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Wüstenrot & Württembergische AG

Quarterly Report May 24, 2018

495_10-q_2018-05-24_0e3b7a31-896a-426c-843f-54a612d2fdce.pdf

Quarterly Report

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Building for the future. Quarterly Statement as at 31 March 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 31 March 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 3M 2018 FY 2017
Total assets € bn 75.3 72.0
Capital investments € bn 47.8 45.8
Senior fixed-income securities € bn 19.8 19.7
Senior debenture bonds and registered bonds € bn 15.6 14.1
Building loans € bn 23.4 23.5
Liabilities to customers € bn 22.5 23.8
Technical provisions € bn 35.6 33.8
Equity € bn 4.3 4.0
Equity per share 46.12 42.16
Consolidated profit and loss statement 3M 2018 3M 2017
Net financial result (after credit risk adjustments) € mn 376.8 721.4
Premiums/contributions earned (net) € mn 973.1 946.5
Insurance benefits (net) € mn –898.0 –1,197.1
Earnings before income taxes from continued operations € mn 83.9 97.6
Consolidated net profit € mn 58.0 69.5
Total comprehensive income € mn 1.6 13.5
Earnings per share 0.61 0.74
Other information 3M 2018 3M 2017
Employees (Germany)1 6,535 6,603
Employees (Group)2 8,107 8,166
Key sales figures 3M 2018 3M 2017
Group
Gross premiums written € mn 1,427.4 1,370.9
New construction financing business (including brokering for third parties) € mn 1,445.0 1,359.9
Sales of own and third-party investment funds € mn 130.3 105.3
Home Loan and Savings Bank
New home loan savings business (gross) € mn 3,464.8 3,744.8
New home loan savings business (net) € mn 2,608.3 3,016.0
Life and Health Insurance
Gross premiums written € mn 550.9 545.9
New premiums € mn 119.2 112.6
Property/Casualty Insurance
Gross premiums written € mn 879.5 831.4
New premiums (measured in terms of annual contributions to the portfolio) € mn 95.8 90.2
1 Full-time equivalent head count.
2 Number of employment contracts.

Wüstenrot & Württembergische AG Interim Management Statement

Economic report

Development of business and Group position

Business development

The W&W Group had a very encouraging start in 2018. In terms of key figures, it performed as forecast. For instance, consolidated net profit for the first quarter of 2018 came in at €58.0 million (previous year: €69.5 million) and was thus in line with expectations.

Gross premiums written also rose, both for property and casualty insurance and for life and health insurance. Construction financing business also grew substantially. Gross new home loan savings business, by contrast, declined in the first quarter of 2018.

New business key figures (Group)

1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
Change
in € million in € million in %
Gross premiums property/
casualty
880 831 5.9%
Gross premiums life and
health
551 546 0.9%
Construction financing
business (including broke
ring for third parties)
1,445 1,360 6.3%
New home loan savings
business (gross)
3,553 3,877 –8.4%

Collaboration established – Growth opportunities being exploited

Wüstenrot & Württembergische AG has agreed to sell its subsidiary Wüstenrot Bank AG Pfandbriefbank to Bremer Kreditbank AG. At the same time, the W&W Group agreed with the bank under the new ownership, to establish a broad sales collaboration to enable the reciprocal provision of financial products and to further increase sales strength. Both parties have executed the contract, and closing will take place following receipt of the required official approvals.

Investment programme

The W&W Group is continuing with its investment programme that it announced in 2015 and is now expanding it to cover additional areas.

All essential activities are being grouped together under the Group initiative "W&W Besser!" These include the development of new digital business models, such as Adam Riese, treefin, FinanzGuide and NIST. The development of Adam Riese is very encouraging: Following a successful market launch in October 2017 with personal liability insurance, we have added a policy for legal expenses insurance. With treefin and FinanzGuide, we are currently developing pioneering online financial advisors that can be accessed with a smartphone. NIST is the personal digital assistant for house-hunting, offering its customers construction financing as well as a certificate confirming their creditworthiness.

Thus, investments will increase over the next three years to a total of €820 million, as already announced.

