Wüstenrot & Württembergische : Annual Report Wüstenrot & Württembergische 2024

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Annual Report 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 Consolidated balance sheet . . . . Total assets in billion . . Capital investments in billion . . Senior debenture and registered bonds in billion . . Senior fixed-income securities in billion . . Building loans in billion . . Liabilities to customers in billion .& .& Technical provisions in billion . . Equity in billion . &. Equity per share (equity without minority interests, number of shares without treasury shares) in & . & .& 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 Consolidated income statement . . . to . . . . to . Total net financial result in million & Technical result in million - Earnings before income taxes from continued operations in million Consolidated net income in million Total comprehensive income in million & Earnings per share in . . Previous year's figure adjusted; see section 'Changes in accordance with IAS '. Other disclosures Average annual number of employees 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 Key sales figures . . . to . . . . to . Housing segment New business volume (new lending and home loan savings business) in million &, ,& Life and Health insurance segment Total premiums in new life insurance business in million , , Gross premiums written health insurance in million Gross premiums written life insurance in million , , of which regular premiums in million , , of which single premiums in million Property/Casualty insurance segment Annual contribution to the portfolio (new and replacement business) in million Gross premiums written in million , , W&W AG (according to the German Commercial Corde) . . . to . . . . to . Net income in million 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 !" & " ' !+ ! " 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, Jürgen A. Junker, 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 Weber 1 Deputy Chairman Chairman of the Works Council Württembergische Versicherung AG/Württembergische Lebensversicherung AG, Karlsruhe site Chairman of the Group Works Council Hartmut Bader 1 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 Eberle 1 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 Mader 1 Head of Customer service and Operations Württembergische Versicherung AG Andreas Rothbauer 1 Chairman of the General Works Council Wüstenrot Bausparkasse AG Petra Sadowski 1 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.

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