Annual Report Wüstenrot & Württembergische 2024

Wüstenrot & Württembergische AG

This is a translation of the German

Annual Report. In case of any

divergences, the German original is

legally binding.

Wüstenrot & Württembergische AG

Overview of key figures of W&W Group (according to IFRS)

Consolidated balance sheet

Total assets

Capital investments

Senior debenture and registered bonds

Senior fixed-income securities

Building loans

Liabilities to customers

Technical provisions

Equity

Equity per share (equity without minority interests

Previous year's figure adjusted; see section "Changes in accordance with IAS ".

Consolidated income statement

Total net financial result

Technical result

Earnings before income taxes from continued operati

Consolidated net income

Total comprehensive income

Earnings per share

Previous year's figure adjusted; see section 'Changes in accordance with IAS '.

Other disclosures

Average annual number of employees

Key sales figures

Housing segment

New business volume (new lending and home loan savi

Life and Health insurance segment

Total premiums in new life insurance business

Gross premiums written health insurance

Gross premiums written life insurance

Property/Casualty insurance segment

Annual contribution to the portfolio (new and repla

Gross premiums written

W&W AG (according to the German Commercial Corde)

. . .

to

.

. . .

to

.

Net income

in

Dividend per share

Share price at year-end

in in

Market capitalisation at year-end

in million

Subject to approval by the Annual General Meeting.

Financial calendar

. & .

,

, &

Annual General Meeting

Annual General Meeting

Thursday, May

&

Financial reports

Annual Report

Friday, March Interim management statement as at March

Thursday, & May

&

& Interim management report as at June

Thursday, August

& Interim management statement as at September

Friday, November

&

Wüstenrot & Württembergische AG Contents

Letter to shareholders Management Board Supervisory Board

Combined management report Group fundamentals

Business report Opportunity and risk report Outlook

Other disclosures

Declaration on corporate management/corporate governance Group sustainability report

Report on equality and equal remuneration pursuant to the German Transparancy in Remuneration Act (EntgTransG)

Consolidated financial statements of W&W Group (IFRS)

Consolidated balance sheet

Consolidated income statement

Consolidated statement of comprehensive income Consolidated statement of changes in equity Consolidated cash flow statement

Notes to the consolidated financial statements

Responsibility statement

Independant auditor's report

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& "

'

!+ !

"

Financial statements of the W&W AG (German Commercial Code)

Balance sheet

Income statement Notes

Other mandatory information

(')

+

&

Responsibility statement Independant auditor's report Report of the Supervisory Board

" "! &+&

Glossary

Letter to shareholders W&W AG

Jürgen A. Junker, Chairman of the Executive Board

"Strong foundation keeps operations and strategy on track"

Dear shareholders, despite the weak economic environment in Germany and considerable burdens due to unusually high losses in our core region, the operations of the W&W Group, your company, remained entirely on track in 2024. We were able to increase the size of key portfolios within our business lines, and new business also continued to develop well for the most part. New lending business in the Housing segment was particularly pleasing. Mean-while, new business in health insurance and the premium trend in property/casualty insurance are likewise posi-tive developments that should be emphasised. New home loan and savings business normalised as expected following interest-driven record figures.

Overall, the strengths built up over the past few years in terms of substance, customer service, flexibility, and innovation in products and processes had a positive impact.

As announced, high costs had a negative impact on the development of our company last year. The severe storms in the second and third quarters in Southwest Germany, in particular, cancelled out our conservative claims and earnings planning. The frequency and extent of such damage is unprecedented. In addition, ongoing claims inflation, particularly in the motor vehicle sector, drove up the costs per claim considerably. We reacted quickly and responded successfully to these develop-ments in the Insurance division.

In 2024, the Housing segment felt the effects of the ongoing slump in new residential construction. The number of residential building permits and completions continues to fall far short of actual demand. In addition, there are distortions in the interest rate structure, which have a negative impact on the income statement.

