12.08.2016
Wüstenrot & Württembergische AG DE0008051004
DGAP-News: Wüstenrot & Württembergische AG: W&W consistently on course
DGAP-News: Wüstenrot & Württembergische AG / Key word(s): Half Year Results
Wüstenrot & Württembergische AG: W&W consistently on course
12.08.2016 / 12:03
The issuer is solely responsible for the content of this announcement.
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Building society savings with significant growth - Strong equity base
The Wüstenrot & Württembergische Group (W&W) has boosted new business
almost across the board during the first half of 2016. For the overall
year, the Stuttgart-based financial services group has reaffirmed its
results forecast of over 220 million euros. The prerequisite for this, most
importantly, is that there are no extraordinary burdens resulting from
extreme damages or particular changes to the capital market. In the first
half of the year the consolidated net profit of 121 million euros (previous
year: 144.1 million euros) was in line with expectations and below the
previous year's value, which included a one-off tax income, although
several storms also had to be weathered in 2016.
A look at the new business figures of the W&W Group reveals the following
picture: As of the end of June 2016, the Wüstenrot building society gained
further new business and achieved a building society savings total of 7.6
billion euros (previous year: 7.3 billion euros), which represents an
increase of 4.8 per cent on the previous year. The net new business grew
even more strongly by almost 14 per cent to 6 billion euros (previous year:
5.3 billion euros). In contrast to the way the markets have developed,
Wüstenrot was thus able to achieve significant growth and to gain further
market share.
As far as the insurance business of the W&W Group is concerned, the life
and health insurance achieved almost 1.2 billion euros of gross premiums
written (previous year: 1.12 billion euros). In property and casualty
insurance the gross premiums written increased during the first half of the
year by around 30 million euros to 1.07 billion euros (previous year: 1.04
billion euros).
Württembergische Versicherung experienced particularly damaging events
during the first half of the year, including the storms "Elvira",
"Friederike" and "Neele", which led to an increase in elemental damages
(gross) of 15 million euros to almost 50 million euros. Despite this,
insurance benefits fell in property and casualty insurance. This is due,
not least, to a risk-aware underwriting policy over recent years. With the
combined ratio (gross) an even more improved value of 90.0 per cent could
thus be achieved (previous year: 90.9 per cent).
Alongside the successes in the new business, with W&W the focus has been on
the continual improvement of the strong equity base. On 30 June 2016 the
equity of the W&W Group reached a record level of 3.8 billion euros
following a figure of almost 3.65 billion euros on 31 December 2015.
Dr Alexander Erdland, Chairman of the Executive Board at W&W AG: "The
course of the first half-year confirms our solid growth trajectory. This in
turn is based on customer orientation, sustainability, financial solidity
and change capacity. Time and again W&W has been successful at creating new
product solutions. One example of this is the success of the "Wüstenrot
Wohnsparen" saving scheme, which has been extremely well received by
customers."
A new strategy for life insurance products
W&W is sticking consistently to its course for adaptation to the prevailing
market conditions. Against the background of interest rates that have
fallen further, the life insurance businesses of the W&W group have been
pushing ahead with the sale of their modern pension product lines since the
beginning of August 2016. At the same time, the sale of the conventional
classic products in the area of private pension insurance is to be
restricted for the time being. By way of a contemporary offering, in
addition to the unit-linked pension schemes Württembergische life insurance
is offering the "Extra" and "IndexClever" product lines. The latter was
only introduced as a product in June 2016, and Württembergische has
developed the "multi-asset strategy" especially for it. With a broad
spread, it invests worldwide in various investment classes.
The new product is ideally suited for private pension schemes because its
design allows for annual opportunities for growth and a one-hundred per
cent guarantee of the capital saved. Where the annual returns of the
"multi-asset strategy" are positive, the insured persons benefit in part
from the value development and receive a corresponding income. Where there
is negative development the customer does not lose out and the pension
capital remains 100 per cent preserved.
Shares remain robust in a turbulent environment
W&W's solid and future-oriented business model is also reflected in the
performance of the security listed in the SDAX selection index since the
spring of 2016. Taking into account the dividend payment of 0.60 euros per
share, a performance of around minus nine per cent can be calculated for
the second quarter. In light of the numerous negative developments -
starting with "Brexit" and continuing with the indication of a possible
Italian banking crisis - the share does, however, appear stable in the
market in relation to other financial service providers. With a current
price of around 18 euro, W&W share already markedly exceeds its price of 30
June. Analysts therefore continue to rate the W&W share under "buy" and see
a price of up to 23 euros as appropriate.
As another positive factor, Standard & Poor's (S&P) has just in recent days
reconfirmed all ratings for the W&W Group as having a stable outlook. Thus
the core businesses of the W&W Group continue to show an "A" rating, whilst
the DACH company Wüstenrot & Württembergische AG boasts a "BBB+" rating.
After last year's rise on the ratings scale, the risk management of the W&W
Group is to rise further to the category "strong".
Focus on productive growth
As regards the remainder of 2016, Jürgen A. Junker, new Member of the
Executive Board notes: "We are placing the focus on productive growth, and
there are a few things we are working on to this end. We are going to
expand the number of tandem agencies and financial planning centres. It is
there that the tied agents of both Wüstenrot and Württembergische take care
of customers." This way, the performance portfolios of the Home Loan and
Savings Bank (Division) and local insurance have even more resonance with
the customer. Junker continues: "The outstanding strength of W&W is its
all-round provision from one source. Thanks to the active interplay of the
mobile sales force and digital access routes, we not only offer the
customers clear added value vis a vis competitors, but more importantly we
also develop our corporation to become the leading supply platform with
personal advice."
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12.08.2016 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.
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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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492339 12.08.2016
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