Changes in accounting policies

The W&W Group began applying the new version of IFRS 9 "Financial Instruments" on 1 January 2018. The values for the previous year continued to be accounted for in accordance with IAS 39. The following changes had substantial effects on the W&W consolidated financial statements:

  • Until 31 December 2017, senior debenture bonds and registered bonds had been accounted for pursuant to IAS 39 under receivables measured at amortised cost. From 1 January 2018, pursuant to IFRS 9, these financial instruments are now predominantly measured in the W&W Group at fair value through other comprehensive income, since they fall under the "hold to collect and sell" business model.
  • Until 31 December 2017, participations, equities, and fund units had predominantly been measured in the W&W Group (in available for sale) under IAS 39 at fair value through other comprehensive income. From 1 January 2018, pursuant to IFRS 9, these financial instruments are now exclusively measured in the W&W Group at fair value through profit or loss, since the W&W Group is not making use of the option to measure them at fair value through other comprehensive income.

  • Until 31 December 2017, the risk provision for receivables measured at amortised cost had been created under IAS 39 using the incurred loss model. From 1 January 2018, pursuant to IFRS 9, the risk provision is now calculated on the basis of the expected credit loss model. In addition, financial instruments falling under the "hold to collect and sell" business model, which are measured at fair value through other comprehensive income, are also included in the calculation.

  • As at 1 January 2018, after accounting for the provision for deferred premium refunds and for deferred taxes, the conversion effect on Group equity from the foregoing effects amounted to approximately +€400 million.

In connection with the first-time application of IFRS 9, the W&W Group changed the structure of the net financial result. The new net financial result, which henceforth will also contain the net income/expense from investment property, is broken down into:

  • Current net income/expense,
  • Net income/expense from risk provision,
  • Net measurement gain/loss, and
  • Net income/expense from disposals.

We expect that this change will further increase reporting transparency and make the income statement even more meaningful at the consolidated and segment levels. The values for the previous year, which were still measured pursuant to IAS 39, were retroactively adjusted to conform to the new structure.

Earnings performance

Consolidated income statement

As at 31 March 2018, consolidated net profit after taxes stood at €58.0 million (previous year: €69.5 million).

Composition of consolidated net profit

Consolidated net profit 58.0 69.5
Consolidation/reconciliation –19.4 –39.0
All other segments 20.9 42.6
Property and Casualty Insurance 28.6 44.4
Life and Health Insurance 9.9 1.4
Home Loan and Savings Bank 18.0 20.1
in € million 1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017

The net financial result fell considerably to €375.2 million (previous year: €721.4 million). This was on the one hand attributable to lower net income in the segment Life and Health Insurance, which has been deliberately reduced

due to possibly lower requirements of the additional interest reserve. In addition losses occured with respect to capital investments for unit-linked life insurance policies, which were occasioned by declines on the equity markets.

Earned premiums rose by €26.6 million to €973.1 million (previous year: €946.5 million). Both Property and Casualty Insurance and Life and Health Insurance saw increases.

Net insurance benefits fell by €299.1 million to €898.0 million (previous year: €1,197.1 million). Property insurance again posted good claims development as a result of the underwriting of our profitable business. In Life and Health Insurance, the decline was the result of smaller additions to the provision for premium refunds and to the provision for unit-linked life insurance policies.

General administrative expenses rose slightly to €272.0 million (previous year: €269.9 million). Due to a lower headcount, personnel expenses declined despite collectively bargained salary increases. By contrast, materials costs increased due to new market launches by Württembergische.

Consolidated statement of comprehensive income

As at 31 March 2018, total comprehensive income stood at €1.6 million (previous year: €13.5 million). It consists of consolidated net profit and other comprehensive income (OCI).

As at the end of the quarter, OCI stood at –€56.4 million (previous year: –€56.0 million). It was essentially shaped by two effects: First, the actuarial assumptions underlying the pension provisions were adjusted to conform to market conditions. The actuarial interest rate used to measure pension commitments increased from 1.50% to 1.70% compared with the end of the previous year. This resulted in €34.3 million in actuarial gains from defined benefit plans for pension schemes (previous year: €50.4 million).

The unrealised net loss from debt-financing instruments required to be measured at fair value through other comprehensive income is the second noteworthy effect. After additions to the provision for deferred premium refunds and to deferred taxes, it declined to –€90.3 million (previous year: –€104.8 million). There was a decline in prices of bearer instruments due to the increased interest rate level since the start of the year.

