13.08.2018
Wüstenrot & Württembergische AG DE0008051004
DGAP-News: Wüstenrot & Württembergische AG: W&W Group completely on course
DGAP-News: Wüstenrot & Württembergische AG / Key word(s): Half Year Results
Wüstenrot & Württembergische AG: W&W Group completely on course
13.08.2018 / 08:49
The issuer is solely responsible for the content of this announcement.
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W&W Group completely on course in the first half of 2018
- Consolidated net profit of around EUR 116 million slightly exceeds
expectations
- Earnings forecast unchanged for the whole of 2018
- Encouraging level of new business
- Chairman of the Executive Board Jürgen A. Junker: "The digitisation of
business models and processes is gaining more and more momentum at W&W"
The Wüstenrot & Württembergische Group (W&W) is completely on course after
the first six months of 2018. Consolidated earnings after taxes were
actually slightly above the Group's own expectations, at EUR 116.4 million.
New business overall was encouraging for the financial services group, with
growth achieved in the construction financing and insurance sector. The
previous expectation of consolidated net profit of at least EUR 200 million
for the whole of 2018 was confirmed.
Jürgen A. Junker, Chairman of the Executive Board of W&W AG: "The first half
of the year saw the launch of additional product innovations in the context
of the ongoing investment programme, the biggest in the history of our
company. It is quite clear that the digitisation of our business models and
processes is gaining more and more momentum. The fact that the W&W Group can
at the same time achieve success in its markets is demonstrated by the
amount of new business acquired. The progress made so far this year makes me
very confident that we will not only achieve our financial targets in 2018,
but also make good strategic advances."
Important key figures in the first half of 2018
- Consolidated net profit after taxes amounted to EUR 116.4 million. It thus
remained - as forecast and expected - below the corresponding figure for the
previous year of EUR 154.9 million, but slightly above expectations. The
drop in net income can be attributed to the record investment programme, as
already described, amounting to EUR 820 million for the period from 2018 to
2020. The purpose of this programme includes the digital transformation of
the Group.
- The highest income contribution again came from property/casualty
insurance at EUR 62.1 million.
- General administrative expenses in the Group increased slightly by 1.2 per
cent, to EUR 523.3 million (first half of 2017: EUR 516.9 million). Lower
personnel expenses were countered by a rise in materials costs, resulting
from such factors as the new market presence of Württembergische
Versicherung and the continued development of the digital brand Adam Riese,
launched in 2017.
Business area development in the first half of 2018
- Gross premiums written in property and casualty insurance increased by 5.9
per cent to around EUR 1.2 billion. Claims arising from natural disasters
were considerably higher than in the previous year and there was a
corresponding rise in insurance benefits. However, the gross combined ratio
reached a very good level at 90.2 per cent (previous year: 86.2 per cent).
New business increased overall to EUR 151.0 million in the first half of the
year, as a result of encouraging trends in motor insurance and among private
customers.
- In life and health insurance, gross premiums written rose by 2.5 per cent
to just short of EUR 1.1 billion, primarily as a result of increased single
premiums.
- In the construction financing business the W&W Group achieved overall
growth amounting to around ten per cent from January to June 2018, up to EUR
3.0 billion.
- The new home loans and savings business of Wüstenrot Bausparkasse declined
in the first six months. Germany's second biggest home loans and savings
bank achieved gross new business according to contract volume amounting to
EUR 6.73 billion (first half of 2017: EUR 7.01 billion). Net new business
amounted to EUR 5.3 billion, following EUR 5.8 billion in the previous year.
A rise in new business is expected in the second half of the year.
New digital business models and strategic focus
The W&W Group successfully introduced a large number of digital initiatives
to the market in the first half of 2018. At the start of this year, the
finance assistant "FinanzGuide" came onto the market. It is an app that
enables customers to view their personal insurance, home loan and savings
and bank portfolio on their smartphone. This was followed in April by NIST,
a digital finance assistant for real estate purchases. The assistant guides
users in simple and comprehensible steps from the search for a property
through to financing it. Since May the new digital business models of the
W&W Group have been concentrated in brandpool GmbH, which includes NIST and
FinanzGuide, as well as treefin, Adam Riese and Keleya. This subsidiary will
promote the establishment of new products and services and coordinate them
within the Group.
The product offensive is part of the "W&W Better!" initiative, which covers
all areas of the Group and in particular also supports the Group's
traditional mobile sales force. This also includes the continuous
improvement of local service and advice, which is why the W&W Group is
investing heavily in the qualification and further training of its
employees.
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13.08.2018 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.
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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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713355 13.08.2018
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