Wüstenrot & Württembergische AG

Interim / Quarterly Report • Sep 19, 2023

Interim Report as at 30 June 2023

Wüstenrot & Württembergische AG

This is a translation of the German Annual 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)

Total assets ƌƍƊ ƌƌƌ LQ Ƒ ELOOLRQ Capital investments ƉƎƐ ƉƍƋ LQ Ƒ ELOOLRQ Senior debenture bonds and registered bonds ƊƇ Ɗƍ LQ Ƒ ELOOLRQ Senior fixed-income securities ƇƎƉ Ƈƍƌ LQ Ƒ ELOOLRQ Building loans ƈƌƐ ƈƋƊ LQ Ƒ ELOOLRQ Liabilities to customers ƈƉƉ ƈƈƏ LQ Ƒ ELOOLRQ Technical provisions ƉƇƇ ƉƐƉ LQ Ƒ ELOOLRQ Equity ƋƐ ƊƏ LQ Ƒ ELOOLRQ Equity per share ƋƈƏƍ ƋƇƏƇ LQ Ƒ ƇƇƈƐƈƉ WR ƇƇƈƐƈƈ WR Consolidated income statement ƉƐƌƈƐƈƉ ƉƐƌƈƐƈƈ Total net financial result ƉƊƎƈ ƇƊƏƌ LQ Ƒ PLOOLRQ Technical result ƇƉƌƐ ƇƋƏƌ LQ Ƒ PLOOLRQ Earnings before income taxes from continued operations ƈƋƎƌ ƇƏƈƊ LQ Ƒ PLOOLRQ Consolidated net profit ƇƎƐƍ ƇƊƋƍ LQ Ƒ PLOOLRQ Total comprehensive income ƇƌƐƏ ƏƇƏ LQ Ƒ PLOOLRQ Earnings per share ƇƏƈ ƇƋƋ LQ Ƒ Other disclosures ƉƐƌƈƐƈƉ ƉƇƇƈƈƐƈƈ Employees (full-time equivalent head count) ƌƉƋƌ ƌƉƐƌ Employees (number of employment contracts) ƍƊƋƌ ƍƉƏƐ ƇƇƈƐƈƉ WR ƇƇƈƐƈƈ WR Key sales figures ƉƐƌƈƐƈƉ ƉƐƌƈƐƈƈ Housing segment New business volume (New lending and home loan savings business) ƇƈƌƌƐƌ ƇƈƊƏƐƐ LQ Ƒ PLOOLRQ Life and Health Insurance segment Total premiums in new life insurance business ƇƌƐƏƇ ƇƍƈƎƊ LQ Ƒ PLOOLRQ Property/Casualty Insurance segment Annual contribution to the portfolio (new and replacement business) ƈƌƐƇ ƈƇƐƉ LQ Ƒ PLOOLRQ	Consolidated balance sheet	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ

Wüstenrot & Württembergische AG Contents

Group Interim Management Report	Ɗ
Economic report	Ɗ
Related party disclosures	Ƈƈ
Opportunity and risk report	ƇƉ
Outlook	Ƈƌ
Condensed financial statements	ƇƎ
Consolidated statement of financial position	ƇƎ
Consolidated income statement	ƈƐ
Consolidated statement of comprehensive income	ƈƈ
Consolidated statement of changes in equity	ƈƊ
Condensed consolidated statement of cashflows	ƈƌ
Selected explantory notes	ƈƍ
Responsibility statement	ƇƇƉ
Auditor's review report	ƇƇƊ

Wüstenrot & Württembergische AG Group Interim Management Report

Economic report

Business environment

Macroeconomic environment

The German economy slipped into a technical recession in the winter half of 2022/23. According to data from the German Federal Statistical Office, the situation stabilised in the second quarter and economic output stagnated. Private consumer household demand in particular was lower than expected. Sustained very high inflation eroded consumers' real disposable income, reducing spending. Government spending also declined significantly at the start of the year.

Inflation now seems to be gradually easing. The total rate of inflation, which was as high as 8.8% in November 2022, fell to 6.4% by June 2023. Core inflation, which excludes volatile energy and food prices, was somewhat lower but once again reached a multi-year high of 5.8% in June 2023, an indication that high fundamental price pressures remain.

Capital markets

Bond markets

After significant interest rate hikes in the previous year, changes in yields on the German bond market were somewhat more moderate in the first half of 2023. In the shortterm maturity range, for example, the yield on two-year German government bonds rose from 2.76% at the beginning of the year to 3.20% at the end of June. This was the result of further increases in key rates by the European Central Bank, which increased the deposit rate to 3.5% at the end of June. In the long-term maturity range, the first half of the year saw interest rates decline slightly. The yield on ten-year German government bonds, for example, decreased moderately from 2.57% at the start of the year to 2.39% after six months. Potential causes of this include the decline in inflation and recessionary trends in the German economy.

Equity markets

European equity markets enjoyed significant price hikes in the first half of 2023 thanks to an excellent start to the year. Both the DAX and the Euro STOXX 50 were up 16.0%. Equity markets thus proved robust despite further rate hikes by the European Central Bank, a subdued economy and the ongoing war in Ukraine.

Industry trends

The macroeconomic environment was also reflected in sector development:

Gross new home loan savings business in the industry picked up again in the first half of 2023 thanks to far higher construction loan interest rates and the greater focus on energy efficiency upgrades after an already very strong previous year, reporting an increase in terms of unit numbers and total home loan savings contracts.

At Ŵ1.57 trillion, private residential construction financing in June 2023 was up on the previous year (Ŵ1.53 trillion). On the other hand, the market volume of residential construction loans granted was lower than in the previous year in H1. This decline was the result in part of increased financing costs.

Insurers' business expectations were influenced by restrained economic growth and still high inflation, combined with declining real income. Bank savings also became increasingly attractive as interest rates rose as a result of inflation.

According to provisional industry numbers published by the German Insurance Association (GDV), new premiums in life insurance and pension funds declined by 14.7% in the first half of 2023 to Ŵ17.3 (previous year: 20.2) billion. New single-premium business declined by 17.3% and new business with regular premiums by 1.0%. Sustained inflation hurt private households here and also made fixedterm deposits more appealing. Gross premiums written were down 6.4% year on year at Ŵ46.8 (previous year: 50.1) billion.

In property and casualty insurance, sentiment improved slightly despite the geopolitical and global economic risks. Inflation-related coverage adjustments and rising demand for natural disaster cover are increasing premium momentum. As a result, the GDV's extrapolations show a premium increase of 6.6% for 2023. Property insurance in

particular is expected to see very high premium growth. in motor insurance, on the other hand, premium momentum is being curbed by still low new car registrations. Nevertheless, the pace of growth in claims paid is also expected to pick up – also a result of inflation.

W&W share

The W&W share also got off to a bullish start in 2023 and, starting from Ŵ15.44 at the end of 2022, rose to its high for the year of Ŵ17.70 by the beginning of March. European shares in the finance sector also came under pressure during the banking crisis that briefly flared up in the US in March. By the start of April, the W&W share had returned to around the Ŵ16 mark. After recovering until mid-May, the W&W share price at the end of June came to Ŵ15.68, including due to the ex-dividend markdown. This translated into a moderate 1.6% rise in the first half of 2023. Taking into account the dividend distribution of Ŵ0.65, overall performance was 5.8% in the reporting period. EURO STOXX Banks posted a rise of 12.0% for the same period, while EURO STOXX Insurance saw a price increase of 4.0%.

Ratings

Standard & Poor's (S&P) again reaffirmed the ratings with a stable outlook in June 2023. This means that the core W&W Group companies are still rated "A–", with the holding company W&W AG retaining its "BBB+" rating.

Wüstenrot Bausparkasse AG's short-term rating is unchanged ("A–1").

Ratings Standard & Poor's

	Financial Strength	Issuer Credit Rating
W&W AG	BBB+ outlook stable	BBB+ outlook stable
Württembergische Versicherung AG	A– outlook stable	A– outlook stable
Württembergische Lebensversicherung AG	A– outlook stable	A– outlook stable
Wüstenrot Bausparkasse AG		A– outlook stable

As previously, mortgage bonds of Wüstenrot Bausparkasse AG receive the top rating "AAA" with stable outlook.

The subordinated bonds issued by Wüstenrot Bausparkasse AG and Württembergische Lebensversicherung AG are still rated "BBB". Likewise, the subordinated bond issued by Wüstenrot & Württembergische AG is still rated "BBB-".

Development of business and position of the W&W Group (IFRS)

Development of business

The economic environment remained challenging in the first half of 2023 on account of high inflation, rising interest rates and geopolitical tensions. Equity markets performed surprisingly well and bond markets were calm. There was also a special effect in the Housing segment. In this environment, the W&W Group increased its IFRS earnings to Ŵ180.7 (previous year: 145.7) million.

The W&W Group maintained the successful operating business trajectory seen in previous years and also further increased its market share.

Composition of consolidated net profit

LQ Ƒ PLOOLRQ	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Housing segment	ƎƏƌ	ƍƇƈ
Life and Health Insurance segment	ƇƊƋ	ƈƎƋ
Property/Casualty Insurance segment	ƌƐƊ	ƊƏƎ
All other segments	ƈƍƍ	ƋƊ
Consolidation/reconciliation	ƇƇƋ	Ƈƌ
C o n s o l i d a t e d n e t p r o f i t a f t e r t a x e s	ƇƎƐƍ	Ƈ ƇƊƋƍ

Ƈ 5HWURVSHFWLYH DGMXVWPHQW XQGHU ,\$6 Ǝ GXH WR WKH LQWURGXFWLRQ RI ,)56 Ƈƍ DV ZHOO DV LQ WKH housing segment because of adjustment of the amortisation of the separate line items from the portfolio fair value hedge.

