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Wüstenrot & Württembergische AG

Quarterly Report Nov 20, 2018

495_10-q_2018-11-20_6a3cb6b2-1455-42c4-ae73-e8392acc7ea9.pdf

Quarterly Report

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Building for the future. Quarterly Statement as at 30 September 2018.

This is a convenient translation of the German Report. In case of any divergences, the German original is legally binding.

This Quarterly Statement has been prepared in accordance with IFRS principles as at 30 September 2018. It does not constitute a Quarterly Financial Report in accordance with IAS 34 or Financial Statements in accordance with IAS 1.

Wüstenrot & Württembergische AG Key figures of W&W Group

W&W Group (according to IFRS)

Consolidated balance sheet 9M 2018 FY 2017
Total assets € bn 74.0 72.0
Capital investments € bn 47.7 45.8
Senior fixed-income securities € bn 20.6 19.7
Senior debenture bonds and registered bonds € bn 14.4 14.1
Building loans € bn 23.1 23.5
Liabilities to customers € bn 23.6 23.8
Technical provisions € bn 35.3 33.8
Equity € bn 4.2 4.0
Equity per share 45.36 42.16
Consolidated profit and loss statement 9M 2018 9M 2017
Net financial result (after credit risk adjustments) € mn 1,312.4 1,524.0
Premiums/contributions earned (net) € mn 2,955.2 2,840.6
Insurance benefits (net) € mn –2,931.9 –3,073.3
Earnings before income taxes from continued operations € mn 257.5 259.6
Consolidated net profit € mn 172.3 214.7
Total comprehensive income € mn –57.2 177.6
Earnings per share 1.84 2.29
Other information 9M 2018 9M 2017
Employees (Germany)1 6,567 6,603
Employees (Group)2 8,112 8,166
Key sales figures 9M 2018 9M 2017
Group
Gross premiums written € mn 3,149.9 3,020.9
New construction financing business (including brokering for third parties) € mn 4,559.8 4,135.0
Sales of own and third-party investment funds € mn 315.7 307.2
Home Loan and Savings Bank
New home loan savings business (gross) € mn 9,679.0 10,108.2
New home loan savings business (net) € mn 7,866.9 8,460.4
Life and Health Insurance
Gross premiums written € mn 1,598.2 1,552.0
New premiums € mn 410.6 352.7
Property/Casualty Insurance
Gross premiums written € mn 1,556.4 1,474.9
New premiums (measured in terms of annual contributions to the portfolio) € mn 201.8 189.7
1 Full-time equivalent head count.
2 Number of employment contracts.

Wüstenrot & Württembergische AG Contents

Interim Management Statement 3
Economic report 3
Outlook 7
Selected Financial Statements of W&W Group (IFRS) 8
Consolidated balance sheet 8
Consolidated income statement 10
Consolidated statement of comprehensive income 12
Segment income statement 14

Wüstenrot & Württembergische AG Interim Management Statement

Economic report

Development of business and Group position

Business development

As at 30 September 2018, consolidated net profit stood at €172.3 million (previous year: €214.7 million) and thus exceeded our expectations. The largest contributor to results was once again the Property/Casualty Insurance segment.

Composition of consolidated net profit

1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
in € million in € million
Home Loan and Savings Bank segment 45.5 42.6
Life and Health Insurance segment 12.4 21.4
Property/Casualty Insurance segment 106.8 109.2
All other segments 7.6 41.5
Consolidated net profit 172.3 214.7

Gross premiums written increased both in property/ casualty insurance and in life and health insurance. Construction financing business also grew substantially. By contrast, gross new home loan savings business declined.

Key sales figures (Group)

1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
Change
in € million in € million in %
Gross premiums property/
casualty
1.556 1.475 5.5
Gross premiums life and
health
1.598 1.552 3.0
Construction financing
business (including broker
ing for third parties)
4.560 4.135 10.3
New home loan savings
business (gross)
9.977 10.413 –4.2

W&W brandpool

May 2018 saw the formation of the third division, W&W brandpool, which bundles all digital business models. These include the digital brand Adam Riese, the webbased financing assistant for property purchases NIST, the intelligent financial assistants FinanzGuide and treefin, and the participation in the pregnancy app Keleya.

