Wuestenrot & Wuerttembergische Ag · XETR:WUW
Wuestenrot & Wuerttembergische — Wüstenrot & Württembergische — Q3 2023 Earnings Presentation
29 slides from Wuestenrot & Wuerttembergische's earnings presentation, Nov 24, 2023
Slide 1: Quarterly Report as at 30 September 2023
Wüstenrot & Württembergische AG Quarterly Report as at 30 September 2023 W&W Group 24 November 2023
Slide 2: Agenda
Agenda W&W – Overview & Strategy Group and Segment Development Q3 2023 Outlook Appendix W&W AG | Quarterly Statement Q3 2023 | 24 November 2023 Page 2
Slide 3: Our business areas are supported by strong partners across the group
W&W – Overview & Strategy Our business areas are supported by strong partners across the group Segment Housing Segment Insurance Service and Central Functions Everything around housing: home Service insurer in the life, health Group-wide services around IT, loan savings, financing, project and
Slide 4: Excellent client base with growth potential
W&W – Overview & Strategy Excellent client base with growth potential On average three contracts per customer ∼6.5m High client retention (low churn rate) Customers1 Solvent customer base Increasing digital affinity Note: 1) as of September 2023 W&W AG | Quarterly Statement Q3 2023 | 24 Nove
Slide 5: The W&W Group pursues a multi-channel sales approach
W&W – Overview & Strategy The W&W Group pursues a multi-channel sales approach Own sales channels Partnerships and cooperations Insurances 3,000 tied agents Banks and financial distributors 3,000 tied agents Sales networks& Brokers Over 20.000 brokers Direct channels Parternships Comprehensive multi
Slide 6: To the point: Sustainability goals of the W&W Group
W&W – Overview & Strategy To the point: Sustainability goals of the W&W Group E S G E S G Customers Capital Own investments Society Organisation Employees and operations products and refinancing "Green" product lines CO2 -neutral operation Promotion of cultural, Strengthen awareness Developing the f
Slide 7: W&W Group structure
W&W – Overview & Strategy W&W Group structure Freefloat > 21,00% Wüstenrot 39,91% Holding AG FS BW Holding GmbH > ~10,00% 27,47% Wüstenrot Foundation indirectly holds 67,38%1 of W&W shares. WS Holding AG Anmerkung: 1) Own shares are not taken into account due to insignificance. W&W AG | Quarterly St
Slide 8: The W&W AG share – stable and reliable dividend as a quality feature
W&W – Overview & Strategy The W&W AG share – stable and reliable dividend as a quality feature Share price currently at the lower end of the historical range W&W has a constant dividend level 4,27 26 4,06 3,93 24 3,68 3,36 3,23 22 2,78 20 20 18 16 3,74 14 2,74 2,77 2,49 2,65 13 2,29 2,24 12 With the
Slide 9: Current analyst recommendations at a glance
W&W – Overview & Strategy Current analyst recommendations at a glance Analyst Date Recommendation Comment Metzler 23/11/01 Buy Price target: EUR 22,00 „Ironically, the profit warning might result in more generous dividends” Montega 23/11/01 Buy Price target: EUR 23,00 “In our opinion, the forecast a
Slide 10: Significant reasons for adjusting the IFRS earnings forecast
W&W – Overview & Strategy Significant reasons for adjusting the IFRS earnings forecast Net loss ratio burdened more heavily compared to previous years 72,4% 61,4% 60,3% 8,4% 7,6% 7,1% 5,6% 1,5% 2,1% 60,2% 59,6% 61,6% -7,9% -8,5% -3,2% 9M/2021 9M/2022 9M/2023 Completion Base damage (remainder) Major
Slide 11: Agenda
Agenda W&W – Overview & Strategy Group and Segment Development Q3 2023 Outlook Appendix W&W AG | Quarterly Statement Q3 2023 | 24 November 2023 Page 11
Slide 12: Overview Q3 2023
Group and Segment Development Q3 2023 Overview Q3 2023 The third quarter was characterized by a declining gross domestic product in Germany and increased financing costs, which had a particularly negative impact on residential construction. The stock markets also continued to be volatile due to ongo
Slide 13: Introduction of IFRS 17
Group and Segment Development Q3 2023 Introduction of IFRS 17 Implications on the W&W Group Equity Balance Sheet Earnings Positive Implications: Positive Implications: Negative Implications: Compared to the previous Previously existing valuation Higher earnings volatility cannot be accounting
Slide 14: W&W core business mixed in an overall volatile market environment
Group and Segment Development Q3 2023 W&W core business mixed in an overall volatile market environment -10.3% +2.8% +8.0% A record level was achieved in 19,106 2,443 431 gross new home loan savings 2,377 17,136 399 business. However, new lending 5,279 business declined due to increased 2,885 fina
Slide 15: Decrease in consolidated net income due to unfavorable claims development
Group and Segment Development Q3 2023 Decrease in consolidated net income due to unfavorable claims development Financial result characterized by a +94.8% significantly better valuation result, which 409 +11.2% can be attributed to more stable capital markets compared to the previous year 384 345
Slide 16: IFRS consolidated income statement
Group and Segment Development Q3 2023 IFRS consolidated income statement1 in Mio. EUR Q3 2023 Q3 2022 Delta 1 1 Net financial income 409 210 199 In the previous year, the rise in Current net income 965 888 77 interest rates and declining stock Net expense from risk provision -20 -18 -2 markets had a
Slide 17: Consolidated balance sheet Q3 2023 and previous year
Group and Segment Development Q3 2023 Consolidated balance sheet Q3 2023 and previous year1 in EUR millions Q3 2023 AS 2022 Delta Financial assets at fair value through profit or loss 10,297 10,276 21 1 Interest-related decline in market values Financial assets at fair value through other comprehens
Slide 18: Segment overview
Group and Segment Development Q3 2023 Segment overview 1 Reported segments IFRS 17 IFRS 17 Delta (in EUR millions) Q3 23 Q3 22 Housing segment 51.7 56.6 -4.9 Life/Health Insurance segment 22.2 31.7 -9.5 Property/Casualty Insurance segment 9.9 97.9 -88.0 All other segments/consolidation 17.3 -6.5 23.
