EQS-News: W&W Group with a strong start to 2025

Press information

Kornwestheim, 28 March 2025

W&W Group with a strong start to 2025

• New business increases significantly in almost all segments by the end of February 2025, in some cases by over 10 per cent.
• Significant increase in IFRS consolidated earnings expected for 2025; HGB earnings in the individual accounts also expected to rise further
• As announced, the 2024 financial year was characterised by an extraordinary level of claims as a result of storms in the core region, exploding costs in the motor vehicle industry and a weak economy. All financial burdens fully accounted for.
• Nevertheless, annual profit according to IFRS of €36 million; HGB result improved for the sixth year in a row to €135 million.
• W&W Executive Board Chair Jürgen A. Junker: "The W&W Group is on a good course despite all the financial burdens. The strong start to the year gives us a clear tailwind."

The Wüstenrot & Württembergische Group (W&W) has recorded a strong start to 2025. In the first two months of the 2025 financial year, the financial planning group achieved significant growth in new business and in the portfolio in almost all areas compared to the same period of the previous year. This growth amounted to over 10 per cent in some cases. The strong start to the year underpins the goal of significantly increasing consolidated earnings in accordance with IFRS this year and also increasing the HGB result in the individual financial statements of W&W AG once again. Despite considerable claims from unusually numerous and severe storms, particularly in the core insurance area, in 2024 the W&W Group was able to close the year with positive consolidated earnings of €36 million (previous year: €141 million). €31 million of this was attributable to the final quarter. The W&W Group fully accounted for all financial burdens in the balance sheet in the financial year. The HGB result of W&W AG even increased slightly to €135 million (2023: €132 million). This will enable the company to propose a constant dividend of €0.65 per share at the Annual General Meeting on 22 May 2025.

Jürgen A. Junker, Chair of the Executive Board of W&W AG: "The first few months of the new financial year have been very pleasing for us, and we have experienced a significant tailwind. Rarely before has a start to the year been so successful. We are all the more pleased about this because 2024 was one of the most difficult years for the German insurance industry. The fact that we have already fully accounted for all the financial burdens from the severe weather damage and have started the new year unencumbered shows how strong and stable our Group has meanwhile become. What is equally important is that we have obviously managed to help customers affected by the storms quickly and unbureaucratically – that is our job as an insurer. The strong start to the year in new business reinforces our basic optimism for 2025, even if the framework conditions are likely to remain difficult. Gaining market shares in our profitable lines of business, product and advisory quality, coupled with innovative strength and stronger customer loyalty, as well as greater cost efficiency together with an increase in profitability, remain the central strategic goals of the W&W Group."

Very good start to 2025

The construction financing business continued to grow in the current year: in the first two months of 2025, there was a 22.6 per cent increase in new business accepted compared to the same period in the previous year. In the home loan and savings business, the portfolio at the end of February was 3.6 per cent higher than on the same reporting date in 2024.

In January and February, Württembergische Lebensversicherung increased its current new premiums by 12.6 per cent compared to the same period last year, and health insurance also continued to grow by 6.1 per cent. In property and casualty insurance, new and replacement business continued to grow profitably by 8.3 per cent in the first two months of 2025.

Adam Riese was able to increase its new business by 13.8 per cent in the first two months.

Outlook for 2025 as a whole

The W&W Group is optimistic about 2025. The very strong new business in the first two months coupled with the stable basis and high resilience that characterise the Group are the foundation for acquiring new customers, providing even more comprehensive support to existing customers and further expanding the market position of the W&W Group. Assuming that there are no further extraordinary loss events and no major distortions on the capital and financial markets, the financial planning group anticipates a significant improvement in consolidated net profit for the year according to IFRS for 2025. In the individual accounts in accordance with the German Commercial Code (HGB), we are planning for net profit for the year that is slightly above the previous year with an improved claims picture.

Development of the divisions in 2024

Housing division

New lending business (including referrals to partner banks) in the Housing division developed positively and grew by 19.7 per cent to €4.69 billion compared to 2023. Wüstenrot thus consolidated its market position, which it had expanded significantly in previous years.

Wüstenrot Bausparkasse, the number two private home loan and savings bank, recorded gross new business of €10.99 billion (-37.6 per cent) in 2024 after record new business in the previous year, reflecting the repeated cuts in key interest rates by the ECB. At €28.4 billion, the portfolio of loans under a building savings contract was 6.3 per cent higher at the end of 2024 than the previous year's figure.

Insurance division

In property and casualty insurance, Württembergische Versicherung once again achieved pleasing growth of 436 million euros in new and replacement business in 2024.

The portfolio was thus expanded by 7.1 per cent compared to the previous year. The motor (+8.2 per cent), private customer (+3.9 per cent) and corporate customer (+8.3 per cent) segments contributed to this growth.

Württembergische Krankenversicherung remained on course for growth in 2024 and increased its new annual premiums by 14.9 per cent, primarily thanks to dynamic demand in company health insurance. In life insurance, the premium sum of new business fell by 6.5 per cent to €3.24 billion.

Executive Board Chair Jürgen A. Junker: "Unfortunately, we are still experiencing a very unhealthy trend in the motor vehicle industry, which is developing entirely to the disadvantage of policyholders. The cost increases charged by garages for bodywork damage and spare parts can no longer be explained by the general price trend. It can be assumed that these are intended to compensate for structural changes in the sale of vehicles. At peak times, hourly rates are now well over €200, which for an eight-hour day leads to costs of up to €1,800 just for the labour alone. The W&W Group will work to counteract this development – also in the interests of the insured collective. Last year, our investment in the vehicle damage company riparo GmbH, which coordinates the repair of vehicles that have been in accidents nationwide, also served this purpose."