The W&W Group also saw continued success in new business. In gross new home loan savings business, it achieved the best half-year figure in the company's history. The decline in life insurance was due among other things to lower single-premium business. In property/casualty insurance, the growth trajectory continued.

Group key figures

	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	Change
	LQ Ƒ PLOOLRQ	LQ Ƒ PLOOLRQ	in %
New business total Housing (new lending & new home loan savings business (gross))	ƇƈƌƌƇ	ƇƈƊƏƐ	ƇƊ
Total premiums in new business (Life insurance)	ƇƌƐƏ	ƇƍƈƎ	ƌƏ
Annual contribution to portfolio (new and replacement business; property/casualty insurance)	ƈƌƐƇ	ƈƇƐƉ	ƈƉƍ

Disclosure of changes in accounting policies

The W&W Group has applied the new standard IFRS 17 Insurance Contracts since 1 January 2023. The previous year's figures have been restated accordingly. IFRS 17 replaces IFRS 4 Insurance Contracts, which had been in effect since 1 January 2005, in full and for the first time introduces standardised requirements for the recognition, valuation, presentation and notes on insurance contracts and reinsurance contracts issued or held by the W&W Group's insurance companies. Further details of the introduction of IFRS 17 can be found in the notes in the section "Disclosure of changes in accounting policies".

W&W Besser!

The W&W Group is continuing its digital transformation process with "W&W Besser!". The strategic projects were successfully advanced in the first half of 2023.

The W&W Group took another major step forwards when it launched a new finance platform across the Group in May. The long-standing SAP-ERP (Enterprise Resource Planning) platform was replaced by the new, also SAPbased S/4HANA finance system. Quality, efficiency and faster accounting processes are the main advantages of the new application.

The new "employees and skill sets" project develops strategic human resources planning with early warning indicators to tackle the challenges of demographic change. Through the three topics staff recruitment & retention, employer brand & appeal and strategic personnel planning & upskilling, we support our employees' key skill sets.

The W&W Group has promoted the tandem model – where a mobile sales force partner of Wüstenrot and a general agent of Württembergische combine their financial planning expertise to provide better advice to customers – since 2016 with a tandem model. Overall, sales partners work in 782 tandem partnerships.

In the Housing division, the Cologne-based rating and ranking agency Service Value GmbH in cooperation with WELT TV awarded Wüstenrot Bausparkasse the title of "greatest innovative strength", putting it top of the leadership board among all other home loan and savings banks surveyed.

Service Value GmbH also gave Wüstenrot Bausparkasse AG the "highest responsibility rating" in the area of sustainable commitment in the industry and rated it the "most sustainable home loan and savings bank" in collaboration with Deutschland Test. Sustainability means taking account of social, environmental and economic factors.

Under the "Wohnen 4.0" initiative, the digital application process for Bausparen Digital was successfully launched for our cooperation partner. Functions are being further expanded and optimisation is underway. A digital application process for time and overnight deposits was also successfully introduced. The two digital application processes mean that our mobile sales force can process home loan and savings and deposit products entirely digitally.

In the Insurance division, both Württembergische Lebensversicherung AG and Württembergische Krankenversicherung AG received the "top financial strength" award in a FOCUS-MONEY survey. Various products also received awards, especially in Life and Health Insurance, such as all private annuity products of the WürttLeben Group (Genius, IndexClever, KlassikClever), which were given the top rating "excellent".

In addition, Württembergische insurance companies received the rating "top customer advice" in a study conducted by Service Value GmbH on behalf of Handelsblatt.

Further progress was made on expanding Württembergische as an SME partner. More than 600 mobile sales force colleagues have now qualified for the title "SME partner".

Adam Riese, the W&W Group's digital brand, further expanded its product portfolio towards (e-)mobility with a new bicycle and e-bike insurance policy.

Sustainability

Responsible action and social commitment have a long tradition in the W&W Group and are an integral part of its strategic orientation. It is based on an understanding of long-term, stability-focused corporate governance that in turn has its roots in the foundation ideals of W&W AG's main shareholder. 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.

There are various European regulatory requirements on transparency and disclosure of sustainability information. At present, W&W Group's implementation activities are focused on the European Sustainability Reporting Standards (ESRS). These will apply to the W&W Group for the first time for the 2024 financial year and replace previous non-financial reporting.

In June, employees had the opportunity to learn about the wide range of health services provided during Health Days. Following on from the Energy-Saving Days, the Health Days were the second in the series of events relating to sustainability at the new W&W Campus. The aim was to raise awareness of health issues among the W&W Group's employees and thus to reduce illness-related staff absences.

Financial performance

Total comprehensive income

Consolidated income statement

As at 30 June 2023, the consolidated net profit after taxes was Ŵ180.7 million (previous year: Ŵ145.7 million).

With the new accounting standard IFRS 17, part of the consolidated net financial result is attributable to insurance contracts with direct participation features (in life and health insurance). This part of the net financial result is allocated to the technical result. Previously, the net financial result amounted to Ŵ912.9 (previous year: -205.8) million.

• This increase is primarily attributable to the far better measurement result of Ŵ183.4 (previous year: -1,008.8) million, which benefited from the stabler capital markets than in the previous year.
• The current net financial result came to Ŵ638.7 million (previous year: Ŵ601.0 million). Rising refinancing costs were more than compensated for by a prior-period non-recurring effect in the Housing segment.
• On the other hand, net income from disposals declined to Ŵ103.9 million (previous year: Ŵ209.0 million). Especially for fixed-income securities, net income from disposals was lower than in the previous year due to higher interest rates in the prior year.

After the allocation, the net financial result still grew to Ŵ348.2 million (previous year: Ŵ149.6 million).

The technical result (net) decreased to Ŵ136.0 million (previous year: Ŵ159.6 million). Despite several large losses, the technical result (net) in property/casualty insurance was unchanged on the previous year. In life and health insurance, on the other hand, it decreased as a result in part of one-off income in the previous year.

Net commission expense amounted to –Ŵ24.8 million (previous year: –Ŵ6.7 million). This decrease is primarily attributable to the positive development of new home loan savings business, which led to higher commission expenses.

General administrative expenses (gross) increased by around 6% to Ŵ560.7 million (previous year: Ŵ528.7 million). Marketing initiatives and investments in our IT infrastructure resulted in higher materials costs. Personnel expenses saw a moderate increase of around 3% on account of inflation-driven pension adjustments and collectively bargained salary increases. As already described with regard to the net financial result, cost components attributable to the technical result were also allocated to general administrative expenses (in both life and health insurance and property and casualty insurance). This put general administrative expenses (net) at Ŵ262.4 million (previous year: Ŵ245.6 million).

Net other operating income came to Ŵ61.6 million (previous year: Ŵ135.4 million). Among other things, this was the result of lower income from settlement transactions in connection with home loan savings deposits.

Consolidated statement of comprehensive income

As at 30 June 2023, total comprehensive income stood at Ŵ160.9 million (previous year: Ŵ91.9 million). It consists of consolidated net profit and other comprehensive income (OCI).

OCI as at 30 June 2023 was -Ŵ19.8 (previous year: -237.6) million. The slight decline in interest rates in the first half of 2023 had a positive effect on the market values of fixed-income securities and registered securities. Their unrealised gains, which were recognised in OCI, came to Ŵ168.8 (previous year: -5,003.5) million. This was countered by the decline in interest rates for the valuation of technical provisions under IFRS 17. The resulting unrealised losses amounted to -Ŵ165.2 (previous year: 4,403.8) million. Actuarial losses from defined benefit plans amounted to -Ŵ24.5 million (previous year: Ŵ362.1 million). Interest had also increased significantly in the previous year and led to correspondingly high unrealised gains and losses.

As a complement to the consolidated income statement, OCI serves to depict profit and loss that is recognised directly in equity and that results from accounting under IFRS 9 and IFRS 17. 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 new standard to account for insurance contracts, IFRS 17, significantly reduced measurement discrepancies.

Housing segment

New business

New business for housing purposes for urgent financing, modernisation and the accumulation of equity (total from new business (gross) and the new lending business total including brokering for third parties) increased sharply by Ŵ171 million to Ŵ12,661 million (previous year: Ŵ12,490 million).

Gross new business in terms of total home loan savings contracts and net new business achieved the best halfyear figures in the company's history. Gross new business rose to Ŵ10,833 (previous year: 8,508) million and net new business soared by 82.0% to Ŵ9,345 (previous year: 5,134) million.

As a result of the difficult economic conditions, the new lending business total developed in line with the market and declined on the very strong prior year to Ŵ828 million (previous year: Ŵ3,982 million).

Wüstenrot Bausparkasse AG rigorously continued its growth course in the home loan savings business. It continued to grow more strongly than the sector and further expanded its market share.

