W&W Group continues to improve its market position in 2023

EQS-News: Wüstenrot & Württembergische AG / Key word(s): Annual
Report/Annual Results
W&W Group continues to improve its market position in 2023

27.03.2024 / 10:03 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Press information

Kornwestheim, 27 March 2024

W&W Group continues to improve its market position in 2023

  * Strong growth above the market average at Wüstenrot Bausparkasse AG and
    in Württembergische property and life insurance despite weak economy and
    high levels of uncertainty among consumers.

  * HGB profit climbs by around 10 per cent to EUR 131.7 million, enabling
    dividend continuity.

  * Consolidated net profit under IFRS in line with the updated forecast at
    EUR 140.5 million.

  * The W&W Group has continued to make good progress on customer proximity,
    market relevance and cost efficiency. Successful financial year on the
    whole.

In the 2023 financial year, the Wüstenrot & Württembergische Group (W&W) saw
good, in some cases excellent development of new business in nearly all
lines. Wüstenrot Bausparkasse AG, which set another new record, and the
Württembergische property and life insurance business achieved growth well
above the market average. As previous announced, the financial planning
group's earnings performance was influenced by storm damage and other large
losses as well as significantly higher costs in motor vehicle insurance.
Consolidated net income after taxes calculated as per IFRS came to EUR 140.5
million, thus attaining the target range of EUR 130 million to EUR 160
million, which was updated in October 2023. In the individual accounts under
HGB, the Group grew significantly to EUR 131.7 million (up 10.3 per cent on
the previous year). In light of these good results, the Executive Board and
Supervisory Board will again be proposing the payment of a dividend of EUR
0.65 per share, thus ensuring dividend continuity. EUR 61 million would thus
be distributed to shareholders. The W&W Group expects consolidated net
income to increase in the current 2024 financial year, while adverse
external influences persist.

Jürgen A. Junker, CEO of W&W AG: "The environment in 2023 was anything but
easy. It was shaped by external factors such as steep price rises as well as
people's uncertainty as a result of the political situation. There were also
losses caused by adverse weather. Despite the unprecedented concentration of
negative influences, the Group continued to make significant progress.
Strong new business in particular underscores the attractiveness of our
products and services for customers and not least the resilience that the
W&W Group has developed with its more than 6.5 million customers. It shows
that our Group can also succeed under difficult conditions. This is thanks
to our customer-focused and cost-efficient way of working and our successful
digital transformation. Our solidity and resilience have also helped us to
handle the unprecedented intensity of claims."

Junker continues: "Particularly notable and disadvantageous to policyholders
is the sharp increase in costs for reinsurance and at workshops. The price
increases at workshops with hourly rates sometimes exceeding EUR 200 are
clearly out of control. Reinsurers' amended pricing and underwriting
policies are ultimately also negatively affecting consumers, even though we
have adjusted to these challenges in the interests of our customers."

The W&W Group's key figures in 2023 (IFRS)

At EUR 140.5 million, net profit was below the previous year's figure of EUR
237.7 million (figure adjusted to IFRS 17) and thus in line with the
forecast as updated in October 2023. This was chiefly influenced by the
significant decline in the technical result of EUR 121.8 million (previous
year: EUR 308.2 million) due to the high claims expenses.

Gross general administrative expenses increased by 5.1 per cent to EUR 1.15
billion (previous year: EUR 1.09 billion), primarily due to continued high
investments in the digitalisation of processes and efficient IT
infrastructure.

Housing division

In the Housing division, Wüstenrot Bausparkasse AG - the clear number two on
the German market - reported growth in net new business by contract volume
of 20.5 per cent to EUR 16.73 billion in 2023, the best figure in the
company's history. Wüstenrot's market share will therefore increase by
nearly 2 percentage points.

In the construction financing business, the rapid interest rate rise, steep
price increases for building work and unclear requirements for financial
support for home ownership and energy-efficiency upgrades to buildings led
to a collapse in demand for residential construction loans last year. With a
new business volume of EUR 3.91 billion including brokering for third
parties, Wüstenrot slightly outperformed the sector as a whole. At
Wüstenrot, the credit portfolio grew by 6 per cent year on year to EUR 25.8
billion, setting a new record.

Insurance division

In 2023, Württembergische property/casualty insurance saw growth in new
business (annual contribution to the portfolio, new and replacement
business) of 23.5 per cent to EUR 423.6 million. The multi-award-winning
digital brand Adam Riese further increased its customer base to nearly
420,000 customers at the end of 2023 and expanded its product range. The
combined ratio (net, IFRS) in property/casualty insurance was 99.3 per cent
(previous year: 92.7 per cent). Especially in the third quarter of 2023,
Württembergische Versicherung saw a high number of claims relating to
natural disasters as a result of adverse weather. There was also an
unexpected cumulation of individual large losses claimed by corporate
customers and a higher number of motor vehicle claims, associated with
significantly higher claims expenses, which led to corresponding premium
increases throughout the sector.

Württembergische Lebensversicherung AG increased new business by total
premium by 5.6 per cent year on year to EUR 3.47 billion, whereas market
growth was only 2.3 per cent. As in previous years, company pension schemes
grew particularly dynamically, with the total premium rising 14.6 per cent.
Württembergische Krankenversicherung AG increased its annual new premiums by
more than 30 per cent to EUR 10.1 million (previous year: EUR 7.7 million).

Outlook for 2024

Although the economic environment in Germany remains difficult, the W&W
Group is cautiously optimistic for the current year. Assumed continued
success in the acquisition of new customers, stable general administrative
expenses and normalisation of claims performance, the Group expects
consolidated net profit in 2024 to be higher than in the previous year, but
below the medium- to long-term target range of EUR 220 million to EUR 250
million. In the individual accounts under HGB, the target is a figure at the
previous year's level.

Jürgen A. Junker: "The W&W Group is strong and has proven in recent years
that it can outperform the sector as a whole. We are working to gain new
customers again in 2024 and to build on existing customer relationships. To
this end, we are making substantial investments in products, processes and
not least in our employees."


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   Language:       English
   Company:        Wüstenrot & Württembergische AG
                   W&W-Platz 1
                   70806 Kornwestheim
                   Germany
   Internet:       www.ww-ag.com
   ISIN:           DE0008051004
   WKN:            805100
   Indices:        SDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard),
                   Stuttgart; Regulated Unofficial Market in Berlin,
                   Dusseldorf, Tradegate Exchange
   EQS News ID:    1868591

End of News EQS News Service
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1868591 27.03.2024 CET/CEST