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Wüstenrot & Württembergische AG
Quarterly Report • Nov 15, 2024
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Quarterly Report
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Quarterly Statement as at 30 September 2024
Wüstenrot \& Württembergische AG
This is a convenient translation of the German Report. In case of any divergences, the German original is legally binding.
Wüstenrot \& Württembergische AG
Overview of key figures of W\&W Group (according to IFRS)
| Consolidated balance sheet | $30 / 9 / 2024$ | $31 / 12 / 2023$ | |
|---|---|---|---|
| Total assets | in € billion | 72.7 | 68.7 |
| Capital investments | in € billion | 40.0 | 38.9 |
| Senior debenture and registered bonds | in € billion | 3.9 | 4.1 |
| Senior fixed-income securities | in € billion | 19.3 | 18.9 |
| Building loans | in € billion | 28.0 | 26.7 |
| Liabilities to customers | in € billion | 27.2 | 23.5 |
| Technical provisions | in € billion | 33.0 | 31.9 |
| Equity | in € billion | 5.0 | 5.0 |
| Equity per share (equity without minority interests, number of shares without treasury shares) | in € | 52.88 | 52.57 |
| Consolidated income statement | $1 / 1 / 2024$ to $30 / 9 / 2024$ |
$1 / 1 / 2023$ to $30 / 9 / 2023$ |
|
|---|---|---|---|
| Total net financial result | in € million | 357 | 409 |
| Technical result | in € million | -78 | 77 |
| Earnings before income taxes from continued operations | in € million | -16 | 141 |
| Consolidated net profit | in € million | 5 | 101 |
| Total comprehensive income | in € million | 88 | -27 |
| Earnings per share | in € | 0.04 | 1.07 |
| Other disclosures | $30 / 9 / 2024$ | $31 / 12 / 2023$ | |
|---|---|---|---|
| Employees (full-time equivalent head count) | 6,471 | 6,437 | |
| Employees (number of employment contracts) | 7,556 | 7,546 |
| Key sales figures | $1 / 1 / 2024$ to $30 / 9 / 2024$ |
$1 / 1 / 2023$ to $30 / 9 / 2023$ |
|
|---|---|---|---|
| Housing segment | |||
| New business volume (new lending and home loan savings business) | in € million | 11,641 | 17,136 |
| Life and Health insurance segment | |||
| Total premiums in new life insurance business | in € million | 2,368 | 2,443 |
| Gross premiums written health insurance | in € million | 244 | 236 |
| Gross premiums written life insurance | in € million | 1,289 | 1,364 |
| of which regular premiums | in € million | 1,008 | 1,020 |
| of which single premiums | in € million | 281 | 344 |
| Property/Casualty insurance segment | |||
| Annual contribution to the portfolio (new and replacement business) | in € million | 361 | 350 |
| Gross premiums written | in € million | 2,345 | 2,182 |
This Quarterly Statement has been prepared in accordance with IFRS principles as at 30 September 2024. It does not constitute a Quarterly Financial Report in accordance with IAS 34 or Financial Statements in accordance with IAS 1.
Wüstenrot \& Württembergische AG Group Interim Management Report
Economic report
Development of business and position of the Group (IFRS)
Development of business
According to preliminary calculations by the Federal Statistical Office, the German economy achieved growth in gross domestic product (GDP) of $0.2 \%$ in the third quarter of 2024 compared to the previous quarter. Despite this upturn, economic output fell by $0.2 \%$ compared to the same period last year. The main growth drivers were private and public consumer demand.
Composition of consolidated net income
| in € million | $\begin{gathered} 1 / 1 / 2024 \text { to } \ 30 / 9 / 2024 \end{gathered}$ | $\begin{gathered} 1 / 1 / 2023 \text { to } \ 30 / 9 / 2023 \end{gathered}$ | Change |
|---|---|---|---|
| Housing segment | 34 | 52 | Annual portfolio premium (new and replacement business; property/casualty insurance) |
| Life and Health Insurance segment | 32 | 22 | |
| Property/Casualty Insurance segment | $-115$ | 10 | |
| All other segments/reconciliation | 54 | 17 | |
| Consolidated net income after taxes | 8 | 101 |
In the second and third quarters of 2024, the W\&W Group's regional core insurance area suffered some massive losses due to storms. In particular, the "Orinoco" natural disaster and various regional storms had a negative impact on the industry and also led to a significant decline in the W\&W Group's consolidated net income in IFRS accounting in the third quarter of 2024. It declined to $€ 5$ million (previous year: $€ 101$ million).