New business key figures

	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	Change
	LQ Ƒ PLOOLRQ	LQ Ƒ PLOOLRQ	in %
New business volume	ƇƈƌƌƇ	ƇƈƊƏƐ	ƇƊ
New lending business volume (including brokering for third parties)	ƇƎƈƎ	ƉƏƎƈ	ƋƊƇ
Gross new business home loan and savings	ƇƐƎƉƉ	ƎƋƐƎ	ƈƍƉ

Financial performance

Net income after taxes in the Housing segment increased to Ŵ89.6 million (previous year: Ŵ71.2 million).

The net financial result climbed to Ŵ298.8 million (previous year: Ŵ150.2 million). This was due to the following factors:

■ The current net financial result rose to Ŵ161.9 (previous year: 118.5) million. It benefited from the reversal of the additional liabilities recognised as part of the purchase price allocation of the former Aachener Bausparkasse AG for acquired contracts with customers in the home loan and savings pool, which ran into the double-digit millions. The reversal resulted from the revaluation due to the rise in interest rates and the gradual shift in customer behaviour. Net interest income of the interest rate swaps used to manage the interest rate book and higher refinancing expenses had a negative impact, albeit to a lesser extent.

• Net income/expense from risk provision declined to -Ŵ 15.3 (previous year: -12.1) million, in part due to the full reversal in the first half of 2022 of the risk provision recognised for the potential consequences of the coronavirus pandemic.
• The measurement result was Ŵ48.8 (previous year: 33.9) million. In the previous year, the rise in interest rates had a negative impact on the market values of derivatives concluded to manage the risks of changes in interest rates. As a result of this effect, the measurement result increased year-on-year. This was offset chiefly by poorer net income from discounting provisions for home loan savings business and lower hedge income.
• Net income from disposals stood at Ŵ103.4 million (previous year: Ŵ9.9 million). It resulted from restructuring in connection with asset/liability management.

Net commission income declined to -Ŵ18.3 million (previous year: Ŵ8.9 million). This development was primarily driven by the removal of account maintenance fees in the savings phase and higher commission expenses as a result of the significantly increased new home loan savings business.

General administrative expenses amounted to Ŵ178.3 million (previous year: Ŵ167.5 million). As a result of our digitalisation initiatives, materials costs and depreciation on capitalised acquisition costs for major IT projects increased. Personnel expenses decreased as a result of the coronavirus-related special payments made to our employees in the previous year.

Net other operating income declined to Ŵ27.0 (previous year: 112.3) million. This was mainly the result of lower income from settlement transactions in connection with home loan savings deposits.

Life and Health Insurance segment

New business/premium development

Total premiums for new life insurance business rose to Ŵ1,609 million (previous year: Ŵ1,728 million). The decline was due among other things to fewer single-premium insurance policies. By contrast, in the area of company pension schemes, we were able to boost total premiums by 6.8% to Ŵ564 million (previous year: Ŵ528 million).

Total premiums in new life insurance business

	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	Change
	LQ Ƒ PLOOLRQ	LQ Ƒ PLOOLRQ	in %
Total premiums in new business	ƇƌƐƏ	ƇƍƈƎ	ƌƏ
Total premiums in new business (not including company pension schemes)	ƇƐƊƋ	ƇƈƐƐ	ƇƈƏ
Total premiums in new business for company pension schemes	ƋƌƊ	ƋƈƎ	ƌƎ

In health insurance, annual new premiums increased to Ŵ4.3 million (previous year: Ŵ2.6 million). New business reported growth in full-coverage premium rates as well as supplementary rates.

Financial performance

Segment net income after taxes stood at Ŵ14.5 million (previous year: Ŵ28.5 million).

With the new accounting standard IFRS 17, almost all the net financial result is attributable to contracts with direct participation features. This share of the net financial result is recognised in the technical result and taken into account in the adjustment of the contractual service margin through other comprehensive income. Before the allocation, the net financial result in the Life and Health Insurance segment amounted to Ŵ555.0 million (previous year: -Ŵ358.2 million). This was due to the following income components:

■ The current net financial result was Ŵ420.1 (previous year: 420.8) million. Interest income from new investments and reinvestments increased as a result of higher interest rates. Rental income was also higher. Distributions from alternative investments declined.

• The measurement result was Ŵ124.8 (previous year: 1,002.1) million. In the previous year, higher inflation resulted in measurement losses for interest-bearing securities, fund units and equities. This year, on the other hand, there were measurement gains on interest-bearing securities and shares. This development was also evident in the case of investments for unit-linked life insurance policies.
• Net income from disposals stood at Ŵ8.3 million (previous year: Ŵ218.8 million). Interest rate hikes resulted in lower sales volumes of bonds.

The technical result (net) fell to Ŵ43.5 million (previous year: Ŵ59.3 million). Insurance revenue (technical income) rose to Ŵ573.1 (previous year: 546.7) million. The previous year's increase in interest rates led to growth in the contractual service margin (CSM) of around 32% compared to 30 June 2022 and thus higher revenue in the first half of 2023. Technical expenses increased to Ŵ522.8 million (previous year: Ŵ482.2 million). In the previous year, the increase in interest rates resulted in one-off income for our pension fund.

Gross general administrative expenses (before the attribution of components of profit or loss attributable to the technical result) increased to Ŵ129.8 million (previous year: Ŵ121.4 million). Increased materials costs were offset by lower personnel expenses. After the allocation to the technical result, net general administrative expenses amounted to Ŵ21.8 million (previous year: Ŵ15.2 million).

Property/Casualty Insurance segment

New business/premium development

New business in terms of the annual contribution to the portfolio amounted to Ŵ260.1 million (previous year: Ŵ210.3 million). Both brand new business and replacement business were increased compared with the previous year. There was significant growth in the corporate customer and motor businesses. Business with retail customers was higher than planned but lower than in the previous year.

New business key figures

	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	Change
	LQ Ƒ PLOOLRQ	LQ Ƒ PLOOLRQ	in %
Annual contribution to the
portfolio (new and replacement business)	ƈƌƐƇ	ƈƇƐƉ	ƈƉƍ
Motor	ƇƊƎƍ	ƇƇƐƎ	ƉƊƈ
Corporate customers	ƍƋƈ	ƋƍƋ	ƉƐƎ
Retail customers	Ɖƌƈ	ƊƈƐ	ƇƉƎ

Financial performance

Segment net income after taxes rose to Ŵ60.4 (previous year: 49.8) million.

The net financial result stood at Ŵ20.4 million (previous year: -Ŵ12.8 million). It comprises the following components:

• The current net financial result came to Ŵ31.4 million (previous year: Ŵ44.4 million). Both interest income and interest expenses, especially current interest expenses from pension provisions, increased in connection with higher interest rates. Distributions, on the other hand, declined.
• The measurement result rose to Ŵ2.4 (previous year: 43.8) million. While the previous year saw considerable measurement losses on account of the substantial interest rate hikes, there were measurement gains in the current financial year, especially for equities and investment funds.
• Net income from disposals stood at –Ŵ4.4 million (previous year: -Ŵ13.7 million).

The technical result (net) fell slightly to Ŵ94.1 million (previous year: Ŵ97.4 million). All in all, the insurance portfolio grew well thanks to the good new and replacement business. Large losses in the first half of the year depressed the technical result. However, the participation of reinsurers outside the Group in the losses significantly reduced the impact of these on net income. The combined ratio (net) in accordance with IFRS 17 stood at 92.5% (previous year: 91.2%).

General administrative expenses (gross) came to Ŵ223.5 (previous year: 204.7) million. Both materials costs and personnel expenses increased. This was due primarily to increased expenses for marketing. In addition to collectively bargained wage increases, the increase in personnel expenses is primarily due to the increased payment to the Württembergische pension fund as a result of the inflation-driven pension adjustments. After the allocation to the technical result, net general administrative expenses amounted to Ŵ33.2 million (previous year: Ŵ27.7 million).

All other segments

"All other segments" covers the divisions that cannot be allocated to any other segment. This mainly includes W&W AG - together with its participations in Wüstenrot Immobilien GmbH, W&W Asset Management GmbH, Wüstenrot Haus- und Städtebau GmbH, and W&W brandpool GmbH - and the Group's internal service providers.

Segment net income after taxes amounted to Ŵ27.7 million (previous year: -Ŵ5.4 million).

Net financial result stood at Ŵ44.2 million (previous year: -Ŵ23.5 million). The following components were factors in this development:

• The current net financial result picked up to Ŵ29. million (previous year: Ŵ12.6 million), primarily due to higher distributions.
• The measurement result increased to Ŵ18.3 (previous year: -29.6) million. Declining capital markets in the previous year led to measurement losses for shares and investment funds, which did not occur in the first half of 2023.

Net commission income increased slightly to Ŵ19.4 (previous year: 17.6) million.

General administrative expenses amounted to Ŵ43.2 million (previous year: Ŵ41.1 million). Personnel expenses rose as a result of higher wages and salaries. Higher write-downs were also recognised on account of our investment in digitalisation initiatives and in the campus buildings.

Net other operating income declined to Ŵ7.4 million (previous year: Ŵ27.4 million). The previous year saw higher income from construction projects at Wüstenrot Hausund Städtebau GmbH.

Net assets

Asset structure

The W&W Group's total assets came to Ŵ67.4 (previous year: 66.6) billion. Assets essentially comprise building loans and investments.

Building loans rose to Ŵ26.0 billion (previous year: Ŵ25.4 billion). This upturn is due primarily to the higher number of advance and bridge financing loans.

Capital investments totalled Ŵ38.0 (previous year: 37.5) billion. Unlike in the previous year, there were no material fluctuations in value because interest rates declined only slightly in 2023.