Adam Riese

With the new business liability insurance policy for industry, building trade and gastronomy, the digital brand "Adam Riese" has now for this first time introduced insurance for commercial customers onto the market. As was already the case with the first two products by Adam Riese for private consumers – private liability insurance and legal expenses insurance – the new product also is thoroughly digital and tailored to new customer needs.

NIST

NIST was launched in April 2018. The first loans through NIST have been successfully concluded, and and major plan values were met. The web-based financing assistant provided support to users in simple steps, from searching for a property to financing it.

Wüstenrot Wohnwelt

The web-based residential platform "Wüstenrot-Wohnwelt" was further expanded. Since June 2018, customers have also been able to place their own property ads on it. The platform is designed to strengthen residential topics.

Earnings performance

Consolidated income statement

As at 30 September 2018, consolidated net profit after taxes stood at €172.3 million (previous year: €214.7 million).

Net financial income fell to €1,312.4 million (previous year: €1,523.9 million). Current net income rose as a result of, inter alia, higher dividend income. By contrast, net income from capital investments for unit-linked life insurance policies declined due to trends on the equities markets. Net income from disposals also was lower. In the previous year, it benefitted from the sale of shares in V-Bank AG. In Life and Health Insurance, net income from disposals was deliberately reduced due to the expected

adjustment of the requirements for the additional interest reserve.

Net commission expense stood at –€305.3 million (previous year: –€292.9 million). This was mainly due to increased renewal commissions in property insurance. Earned premiums rose by €114.6 million to €2,955.2 million (previous year: €2,840.6 million). Increases were recorded for both Property/Casualty Insurance and Life and Health Insurance.

Net insurance benefits fell by €141.3 million to €2,931.9 million (previous year: €3,073.2 million). Property insurance again posted good claims development as a result of the underwriting of profitable new business. In Life and Health Insurance, the decline was the result of negative additions to the provision for premium refunds and smaller additions to the provision for unit-linked life insurance policies.

General administrative expenses rose to €777.6 million (previous year: €762.4 million). Due to a lower headcount, personnel expenses declined despite collectively bargained salary increases. By contrast, marketing expenses increased due to new market launches by Württembergische. In addition, expenses increased as a result of the costs for demolishing the old buildings on the new W&W campus in Kornwestheim.

Tax expenses returned to their normal range at €85.2 million (previous year: €44.9 million) after positive oneoff effects in the previous year.

Consolidated statement of comprehensive income

As at 30 September 2018, total comprehensive income stood at –€57.2 million (previous year: €177.6 million). It consists of consolidated net profit and other comprehensive income (OCI).

As at the end of the quarter, OCI stood at –€229.5 million (previous year: –€37.1 million). It was essentially shaped by two effects: First, the actuarial interest rate used to measure pension commitments increased from 1.50% to 1.60% compared with the end of the previous year. This resulted in €13.4 million in actuarial gains from defined benefit plans for pension schemes (previous year: €50.9 million).

The unrealised net loss from debt-financing instruments required to be measured at fair value through other comprehensive income is the other noteworthy effect. After additions to the provision for deferred premium refunds and to deferred taxes, it amounted to –€241.7 million (previous year: –€82.3 million). On the one hand, due to rising interest rates over the course of the year, measurement losses were recorded for bearer and registered instruments in the portfolio. On the other, as a result of sales, reserves were released, for which reason reserves that were previously recognised in equity were booked in consolidated earnings.

Home Loan and Savings Bank

Segment net income rose to €45.5 million (previous year: €42.6 million). New construction financing business increased, whereas new home loan savings business declined. The segment's total assets amounted to €30.7 billion (previous year: €30.8 billion).

New business

New construction financing business continued to focus on more profitable offers and increased to €2,284.8 million (previous year: €2,131.6 million). In terms of total new construction financing business, taking into account brokering for third parties and disbursements of building loans, the segment posted an increase to €4,061.4 million (previous year: €3,626.6 million).