Selected Group key figures
| $1 / 1 / 2024$ to $30 / 9 / 2024$ |
$1 / 1 / 2023$ to $30 / 9 / 2023$ |
Change | |
|---|---|---|---|
| in $€$ million | in $€$ million | in \% | |
| Building loan portfolio ${ }^{1}$ | 28,045 | 26,707 | $+5.0$ |
| Redeemed home loan and savings business (building savings contract volume) in the portfolio ${ }^{1}$ | 129,291 | 123,871 | $+4.4$ |
| Volume of new residential business (new construction financing business (including brokering for third parties) \& gross new home loan savings business) | 11,641 | 17,136 | $-32.1$ |
| Insurance revenue (technical income) in accordance with IFRS 17 | 2,982 | 2,769 | $+7.7$ |
| Premium sum new business (life insurance) | 2,368 | 2,443 | $-3.1$ |
| Annual portfolio premium (new and replacement business; property/casualty insurance) | 361 | 350 | $+3.1$ |
| 1 Values as at 30 September 2024 and 31 December 2023. |
The main portfolio volume expanded compared to the previous year. New business showed a mixed picture. In the Housing segment, it was not possible to match the previous year's record level for home loan and savings. While new business in life insurance declined slightly, the growth in property/casualty insurance continued.
Wüstenrot Bausparkasse AG acquired start:bausparkasse AG from BAWAG P.S.K. with effect from 1 July 2024. In connection with the purchase, Wüstenrot Bausparkasse AG entered into a new sales partnership with Südwestbank (BAWAG AG) for home loan and savings and new construction financing business.
W\&W Besser!
The W\&W Group is continuing its digital transformation process with "W\&W Besser!". The strategic projects were also further developed in the third quarter of 2024.
-
In the Insurance segment, Württembergische Lebensversicherung AG launched the retirement provision product "Genius Vorsorge" on the market. Here, the return and security ratio can be determined by customers themselves.
-
In the Housing division, Wüstenrot Bausparkasse AG is strengthening its position as a "co-operative home loan and savings bank" through a new strategic collaboration with ING Germany.
Commitment to sustainability
Responsible action and social commitment have a long tradition in the W\&W Group and are an integral part of our corporate culture. It is based on an understanding of longterm, stability-focused corporate governance that in turn has its roots in the foundation ideals of W\&W AG's main shareholder. To underpin our sustainability positioning, we have a sustainability strategy with the following six fields of action: customer and product, investments and funding, own operations, employees, society as well as organisation. Targets and measures have been defined for all fields of action. The sustainability strategy is based on E5G (environment, social and governance) criteria and is reviewed and adjusted each year as part of the strategy process. We have voluntarily joined initiatives such as the Principles for Sustainable Insurance (PSI) or the Principles for Responsible Investment (PRI) and are committed to increasingly implementing and continuously developing sustainable principles in our business activities. The W\&W Group has further supplemented the measures it takes to promote diversity by signing the "Charta der Vielfalt".
At the European level, there are various regulatory initiatives promoting transparency and disclosure of sustainability-related information. From the 2024 financial year, binding European sustainability reporting standards have been introduced, and the W\&W Group is currently working on their implementation in a Group project.
Financial performance
Total comprehensive income
Consolidated income statement
As at 30 September 2024, consolidated net income after taxes amounted to $€ 5$ million (previous year: $€ 101$ million).
Net financial income stood at $€ 357$ million (previous year: $€ 409$ million). With the IFRS 17 accounting standard, a significant portion of consolidated net financial income is attributable to insurance contracts with direct participation features in life and health insurance. Before the corresponding policyholder participation, net financial income rose to $€ 1,464$ million (previous year: 1,083 million). While the valuation and interest result increased, the disposal result fell.
The net technical result decreased significantly to -€78 million (previous year: $€ 77$ million). In Property/Casualty Insurance, high claims relating to natural disasters and general claims inflation led to a sharp decline in earnings. In Life and Health Insurance, on the other hand, the inter-est-rate-related increase in the contractual service margin and the associated higher reversals had a positive effect on earnings.
Net commission income amounted to -€7 million (previous year: -€21 million). This is mainly due to lower gross new home loan and savings business.