Financial position

Capital structure

The business model of the W&W Group as a financial services group means that the liabilities side is dominated by technical provisions and liabilities to customers.

Technical liabilities (technical provisions) came to Ŵ31.1 (previous year: 30.3) billion. Ŵ27.4 (previous year: 27.1) billion of this was attributable to life insurance, Ŵ2.3 (previous year: 2.0) billion to property/casualty insurance and Ŵ1.4 (previous year: 1.3) billion to health insurance.

Most liabilities are liabilities to customers, which come to Ŵ23.3 (previous year: 22.9) billion. They largely comprise deposits from the home loan savings business and savings deposits amounting to Ŵ19.8 billion (previous year: Ŵ19.7 billion).

The carrying amount of subordinated capital was Ŵ651.8 (previous year: 641.5) million. It was issued by W&W AG, Wüstenrot Bausparkasse AG and Württembergische Lebensversicherung AG.

Consolidated equity

As at 30 June 2023, the W&W Group's equity totalled Ŵ4,993.7 million compared to Ŵ4,894.3 million as at 31 December 2022. This includes consolidated net profit as well as results incorporated in equity totalling Ŵ160.9 million. The dividend distribution reduced equity by Ŵ61.4 million.

Liquidity

The W&W Group had sufficient liquidity at all times in the year under review. For more information on liquidity management, please see the risk report.

In the cash flow statement, operating activities resulted in a cash outflow of -Ŵ335.1 (previous year: -1,853.9) million and investment activities, including investments, in a cash inflow of Ŵ49.0 (previous year: 1,905.1) million. Financing activities generated a cash outflow of -Ŵ71.8 (previous year: 70.7) million. Overall, cash and cash equivalents experienced a net change of -Ŵ359.5 million in the year under review (previous year: -Ŵ14.5 million). Further information is provided in the cash flow statement in the notes.

Related party disclosures

Detailed related party disclosures can be found in the notes under Other disclosures.

Opportunity and risk report

Opportunity report

Recognising and exploiting opportunities is a fundamental requirement for the successful evolution of the successful evolution of W&W Group. We thus aim to systematically identify, analyse and evaluate opportunities and initiate suitable measures to capitalise on them. We start with firmly established strategy, planning and control processes. We evaluate market and environmental trends and assess the alignment of our product portfolio, cost drivers and other key success factors, guided by sustainable values.

Opportunities are then identified that are discussed in high-level Executive Board discussions and board meetings and incorporated into the strategic plan. We also have governance and control structures in place in order to evaluate and pursue opportunities based on their potential, investment needs and risk profile.

Risk report

Risk management

The objectives and principles of risk management described in the 2022 annual report continue to apply at the reporting date 30 June 2023. Our risk management's organisational structures and processes as at 30 June 2023 are unchanged on those structures described in the 2022 annual report.

General conditions

General conditions for the W&W Group are still dominated by the uncertain macroeconomic and geopolitical situation associated with the war in Ukraine (including sustained high inflation, significantly higher interest rates and a volatile capital market environment). Germany's economic output is stagnating/declining slightly.

Monetary policy around the world responded to high inflation by increasing interest rates substantially. Despite financial market turbulence, central banks maintained their course. Further interest rate rises are on the horizon in the coming months. Spreads, which are still wider than before the pandemic or the war in Ukraine, reflect current uncertainties on capital markets about counterparty

credit risks in connection with the economic situation. Inflation, higher interest rates and recessionary trends are putting increasing strain on companies and individuals, which may result in poorer credit quality and a greater risk of payment defaults. Capital investments in commercial property are exposed to price correction risk on account of declining demand caused by the sharp rise in interest rates and economic dependency on rental income.

The World Health Organisation (WHO) declared the end of the international public health emergency in connection with the coronavirus pandemic in May 2023.

For more information on macroeconomic performance and developments on capital markets, see the "Business environment" section of this interim group management report. Please see the outlook for details about expected development, including of financial performance.

Current risk situation

The risk areas, targets and risk governance measures described in the 2022 annual report continue to apply at the reporting date 30 June 2023.

Under its risk strategy, the W&W Group aims for a economic risk-bearing capacity of over 145% based on a confidence level of 99.5% and over 125% for W&W AG. Calculations at the reporting date 30 June 2023 put risk-bearing capacity above this target quota and higher than the ratio as at 31 December 2022.

Macroeconomic developments, especially high inflation, effect multiple risk areas and can, for example, depress growth opportunities due to a decrease in new business or an increase in contract cancellations as a result of the loss of private purchasing power or reduced consumption, a deterioration in the cost position due to rising operating costs, increasing claims expenses or the potential need for additional provisions in pension reserves.

We believe the following risk areas have seen material developments or changed general conditions compared to the risk report in the 2022 Group Management Report due to internal and external factors:

Market price risks

After widening significantly, credit spreads declined again as at 30 June 2023 compared to the end of 2022. For example, the Itraxx Senior Financials 5Y came to 86.2 basis points as at 30 June 2023, 13.2 points lower than at the end of 2022. This is still high, a reflection of uncertainties about potential risks in connection with the economic situation. In this context, there is still a risk of a further widening of credit spreads, which are linked to lower market values of the capital investments affected.

With interest rates highly dynamic at present, there are still considerable interest rate risks for the W&W Group. Interest rate risks will continue to be closely managed in view of the inverse yield curve and uncertainty regarding the further development of capital markets, including through the effects of reallocations on earnings and the realisation of valuation reserves and the use of interestrate-based hedging instruments (e.g. (forward) swaps and swaptions), forward sales and duration management.

The upwards trend that began on equity markets in 2022 initially continued. The DAX and the Euro STOXX 50 reported significant price gains as at the reporting date compared to the end of 2022. The W&W Group's equity ratio was 1.3% as at 30 June 2023, unchanged on the end of the previous year.

In March, the banking crisis triggered a temporary collapse in share prices, with bank shares particularly badly affected. The direct impact of the US regional banking crisis and the crisis at Credit Suisse at the start of 2023 is immaterial for the W&W Group. Very low holdings of shares in the Silicon Valley Bank Financial Group, Signature Bank and First Republic Bank and low bond investments at Credit Suisse limit the direct risk.

In alternative investments, market valuations were largely stable on the whole as at the end of the reporting period. The market value of investments in private equity and private debt holdings and in infrastructure totalled Ŵ3,358.4 million as at 30 June 2023 (31 December 2022: Ŵ3,136.2 million). Higher interest rates mean higher financing costs in the future and, combined with ongoing uncertainty on the market, could result in a low transaction level. Depending on further economic and geopolitical developments, declines cannot be ruled out. With regard to private debt holdings, the probability of default at financed companies could also increase in the event of a recession.

For existing properties, high inflation and rising interest rates with stricter financing conditions pose devaluation risks and risks to rental income. On the other hand, inflation had a particularly positive impact on inflation-linked leasing. To manage risks, we closely monitor the market and any potentially critical lessees and operate a selective underwriting policy when purchasing land and properties.

Counterparty credit risks

As shown in the 2022 annual report, interest-bearing investments continue to focus on ensuring a high credit rating, balanced diversification and a good hedging structure. As at 30 June 2023, 90.5% (31 December 2022: 90.3%) of the portfolio is invested in the investment grade range. Nonetheless, there may be increasing rating downgrades and credit defaults in view of the existing economic risks.

In the customer lending business, Wüstenrot Bausparkasse AG's credit default rate remained low at -0.01%, similar to at the end of 2022.

Nonetheless, there may be increasing rating downgrades and credit defaults in view of the existing economic risks.

Underwriting risks

In view of portfolio growth, still high inflation and higher deductibles in reinsurance, the W&W Group's underwriting risks from property/casualty insurance saw a moderate increase as at 30 June 2023 compared to the end of 2022.

The overall loss ratio for the financial year in the Property/Casualty Insurance segment increased year on year. As well as numerous larger fire and loss of earnings claims, this reflected the increase in motor claims and the average claims paid in motor.

We are continuing to address higher claims expenses caused by inflation with a cautious premium calculation, defensive reserves policy and premium adjustments.

There are no significant inflation and interest-related effects on contract cancellations. The cancellation rate of Württembergische Lebensversicherung AG in terms of annual premium came to 3.9% in the first half of 2023 (previous year: 3.8%).

Operational risks

Since the start of the war in Ukraine, there has been an increased risk of cyber attacks in Germany, which the W&W Group is unable to avoid. To strengthen information security, measures were further expanded to proactively manage the potential rise in threats from cyber attacks. For example, the security operation centre was further reinforced to professionalise the early detection of new cyber attack patterns and assessment of the cyber risk situation.

Liquidity risks

According to liquidity planning, liquidity balances at W&W Group will be positive for the next 24 months so that sufficient liquidity is available to ensure solvency. Refinancing is secured at present. Wüstenrot Bausparkasse AG has higher refinancing requirements in the medium term on account of the planned growth. Measures taken to strengthen the liabilities side and current business performance (see business risks) have a positive impact on liquidity. The current situation on capital markets does not indicate any acute material market liquidity risks for the W&W Group's investments.

Business risks

The picture is more varied for new business development. While new home loan savings business is doing well and property/casualty insurance is also continuing to generate premium growth, construction financing and life insurance saw lower new business compared to the previous year, in part the result of the uncertain environment.