Gross new business in terms of total home loan savings contracts came in at €9.7 billion, which was below the good result in the previous year (€10.1 billion). Also, net new business (paid-in new business) of €7.9 billion fell short of the previous year (€8.5 billion). At the start of the fourth quarter however, growth was posted in new business. Owing to this development, and to the introduction of the new product "Spezial" for higher-volume business, we expect that new business will further increase by year-end.

New business key figures

1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
Change
in € million in € million in %
Construction financing
business (including broker
ing for third parties)
4,061.4 3,626.6 12.0
Gross new business 9,679.0 10,108.2 –4.2

Earnings performance

Net income for the Home Loan and Savings Bank segment stood at €45.5 million (previous year: 42.6 million). This was mainly attributable to higher net financial income.

Net financial income in the Home Loan and Savings Bank segment reached €303.7 million (previous year: €296.8 million). On the one hand, this was due to higher current net income. In particular, the management of the portfolio of home loan savings contracts, which was carried out at an early stage, continued to have a positive effect here. On the other hand, net income from risk provision rose as a result of the continued good economic situation and because of the fact that the portfolio of building loans is generally low risk. Net measurement gains trended in the opposite direction. The free-standing derivatives used for interest book management and net income from the discounting of provisions for home loan savings business (bonus provisions) posted a decline.

General administrative expenses fell considerably to €251.7 million (previous year: €259.4 million). Personnel expenses were able to be reduced. Materials costs also fell, including as a result of the lower bank levy and decreased marketing expenses.

Net other operating income declined to €9.7 million (previous year: €21.6 million). This was mainly due to lower income from the release of miscellaneous provisions.

Life and Health Insurance

Segment net income stood at €12.4 million (previous year: €21.4 million). New premiums rose by 16.4%. The segment's total assets increased to €35.6 billion (previous year: €33.8 billion).

New business/premium development

Total premiums for new life insurance business increased to €2,376.7 million (previous year: €2,299.0 million).

As at 30 September 2018, new premiums in the Life and Health Insurance segment grew to €410.6 million (previous year: €352.7 million). Single-premium income rose to €334.9 million (previous year: €276.0 million). New regular premiums amounted to €75.7 million (previous year: €76.7 million). New regular premiums for life insurance posted an increase.

Gross premiums written increased to €1,598.2 million (previous year: €1,552.0 million), mainly as a result of higher single-premium income. Health insurance posted an 8.5% increase in gross premiums written.

New business key figures

1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
Change
in € million in € million in %
New premiums 410.6 352.7 16.4
Single premiums life 334.9 276.0 21.3
Regular premiums life and
health
75.7 76.7 –1.3

Earnings performance

Segment net income came in at €12.4 million (previous year: €21.4 million). Net financial income and income from deferred taxes both fell and were not able to be offset by the rise in net underwriting income.

Net financial income in the Life and Health Insurance segment fell to €913.3 million (previous year: €1,123.7 million). Current net income increased as a result of higher dividend income. There was a decline in net income from capital investments for unit-linked life insurance policies. This was attributable, above all, to worse trends in equity prices compared with the previous year. As a result of the conversion to IFRS 9, a greater number of assets were measured at fair value through profit or loss. This also had a negative impact on net measurement gains. Lower net income from disposals also contributed to the decline. This was attributable to deliberate action taken in light of an impending statutory amendment with respect to the requirements for the additional interest reserve.

Net premiums earned rose to €1,654.9 million (previous year: €1,605.6 million) owing to the higher volume of single-premium insurance policies in new business.

Net insurance benefits stood at €2,250.2 million (previous year: €2,416.5 million). This decline was the result of negative additions to the provision for premium refunds and lower additions to the provision for unit-linked life insurance policies owing to worse performance by the underlying capital investments. Benefits to customers were secured further through the regular increase of the additional interest reserve (including interest rate reinforcement). At €605.5 million, additions exceeded the prioryear level (€399.6 million), which was already high. The additional interest reserve as a whole thus now totals €2,651.5 million.

