13.05.2016
Wüstenrot & Württembergische AG DE0008051004
DGAP-News: W&W off to a strong start in the year
DGAP-News: Wüstenrot & Württembergische AG / Key word(s): Quarterly /
Interim Statement
W&W off to a strong start in the year
13.05.2016 / 09:27
The issuer is solely responsible for the content of this announcement.
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Profits higher than the previous year - digitalisation proceeding apace
The Wüstenrot & Württembergische Group (W&W) has started the new financial
year in spirited fashion. The Stuttgart-based financial planning specialist
posted solid figures for new business and positive profit development for
the first three months of 2016. At EUR 62.6 million (previous year: EUR
54.7 million), consolidated net profit is about 15% higher than the value
for the first quarter of 2015. The results for the first quarter of 2016
give the W&W Group grounds for optimism, and consolidated net income for
2016 is now expected to top EUR 220 million, depending on how interest
rates and the capital markets develop.
Home loan savings developed in a particularly gratifying manner. In terms
of total home loan savings, gross new business came in at EUR 4.8 billion
(previous year: 3.6 billion), or more than 34% above the previous year. The
Wüstenrot Bausparkasse AG thus posted its best sales results for a first
quarter and, counter to market trends, was able to achieve growth.
Net new business likewise posted significant growth of nearly 20% to EUR
3.1 billion (previous year: 2.6 billion). In all, new business in the first
quarter was mainly boosted by the introduction of the new home loan savings
plan called "Wohnsparen". With a nominal loan interest rate starting at
just 1%, Wüstenrot customers have been benefiting since February 2016 from
the lowest interest rate ever offered by Wüstenrot in order to make their
home dreams a reality.
Construction financing in the first quarter normalised as compared to the
level of the exceedingly strong previous year. Group-wide, including
brokerage through the construction financing portal, W&W generated new
business of nearly EUR 1.2 billion (previous year: EUR 1.3 billion), one of
the highest figures ever posted. In construction financing, W&W continues
to pursue the objective "revenues over volumes". With the focus on more
profitable offers being maintained, it was thus possible to continue to
exploit the generally positive trend in construction financing business in
Germany.
Insurance business up - very good claims development
In the insurance division, gross premiums written for life and health
insurance from Württembergische during the first three months of 2016 came
in at EUR 612 million, a considerable increase over the previous year's
figure of nearly EUR 577 million. Gross premiums written for property/
casualty insurance rose more than 2% to EUR 792 million (previous year: EUR
774 million). In all, gross written premiums in the insurance division
totalled EUR 1.4 billion (previous year: EUR 1.35 billion), or a rise of
3.4% quarter on quarter. Once again, good claims development in property/
casualty insurance boosted the W&W Group's net income. The combined ratio
amounted to about 81%.
Numerous product introductions
Dr Alexander Erdland, Chairman of the Executive Board of W&W AG: "The
business figures for the first quarter show just how strongly we're
continuing along our road to success. The persistent alignment to customer
needs remains decisive for our ability to reach our growth targets."
In the area of products, W&W is therefore continuing to rely on the rapid
introduction on the market of innovative plans tailored to target groups,
and these products are occupying a leading competitive position. In
addition to the new Wüstenrot "Wohnsparen" plan, which is being offered by
the Home Loan and Savings Bank division, the topic of "risk protection" was
at the very top of the agenda in the insurance area at the start of the
year.
Persistent continuation of the digitalisation strategy
In addition, W&W is pushing ahead with its digitalisation offensive. Both
divisions are equipped with modern online service portals. These improve
the interaction between customers, brokers, and the W&W Group companies in
a variety of ways. In the area of W&W health insurance, the first quarter
saw the introduction of a travel emergency app with numerous service
functions, such as worldwide physician search, vaccination recommendations,
and 24-hour emergency call service. Also being tested in a new application
for digital invoice submission by health insurance customers.
Successful debut on the SDAX
In recent months, W&W stock has garnered significantly greater attention as
a result of W&W's solid, future-oriented business model and a roughly 20%
increase in free float in 2015. Over the course of one year, monthly
trading volume jumped from about EUR 2 million to some EUR 12 million. In
addition, on 1 December 2015, W&W stock was admitted to the Prime Standard
by the Frankfurt Stock Exchange. This created the conditions for inclusion
in the SDAX index, which was accomplished on 21 March 2016. With a free-
float market capitalisation of roughly EUR 370 million and monthly order
book turnover of about EUR 12 million, W&W AG has joined the largest stocks
listed on the SDAX. Analysts at Bankhaus Lampe, LBBW, Montega, Berenberg,
and DZ Bank have in recent weeks given W&W shares a "buy" recommendation
and consider a price above EUR 20 to be appropriate.
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13.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Wüstenrot & Württembergische AG
Gutenbergstrasse 30
70176 Stuttgart
Germany
Internet: www.ww-ag.com
ISIN: DE0008051004
WKN: 805100
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart;
Regulated Unofficial Market in Berlin, Dusseldorf
End of News DGAP News Service
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463541 13.05.2016
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