We discuss the development of new and existing business, as well as the net assets, financial position and results of operations, in the "Economic report – development of business and position of the W&W Group" section.

Summary

The W&W Group and W&W AG enjoyed sufficient economic and regulatory risk-bearing capacity at all times in the first half of 2023. In line with our economic risk bearing capacity model, we have sufficient funds to cover the risks taken with a high degree of assurance.

In June 2023, S&P confirmed the ratings of the W&W core companies W&W AG, Wüstenrot Bausparkasse AG, Württembergische Lebensversicherung AG and Württembergische Versicherung AG.

This confirmation reflects factors including the positive view of the W&W Group's risk management system.

Further developments in and the impact of the war in Ukraine remain difficult to assess in terms of their duration and scope. Accordingly, depending on future developments (especially the economy) it is not possible to rule out a decline in income and a negative impact on net assets, the financial position and the risk situation, especially if the strain caused by the war in Ukraine persists for a longer period of time.

Outlook

Macroeconomic outlook

Various negative factors also indicate that the German economy will be rather subdued over the rest of the year.

Inflation will likely ease over the course of the year. Firstly, energy and raw materials prices have decreased again recently and supply shortages for intermediate products have also improved. Secondly, wages in Germany are currently increasing at above-average rates. In addition, the transition to a more carbon neutral economy will push up prices. As a result, inflation is expected to decline in 2023 but it will likely remain noticeably higher than before the coronavirus pandemic for the time being.

Still high inflation will continue to squeeze private household consumption. Government spending will also likely depress growth as special programmes implemented during the pandemic expire. The ECB's more restrictive monetary policy is also weighing on sectors that are more sensitive to interest rates such as corporate and construction investment. Geopolitical conditions as well as sluggish growth in key target markets such as the USA suggest that export growth will be modest. The most likely scenario is therefore that German economic output will see a moderate decline in 2023. The German Bundesbank, for example, has forecast a decline in gross domestic product of 0.3%.

On the bond market, short-term interest rates track key interest rates closely. The ECB maintained its strategy of gradually raising rates over the year to date and after its last meeting again indicated that high inflation would likely make further rate hikes necessary. A likely scenario for the rest of 2023 is therefore a slight increase in shortterm interest rates. In July 2023, the ECB raised its key rates by 25 basis points to 3.75% (deposit rate) and 4.25% (rate for main refinancing operations). In terms of the outlook for long-term interest rates, still higher-than-average inflation, even higher interest rates and negative real interest rates suggest that yields on long-term bonds will rise further. On the other hand, inflation is trending downwards and there is increasing political pressure from the ECB to end the cycle of key rate hikes. This, together with the expected weak economy, could put long-term interest rates under pressure again towards the end of the year.

Various scenarios are conceivable for the European bond market outlook moving forwards. Share prices are negatively affected by further increases in key rates by leading central banks. Price drops are also conceivable as a result of disappointing company figures in a challenging economic environment. The geopolitical situation also seems likely to remain tense and so investor risk appetite and willingness to buy shares could be limited.

On the other hand, equity markets have proved extremely robust over the course of the year so far. As they often anticipate future economic developments, the expected easing of inflation and end to interest rate hikes by leading central banks could help stabilise prices in the second half of the year. Towards the end of the year, market participants may start looking ahead to the following year and a long-awaited economic recovery. Finally, positive geopolitical developments, e.g. an end to the fighting in Ukraine, could still happen as a possible favourable equity market scenario.

Company forecasts

Despite the non-recurring effect in the Housing segment, we still expect consolidated net profit to be within the target range of between Ŵ220 million and Ŵ250 million for 2023 as a whole.

The Group's general administrative expenses are expected to see a moderate year-on-year increase.

In new construction financing business (assumptions), we anticipate a significantly lower level compared to the previous year, while we think that net new home loan and savings business will exceed the previous year substantially.

Contrary to the planned increase, we expect total premiums for life business to remain on par with the previous year in 2023.

In the Property/Casualty Insurance segment, we anticipate significant growth in new and replacement business (annual contribution to the portfolio) in 2023.

We are standing by our forecast for W&W AG's net profit after taxes in accordance with HGB and expect this to be around Ŵ120 million.

The outlook is subject to future economic, inflation and capital market trends, high uncertainty regarding further developments in the war in Ukraine, and further claims performance, especially for natural disasters.

Forward-looking statements

This half-year financial report, including, without limitation, the outlook, contains forward-looking statements and information.

These forward-looking statements constitute estimates that were made on the basis of information that is available at the present time and is considered to be material. They may involve known and unknown risks as well as uncertainties and opportunities. Because of the multitude of factors that influence the companies' business operations, actual results may differ from those currently anticipated.

The company is therefore unable to assume any liability for forward-looking statements.

Wüstenrot & Württembergische AG Condensed consolidated half-year financial statements

Consolidated statement of financial position

Assets
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Cash reserve	ƉƏƈƐƐ	ƇƇƌƇƌƍ
Non-current assets held for sale and discontinued operations	– Ƈ	ƉƌƊƍ
Financial assets at fair value through profit or loss	ƇƐƈƇƐƋƊƈ ƈ	ƇƐƈƍƌƐƉƇ
Financial assets at fair value through other comprehensive income (OCI)	ƈƉƐƐƊƐƉƏ Ɖ	ƈƈƎƍƎƉƌƌ
of which: sold under repurchase agreements or lent under securities lending transactions	ƋƋƈƌƏƏ	ƊƌƋƈƍƐ
Financial assets at amortised cost	ƈƎƎƇƍƌƋƎ Ɗ	ƈƍƍƏƇƉƏƌ
Subordinated securities and receivables	ƈƐƎƌƐƌ	ƇƎƋƌƈƋ
Senior debenture bonds and registered bonds	ƌƐƍƊƈ	ƊƏƎƏƏ
Senior fixed-income securities	Ə	Ə
Building loans	ƈƋƏƋƍƌƌƎ	ƈƋƊƈƊƏƈƍ
Other receivables	ƈƋƎƍƍƏƈ	ƈƈƊƊƇƇƇ
Active portfolio hedge adjustment	ƈƎƊƇ	ŌƇƇƉƇƍƋ
Positive market values from hedges	ƈƋƏƎ Ƌ	Ƌƈƈ
Assets from insurance business	ƉƏƐƏƈƈ ƌ	ƉƊƊƎƇƇ
Insurance contracts issued that are assets	ƎƉƏƐƎ	ƍƇƉƌƊ
Reinsurance contracts held that are assets	ƉƐƍƐƇƊ	ƈƍƉƊƊƍ
Financial assets accounted for under the equity method	ƇƐƈƇƉƈ	ƇƐƏƌƐƊ
Investment property	ƈƊƏƌƇƋƍ ƍ	ƈƊƊƐƊƊƈ
Other assets	ƈƉƋƎƊƏƏ	ƈƌƈƎƊƇƈ
Intangible assets	ƇƉƍƇƊƎ	ƇƈƍƍƎƎ
Property, plant and equipment	ƋƇƊƐƇƈ Ǝ	ƋƉƎƊƏƊ
Inventories	ƇƉƌƐƉƎ	ƇƋƍƈƏƉ
Current tax assets	ƈƈƊƉƎ	ƋƋƌƊƎ
Deferred tax assets	ƇƊƏƉƌƎƋ	ƇƍƐƏƉƍƌ
Other assets	ƋƋƇƍƎ	ƉƏƎƇƉ
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Financial liabilities at fair value through profit or loss		ƊƐƏƏƉ	ƊƐƊƌƈ
Liabilities	Ə	ƈƍƊƍƋƐƋƊ	ƈƍƈƏƏƐƉƍ
Liabilities evidenced by certificates		ƈƉƍƌƐƉƏ	ƇƎƎƋƉƐƌ
Liabilities to credit institutions		ƇƏƈƇƎƋƐ	ƈƌƏƍƊƈƈ
Liabilities to customers		ƈƉƉƇƊƎƐƐ	ƈƈƏƉƈƊƏƎ
Lease liabilities		ƋƈƋƎƏ	ƋƉƊƋƋ
Miscellaneous liabilities		ƋƉƉƋƌƏ	ƋƏƎƊƋƍ
Passive portfolio hedge adjustment		ŌƍƈƉƍƏƉ	ŌƎƌƎƇƐƇ
Negative market values from hedges	ƇƐ	ƈƊƈƇƎ	ƈƋƊƌƌ
Technical liabilities	ƇƇ	ƉƇƐƋƌƇƌƊ	ƉƐƈƏƎƍƏƇ
Insurance contracts issued that are liabilities		ƉƇƐƋƉƇƍƊ	ƉƐƈƏƍƉƏƌ
Reinsurance contracts held that are liabilities		ƈƏƏƐ	ƇƉƏƋ
Other provisions	Ƈƈ	ƇƎƎƉƇƐƋ	ƇƏƐƋƋƌƈ
Other liabilities		ƇƈƏƌƍƇƍ	ƇƊƎƊƉƉƌ
Current tax liabilities		ƇƌƉƐƉƋ	ƇƌƇƏƌƐ
Deferred tax liabilities		ƇƇƈƇƎƎƊ	ƇƉƇƊƈƊƐ
Other liabilities		ƇƇƍƏƎ	ƎƇƉƌ
Subordinated capital	ƇƉ	ƌƋƇƍƎƐ	ƌƊƇƊƌƎ
Equity	ƇƊ	ƊƏƏƉƍƇƌ	ƊƎƏƊƈƍƌ
Share in paid-in capital attributable to shareholders of W&W AG		ƇƊƎƌƇƏƐ	ƇƊƎƌƈƋƈ
Share in retained earnings attributable to shareholders of W&W AG		ƉƊƍƉƉƍƊ	ƉƉƍƌƉƇƈ
Retained earnings		ƊƇƎƇƐƐƊ	ƊƐƌƇƍƏƋ
Other reserves (OCI)		ŌƍƐƍƌƉƐ	ŌƌƎƋƊƎƉ
Non-controlling interests in equity		ƉƊƇƋƈ	ƉƇƍƇƈ