General administrative expenses increased to €192.8 million (previous year: €185.6 million). This was due to higher materials and personnel expenses.

Tax expenses rose to €8.3 million (previous year: €10.3 million). Negative effects on tax expenses resulted, in particular, from the settlement of prior-year taxes. In addition, one-off effects in the previous year resulting from a positive fiscal-court ruling did not recur in the current period.

Property/Casualty Insurance

Net segment income stood at €106.8 million, which was at the high level of the previous year (€109.2 million). New business in the Property/Casualty Insurance segment rose again. Total assets stood at €4.8 billion (previous year: €4.5 billion).

New business/premium development

New business again developed positively, coming in at €201.8 million (previous year: €189.7 million). The areas of retail customers and motor posted an encouraging increase. New business in the area of corporate customers declined following major business that we concluded in the previous year.

New business key figures

1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
Change
in € million in € million in %
New business 201.8 189.7 6.4
Motor 147.5 136.7 7.9
Corporate customers 29.4 32.5 –9.5
Retail customers 24.9 20.5 21.5

Gross premiums written increased significantly further by €81.4 million (5.5%) to €1,556.4 million (previous year: €1,475.0 million). Once again, all business segments were up.

New premiums written

1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
Change
in € million in € million in %
Total segment 1,556.4 1,475.0 5.5
Motor 721.3 683.6 5.5
Corporate customers 349.9 326.8 7.1
Private customers 485.2 464.6 4.4

Earnings performance

Earnings performance still trends positively. Net underwriting income came even higher than the very good level of the previous year. Net financial income also rose. Nevertheless, higher tax expenses led to slightly lower segment net income.

Net financial income amounted to €58.1 million (previous year: €47.1 million). This was due, inter alia, to a higher interest surplus, since in the previous year a voluntary supplemental payment toward the pension fund resulted in increased interest expenses. In addition, as a result of the conversion to IFRS 9, a greater number of financial instruments were measured at fair value through profit or loss. In this regard, profits were generated from the measurement of participations through profit or loss. By contrast, there was lower net income from the disposal of bearer bonds and equity instruments.

Net commission expense stood at –€178.7 million (previous year: –€167.9 million). The larger insurance portfolio led to an increase in renewal commissions.

Net premiums earned continued to trend positively. They rose by €54.4 million to €1,109.2 million (previous year: €1,054.8 million). We posted growth in all business segments in Property/Casualty Insurance.

Net insurance benefits increased €17.0 million to €570.2 million (previous year: €553.2 million). On the one hand, losses from natural disasters were higher than in the previous year. On the other, this relatively moderate increase was also due to the considerably larger insurance portfolio overall. As a result, the loss ratio (gross) came in at 62.4% (previous year: 63.9%). Also, the combined ratio (gross) was able to be lowered to 89.3% compared with the very good previous year (90.7%).

General administrative expenses grew to €261.5 million (previous year: €249.9 million). This was attributable to expenses in connection with the new market launches of Württembergische. In addition, significant investments were made in the further expansion of our digital brand "Adam Riese".

The increase in the segment's tax expenses to €50.0 million (previous year: €32.4 million) was due to higher pretax net income and to tax-free earnings in the previous year.

All other segments

"All other segments" covers the divisions that cannot be allocated to any other segment. This mainly includes W&W AG, W&W Asset Management GmbH, the Czech subsidiaries and the Group's internal service providers. The total assets of the other segments amounted to €7.1 billion (previous year: €6.4 billion). After-tax net income stood at €99.4 million (previous year: €129.5 million). This was composed, among other things, of the following: W&W AG, €96.4 million (previous year: €87.9 million), W&W Asset Management GmbH, €13.1 million (previous year: €14.6 million), and the Czech subsidiaries, €18.3 million (previous year: €16.5 million).

Net financial income stood at €159.8 million (previous year: €193.9 million). The decline was due, on the one hand, to a positive effect on net income in the previous year from the sale of V-Bank AG, which was accounted for using the equity method. On the other, there was a drop in revenues from internal Group participations at W&W AG. Dividend income from fully consolidated subsidiaries is eliminated in the consolidation/reconciliation column in order to obtain values for the Group.

