11.11.2016
Wüstenrot & Württembergische AG DE0008051004
DGAP-News: W&W continues to grow
DGAP-News: Wüstenrot & Württembergische AG / Key word(s): 9-month figures
W&W continues to grow
11.11.2016 / 13:26
The issuer is solely responsible for the content of this announcement.
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The Wüstenrot & Württembergische W&W Group has achieved further growth in
new business in the first nine months of 2016. Home loan and savings even
grew against the trend. The earnings forecast of more than 220 million
euros for the whole year is being reaffirmed by the Stuttgart-based
financial services group - provided that extraordinary claims resulting
from extreme damages or extreme events on capital markets continue to be
absent. The consolidated net profit at the end of the third quarter was in
line with expectations at around 180 million euros, which was below the
previous year's figure of around 202 million euros, which was also shaped
by one-off effects. The digital offer for customers was accelerated.
The following new business developments were achieved in the individual W&W
Group divisions up to 30/09/2016: Wüstenrot Bausparkasse achieved a gross
new business volume of 10.4 billion euros (previous year: 10.3 billion
euros), which represents an increase of 1.2 per cent on the previous year.
The net new business grew even more strongly by almost 8 per cent to 8.8
billion euros (previous year: 8.2 billion euros). Deviating from the
deteriorating results in the industry, Wüstenrot was thus able to achieve
significant growth and capture additional market share. The construction
financing business fell slightly as a result of strict profit orientation
and the effects of the German Directive on Residential Property Loans
(Wohnimmobilienkreditrichtlinie) to 4 billion euros, after almost 4.3
billion euros the previous year.
As far as the insurance business of the W&W Group is concerned, the life
and health insurance achieved almost 1.7 billion euros of gross premiums
written (previous year: 1.63 billion euros), which compared to the previous
year represents a growth of 4.4 per cent. In property and casualty
insurance the gross premiums written increased by 2.5 per cent to 1.41
billion euros (previous year: 1.38 billion euros).
Numerous loss events caused, amongst others, by the spring storms led to an
increase in losses due to acts of nature (gross) by more than 14 million
euros to just under 74 million euros. Nevertheless, insurance payouts
overall fell in property/casualty insurance. This is due, not least, to a
risk-aware subscription policy over recent years. With the combined ratio
(gross), an even more improved value of 91.3 per cent could be achieved
(previous year: 93.1 per cent).
The successes in the new business are supported by a higher level of cost
awareness at W&W. The general administrative expenses reduced in the
reporting period by 8.6 million euros to 786.5 million euros (previous
year: 795.1 million). The personnel expenses in particular were driven down
again despite bargained salary increases.
Dr. Alexander Erdland, CEO at W&W AG: "The positive course of the year
illustrates once again our sound position on the market. Our focus on
customers and our financial solidity enables us to score on the market
while also expanding our scope to act on innovation. An example of this is
our digitisation offensive which is making increasing strides."
Step-by-step expansion of our online product range
W&W has achieved further progress with the adjustment to changed customer
habits and the increased trend towards electronic contact and conclusion
options introduced as part of the "W&W@2020" growth programme. Since the
Spring, Wüstenrot 'Wohnsparen' can now be concluded online and, in the
third quarter, other W&W core products were able to celebrate their online
launch. As far as the insurance business is concerned, this includes an
attractive accident insurance and term life insurance.
In banking, the Wüstenrot Bank AG Pfandbriefbank WBP is progressing
steadily with its conversion to a digital bank oriented towards the retail
business. As an important milestone in this regard, the Wüstenrot
securities portfolio was transferred to the partner ebase at the end of
October. In addition to considerable efficiency gains and significantly
reduced costs, the partnership is at the same time strengthening the sales-
related opportunities of W&W in the investment division. Numerous analysis
tools, fund or portfolio information as well as consultancy approaches
consolidate the competence of the advising mobile sales force. At the same
time, direct customers receive a real-time, innovative tool for individual
custodial account management.
Furthermore, the bank is establishing itself with the recently launched
"Wüstenrot ETF Managed Depot" as one of the pioneers of the "robo-
advisors". Here the know-how of an experienced portfolio manager will be
combined with a simple-to-operate online application. In just 10 to 15
minutes, depending on the investor's experience, it provides a broad spread
of investment possibilities based on exchange traded funds. After fact
checking the investment horizon and goals, for example for risk appetite,
the customer can select the portfolio that is right for him from the
calculated recommendations.
The new Member of the Executive Board at W&W AG Jürgen A. Junker is
optimistic for the remainder of 2016: "Online or offline - more and more
sales are coming together. In particular we are promoting mutual
cooperation of Wüstenrot and Württembergische on site at the customer
interface. The linchpin is our prestigious advising mobile sales force,
expanded by successful cooperation partners who make the attractive product
range resonate with our customers."
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11.11.2016 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.
Archive at 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,
Tradegate Exchange
End of News DGAP News Service
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519967 11.11.2016
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