Wüstenrot & Württembergische AG
ISIN: DE0008051004
WKN: 805100
27 March 2024 10:03AM

EQS-News: W&W Group continues to improve its market position in 2023

Wüstenrot & Württembergische AG · ISIN: DE0008051004 · EQS - Company News
Country: Germany · Primary market: Germany · EQS NID: 1868591

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.


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.”



27.03.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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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

1868591  27.03.2024 CET/CEST

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Boersengefluester.de (BGFL) provides an overview of the key figures on sales, earnings, cash flow and dividends to help you better assess the fundamental development of the respective companies. All information is entered manually in our database - the source is the respective annual reports. All estimates for future figures are provided by BGFL.

The most important financial data at a glance
  2018 2019 2020 2021 2022 2023 2024e
Sales1 4.000,06 4.249,20 4.415,14 4.638,40 4.376,45 5.976,43 0,00
EBITDA1,2 320,49 353,01 306,87 480,66 353,53 284,16 0,00
EBITDA-Margin3 8,01 8,31 6,95 10,36 8,08 4,76 0,00
EBIT1,4 320,49 353,01 306,87 480,66 353,53 201,22 0,00
EBIT-Margin5 8,01 8,31 6,95 10,36 8,08 3,37 0,00
Net Profit (Loss)1 215,19 249,06 210,75 352,15 261,50 140,54 110,00
Net-Margin6 5,38 5,86 4,77 7,59 5,98 2,35 0,00
Cashflow1,7 -723,55 1.060,53 434,95 -795,99 -2.234,36 -108,12 0,00
Earnings per share8 2,29 2,65 2,24 3,74 2,77 1,48 1,15
Dividend per share8 0,65 0,65 0,65 0,65 0,65 0,65 0,65
Quelle: boersengefluester.de and Company information
Explanation

1 in Mio. Euro; 2 EBITDA = Earnings before interest, taxes, depreciation and amortisation; 3 EBITDA in relation to sales; 4 EBIT = Earnings before interest and taxes; 5 EBIT in relation to sales; 6 Net profit (-loss) in relation to sales; 7 Cashflow from operations; 8 in Euro; Source: boersengefluester.de

Auditor: Ernst & Young

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INVESTOR-INFORMATION
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Wüstenrot & Württembergische
WKN ISIN Legal Type Marketcap IPO Recommendation Plus Code
805100 DE0008051004 AG 1.080,00 Mio € 09.09.1999 Halten 8FWFV5JQ+QX
* * *
PE 2025e PE 10Y-Ø BGFL-Ratio Shiller-PE PB PCF KUV
8,23 7,39 1,11 4,61 0,22 -9,99 0,18
Dividends
Dividend '2022
in €
Dividend '2023
in €
Dividend '2024e
in €
Div.-Yield '2024e
in %
0,65 0,65 0,65 5,64%
Financial calendar
Annual General Meeting Q1-figures Q2-figures Q3-figures Annual press conference
22.05.2025 15.05.2025 14.08.2025 15.11.2024 28.03.2025
Performance
Distance 60-days-line Distance 200-days-line Performance YtD Performance 52 weeks IPO
Last Price (EoD)
-0,35%
11,52 €
ATH 43,47 €
-3,95% -8,78% -13,64% -13,77% +0,00%

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