Earned premiums rose to €202.3 million (previous year: €191.4 million). The volume ceded by Württembergische Versicherung AG to W&W AG for reinsurance within the Group increased as a result of positive business development. As this relates to quota share insurance, the insurance benefits increased as well, to €122.3 million (previous year: €117.9 million).

General administrative expenses increased to €74.2 million (previous year: €66.1 million) due to higher materials costs. Personnel expenses declined.

Outlook

We continue to adhere without change to the forecast made in the 2017 Annual Report concerning consolidated net profit. Due to additional investments, consolidated net profit for 2018 will come in below the value for the previous year. However, we expect that consolidated net profit will amount to at least €200 million. We remain committed to our long-term goal of consolidated net profit of €220 million to €250 million.

Wüstenrot & Württembergische AG Selected Financial Statements of W&W Group (IFRS)

Consolidated balance sheet

Assets
in € thousands 30/9/2018 30/9/2017
IFRS 9 IAS 39
Cash reserves 87,072 154,095
Non-current assets held for sale and discontinued operations 1,426,698 1,605,812
Financial assets at fair value through profit or loss 7,306,687
Thereof sold under repurchase agreements or lent under securities lending transactions 43,962
Financial assets at fair value through other comprehensive income 32,888,599
Thereof sold under repurchase agreements or lent under securities lending transactions 522,385
Financial assets at amortised cost 28,466,233
Thereof sold under repurchase agreements or lent under securities lending transactions 199,220
Subordinated securities and receivables 128,426
Senior debenture bonds and registered bonds 1,090,796
Senior fixed-income securities 1,048,633
Building loans 23,101,377
Other loans and receivables 3,097,001
Financial assets at fair value through profit or loss 2,837,312
Financial assets available for sale 23,908,533
Thereof sold under repurchase agreements or lent under securities lending transactions 1,001,043
Loans and receivables 40,112,140
Subordinated securities and receivables 80,224
First-rate receivables from institutional investors 14,076,295
Building loans 23,525,418
Other loans and receivables 2,430,203
Risk provision –153,071
Positive market values from hedges 52,830 50,506
Financial assets accounted for using the equity method 91,274 95,469
Investment property 1,844,079 1,683,541
Reinsurers' portion of technical provisions 323,152 325,655
Other assets 1,538,624 1,398,177
Intangible assets 100,723 100,432
Property, plant and equipment 285,720 289,401
Inventories 172,602 99,388
Current tax assets 24,183 59,708
Deferred tax assets 879,912 779,624
Other assets 75,484 69,624
Total assets 74,025,248 72,018,169

Liabilities

in € thousands 30/9/2018 30/9/2017
IFRS 9 IAS 39
Liabilities under non-current assets classified as held for sale and discontinued operations 1,158,148 1,017,175
Financial liabilities at fair value through profit or loss 476,017 533,614
Liabilities 28,733,232 28,754,334
Liabilities evidenced by certificates 1,290,302 918,938
Liabilities to credit institutions 2,684,862 2,735,133
Liabilities to customers 23,554,094 23,822,677
Finance lease liabilities 20,981 23,951
Miscellaneous liabilities 1,182,993 1,253,635
Negative market values from hedges 147,869 70,311
Technical provisions 35,299,916 33,815,663
Other provisions 2,671,286 2,703,973
Other liabilities 877,973 707,265
Current tax liabilities 209,790 202,790
Deferred tax liabilities 645,491 497,926
Other liabilities 22,692 6,549
Subordinated capital 438,352 450,976
Equity 4,222,455 3,964,858
Interests of W&W shareholders in paid-in capital 1,485,595 1,484,645
Interests of W&W shareholders in earned capital 2,712,342 2,459,522
Retained earnings 2,812,702 2,544,484
Other reserves (other comprehensive income) –100,360 –84,962
Non-controlling interests in equity 24,518 20,691
Total liabilities 74,025,248 72,018,169