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Equity and liabilities

Consolidated income statement

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Current net financial result	ƇƋ	ƌƉƎƍƐƈ	ƌƐƐƏƏƈ
Net interest income		ƊƋƎƏƏƍ	ƉƏƉƈƌƉ
Interest income		ƌƏƍƎƉƐ	ƋƌƐƈƍƋ
of which: calculated using the effective interest method		ƋƌƐƋƈƌ	ƋƐƍƋƉƎ
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Dividend income		ƇƈƋƇƇƊ	ƇƉƋƇƎƊ
Other current net income		ƋƊƋƏƇ	ƍƈƋƊƋ
Net income/expense from risk provision	Ƈƌ	ŌƇƉƇƈƏ	ŌƌƏƈƍ
Income from credit risk adjustments		ƊƈƈƉƏ	ƌƍƈƊƊ
Expenses for credit risk adjustments		ŌƋƋƉƌƎ	ŌƍƊƇƍƇ
Net measurement gain/loss	Ƈƍ	ƇƎƉƊƐƈ	ƈ ŌƇƐƐƎƍƏƐ
Measurement gains		ƈƉƏƎƇƇƉ	ƈ ƉƇƉƉƐƎƋ
Measurement losses		ŌƈƈƇƊƍƇƇ	ŌƊƇƊƇƎƍƋ
Net income from disposals	ƇƎ	ƇƐƉƏƈƋ	ƈƐƎƏƋƍ
Income from disposals		ƇƍƋƐƈƈ	ƊƈƊƏƈƎ
Expenses from disposals		ŌƍƇƐƏƍ	ŌƈƇƋƏƍƇ
of which: gains/losses from financial assets at amortised cost		ƇƇƈ	ƉƊ
Net technical financial result	ƇƏ	ŌƋƌƊƌƏƇ	ƉƋƋƊƐƇ
Insurance finance income or expenses from insurance contracts issued (gross)		ŌƋƌƋƏƏƇ	ƉƋƊƊƌƇ
of which: Insurance finance expenses from reinsurance contracts held		ƇƉƐƐ	ƏƊƐ
T o t a l n e t f i n a n c i a l r e s u l t		ƉƊƎƈƐƏ	ƈ ƇƊƏƌƉƉ
of which: net income/expense from financial assets accounted for under the equity method		ŌƍƊƍƈ	ƇƉƈƎƌ
Technical result (net)	ƈƐ	ƇƉƋƏƌƉ	ƇƋƏƋƏƈ
Technical result (gross)		ƇƇƌƌƋƇ	ƈƐƋƋƏƇ
Technical income		ƇƎƈƊƏƉƍ	ƇƌƍƐƎƐƎ
Technical expenses		ŌƇƍƐƎƈƎƌ	ŌƇƊƌƋƈƇƍ
Net result from reinsurance contracts held		ƇƏƉƇƈ	ŌƊƋƏƏƏ
Net commission income	ƈƇ	ŌƈƊƍƋƊ	ŌƌƌƏƉ
Commission income		ƇƋƏƇƇƌ	ƇƋƇƐƐƇ
Commission expenses		ŌƇƎƉƎƍƐ	ŌƇƋƍƌƏƊ
C a r r y o v e r		ƊƋƏƊƇƎ	ƉƐƈƋƉƈ

LQ Ƒ WKRXVDQGV Cf. Note no.		ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
C a r r y o v e r		ƊƋƏƊƇƎ	ƉƐƈƋƉƈ
General administrative expenses (net)		ŌƈƌƈƊƐƋ	ŌƈƊƋƋƏƌ
General administrative expenses (gross)		ŌƋƌƐƍƇƎ	ŌƋƈƎƍƊƇ
Personnel expenses		ŌƉƈƏƋƎƈ	ŌƉƇƏƈƌƌ
Materials costs		ŌƇƎƍƏƇƋ	ŌƇƍƊƇƍƇ
Depreciation, amortisation and write-downs		ŌƊƉƈƈƇ	ŌƉƋƉƐƊ
General administrative expenses attributable to the technical result		ƈƏƎƉƇƉ	ƈƎƉƇƊƋ
Net other operating income/expense	ƈƈ	ƌƇƌƐƌ	ƇƉƋƊƈƌ
Other operating income		ƇƊƊƊƈƌ	ƉƌƊƎƍƇ
Other operating expenses		ŌƎƈƎƈƐ	ŌƈƈƏƊƊƋ
E a r n i n g s 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		ƈƋƎƌƇƏ	ƈ ƇƏƈƉƌƈ
of which sales revenuesƇ		ƈƏƊƉƉƐƏ	ƈƍƈƌƇƉƋ
Income taxes	ƈƉ	ŌƍƍƎƎƋ	ƈ ŌƊƌƌƍƋ
C o n s o l i d a t e d n e t p r o f i t		ƇƎƐƍƉƊ	ƈ ƇƊƋƌƎƍ
Result attributable to shareholders of W&W AG		ƇƎƐƇƈƊ	ƈ ƇƊƊƎƍƌ
Result attributable to non-controlling interests		ƌƇƐ	ƎƇƇ
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Consolidated statement of comprehensive income

LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Consolidated net profit	ƇƎƐƍƉƊ	Ƈ ƇƊƋƌƎƍ
Other comprehensive income (OCI)
Elements not reclassified to the consolidated income statement:
Actuarial gains/losses (-) from pension commitments (gross)	ŌƉƊƏƋƐ	ƋƇƋƍƌƉ
Deferred taxes	ƇƐƊƇƌ	ŌƇƋƉƌƏƋ
Actuarial gains/losses (-) from pension commitments (net)	ŌƈƊƋƉƊ	ƉƌƈƐƌƎ
Unrealised gains on the remeasurement of property, plant and equipment (gross)	ƇƋƏƍ	–
Deferred taxes	ŌƊƍƌ	–
Unrealised gains on the remeasurement of property, plant and equipment (net)	ƇƇƈƇ	–
Elements subsequently reclassified to the consolidated income statement:
Unrealised gains/losses (-) from financial assets at fair value through other comprehensive income (OCI; gross)	ƈƊƐƈƏƉ	ŌƍƇƈƎƐƎƉ
Deferred taxes	ŌƍƇƊƋƋ	ƈƇƈƊƋƏƌ
Unrealised gains/losses (-) from financial assets at fair value through other comprehensive income (OCI; net)	ƇƌƎƎƉƎ	ŌƋƐƐƉƊƎƍ
Unrealised insurance finance income or expenses from insurance contracts issued (gross)	ŌƈƈƌƎƌƋ	ƌƈƉƍƍƎƇ
Unrealised insurance finance income or expenses from reinsurance contracts held (gross)	Ƌ	ƉƋƇƋƈ
Deferred taxes	ƌƇƌƉƊ	ŌƇƎƌƏƇƐƐ
Unrealised insurance finance income or expenses (net)	ŌƇƌƋƈƈƌ	ƊƊƐƉƎƉƉ
Total other comprehensive income (OCI; gross)	ŌƇƏƏƈƐ	ŌƉƉƏƉƎƍ
Total deferred taxes	ƇƇƏ	ƇƐƇƎƐƇ
Total other comprehensive income (OCI; net)	ŌƇƏƎƐƇ	ŌƈƉƍƋƎƌ
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	ƇƌƐƏƉƉ	Ƈ ŌƏƇƎƏƏ
Result attributable to shareholders of W&W AG	ƇƋƍƏƍƍ	Ƈ ŌƏƌƋƍƍ
Result attributable to non-controlling interests	ƈƏƋƌ	ƊƌƍƎ
Ƈ 3UHYLRXV \HDUŖV ILJXUH UHVWDWHG LQ DFFRUGDQFH ZLWK ,\$6 ƎƊƇ

Consolidated statement of changes in equity

Cf. Note no.	Share in paid-in capital attributable to shareholders of W&W AG
	Share capital	Capital reserve

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( T X L W \ Ɖ Ƈ Ƈ ƈ ƈ Ɛ ƈ Ƈ	ƊƎƏƎƏƉ	ƏƏƋƌƏƋ
(IIHFW RI LQLWLDO DSSOLFDWLRQ RI ,)56 Ƈƍ	–	–
( T X L W \ Ƈ Ƈ ƈ Ɛ ƈ ƈ	ƊƎƏƎƏƉ	ƏƏƋƌƏƋ
Total comprehensive income for the period
Consolidated net profit	–	–
Other comprehensive income (OCI)	–	–
Total comprehensive income for the period	–	–
Dividends to shareholders ƇƊ	–	–
Treasury shares	ƈƉƍ	Ɗƈƍ
Other	–	–
( T X L W \ Ɖ Ɛ ƌ ƈ Ɛ ƈ ƈ	ƊƏƐƇƉƐ	ƏƏƌƇƈƈ
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( T X L W \ Ƈ Ƈ ƈ Ɛ ƈ Ɖ	ƊƏƐƇƉƐ	ƏƏƌƇƈƉ
Total comprehensive income for the period
Consolidated net profit	–	–
Other comprehensive income (OCI)	–	–
Total comprehensive income for the period	–	–
Dividends to shareholders ƇƊ	–	–
Treasury shares	Ƈ	ŌƌƊ
( T X L W \ Ɖ Ɛ ƌ ƈ Ɛ ƈ Ɖ	ƊƏƐƇƉƇ	ƏƏƌƐƋƏ

