W&W Group with solid first quarter 2018

Consolidated net profit reaches 58.0 million euros
Gratifying new business in construction financing and in property/casualty insurance
Earnings outlook for the full year 2018 confirmed
Chairman of the Executive Board Jürgen A. Junker: “The performance in the first quarter shows how much stronger W&W Group is”

The Wüstenrot & Württembergische Group (W&W) has recorded very solid business growth in the first quarter of 2018. It achieved significant gains in new business both in construction financing and in property/casualty insurance. In view of its ongoing investment programme between 2018 and 2020, the consolidated net profit of 58 million euros in the first three months was down on the previous year’s figure (69.5 million euros), as already anticipated. Despite strong competition, the company was able to expand its position and gain further profitable market share. For the full year 2018, the financial services group expects to achieve a consolidated net profit of at least 200 million euros.

Jürgen A. Junker, Chairman of the Executive Board of W&W AG: “The first three months show the increased internal and external strength of our Group. Despite considerable additional investment in new digital products, business models and processes, and despite ongoing challenging markets, we have generated a more than respectable result. We now need to maintain this swing for the remainder of the year. We will carry on forging ahead with our strategic initiative and continue along the company’s path of focusing on the needs of our customers. The digital transformation is a catalyst not only for our ambitious growth and earnings target, but also for the future of the W&W Group.”

Business area development in the first quarter of 2018

In the construction financing business, the W&W Group achieved a rise in the first quarter of 6.3 percent to 1.4 billion euros (including brokering for third parties).

In home loan and savings, Wüstenrot Bausparkasse maintained its position as the second largest German home loan and savings bank. With 3.5 billion euros (previous year: 3.7 billion euros), gross new business in terms of home loan savings contracts was in line with expectations. Net new business was 2.6 billion euros (previous year’s quarter: 3.0 billion euros). Wüstenrot Bausparkasse expects both values to grow in the full year 2018.

In property/casualty insurance, gross premiums written rose by 8.1 percent and rose to 879.5 million euros (previous year: 813.4 million euros). Despite greater natural hazards, the gross combined ratio of 87.4 percent remained almost constant.

In life and health insurance, gross premiums written rose to 550.9 million euros, as compared to 545.9 million euros in the same quarter of the previous year.

Numerous strategic decisions

During the course of 2018 so far, W&W group has continued to strengthen and further digitalise its classic sales business with the two well-known brands Wüstenrot and Württembergische and continues to develop new digital business models. The digital brand “Adam Riese”, which was established in October 2017 offering basic insurance products, is expanding its range of products to include legal expenses insurance.

At the start of this year, the finance assistant “FinanzGuide” came onto the market. It is an app that enables customers to view their personal insurance, savings and bank portfolio on their smartphone. They can manage and optimise it, make transfers or get quotes.

The latest offer from W&W is NIST, a digital finance assistant for real estate purchases. It involves a configuration tool enabling you to quickly search for the best property financing yourself, rather than spending lots of time getting quotes from a variety of different banks. NIST-users may profit from a certificate confirming their creditworthiness.

With the sale of Wüstenrot Bank AG Pfandbriefbank to Bremer Kreditbank AG, announced at the end of March, W&W Group is continuing its strategy of focusing on its core businesses.

The pensions group – as already reported - anticipates a total investment budget of 820 million euros for the period between 2018 and 2020, above all for the digital transformation, but also for upskilling its employees. It is the largest investment programme in the company’s history.

Stuttgart, 15 May 2018, 09:39 am