Consolidated income statement

in € thousands 1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
IFRS 9 IAS 39
Current net income 952,041 842,483
Net interest income 770,901 694,017
Interest income 1,198,571 1,273,204
Thereof calculated using the effective interest method 1,103,293
Interest expenses –427,670 –579,187
Dividend income 136,982 105,478
Other current net income 44,158 42,988
Net income/expense from risk provision 11,007 1,972
Income from risk provision 79,400 62,428
Expenses from risk provision –68,393 –60,456
Net measurement gain/loss –102,573 76,639
Measurement gains 791,547 901,942
Measurement losses –894,120 –825,303
Net income/expense from disposals 451,923 602,851
Income from disposals 507,813 824,222
Expenses from disposals –55,890 –221,371
Net financial result 1,312,398 1,523,9451
Thereof net income/expense from financial assets accounted for using the equity method 1,547 28,871
Net commission expense –305,303 –292,915
Commission income 200,473 191,055
Commission expenses –505,776 –483,970
Earned premiums (net) 2,955,209 2,840,630
Earned premiums (gross) 3,047,259 2,926,964
Premiums ceded to reinsurers –92,050 –86,334
Insurance benefits (net) –2,931,921 –3,073,248
Insurance benefits (gross) –2,986,239 –3,115,448
Received reinsurance premiums 54,318 42,200
in € thousands 1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
IFRS 9 IAS 39
General administrative expenses –777,625 –762,4302
Personnel expenses –434,922 –439,814
Materials costs –298,846 –278,2932
Depreciation/amortisation –43,857 –44,323
Net other operating income/expense 4,732 23,5752
Other operating income 126,020 140,2632
Other operating expenses –121,288 –116,688
Consolidated earnings before income taxes from continued operations 257,490 259,557
Income taxes –85,193 –44,869
Consolidated net profit 172,297 214,688
Result attributable to shareholders of W&W AG 171,905 213,737
Result attributable to non-controlling interests 392 951
Basic (= diluted) earnings per share, in € 1.84 2.29
Thereof from continued operations, in € 1.84 2.29
1 Structure change in financial result. For details see Management Report.

2 Previous year's figure adjusted.

Consolidated statement of comprehensive income

in € thousands 1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
IFRS 9 IAS 39
Consolidated net profit 172,297 214,688
Other comprehensive income
Elements not reclassified to the consolidated income statement:
Actuarial gains/losses (–) from pension commitments (gross) 22,927 79,805
Provision for deferred premium refunds –3,697 –6,446
Deferred taxes –5,880 –22,431
Actuarial gains/losses (–) from pension commitments (net) 13,350 50,928
Elements subsequently reclassified to the consolidated income statement:
Unrealised gains/losses (–) from debt-financing instruments required to be measured at fair value
through other comprehensive income
–973,044
Provision for deferred premium refunds 636,165
Deferred taxes 95,153
Unrealised gains/losses (–) from debt-financing instruments required to be measured at fair
value through other comprehensive income (net; IFRS 9)
–241,726
Unrealised gains/losses (–) from financial assets available for sale (gross) –303,482
Provision for deferred premium refunds 183,242
Deferred taxes 37,984
Unrealised gains/losses (–) from financial assets available for sale (net; IAS 39) –82,256
Unrealised gains/losses (–) from financial assets accounted for using the equity method (gross) –183 –97
Provision for deferred premium refunds
Deferred taxes 3 1
Unrealised gains/losses (–) from financial assets accounted for using the equity method (net) –180 –96
in € thousands 1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
IFRS 9 IAS 39
Unrealised gains/losses (—) from cash flow hedges (gross) 1,209 –20,851
Provision for deferred premium refunds
Deferred taxes –370 6,377
Unrealised gains/losses (—) from cash flow hedges (net) 839 –14,474
Currency translation differences of economically independent foreign units –1,747 8,835
Total other comprehensive income, gross –950,838 –235,790
Total provision for deferred premium refunds 632,468 176,796
Total deferred taxes 88,906 21,931
Total other comprehensive income, net –229,464 –37,063
T o t a l c o m p r e h e n s i v e i n c o m e f o r t h e p e r i o d –57,167 177,625
Result attributable to shareholders of W&W AG –54,668 177,703
Result attributable to non-controlling interests –2,499 –78