General administrative expenses before corresponding policyholder participation (gross) totalled $€ 837$ million (previous year: $€ 829$ million). Personnel expenses increased slightly due to collectively bargained pay increases. Within material costs, consulting and advertising expenses decreased, while our investments in IT increased. After policyholder participation, general administrative expenses (net) fell to $€ 369$ million (previous year: $€ 384$ million).
Net other operating income totalled $€ 81$ million (previous year: $€ 60$ million). The increase in the current year is mainly due to the negative difference (badwill) resulting from the acquisition of start:bausparkasse AG. The previous year's figure included income from the disposal of properties.
Consolidated statement of comprehensive income Total comprehensive income as at 30 September 2024 was $€ 88$ million (previous year: -€27 million). It is made up of consolidated net income plus other comprehensive income (OCI).
OCI totalled €83 million (previous year: -€128 million). The slight fall in interest rates over the course of 2024 had a positive effect on the market values of fixed-interest securities and registered securities. Their unrealised result with an impact on OCI amounted to $€ 190$ million (previous year: -€621 million). In contrast, lower interest rates had the opposite effect on the valuation of technical liabilities/provisions under IFRS 17.
The unrealised result from this was -€148 million (previous year: $€ 519$ million). Actuarial gains and losses from defined benefit plans for retirement provision totalled $€ 41$ million (previous year: -€27 million).
As a supplement to the consolidated income statement, OCI is used to show the gains and losses recognised directly in equity that result from accounting in accordance with IFRS 9 and IFRS 17, among others. It essentially reflects the interest rate sensitivity of the assets side of our balance sheet and of underwriting on the liabilities side. The application of the IFRS 17 standard on accounting for insurance contracts has significantly reduced measurement mismatches.
Housing segment
New business
New business for housing purposes for urgent financing, modernisation and the accumulation of equity (total of gross new business and new construction financing business including brokering for third parties) at $€ 11,641$ million (previous year: $€ 17,136$ million) was, as expected, below the previous year's very strong figure.
Gross new business by building savings contract volume at $€ 8,247$ million (previous year: $€ 14,251$ million) and net new business (redeemed new business) at $€ 7,929$ million (previous year: $€ 13,066$ million) were below the record level of the same period in the previous year, which had benefited from the sharp rise in mortgage interest rates.
Despite the persistently difficult economic conditions, the volume of new construction financing business increased to $€ 3,394$ million (previous year: $€ 2,885$ million).
New business key figures
| $1 / 1 / 2024$ to 30/9/2024 |
$1 / 1 / 2023$ to 30/9/2023 |
Change | |
|---|---|---|---|
| in $€$ million | in $€$ million | in \% | |
| New business volume | 11,641 | 17,136 | $-32.1$ |
| New construction financing business (including brokering for third parties) | 3,394 | 2,885 | 17.6 |
| Gross new business home loan and savings | 8,247 | 14,251 | $-42.1$ |
was characterised by income from the reversal of the additional liabilities for the acquired customer contracts of the home savings collective recognised as part of the purchase price allocation of the former Aachener Bausparkasse AG. Despite this one-off effect, current net income fell only slightly compared to the previous year, as current interest income from the mortgage lending business increased significantly.
Net commission income improved mainly due to the decline in gross new home loan and savings business at -€5 million (previous year: -€28 million).
General administrative expenses decreased to $€ 253$ million (previous year: $€ 256$ million). This was due to lower material costs, partly as a result of the discontinuation of the bank levy, as well as lower consulting expenses. Depreciation and amortisation also fell. Personnel expenses, on the other hand, increased due to higher collectively bargained salaries.
Net other operating income grew to $€ 65$ million (previous year: $€ 26$ million). This includes the negative difference from the acquisition of start:bausparkasse AG.
The improvement in the tax result to -€3 million (previous year: -€25 million) is due in particular to the first-time inclusion of start:bausparkasse AG.
Life and Health Insurance segment
New business/premium development
The premium volume of new life insurance business reached $€ 2,368$ million (previous year: $€ 2,443$ million). Single-premium life insurance policies declined - as in the industry as a whole.
In the company pension scheme, the premium volume of $€ 834$ million (previous year: $€ 835$ million) was at the same level as the previous year.
The premium volume for unit-linked insurance policies (incl. Genius) increased. It rose by $4.4 \%$ and, at $€ 1,332$ million (previous year: $€ 1,275$ million), exceeded the previous year.
Financial performance
The segment result after taxes decreased to $€ 34$ million (previous year: $€ 52$ million).