These valuation effects recognised directly in equity mainly reflect the interest rate sensitivity of the assets side (of the balance sheet) and of the pension provisions. However, in accordance with IFRS, developments in the opposite direction in the area of underwriting and deposits are not presented in total comprehensive income.

Home Loan and Savings Bank

Segment net income reached €18.0 million (previous year: €20.1 million). New construction financing business rose, whereas new home loan savings business declined in the first quarter. The segment's total assets amounted to €31.6 billion (previous year: €30.8 billion).

New business

Gross new business in terms of total home loan savings contracts fell to €3.5 billion (previous year: €3.7 billion). Also, net new business (paid-in new business) of €2.6 billion fell short of the previous year (€3.0 billion). However, we expect business to pick up by the end of the year. Sector development was uneven. Whereas gross new business grew slightly, net new business in the sector declined. With a market share of 13.1%, Wüstenrot remains Germany's second largest home loan savings bank.

New construction financing business continued to focus on more profitable offers and increased to €723.1 million (previous year: €712.4 million). This includes €87.4 million in refinancing (previous year: €90.2 million). New lending business came in at €635.7 million (previous year: €622.2 million). In new construction financing business, taking into account brokering for third parties, the segment posted €1,279.6 million (previous year: €1,181.6).

New business key figures

1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
Change
in € million in € million in %
Gross new business 3 464.8 3 744.8 –7.5%
Net new business 2 608.3 3 016.0 –13.5%
New construction finan
cing business (approvals)
723.1 712.4 1.5%

Earnings performance

The decline in segment net income to €18.0 million (previous year: €20.1 million) was mainly attributable to the lower net financial result.

The net financial result in the Home Loan and Savings Bank segment reached €115.4 million (previous year: €132.0 million). In 2017 the segment was strategically realigned, with construction financing business being shifted to the home loan savings bank, and this resulted in considerably higher disposal gains in the previous year.

Current net income was positive due to the portfolio measures that were undertaken, as well as to interest rates, which rose further in the first quarter. The same was true for net income from risk provision. By contrast, a net measurement loss was posted, which was particularly attributable to the free-standing derivatives used for interest book management and to the discounting of provisions for home loan savings business (bonus provisions).

General administrative expenses fell to €94.7 million (previous year: €95.5 million). Whereas personnel expenses rose slightly, materials expenses fell as a result of, inter alia, lower marketing expenses.

Net other operating income increased to €3.4 million (previous year: –€0.8 million). This was mainly due to lower additions to miscellaneous provisions in the previous year.

Life and Health Insurance

Segment net income stood at €9.9 million (previous year: €1.4 million). New premiums rose by 5.9%. The segment's total assets increased to €35.6 billion (previous year: €33.8 billion).

New business/premium development

As at 31 March 2018, new premiums in the Life and Health Insurance segment grew to €119.2 million (previous year: €112.6 million). Single-premium income rose to €94.7 million (previous year: €86.5 million). New regular premiums amounted to €24.5 million (previous year: €26.1 million). Total premiums for new life insurance business were slightly below the level of the previous year at €790.4 million (previous year: €807.4 million).

Gross premiums written increased to €550.9 million (previous year: €545.9 million), mainly as a result of higher single-premium income. Life and Health Insurance posted a 9.0% increase in gross premiums written.

New business key figures

1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
Change
in € million in € million in %
New premiums 119.2 112.6 5.9%
Single premiums life 94.7 86.5 9.5%
Regular premiums life and
health
24.5 26.1 -6.1%

Earnings performance

Segment net income grew to €9.9 million (previous year: €1.4 million). The declining net financial result was able to be more than offset by the rise in net underwriting income.

The net financial result in the Life and Health Insurance segment decreased by €310.5 million to €250.1 million (previous year: €560.6 million). The decline was caused, on the one hand by lower disposals, which have been deliberately reduced due to possibly lower requirements of the additional interest reserve. On the other, there was a drop in net income from capital investments for unitlinked life insurance policies. This was attributable, above all, to worse trends in equity prices compared with the previous year.

Net premiums earned rose to €550.5 million (previous year: €548.6 million). The higher volume of single-premium insurance policies in new business more than offset the decline in regular premiums.

