last year's increase was due in part to the group's companies in Central and Eastern Europe, which saw their share of the total embedded value rise to 29%, from 23% at the end of 2005. The group's Austrian and German insurance business amounted to 71% of the current value.

Embedded value is an industry benchmark showing the value of in-force insurance business. The figure is comprised of the net assets for life, health and property/casualty insurance as well as the current value of the combined future earnings from in-force business in the life and health lines.

The figures were reviewed and confirmed by Deloitte & Touche L.L.P. of London, Vienna Insurance Group said.