Net financial income decreased to $€ 230$ million (previous year: $€ 335$ million). This is mainly due to the significant decline in net income from disposals as a result of asset/liability management and the slight decline in current net income. Current net income in the previous year
| New business key figures | |||
|---|---|---|---|
| $1 / 1 / 2024$ to $30 / 9 / 2024$ |
$1 / 1 / 2023$ to $30 / 9 / 2023$ |
Change | |
| in € million | in € million | in \% | |
| Total premiums in new life insurance business | 2,368 | 2,443 | $-3.1$ |
| Total premiums in new business (not including company pension schemes) | 1,534 | 1,608 | $-4.6$ |
| Total premiums in new business for company pension schemes | 834 | 835 | $-0.1$ |
| Annual new health insurance premiums | 8.5 | 7.0 | $+21.4$ |
In health insurance, new annual premiums increased to $€ 8.5$ million (previous year: $€ 7.0$ million). New business grew particularly in company health insurance.
Financial performance
The segment result after taxes was increased to $€ 32$ million (previous year: $€ 22$ million).
Net financial income reached -€2 million (previous year: €0 million). With the IFRS 17 accounting standard, a significant portion of consolidated net financial income is attributable to insurance contracts with direct participation features in life and health insurance. Before the corresponding policyholder participation, net financial income rose to $€ 1,103$ million (previous year: $€ 660$ million). The main reason for the increase was the valuation result. Valuation gains from alternative investments, shares, interest-bearing securities and derivatives were up on the previous year. This positive development was also evident in investments for unit-linked life insurance policies. Current net income likewise increased. It rose by just under $4 \%$ to $€ 686$ million (previous year: $€ 661$ million). This is due to higher income as a result of the rise in interest rates and more distributions.
The technical result (net) increased to $€ 71$ million (previous year: $€ 65$ million). Insurance revenue (technical income) rose to $€ 911$ million (previous year: $€ 871$ million). The higher interest rate level led to an increase in the contractual service margin (CSM) in the previous financial year and therefore to higher profit realisation in the current year. Actuarial expenses increased to $€ 832$ million (previous year: $€ 795$ million).
Gross general administrative expenses (before corresponding policyholder participation) at $€ 190$ million (previous year: $€ 189$ million) stayed at the previous year's
level. Both personnel expenses and material costs increased slightly. After this participation, net general administrative expenses amounted to $€ 23$ million (previous year: $€ 28$ million).
Property/Casualty Insurance segment
New business/premium development
New and replacement business, measured in terms of the annual portfolio premium, increased to $€ 361$ million (previous year: $€ 350$ million). The motor vehicle segment grew significantly, while the retail customer segment also recorded a slight increase. The corporate customer segment was below the previous year's level.
New business key figures
| $1 / 1 / 2024$ to $30 / 9 / 2024$ |
$1 / 1 / 2023$ to $30 / 9 / 2023$ |
Change | |
|---|---|---|---|
| in $€$ million | in $€$ million | in \% | |
| Annual portfolio premium (new and replacement business) |
$\mathbf{3 6 1}$ | $\mathbf{3 5 0}$ | $+3.1$ |
| Motor | 218 | 198 | $+10.1$ |
| Corporate customers | 90 | 100 | -10.0 |
| Retail customers | 53 | 52 | +1.9 |
The insurance turnover increased by $8,9 \%$ to $€ 2,073$ million (previous year: $€ 1,903$ million). This includes a rise of $10 \%$ in corporate customer business.
Financial performance
The segment result after taxes was -€115 million (previous year: $€ 10$ million).
Net financial income fell to $€ 33$ million (previous year: $€ 40$ million). Current net financial income and valuation result increased as a result of the higher interest rate level and the generally positive development on the capital market. In contrast, expenses from the compounding of interest on technical provisions increased due to the rise in interest rates.
The technical result (net) fell to -€149 million (previous year: $€ 14$ million). As a result of new and replacement business and premium adjustments, there was growth in the insurance portfolio. Insurance revenue (technical income) thus rose to $€ 2,073$ million (previous year: $€ 1,903$ million). Claims expenses (gross), on the other hand, increased due to both inflation and the sometimes massive damage caused by storms in the summer months. In par-
ticular, the "Orinoco" natural hazard event and various regional storms caused high accumulation losses. Net reinsurance income fell to $€ 44$ million (previous year: $€ 5$ million). In the previous year, there was a high level of relief provided for major claims, while the accumulation burdens in the current reporting period were not compensated to the same extent by reinsurance. This led to a considerable decline in the technical result. The combined ratio (gross) in accordance with IFRS 17 was 105.1\% (previous year: $99.0 \%$ ). The combined ratio (net) in accordance with IFRS 17 amounted to $107.2 \%$ (previous year: $99.3 \%$ ).