Net insurance benefits stood at €685.9 million (previous year: €1,006.1 million). This decline was the result of lower additions to the provision for premium refunds and 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 €289.5 million, additions exceeded the prior-year level (€156.8 million), which was already high. The additional interest reserve as a whole thus now totals €2,335.4 million.

General administrative expenses increased to €62.9 million (previous year: €58.8 million). This was due to higher materials expenses, e.g. as a result of the new advertising launches. Personnel expenses were about the same year on year.

Property and Casualty Insurance

Net segment income stood at €28.6 million (previous year: €44.4 million) and was thus on target. New business in property and casualty insurance rose again. Total assets stood at €5.2 billion (previous year: €4.5 billion).

New business/premium development

New business developed positively, coming in at €95.8 million (previous year: €90.2 million). The areas of retail customers and motor posted an encouraging increase. New business in the area of corporate customers levelled off after the extraordinarily high result posted in the previous year from major business that we concluded.

New business key figures

1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
Change
in € million in € million in %
New business 95.8 90.2 6.2%
Motor 70.7 62.2 13.7%
Corporate customers 14.9 20.0 –25.5%
Retail customers 10.2 8.0 27.5%

Gross premiums written increased further by €48.1 million (+5.8%) to €879.5 million (previous year: €831.4 million).

New premiums written

1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
Change
in € million in € million in %
Total segment 879.5 831.4 5.8%
Motor 470.5 445.2 5.7%
Corporate customers 219.4 204.2 7.4%
Private customers 189.6 182.0 4.2%

Earnings performance

Segment net income reached €28.6 million (previous year: €44.4 million). The net financial result fell considerably. Net underwriting income was very good, coming in at nearly the same level as the previous year.

The net financial result stood at €2.7 million (previous year: €13.7 million). Net income from disposals and net measurement gains, both of which were considerably lower, had an impact on this.

Net commission expense stood at –€53.6 million (previous year: –€49.8 million). The larger insurance portfolio led to an increase in renewal commissions.

Net earned premiums continued to trend positively. They rose by €17.9 million to €361.6 million (previous year: €343.7 million). We posted growth in all business segments in Property and Casualty Insurance.

Net insurance benefits increased €14.8 million to €176.0 million (previous year: €161.2 million). This was partly due to the larger insurance portfolio overall. Another factor was considerably higher losses from natural disasters compared with the previous year. Nevertheless, the combined ratio (gross) was still a very good 87.4% (previous year: 87.0%).

General administrative expenses grew to €92.7 million (previous year: €87.6 million). Personnel expenses fell despite collectively bargained salary increases. This was attributable to staff reductions in connection with an efficiency programme. By contrast, materials expenses rose, primarily due to new market launches by Württembergische.

All other segments

"All other segments" covers the divisions that cannot be allocated to any other segment. This 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 €7.3 billion (previous year: €6.4 billion). After-tax net income stood at €20.9 million (previous year: €42.6 million). This was composed, among other things, of the following: W&W AG, €18.3 million (previous year: €37.6 million), W&W Asset Management GmbH, €5.0 million (previous

year: €5.5 million), and the Czech subsidiaries, €4.5 million (previous year: €5.4 million).

The net financial result stood at €35.3 million (previous year: €77.7 million). It was marked by lower W&W AG revenues from internal Group participations, which are contained in current net income. 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 €69.5 million (previous year: €62.4 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 €41.2 million (previous year: €35.6 million).

General administrative expenses fell to €22.6 million (previous year: €29.8 million), since both personnel expenses and materials expenses declined.

