News

December 04^th, 2008.

FONDIARIA SAI owns 100% of the DDOR share capital

With regard to the public takeover offer launched for all the remaining 352,701 ordinary shares in the Serbian joint stock company for insurance and reinsurance DDOR Novi Sad, representing approximately 16.68 per cent. of the share capital of DDOR - all as already announced to the market on 9 and 30 October 2008 - Fondiaria -SAI S.p.A hereby announces that today the procedure concerning the exercise, by Fondiaria - SAI, of the right to purchase (the so called squeeze out) the remaining shares in DDOR still held by the market, has been successfully completed.

Following the above, Fondiaria -SAI S.p.A will own 100% of the DDOR share capital.

October 01^th, 2008.

New conditions and premium tariffs for casco insurance

On 11^th August 2008, "DDOR Novi Sad" a.d.o. introduced new Conditions for Insurance of Motor and Rail Vehicles (Casco) and Premium Tariffs and thus became one of the first insurance companies in Serbia which, in this category of insurance, matched its operations to trends and operating practice in member countries of the EU.

The new Casco insurance provides better protection of insureds, i.e., owners of motor vehicles, and significantly expands opportunities for concluding Casco insurance "DDOR Novi Sad" a.d.o. is a large insurance company which in case of supplementary risk against vehicle theft provides insurance cover for abroad without additional premium.

In addition to that, "DDOR Novi Sad" a.d.o. has reduced insurance premiums for a large part of new passenger cars market while for a small part it has increased insurance premiums. This means that majority owners of new vehicles will pay lower premiums when buying a new vehicle. For example, the basic insurance premium including the risk against theft for the model VW Polo (the value of a new vehicle is 12,000 EUR) is 577 EUR and insurance premium (with the same cover) according to old tariffs was 758 EUR (the premium is stated without tax and discounts).

October 01^th, 2008.

Standard & Poor’s has assigned the rating A- to the Fondiarie - SAI

In Milan, on 22^nd July this year, the leading rating agency in the world, Standard & Poor's, announced the improved rating of the Fondiaria SAI Group and the main company within the group Milano Assicuracioni, by assigning the A- rating to the Fondiarie Group with reference to the former BBB+ rating and forecasted the Group’s stable development in the future

This improvement of the rating according to what is confirmed by the Agency Standard & Poor's is caused by better position among competitors and improved business operations in the area of life insurance (Vita), as well by leadership position in the area of material damage (Danni), then by good operational performance, generated high capital and constant improvements in the area of risk management at the level of the whole company (Enterprise Risk Management) in line with basic developmental objectives of the company.

The forecasted stable development in the future, which is underscored by Standard & Poor's, is based on the assumption that the competitive position of the Fondiaria – SAI Group will be retained in the next period, as well as high operational performance in the area of damage management (by which this company is recognizable) in spite of the growing competition characterizing the insurance market.

The new assessment of the Fondiarie’s rating and its improvement in the near future can be expected with the increase of profitability in the area life insurance activities (Vita) and with the continuous ERM (Enterprise Risk Management) implementation with the same tempo.

The relevance of assessments and importance of rating assigned by the Agency Standard & Poor's is best illustrated by the fact that this Agency makes assessments in over 3000 insurance companies in more than 70 countries worldwide. It is the leading company in the world which provides information about the financial market and the world’s foremost source of credit ratings, indexes, investment research, risk evaluation, financial data and information. Also, Standard & Poor's is the largest source of independent equity research and a leader in mutual fund information and analysis, the leading provider of independent investment information with teams covering over 2000 stocks in the world. Today, as financial markets grow more complex, the independent analysis, critical thinking, opinions, news and data offered by Standard & Poor’s are integral part of the global financial infrastructure.

For the Fondiaria-SAI Group, the assessment and assigned rating by the Agency Standard & Poor's represent great pleasure and confirmed merits of adopted developmental strategies, methodology of work and accomplished efficiency in previous years. It will be a driving force for the Group to pursue future market competitions with optimism and beliefs that all outlined targets for the years to come are attainable.