General administrative expenses (gross) totalled $€ 342$ million (previous year: $€ 333$ million). Both materials costs and personnel expenses increased slightly. This was due, among other things, to increased expenses for IT projects. In contrast, marketing expenses were reduced. After allocation to the technical result, general administrative expenses (net) totalled $€ 41$ million (previous year: $€ 49$ million).
All other segments
"All other segments" covers the divisions that cannot be allocated to any other segment. These essentially include W\&W AG, including its subsidiaries Wüstenrot Immobilien GmbH, W\&W Asset Management GmbH, Wüstenrot Haus- und Städtebau GmbH, W\&W brandpool GmbH and the Group's internal service providers.
As in the previous year, the segment result after taxes was $€ 70$ million (previous year: $€ 70$ million).
Net financial income increased to $€ 92$ million (previous year: $€ 89$ million). This was mainly due to a better valuation result. Among other things, this includes a positive effect on the result due to the change from the equity method to the fair value measurement of V-Bank AG. This was offset by a decline in current net income as a result of lower distributions.
General administrative expenses decreased to $€ 57$ million (previous year: $€ 70$ million). The reasons for this development were lower depreciation on property for own use and lower consultancy costs. Personnel expenses were about the same year on year.
Outlook
Against the backdrop of extraordinary burdens from natural disasters, we have adjusted our expectations for the 2024 financial year and published an ad hoc announcement to this effect on 25 July 2024.
We continue to expect consolidated net profit to be significantly below the previous year but are maintaining our forecast for the net income of W\&W AG in accordance with the German Commercial Code (HGB) on the previous year's level in the range of $€ 130$ million..
The forecast is subject to the proviso that there are no capital market distortions, economic downturns or further major loss events in the remainder of the year.
Wüstenrot \& Württembergische AG | 7
Wüstenrot \& Württembergische AG Condensed consolidated financial statements
Consolidated statement of financial position
Assets
in € million
$30 / 9 / 2024$
$31 / 12 / 2023$
| Cash and cash equivalents | 1,110 | 1,046 |
|---|---|---|
| Non-current assets held for sale and discontinued operations | - | 28 |
| Financial assets at fair value through profit or loss | 11,594 | 10,630 |
| Financial assets at fair value through other comprehensive income (OCI) | 23,959 | 23,687 |
| of which: sold under repurchase agreements or lent under securities lending transactions | 207 | 863 |
| Financial assets at amortised cost | 31,296 | 28,461 |
| Subordinated securities and receivables | 217 | 213 |
| Senior debenture bonds and registered bonds | 73 | 57 |
| Building loans | 28,045 | 26,707 |
| Other receivables | 2,515 | 1,180 |
| Active portfolio hedge adjustment | 446 | 304 |
| Positive market values from hedges | $-3$ | 2 |
| Technical assets | 365 | 357 |
| Insurance contracts issued that are assets | 73 | 37 |
| Reinsurance contracts held that are assets | 292 | 320 |
| Financial assets accounted for under the equity method | 70 | 89 |
| Investment property | 2,549 | 2,569 |
| Other assets | 1,758 | 1,812 |
| Intangible assets | 158 | 133 |