Outlook

We continue to expect that consolidated net profit for 2018 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 31/3/2018 31/3/2017
Cash reserves 761,674 154,095
Non-current assets held for sale and discontinued operations 1,469,943 1,605,812
Financial assets at fair value through profit or loss (IFRS 9) 7,150,515
Thereof sold under repurchase agreements or lent under securities lending transactions 64,326
Financial assets at fair value through other comprehensive income (IFRS 9) 33,268,050
Thereof sold under repurchase agreements or lent under securities lending transactions 991,434
Financial assets at amortised cost (IFRS 9) 28,705,849
Subordinated securities and receivables 136,657
Senior debenture bonds and registered bonds 1,085,903
Senior fixed-income securities 1,073,250
Building loans 23,408,331
Other loans and receivables 3,140,839
Risk provision –139,131
Thereof sold under repurchase agreements or lent under securities lending transactions 524,387
Financial assets at fair value through profit or loss (IAS 39) 2,837,312
Financial assets available for sale (IAS 39) 23,908,533
thereof sold under repurchase agreements or lent under securities lending transactions 1,001,043
Loans and receivables (IAS 39) 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 (IAS 39) –153,071
Positive market values from hedges 55,271 50,506
Financial assets accounted for using the equity method 95,688 95,469
Investment property 1,734,643 1,683,541
Reinsurers' portion of technical provisions 354,740 325,655
Other assets 1,722,921 1,398,177
Intangible assets 102,697 100,432
Property, plant and equipment 287,467 289,401
Inventories 174,084 99,388
Current tax assets 55,339 59,708
Deferred tax assets 1,018,800 779,624
Other assets 84,534 69,624
Total assets 75,319,294 72,018,169

Liabilities

in € thousands 31/3/20181 31/3/20172
Liabilities under non-current assets classified as held for sale and discontinued operations 1,140,151 1,017,175
Financial liabilities at fair value through profit or loss 469,671 533,614
Negative market values from hedges 70,628 70,311
Liabilities 29,471,130 28,754,334
Liabilities evidenced by certificates 967,716 918,938
Liabilities to credit institutions 3,511,514 2,735,133
Liabilities to customers 23,717,236 23,822,677
Finance lease liabilities 22,884 23,951
Miscellaneous liabilities 1,251,780 1,253,635
Technical provisions 35,616,506 33,815,663
Other provisions 2,647,761 2,703,973
Other liabilities 1,105,719 707,265
Current tax liabilities 200,976 202,790
Deferred tax liabilities 861,580 497,926
Other liabilities 43,163 6,549
Subordinated capital 455,260 450,976
Equity 4,342,468 3,964,858
Interests of W&W shareholders in paid-in capital 1,484,645 1,484,645
Interests of W&W shareholders in earned capital 2,829,713 2,459,522
Retained earnings 2,761,100 2,544,484
Other reserves (other comprehensive income) 68,613 –84,962
Non-controlling interests in equity 28,110 20,691
Total liabilities 75,319,294 72,018,169
1 Measurement in accordance with IFRS 9.

2 Measurement in accordance with IAS 39.

Consolidated income statement

in € thousands 1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
Current net income 319,910 277,256
Net interest income 263,383 228,350
Interest income 404,030 426,202
thereof calculated using the effective interest method 374,029
Interest expenses –140,647 –197,852
Dividend income 43,906 35,163
Other current net income 12,621 13,743
Net income/expense from risk provision 12,526 –5,417
Income from risk provision 41,641 27,082
Expenses from risk provision –29,115 –32,499
Net measurement gain/loss –119,506 34,694
Measurement gains 321,341 307,918
Measurement losses –440,847 –273,224
Net income/expense from disposals 163,905 414,845
Income from disposals 228,040 445,053
Expenses from disposals –64,135 –30,208
Net financial result 376,835 721,3781
thereof net income/expense from financial assets accounted for using the equity method –492 658
Net commission expense –98,822 –98,984
Commission income 67,178 65,191
Commission expenses –166,000 –164,175
Earned premiums (net) 973,071 946,513
Earned premiums (gross) 1,003,811 976,523
Premiums ceded to reinsurers –30,740 –30,010
Insurance benefits (net) –898,016 –1,197,103
Insurance benefits (gross) –916,065 –1,217,941
Received reinsurance premiums 18,049 20,838
in € thousands 1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
General administrative expenses –272,044 – 269 9022
Personnel expenses –149,245 – 152 358
Materials costs –108,156 – 103 1592
Depreciation/amortisation –14,643 – 14 385
Net other operating income/expense 2 883 – 4 2642
Other operating income 37 468 36 7842
Other operating expenses – 34 585 –41,048
Consolidated earnings before income taxes from continued operations 83,907 97,638
Income taxes –25,904 –28,158
Consolidated net profit 58,003 69,480
Result attributable to shareholders of W&W AG 57,429 69,470
Result attributable to non-controlling interests 574 10
Basic (= diluted) earnings per share, in € 0.61 0.74
Thereof from continued operations, in € 0.61 0.74
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
31/3/2018
1/1/2017 to
31/3/2017
Consolidated net profit 58,003 97,638
Other comprehensive income
Elements not reclassified to the consolidated income statement:
Actuarial gains/losses (–) from pension commitments (gross) 55,168 79,047
Provision for deferred premium refunds –5,698 –6,446
Deferred taxes –15,127 –22,199
Actuarial gains/losses (–) from pension commitments (net) 34,343 50,402
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
–312,375
Provision for deferred premium refunds 190,384
Deferred taxes 31,666
Unrealised gains/losses (–) from debt-financing instruments required to be measured at fair
value through other comprehensive income (net; IFRS 9)
–90,325
Unrealised gains/losses (–) from financial assets available for sale (gross) –378,844
Provision for deferred premium refunds 227,870
Deferred taxes 46,184
Unrealised gains/losses (–) from financial assets available for sale (net; IAS 39) –104,790
Unrealised gains/losses (–) from financial assets accounted for using the equity method (gross) –121 –370
Provision for deferred premium refunds
Deferred taxes 2 6
Unrealised gains/losses (–) from financial assets accounted for using the equity method (net) –119 –364
in € thousands 1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
Unrealised gains/losses (-) from cash flow hedges (gross) 323 –1,717
Provision for deferred premium refunds
Deferred taxes –99 525
Unrealised gains/losses (-) from cash flow hedges (net) 224 –1,192
Currency translation differences of economically independent foreign units –571 –70
Total other comprehensive income, gross –257,576 –301,954
Total provision for deferred premium refunds 184,686 221,424
Total deferred taxes 16,442 24,516
Total other comprehensive income, net –56,448 –56,014
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 1,555 13,466
Result attributable to shareholders of W&W AG 2,391 14,743
Result attributable to non-controlling interests –836 –1,277