Segment income statement

Home Loan and
Savings Bank
Life and Health Insurance
in € thousands 1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
IFRS 9 IAS 39 IFRS 9 IAS 39
Current net income 224,431 185,535 628,708 591,193
Net income/expense from risk provision 15,891 2,494 –557 2,618
Net measurement gain/loss –23,426 12,754 –78,927 70,851
Net income from disposals 86,847 95,994 364,033 459,040
Net financial result 303,743 296,7774 913,257 1,123,7024
Net commission income/expense 7,463 3,154 –90,844 –93,953
Earned premiums (net) 1,654,858 1,605,563
Insurance benefits (net) –2,250,197 –2,416,546
General administrative expenses3 –251,730 –259,4165 –192,754 –185,6045
Net other operating income/expense 9,707 21,5645 –13,603 –22,0375
S e g m e n t n e t i n c o m e b e f o r e i n c o m e t a x e s f r o m c o n t i n u e d
o p e r a t i o n s
69,183 62,079 20,717 11,125
Income taxes –23,636 –19,507 –8,287 10,321
Segment net income after taxes 45,547 42,572 12,430 21,446

1 Includes amounts from proportional profit transfers eliminated in the Consolidation column.

2 The column "Consolidation/reconciliation" includes the effects of consolidation between segments.

3 Includes service revenues and rental income with other segments.

4 Structure change in financial result. For details see Management Report.

5 Previous year's figure adjusted.

Property and casualty
insurance
Total for reportable
segments
All other segments1 Consolidation/
reconciliation2
Group
1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
1/1/2018 to
30/9/2018
1/1/2017 to
30/9/2017
IFRS 9 IAS 39 IFRS 9 IAS 39 IFRS 9 IAS 39 IFRS 9 IAS 39 IFRS 9 IAS 39
54,370 35,956 907,509 812,684 169,789 165,258 –125,257 –135,459 952,041 842,483
–1,042 –414 14,292 4,698 –3,487 –2,726 202 11,007 1,972
2,797 –8,028 –99,556 75,577 –5,565 1,062 2,548 –102,573 76,639
1,961 19,592 452,841 574,626 –918 30,273 –2,048 451,923 602,851
58,086 47,1064 1,275,086 1,467,5854 159,819 193,8674 –122,507 –137,5074 1,312,398 1,523,9454
–178,666 –167,885 –262,047 –258,684 –42,453 –36,113 –803 1,882 –305,303 –292,915
1,109,230 1,054,817 2,764,088 2,660,380 202,251 191,402 –11,130 –11,152 2,955,209 2,840,630
–570,152 –553,228 –2,820,349 –2,969,774 –122,251 –117,868 10,679 14,394 –2,931,921 –3,073,248
–261,495 –249,8895 –705,979 –694,9095 –74,228 –66,0885 2,582 –1,4335 –777,625 –762,4305
–209 10,7155 –4,105 10,2425 15,492 19,5675 –6,655 –6,2345 4,732 23,5755
156,794 141,636 246,694 214,840 138,630 184,767 –127,834 –140,050 257,490 259,557
–49,994 –32,406 –81,917 –41,592 –39,193 –55,262 35,917 51,985 –85,193 –44,869
106,800 109,230 164,777 173,248 99,437 129,505 –91,917 –88,065 172,297 214,688

Wüstenrot & Württembergische AG Imprint and contact

Publisher

Wüstenrot & Württembergische AG 70163 Stuttgart Germany phone + 49 711 662-0 www.ww-ag.com

Production

W&W Service GmbH, Stuttgart

Investor Relations

E-mail: [email protected] Investor relations hotline: + 49 711 662-725252

The financial reports of the W&W Group are available at www.ww-ag.com/publikationen. In case of any divergences, the German original is legally binding.

W&W AG is member of W&W AG is listed in

W&WQ3E2018

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