| Property, plant and equipment | 531 | 538 |
| Inventories | 68 | 78 |
| Current tax assets | 34 | 9 |
| Deferred tax assets | 920 | 1,011 |
| Other assets | 47 | 43 |
| Total assets | 72,698 | 68,681 |
| Financial liabilities at fair value through profit or loss | 23 | 24 |
|---|---|---|
| Liabilities | 32,049 | 28,576 |
| Liabilities evidenced by certificates | 2,919 | 2,842 |
| Liabilities to credit institutions | 1,594 | 2,219 |
| Liabilities to customers | 27,176 | 23,479 |
| Lease liabilities | 48 | 52 |
| Miscellaneous liabilities | 735 | 545 |
| Passive portfolio hedge adjustment | $-423$ | $-561$ |
| Technical liabilities | 32,987 | 31,900 |
| Insurance contracts issued that are liabilities | 32,987 | 31,899 |
| Reinsurance contracts held that are liabilities | - | 1 |
| Other provisions | 1,718 | 1,871 |
| Other liabilities | 542 | 707 |
| Current tax liabilities | 103 | 135 |
| Deferred tax liabilities | 429 | 561 |
| Other liabilities | 10 | 11 |
| Subordinated capital | 406 | 642 |
| Equity | 4,985 | 4,961 |
| Share in paid-in capital attributable to shareholders of W\&W AG | 1,486 | 1,486 |
| Share in retained earnings attributable to shareholders of W\&W AG | 3,466 | 3,441 |
| Retained earnings | 4,074 | 4,133 |
| Other reserves (OCI) | $-608$ | $-692$ |
| Non-controlling interests in equity | 33 | 34 |
| Total equity and liabilities | 72,698 | 68,681 |
Consolidated income statement
| in € million | $1 / 1 / 2024$ to $30 / 9 / 2024$ |
$1 / 1 / 2023$ to $30 / 9 / 2023$ |
|---|---|---|
| Current net financial result | 989 | 965 |
| Net interest income | 684 | 665 |
| Interest income | 1,150 | 993 |
| of which: calculated using the effective interest method | 975 | 861 |
| Interest expenses | $-466$ | $-328$ |
| Dividend income | 204 | 211 |
| Other current net income | 101 | 89 |
| Net income/expense from risk provision | $-13$ | $-20$ |
| Income from credit risk adjustments | 66 | 58 |
| Expenses for credit risk adjustments | $-79$ | $-78$ |
| Net measurement gain/loss | 505 | 46 |
| Measurement gains | 2,062 | 1,884 |
| Measurement losses | $-1,557$ | $-1,838$ |
| Net income from disposals | $-17$ | 92 |
| Income from disposals | 51 | 204 |
| Expenses from disposals | $-68$ | $-112$ |
| Net technical financial result | $-1,107$ | $-674$ |
| Insurance finance income or expenses from insurance contracts issued (gross) | $-1,110$ | $-676$ |
| of which: Insurance finance expenses from reinsurance contracts held | 3 | 2 |
| Total net financial result | 357 | 409 |
| of which: net income/expense from financial assets accounted for under the equity method | 5 | $-5$ |
| Technical result (net) | $-78$ | 77 |
| Technical result (gross) | $-25$ | 94 |
| Technical income | 2,982 | 2,769 |
| Technical expenses | $-3,007$ | $-2,675$ |
| Net result from reinsurance contracts held | $-53$ | $-17$ |
| Net commission income | $-7$ | $-21$ |
| Commission income | 152 | 215 |
| Commission expenses | $-159$ | $-236$ |
| Carryover | 272 | 465 |
| Carryover | 272 | 465 |
|---|---|---|
| General administrative expenses (net) | $-369$ | $-384$ |
| General administrative expenses (gross) | $-837$ | $-829$ |
| Personnel expenses | $-487$ | $-478$ |
| Materials costs | $-296$ | $-288$ |
| Depreciation, amortisation and write-downs | $-54$ | $-63$ |
| General administrative expenses attributable to the technical result | 468 | 445 |