Retained earnings				Share in retained earnings attributable to shareholders of W&W AG	Other reserves (OCI)	Equity attributable to W&W shareholders	Non controlling interests in equity	Total equity
	Reserve for pension commitments	Reserve for the remeasuremen t of property, plant and equipment	Reserve for financial assets at fair value through other comprehensive income	Reserve for technical finance income or expenses	Reserve for financial assets accounted for under the equity method
ƉƊƊƇƍƉƉ	ŌƌƎƍƇƊƉ	–	ƌƐƊƌƌƌ	–	Ɖ	ƊƎƊƊƎƊƍ	ƈƎƍƈƍ	ƊƎƍƉƋƍƊ
ƊƊƎƌƍƋ	ŌƉƌƎƉƉ	–	ƍƇƇƈƇƉ	ŌƎƉƉƊƊƈ	ŌƊƏ	ƈƎƏƋƌƊ	ŌƈƉƐƉ	ƈƎƍƈƌƇ
ƉƎƏƐƊƐƎ	ŌƍƈƉƏƍƌ	–	ƇƉƇƋƎƍƏ	ŌƎƉƉƊƊƈ	ŌƊƌ	ƋƇƉƊƊƇƇ	ƈƌƊƈƊ	ƋƇƌƐƎƉƋ
Ƈ ƇƊƊƎƍƌ	–	–	–	–	–	Ƈ ƇƊƊƎƍƌ	ƎƇƇ	Ƈ ƇƊƋƌƎƍ
–	ƉƌƐƍƊƎ	–	ŌƊƍƏƐƐƌƍ	ƊƇƎƍƎƌƌ	–	ŌƈƊƇƊƋƉ	ƉƎƌƍ	ŌƈƉƍƋƎƌ
Ƈ ƇƊƊƎƍƌ	ƉƌƐƍƊƎ	–	ŌƊƍƏƐƐƌƍ	ƊƇƎƍƎƌƌ	–	Ƈ ŌƏƌƋƍƍ	ƊƌƍƎ	Ƈ ŌƏƇƎƏƏ
ŌƌƐƏƇƋ	–	–	–	–	–	ŌƌƐƏƇƋ	–	ŌƌƐƏƇƋ
ƈƈƍ	–	–	–	–	–	ƎƏƇ	–	ƎƏƇ
ŌƈƐƍƇ	–	–	–	–	–	ŌƈƐƍƇ	Ōƈ	ŌƈƐƍƉ
Ƈ ƉƏƍƈƋƈƋ	ŌƉƌƉƈƈƎ	–	ŌƉƊƍƊƇƎƎ	ƉƉƋƊƊƈƊ	ŌƊƌ	Ƈ ƊƏƍƋƍƉƏ	ƉƇƇƐƐ	Ƈ ƋƐƐƌƎƉƏ

ƊƐƌƇƍƏƋ	ŌƉƉƐƈƐƌ	–	ŌƊƌƍƎƇƌƊ	ƊƉƈƉƌƉƇ	ŌƍƊƊ	ƊƎƌƈƋƌƋ	ƉƇƍƇƈ	ƊƎƏƊƈƍƍ
ƇƎƐƇƈƊ	–	–	–	–	–	ƇƎƐƇƈƊ	ƌƇƐ	ƇƎƐƍƉƊ
–	ŌƈƊƊƊƐ	ƇƐƌƊ	ƇƋƎƌƎƐ	ŌƇƋƍƊƋƇ	–	ŌƈƈƇƊƍ	ƈƉƊƌ	ŌƇƏƎƐƇ
ƇƎƐƇƈƊ	ŌƈƊƊƊƐ	ƇƐƌƊ	ƇƋƎƌƎƐ	ŌƇƋƍƊƋƇ	–	ƇƋƍƏƍƍ	ƈƏƋƌ	ƇƌƐƏƉƉ
ŌƌƐƏƇƋ	–	–	–	–	–	ŌƌƐƏƇƋ	ŌƋƇƌ	ŌƌƇƊƉƇ
–	–	–	–	–	–	ŌƌƉ	–	ŌƌƉ
ƊƇƎƇƐƐƊ	ŌƉƋƊƌƊƌ	ƇƐƌƊ	ŌƊƋƇƏƊƎƊ	ƊƇƌƌƇƎƐ	ŌƍƊƊ	ƊƏƋƏƋƌƊ	ƉƊƇƋƈ	ƊƏƏƉƍƇƌ

Condensed consolidated statement of cash flows

Cash flows from operating activities are determined using the indirect method.

The balance of cash and cash equivalents in the financial year comprises the items cash reserve of Ŵ39.2 (previous year: 46.8) million and bank balances available at any time included in Other receivables of Ŵ801.5(previous year: 919.7) million. The cash reserve includes cash, balances at central banks and balances at foreign postal giro offices.

Cash flows from financing activities include cash receipts from the disposal of treasury shares under an employee share ownership programme and cash payments from the repurchase of treasury shares on the market totalling -Ŵ0.5 (previous year: 0.5) million. The W&W Group can freely access the balance of cash and cash equivalents. The legally required balances at Deutsche Bundesbank, which are subject to the reserves requirement, came to Ŵ36.5 (previous year: 29.9) million as at 30 June 2023.

Condensed consolidated statement of cash flows
LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Consolidated net profit	ƇƎƐƍƉƊ	Ƈ ƇƊƋƌƎƍ
-/+ increase/decrease in building loans	ŌƌƈƇƏƉƐ	ŌƇƐƈƋƊƏƍ
+/- increase/decrease in technical liabilities	ƋƉƐƋƇƉ	ŌƊƏƇƇƊƉ
+/- increase/decrease in securitised liabilities	ƊƏƐƍƉƉ	ƇƍƏƌƊ
+/- increase/decrease in liabilities to credit institutions	ŌƍƍƋƋƍƈ	ƊƎƈƏƈƈ
+/- increase/decrease in liabilities to customers	ƉƎƈƉƐƉ	ƍƎƌƏƌ
Other changes	ŌƋƈƇƎƊƎ	Ƈ ŌƇƐƌƈƋƍƊ
I . C a s h f l o w f r o m o p e r a t i n g a c t i v i t i e s	ŌƉƉƋƐƌƍ	ŌƇƎƋƉƏƊƋ
Cash receipts from the disposal of intangible assets and property, plant and equipment	ƇƊƍƏƋ	ƇƐƍƋƏ
Cash payments for investments in intangible assets and property, plant and equipment	ŌƉƇƋƉƌ	ŌƌƇƋƌƋ
Cash receipts from the disposal of financial assets	ƌƈƍƐƐƏƊ	ƎƏƋƊƈƊƉ
Cash payments to acquire financial assets	ŌƌƈƐƊƉƎƏ	ŌƌƏƏƉƐƌƊ
Cash payments to acquire shares in financial assets accounted for under the equity method	–	ŌƋƈƎƍ
I I . C a s h f l o w s f r o m i n v e s t m e n t a c t i v i t i e s	ƊƎƏƌƊ	ƇƏƐƋƐƎƌ
Dividend payments to shareholders	ŌƌƐƏƇƋ	ŌƌƐƏƇƋ
Dividend payments to minority interests	ŌƋƇƌ	–
Transactions between shareholders	ŌƊƎƍ	ƊƋƏ
Interest payments on subordinated capital	ŌƇƊƋƍ	ŌƇƊƌƏ
Cash payments for the reduction of lease liabilities	ŌƎƊƊƐ	ŌƎƍƌƈ
I I I . C a s h f l o w s f r o m f i n a n c i n g a c t i v i t i e s	ŌƍƇƎƇƋ	ŌƍƐƌƎƍ
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LQ Ƒ WKRXVDQGV	ƈƐƈƉ	ƈƐƈƈ
& D V K D Q G F D V K H T X L Y D O H Q W V D V D W Ƈ Ƈ	ƇƈƐƐƈƋƐ	ƏƎƇƐƌƎ
Net change in cash and cash equivalents (I.+II.+III.)	ŌƉƋƍƏƇƎ	ŌƇƏƋƊƌ
Effects of exchange rate changes on cash and cash equivalents	ŌƇƌƈƍ	ƋƐƇƈ
& D V K D Q G F D V K H T X L Y D O H Q W V D V D W Ɖ Ɛ ƌ	ƎƊƐƍƐƋ	ƏƌƌƋƉƊ

Selected explanatory notes

General accounting principles and application of IFRS

Disclosure of general information about financial statements

In accordance with the provisions of Section 115 in conjunction with Section 117 no. 2 Wertpapierhandelsgesetz (German Securities Trading Act – WpHG), the half-year financial report of Wüstenrot & Württembergische AG comprise condensed consolidated half-year financial statements, a Group Interim Management Report and the responsibility statement in accordance with Section 297 (2) sentence 4 and Section 315 (1) sentence 5 Handelsgesetzbuch (German Commercial Code – HGB). The Group Interim Management Report is prepared in accordance with the provisions of the WpHG and German Accounting Standard 16.