As a result, the consolidated net profit for the year under IFRS accounting at €36 million was significantly below the previous year's figure of €141 million. The individual financial statements of W&W AG according to HGB accounting, on the other hand, increased by €3 million to €135 million. We are able to maintain the dividend, which is based on the financial statements of W&W AG prepared in accordance with the HGB (German Commer-cial Code), at a constant level.

Stability and reliability are important to us, both for our customers and for our shareholders. The Executive Board and Supervisory Board will therefore propose to the Annual General Meeting on 22 May 2025 that an unchanged dividend of €0.65 per share be paid for the past financial year.

This good annual result was made possible above all by the commitment of our employees, who live and breathe our aspiration to become a little better every day, and to place the satisfaction of our customers at the centre of everything we do. I would like to express my sincere thanks to them for their significant contributions to the success of our business.

As is always the case, all factors that we can influence ourselves at the W&W Group are developing well. We have our costs under control, our products are success-ful on the market, and our strategic and operational development is progressing successfully. Unforeseeable natural disasters, such as those we experienced in 2024 and fully recognised in the balance sheet, are part of the nature of our business. It is our job as an insurer to stand by our customers in situations that are often exis-tential for them. The situation is somewhat different with the considerable cost increases in some claims set-tlements. In the end, it is the policyholders who suffer, as premium adjustments are inevitable throughout the

Wüstenrot & Württembergische AG | Letter to shareholders | 5

industry. However, we are not prepared to stand idly by and watch this development; we are actively counter-acting it.

In 2024, we offered our customers attractive and com-petitive products in home loan and savings and construc-tion financing, taking profitability and risk into account. The desire to become a homeowner remains high. De-mand was driven by the existing property market, by purchases, and by modernisations and renovations, par-ticularly in terms of energy efficiency. New construction remained at a low level due to rising construction costs, excessive regulations, and long approval procedures.

Dear shareholders, for the current financial year, we have adjusted our plan-ning for claims development in response to the heavy burdens of recent years. We expect macroeconomic de-velopment to remain very subdued and interest rates to remain volatile. In this environment, cost awareness and cost efficiency remain important criteria in everything we do. We have also countered the external burdens by adjusting premiums as a result of claims inflation and with a number of other measures. For 2025, we expect a genuine and swift relaunch of housing construction pol-icy following the formation of a new government, which will further boost business in the sector.

Dear shareholders, the current financial year is once again presenting our industry with challenges. The German economy is not expected to recover after the weak 2024 financial year. And it remains to be seen whether citizens and compa-nies will be able to expect more clarity from the political arena in 2025, and thus more certainty in their decisions on personal provision and wealth creation.

We at the W&W Group are cautiously optimistic about

On the condition that there is no turbulence on the capi-tal and financial markets, and in the absence of any other significant events for the W&W Group, we are planning a consolidated net profit significantly above the previous year for 2025. In the medium term, we are still aiming for a profit of €220 to €250 million - a range that we have already achieved and even exceeded in previous years. In the separate financial statements of W&W AG, we aim to further increase net income each year in 2025 and subsequent years and thus continue our reliable dividend policy. The strategic and operational opportu- 2025. Despite the recent high losses, we are starting the nities for the W&W Group are significant. In times of new year with an unencumbered balance sheet and strong sales. We trust in our operational strength, our economic uncertainty and overburdened social security systems, the importance of private provision and asset solid foundation, and the resilience that we have built up accumulation is constantly growing. The W&W Group is in recent years. We utilise these strengths to acquire new customers, maintain existing customer relation-ships, and thus further expand our market position. Our innovative strength and ability to meet the changing needs of our around 6.5 million customers remain cru-cial. We rely on an effective mix of personalised advice and digital transformation, in which we simplify and ac-celerate products and processes where it makes sense to do so, without neglecting personal support. We can only remain successful in the long term if we constantly reimagine our business with our customers in mind. One example of this is the multi-award-winning digital insur-er Adam Riese, which was launched in 2017 and is now trusted by nearly 400,000 customers.