| Net other operating income/expense | 81 | 60 |
| Other operating income | 112 | 158 |
| Other operating expenses | $-31$ | $-98$ |
| Earnings before income taxes from continued operations | $-16$ | 141 |
| thereof from revenue ${ }^{1}$ | 4,613 | 4,380 |
| Income taxes | 21 | $-40$ |
| Consolidated net profit | 5 | 101 |
| Result attributable to shareholders of W&W AG | 4 | 100 |
| Result attributable to non-controlling interests | 1 | 1 |
| Basic (= diluted) earnings per share | 0.04 | 1.07 |
| of which: from continued operations in $€$ | 0.04 | 1.07 |
1 Interest, dividend, commission and rental from property development business and technical income.
Consolidated statement of comprehensive income
| in € million | $1 / 1 / 2024$ to $30 / 9 / 2024$ |
$1 / 1 / 2023$ to $30 / 9 / 2023$ |
|---|---|---|
| Consolidated net income | 5 | 101 |
| Other comprehensive income | ||
| Elements not reclassified to the consolidated income statement: | ||
| Actuarial gains/losses (-) from pension commitments (gross) | 58 | $-38$ |
| Deferred taxes | $-17$ | 11 |
| Actuarial gains/losses (-) from pension commitments (gross) | 41 | $-27$ |
| Unrealised gains from the remeasurement of property (gross) | - | 2 |
| Deferred taxes | - | $-1$ |
| Unrealised gains from the remeasurement of property (net) | - | 1 |
| Elements subsequently reclassified to the consolidated income statement: | ||
| Unrealised gains/losses (-) from financial assets at fair value through other comprehensive income (OCI; gross) | 270 | $-884$ |
| Deferred taxes | $-80$ | 263 |
| Unrealised gains/losses (-) from financial assets at fair value through other comprehensive income (net) | 190 | $-621$ |
| Unrealised insurance finance income or expenses from insurance contracts issued (gross) | $-204$ | 733 |
| Unrealised insurance finance income or expenses from reinsurance contracts held (gross) | $-11$ | 16 |
| Deferred taxes | 67 | $-230$ |
| Unrealised insurance finance income or expenses (net) | $-148$ | 519 |
| Total other comprehensive income, gross | 113 | $-171$ |
| Total deferred taxes | $-30$ | 43 |
| Total other comprehensive income, net | 83 | $-128$ |
| Total comprehensive income for the period | 88 | $-27$ |
| Result attributable to shareholders of W\&W AG | 88 | $-30$ |
| Result attributable to non-controlling interests | - | 3 |
Segment reporting
The segment information is prepared in accordance with IFRS 8 Operating Segments on the basis of internal reporting, which is regularly used by the chief operating decision maker to assess the business development of the segments and to make decisions on the allocation of resources to the segments (management approach). The Management Board is the chief operating decision maker in the W\&W Group.
The reportable segments are identified on the basis of products and services and regulatory requirements. For this pur-pose, individual business segments are included in the Life and Health Insurance segment. The following section lists the products and services through which revenue is generated by the reportable segments. There is no dependence on individual major accounts.
Housing
The reportable segment Housing consists of one business segment and includes home loan savings and banking products primarily for retail customers in Germany, e.g. home loan savings contracts, bridging loans and mortgage loans. Home loan and savings contracts, pre-financing and interim financing loans as well as other building loans such as mortgage loans.
Life and Health Insurance
The reportable Life and Health Insurance segment has several business segments, all of which have similar characteristics and are comparable in terms of all IFRS 8 aggregation criteria. In particular, the group of persons, sales channels, regulatory framework, underlying actuarial calculations and the product type all have similar economic characteristics.
The reportable Life and Health Insurance segment provides a wide range of life and health insurance products for individuals and groups, including classic and unit-linked life and pension insurance, risk life and health insurance policies, occupational disability insurance, comprehensive and supplementary private health insurance and care insurance.
Property/Casualty Insurance
The reportable Property/Casualty Insurance segment offers a comprehensive range of insurance products for private and corporate customers, including motor, liability, personal accident, legal expenses, homeowners, household contents, transport and technical insurance.
All other segments
All other business activities of the W\&W Group, such as central Group functions, asset management activities and property development activities, have been summarised under All other segments, as they are not directly related to the other reportable segments. This also includes interests in subsidiaries of W\&W AG that cannot be consolidated in All other segments (e.g. Wüstenrot Bausparkasse AG, Württembergische Lebensversicherung AG, Württembergische Versicherung AG and Württembergische Krankenversicherung AG), because they are allocated to another segment (Housing, Life and Health Insurance, Property/Casualty Insurance).
W\&W AG is the reinsurer of Württembergische Versicherung AG and passes the majority of assumed risks on to the reinsurance market. The externally held reinsurance business (retrocession) is recognised in the Property/Casualty Insurance reporting segment in accordance with the management approach of IFRS 8. The segment information for Property/Casualty Insurance thus fully reflects the technical risk profile of property and casualty insurance, taking into account the externally held reinsurance contracts.
Consolidation/reconciliation
Consolidation measures that are necessary for reconciliation to Group figures are shown under the column Consolidation/reconciliation.
As in previous years, each individual segment's performance is measured by net segment income under IFRS. Transactions between the segments were carried out on an arm's length basis.
Measurement principles
The measurement principles used in segment reporting are the same as the accounting policies used in the IFRS consolidated financial statements, with the following exceptions. In line with internal Group reporting and management, IFRS 16 is not applied to leases under the law of obligations within the Group. The interests in the subsidiaries of W\&W AG that are not consolidated in "All other segments" are measured there at fair value through other comprehensive income and not reclassified to the consolidated income statement.