Slide 19: Segment Housing
Group and Segment Development Q3 2023 Segment Housing +3.1% Declining segment result compared -8.7% 14,251 to the previous year -45.3% 13,827 57 52 5,279 Due to the difficult economic conditions, the volume of new lending business developed in line with the market and was below the very strong p
Slide 20: Life and Health insurance segment
Group and Segment Development Q3 2023 Life and Health insurance segment -30.0% +2.8% 32 2,377 2,443 22 Segment result below previous year, 1,607 in particular due to special effects in 1,668 underwriting in 2022 and higher administrative expenses (net) The premium amount for new business increas
Slide 21: Life and Health insurance segment
Group and Segment Development Q3 2023 Life and Health insurance segment +9.1% 170 1,414 1,284 36 76 Start 01.01.2023 CSM Initial Assesment CSM Unlocking CSM Release CSM End 30.09.2023 New Business by 30.09.2023 Note: 1) Numbers rounded commercially. W&W AG | Quarterly Statement Q3 2023 | 24 November
Slide 22: Property and Casualty insurance segment
Group and Segment Development Q3 2023 Property and Casualty insurance segment +24.6% -89.9% 350 99.3 Segment result significantly below 98 91.1 previous year, particularly due to increased claims expenses, lower 281 100 actuarial result and increased administrative expenses 75 52 Both pure new b
Slide 23: Agenda
Agenda W&W – Overview & Strategy Group and Segment Development Q3 2023 Outlook Appendix W&W AG | Quarterly Statement Q3 2023 | 24 November 2023 Page 23
Slide 24: Outlook for 2023 as a whole
Outlook Outlook for 2023 as a whole Given the extraordinary burdens, we have adjusted our expectations for the 2023 financial year. The increase in severe weather events and higher claims expenses, particularly in automotive insurance, mean that the IFRS consolidated result will be below our previou
Slide 25: Agenda
Agenda W&W – Overview & Strategy Group and Segment Development Q3 2023 Outlook Appendix W&W AG | Quarterly Statement Q3 2023 | 24 November 2023 Page 25
Slide 26: Investment of the W&W Group and the individual companies as of June 30, 2023
Appendix Investment of the W&W Group and the individual companies as of June 30, 2023 Investment by asset class Investment by geography 23% 36% 35% 44% 43% 60% 13% 64% 72% 77% 78% 15% 11% 15% 12% 10% 12% 8% 8% 6% 13% 0% 0% 9% 6% 13% 9% 22% 7% 9% 10% 4% 12% 10% 5% 5% 4% 0% 5% 3% 3% 10% 36% 4% 0% 3% 2
Slide 27: Overview regulatory capital of group key entities
Appendix Overview regulatory capital of group key entities Regulatory capital of group key entities in % Capital ratios (Solvency II ratios for insurance entities) Bausparkasse in % W&W AG Württembergische Württembergische Wüstenrot W&W Group (solo) Vers. AG (P&C) LV AG (Life) Bausparkasse AG 417.0
Slide 28: Be sure to keep in touch with us
IR contact Be sure to keep in touch with us For further information, please 27.11.2023 contact 27.03.2024 Michael Ellwanger Head of Investor Relations +49 711 662 725252 ir@ww-ag.com Please visit our IR website: W&W AG | Quarterly Statement Q3 2023 | 24 November 2023 Page 28
Slide 29: Disclaimer
This presentation and the information contained in it, as well as all other documents and explanatory notes (collectively, the “Material”), are issued by Wüstenrot & Württembergische AG ("W&W"). This presentation contains certain forward-looking statements and forecasts that reflect the current view
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