Our strategic goals will only be achievable if skilled and committed employees continue to work towards them in the future. It is therefore all the more pleasing that the W&W Group continues to have a high level of employee satisfaction, which is also reflected in a comparatively low employee turnover rate. Our most recent employee survey showed very high approval ratings. This is pleas-ing and a good basis for the future.

well positioned. I look forward to working with my col-leagues on our boards and the more than 12,000 people who work for us in the back office and as part of our mobile sales force, as well as with numerous partners, to further advance the W&W Group.

Sincerely yours,

Chairman of the Executive Board

6 | Wüstenrot & Württembergische AG | Executive Board

Our Management Board

Together to the future

The W&W Group has separated its activities into two divisions: Housing and Insurance. At Group level management and service entities as well as overall digitalization topics are managed. The Executive Board of W&W AG and the heads of the divisions form the Management Board, which serves as the central steering entity of the W&W Group.

Wüstenrot & Württembergische AG | Executive Board | 7

Jürgen A. Junker

CEO of the

W&W Executive Board Corporate Legal

Audit Communication Strategy

Human Resources Data, Processes and AI

Bernd Hertweck

Head of

Housing Division,

Chairman of the Executive Board of Wüstenrot Bausparkasse AG

Alexander Mayer

CFO/CRO of the W&W Executive Board Accounting

Controlling

Risk management Compliance

Zeliha Hanning

Head of

Insurance Division,

Chairwoman of the Executive Board of Württembergische Versicherung AG and Member of the Executive Board of Württembergische Lebensversicherung AG

Jürgen Steffan

CRO of the

W&W Executive Board (until 30 June 2024) Human Resources Controlling

Risk management Compliance

Jacques Wasserfall

Head of

Insurance Division,

Chairman of the Executive Board of Württembergische Lebensversicherung AG and of the Executive Board of Württembergische Krankenversicherung AG

Jens Wieland

CIO of the

W&W Executive Board IT

Capital Investments

8 | Wüstenrot & Württembergische AG | Supervisory Board

Our Supervisory Board

Dr. Michael Gutjahr

Chairman

Former Member of the Executive Board Wüstenrot & Württembergische AG Wüstenrot Bausparkasse AG Württembergische Versicherung AG Württembergische Lebensversicherung AG

Frank Weber1

Deputy Chairman

Chairman of the Works Council

Württembergische Versicherung AG/Württembergische Lebensversicherung AG, Karlsruhe site

Chairman of the Group Works Council

Hartmut Bader1

Chairman of the Works Council

Wüstenrot & Württembergische AG/Württembergische Lebensversicherung AG, Kornwestheim site

Chairman of the General Works Council

Wüstenrot & Württembergische AG/Württembergische Lebensversicherung AG

Jutta Eberle1

Insurance Employee Württembergische Versicherung AG

Dr. Frank Ellenbürger

Auditor and tax consultant

Prof. Dr. Nadine Gatzert

Chair of Insurance Economics and Risk management at the Erlangen-Nürnberg Friedrich-Alexander-university

1 Employee representatives.

Bernd Mader1

Head of Customer service and Operations Württembergische Versicherung AG

Andreas Rothbauer1

Chairman of the General Works Council Wüstenrot Bausparkasse AG

Petra Sadowski1

Trade union secretary of

Vereinte Dienstleistungsgewerkschaft ver.di Stuttgart district

Dr. Wolfgang Salzberger

Chief Financial Officer (CFO) and Member of the Board ATON GmbH

Jutta Stöcker

Former Member of the Executive Board RheinLand-Versicherungsgruppe

Edith Weymayr

Chairwoman of the Executive Board Landeskreditbank Baden-Württemberg - Förderbank (L-Bank)

Solidarity is the key

In the W&W Group, we practise trusting and cooperative collaboration - for the benefit of our customers. Our employees help each other, learn from each other and are open to new ideas. At the W&W campus in Kornwestheim, this togetherness and mutual support is tangible.