Segment income statement
| Housing | Life and Health Insurance | |||
|---|---|---|---|---|
| in € million | $1 / 1 / 2024$ to $30 / 9 / 2024$ | $1 / 1 / 2023$ to $30 / 9 / 2023$ | $1 / 1 / 2024$ to $30 / 9 / 2024$ | $1 / 1 / 2023$ to $30 / 9 / 2023$ |
| Current net financial result | 196 | 209 | 686 | 661 |
| Net income/expense from risk provision | $-24$ | $-18$ | 9 | $-2$ |
| Net measurement gain/loss | 31 | 23 | 442 | 20 |
| Net income from disposals | 27 | 121 | $-34$ | $-20$ |
| Net technical financial result | - | - | $-1,105$ | $-659$ |
| Net financial result | 230 | 335 | $-2$ | - |
| of which: net income/expense from financial assets accounted for under the equity method | - | - | 2 | $-4$ |
| Technical result (net) | - | - | 71 | 65 |
| Net commission income | $-5$ | $-28$ | - | $-3$ |
| General administrative expenses (gross) | $-253$ | $-256$ | $-190$ | $-189$ |
| General administrative expenses attributable to the technical result | - | - | 167 | 161 |
| General administrative expenses (net) | $-253$ | $-256$ | $-23$ | $-28$ |
| Net other operating income/expense | 65 | 26 | 1 | $-3$ |
| Segment net income before income taxes from continued operations | 37 | 77 | 47 | 31 |
| Income taxes | $-3$ | $-25$ | $-15$ | $-9$ |
| Segment income after taxes | 34 | 52 | 32 | 22 |
1 The column "Consolidation/reconciliation" includes the effects of consolidation between segments, the reconciliation of the internal segment measurements with the consolidated measurement and rounding effects.
| Property/Casualty Insurance | Total for reportable segments | All othe segments | Consolidation/ reconciliation ${ }^{1}$ | Group | ||||
|---|---|---|---|---|---|---|---|---|
| $1 / 1 / 2024$ to $30 / 9 / 2024$ | $1 / 1 / 2023$ to $30 / 9 / 2023$ | $\begin{gathered} 1 / 1 / 2024 \text { to } \ 30 / 9 / 2024 \end{gathered}$ | $1 / 1 / 2023$ to $30 / 9 / 2023$ | $1 / 1 / 2024$ to $30 / 9 / 2024$ | $1 / 1 / 2023$ to $30 / 9 / 2023$ | $1 / 1 / 2024$ to $30 / 9 / 2024$ | $1 / 1 / 2023$ to $30 / 9 / 2023$ | $1 / 1 / 2024$ to $30 / 9 / 2024$ |
| 63 | 54 | 945 | 924 | 47 | 82 | $-3$ | $-41$ | 989 |
| 1 | - | $-14$ | $-20$ | 1 | - | - | - | $-13$ |
| 15 | 10 | 488 | 53 | 46 | 11 | $-29$ | $-18$ | 505 |
| $-8$ | $-6$ | $-15$ | 95 | $-2$ | $-4$ | - | 1 | $-17$ |
| $-38$ | $-18$ | $-1,143$ | $-677$ | - | - | 36 | 3 | $-1,107$ |
| 33 | 40 | 261 | 375 | 92 | 89 | 4 | $-55$ | 357 |
| 2 | $-4$ | 4 | $-8$ | 1 | 3 | - | - | 5 |
| $-149$ | 14 | $-78$ | 79 | 2 | 1 | $-2$ | $-3$ | $-78$ |
| $-7$ | $-10$ | $-12$ | $-41$ | 28 | 29 | $-23$ | $-9$ | $-7$ |
| $-342$ | $-333$ | $-785$ | $-778$ | $-57$ | $-70$ | 5 | 19 | $-837$ |
| 301 | 284 | 468 | 445 | - | - | - | - | 468 |
| $-41$ | $-49$ | $-317$ | $-333$ | $-57$ | $-70$ | 5 | 19 | $-369$ |
| 1 | 18 | 67 | 41 | 14 | 23 | - | $-4$ | 81 |
| $-163$ | 13 | $-79$ | 121 | 79 | 72 | $-16$ | $-52$ | $-16$ |
| 48 | $-3$ | 30 | $-37$ | $-9$ | $-2$ | - | $-1$ | 21 |
| $-115$ | 10 | $-49$ | 84 | 70 | 70 | $-16$ | $-53$ | 5 |
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Wüstenrot \& Württembergische AG
70801 Kornwestheim
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phone + 49711 662-0
www.ww-ag.com
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The financial reports of the W\&W Group are available at www.ww-ag.com/reports.
In case of any divergences, the German original is legally binding.
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