Segment income statement

Home Loan and
Savings Bank
Life and Health Insurance
in € thousands 1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
Current net income 77,467 56,454 210,787 202,442
Net income/expense from risk provision 9,690 –4,859 3,664 943
Net measurement gain/loss –13,845 11,951 –88,314 22,746
Net income from disposals 42,056 68,456 123,946 334,510
Net financial result 115,368 132,0024 250,083 560,6414
Net commission income/expense 1,204 –2,758 –31,072 –31,894
Earned premiums (net) 550,478 548,573
Insurance benefits (net) –685,906 –1,006,073
General administrative expenses3 –94,681 –95,4815 –62,915 –57,9475
Net other operating income/expense 3,367 –8005 –4,832 –9,5515
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
25,258 32,963 15,836 3,749
Income taxes –7,275 –12,887 –,5,962 –2,362
Segment net income after taxes 17,983 20,076 9,874 1,387

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
31/3/2018
1/1/2017 to
31/3/2017
1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
1/1/2018 to
31/3/2018
1/1/2017 to
31/3/2017
11,496 4,094 299,750 262,990 47,874 76,990 –27,714 –62,724 319,910 277,256
–310 –315 13,044 –4,231 –534 –1,186 16 12,526 –5,417
–7,520 –2,210 –109,679 32,487 –10,906 2,207 1,079 –119,506 34,694
–998 12,172 165,004 415,138 –1,099 –293 163,905 414,845
2,668 13,7414 368,119 706,3844 35,335 77,7184 –26,619 –62,7244 376,835 721,3784
–53,640 –49,762 –83,508 –84,414 –14,732 –14,024 –582 –546 –98,822 –98,984
361,573 343,662 912,051 892,235 69,530 62,377 –8,510 –8,099 973,071 946,513
–176,011 –161,227 –861,917 –1,167,300 –41,189 –35,604 5,090 5,801 –898,016 –1,197,103
–92,730 –87,6435 –250,326 –241,0715 –22,634 –29,8235 916 9925 –272,044 –269,9025
–572 –8445 –2,037 –11,1955 7,007 4,9985 –2,087 1,9335 2,883 –4,2645
41,288 57,927 82,382 94,639 33,317 65,642 –31,792 –62,643 83,907 97,638
–12,701 –13,516 –25,938 –28,765 –12,428 –22,995 12,462 23,602 –25,904 –28,158
28,587 44,411 56,444 65,874 20,889 42,647 –19,330 –39,041 58,003 69,480

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&WQ1E2018

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