The same accounting methods were used as for the consolidated financial statements as at 31 December 2022. The standards applicable for the first time from 1 January 2023 were also applied. IFRS 17 Insurance Contracts was applied for the first time retrospectively as at 1 January 2022. Please see the section "Disclosure of changes in accounting policies" for information on the material effects of applying IFRS 17 on financial position and financial performance.

The condensed consolidated half-year financial statements of Wüstenrot & Württembergische AG – comprising the consolidated balance sheet, consolidated income statement, consolidated balance sheet, consolidated statement of changes in equity, condensed consolidated statement of cash flows and selected explanatory notes – are presented in accordance with IAS 34 Interim Financial Reporting and were prepared on the basis of Section 315e HGB in accordance with the International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), and contain condensed reporting compared to the consolidated financial statements as at 31 December 2022. The Wüstenrot & Württembergische AG Executive Board authorised the Group's half-year financial report for publication on 12 September 2023.

The W&W Group's half-year financial report is prepared in EUR. Amounts stated may differ from each other slightly due to rounding.

Employee share ownership programme

An employee share ownership programme ran again in the first half of 2023 that allowed all eligible employees at W&W Group companies to acquire up to 40 shares in W&W AG at a reduced price of Ŵ11.28 (Ŵ5.00 discount). The employees must hold these shares for at least three years.

In addition to issuing treasury shares held, another 84,898 shares were resold on the market and partly issued for the programme. Employees acquired a total of 85,195 employee shares. The employee share ownership programme generated personnel expenses of Ŵ0.4 million. As at the reporting date 30 June 2023, W&W AG still held 34,335 treasury shares.

Disclosure of changes in accounting policies

International Financial Reporting Standards (IFRS) to be applied for the first time in the reporting period

With the exception of the standards to be applied for the first time described below, the same accounting policies were used as in the consolidated financial statements as at 31 December 2022.

Initial application of IFRS 17 Insurance Contracts

The W&W Group has applied the new accounting provisions of IFRS 17 Insurance Contracts in accordance with IFRS 17.C3 retrospectively since 1 January 2023. The comparative figures are restated from the transition date 1 January 2022. The material impact of the transition is discussed below under Effects of the initial application, on the basis of the consolidated balance sheet as at 1 January 2022. In addition, the Group's material accounting principles used to account for insurance contracts under IFRS 17 are described below.

Before the first-time application of IFRS 17 Insurance Contracts, insurance-specific business transactions were – as described in the 2022 annual report – recognised in line with IFRS 4 Insurance Contracts for domestic Group companies in accordance with the relevant rules of commercial law pursuant to Sections 341 et seqq. HGB and the regulations based on them, as IFRS did not include any specific rules for these. IFRS 17 replaces IFRS 4, which had been in effect since 1 January 2005, in full and for the first time introduces standardised requirements for the recognition, valuation, presentation and disclosure on insurance contracts and reinsurance contracts issued or held by the W&W Group's insurance companies. In some cases, the W&W Group does not apply IFRS 17 when accounting for products and services that also have both financial and insurance characteristics. As well as financial guarantees for which there is an option under FRS 17.7(e), this also applies to policy loans and premium deposits. These are still accounted for in accordance with IFRS 9.

Under IFRS 17, the same regulations apply to assumed reinsurance business as for primary insurance contracts. Together, these are referred to as insurance contracts issued. IFRS 17 includes some modified regulations for reinsurance contracts held. Accordingly, the accounting principles outlined below apply to both insurance and reinsurance contracts. Cases where IFRS 17 sets different regulations for reinsurance contracts are explicitly addressed.

Recognition

The insurance contracts are aggregated in the W&W Group at line level – life insurance, health insurance and property and casualty insurance – in accordance with the requirements of the new standards on the unit of account (level of aggregation). Groups of insurance contracts (GIC) that are subject to similar risks and managed together are formed as the unit of account. The insurance contracts are divided into three profitability groups and into cohorts based on timing. There must not be more than one year between the underwriting dates of insurance contracts allocated to the same group (annual cohort). In addition to the annual cohort regulation in IFRS 17.22, as part of the EU endorsement process an addition was made compared to the IASB version that gives EU companies the option to exempt certain contracts. The W&W Group applies the EU carve-out option at life insurance and health insurance level to groups of insurance contracts with direct participation features.

A group of insurance contracts issued is recognised for the first time for the purposes of IFRS 17 from the earlier of the date on which this GIC's coverage period begins and the date on which a premium payment in the GIC first falls due or the date of the first premium payment, if there is no due date. The coverage period is the period in which the company provides insurance contract services and for which premiums were paid within the boundaries of the contract. In the case of onerous groups of contracts, initial application applies from the date on which it becomes known that the group is onerous. The date of first-time recognition for a group of reinsurance contracts held depends on the beginning of their coverage period and the date of first-time recognition for the onerous underlying insurance contracts. Regardless of this, the first-time recognition of reinsurance contracts with proportionate coverage (as for quota share reinsurance contracts) is postponed until the date at which an underlying insurance contract was recognised for the first time if this date is after the start of the reinsurance contracts' coverage period.

Measurement

The W&W Group applies the IFRS 17 measurement models discussed below.

IFRS 17 initially stipulates the general measurement model (GMM), also known as the building block approach (BBA) for measuring groups of insurance contracts. The carrying amount of a GIC is measured as the sum of fulfilment cash flows and the contractual service margin (CSM). Fulfilment cash flows are the present value of expected future cash flows taking account of an explicit risk adjustment for non-financial risk. The CSM is the unrealised expected future profit from the insurance contracts. In accordance with the core principle of IFRS 17, the company does not earn this until the services are provided over the coverage period. By contrast, the expected loss from business expected to be onerous at initial recognition is recognised immediately as an expense. The CSM cannot assume a negative value for insurance contracts issued. In this case, it is recognised at zero in the balance sheet and a loss component is formed that is reduced in stages over the coverage period.

At the end of a reporting period, the carrying amount of a GIC comprises the following technical liabilities / provisions:

• the provision for future policy benefits (liability for remaining coverage), which comprises fulfilment cash flows for remaining coverage and the adjusted CSM; and
• the provision for outstanding insurance claims (liability for incurred claims), which represents fulfilment cash flows for expected cost and claims payments over the settlement period.

Under the BBA, the CSM is adjusted to account for the effects of new business, changes in fulfilment cash flows for future service, the unwinding of the discount using the interest rate at the time of initial recognition and, where applicable, the effects of any exchange rate differences. The CSM is then released through profit or loss on a pro rata basis for the services provided during the reporting period.

Regarding the subsequent measurement of the CSM, IFRS 17 applies a modified BBA for certain insurance contracts with direct participation features. The variable fee approach (VFA) is mandatory for the valuation of insurance contracts if all the following three criteria are met:

• the policyholders contractually participate in a clearly identified pool of underlying items;
• the entity expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items;
• the entity expects a substantial proportion of the amounts to be paid to the policyholder to vary depending on changes in fair value of the underlying items.

In the W&W Group, all primary insurance business in life insurance and a large share of health insurance business meet these criteria and are measured as business with direct participation features in accordance with IFRS 17 under the VFA.

Compared to the BBA, measurement under the VFA features an additional adjustment of the CSM to account for changes to the entity's share of the fair value of the underlying items. This is considered part of the variable fee that the entity withholds in the future over the coverage period of the insurance contract in exchange for settling its obligations to the policyholder. Fulfilment cash flows are determined based on contractual options and guarantees on a marketconsistent basis as part of a risk-neutral valuation. As underlying items generally generate higher income, differences arise in comparison to the risk-neutral valuation in the VFA. These are taken into account in the amount of the entity's share in the CSM, resulting in a systematic increase in the variable fee. In order to recognise the service appropriately, the entity's share of the excess return expected for the past reporting period is therefore released through profit or loss as part of the subsequent measurement.

The underlying items based on contracts with direct participation features in the W&W Group's life and health insurance are shown at fair value in Note (27). A special structure applies if an underlying item is a participation in a fully consolidated subsidiary. Here, net assets are not measured at fair value in the consolidated financial statements (after consolidation) but instead result from the measurement of the subsidiary's individual assets and liabilities under the relevant IFRS. In this case, the fair value of the participation / share in affiliated companies is used as the underlying item. The difference between net assets and the fair value of the participation is recognised in the W&W Group in other comprehensive income (OCI option) under IFRS 17.89(b) (see further information on the option under Use of discretionary decisions and estimates). Measurement discrepancies resulting from the joint application of IFRS 9 and IFRS 17 thus affect other comprehensive income (OCI), not the consolidated income statement.

IFRS 17 allows the use of approximations (known as the premium allocation approach, PAA) for measuring the provision for future policy benefits for short-term contracts. Presentation of the provision for future policy benefits is simplified using the provision for unearned premiums. In addition, the PAA can be applied for groups of insurance contracts for which the entity can reasonably expect the PAA to result in a measurement of the provision for future policy benefits that does not differ materially from the measurement under the BBA. When measuring the provision for outstanding insurance claims, the simplification procedure is applied in accordance with IFRS 17.59(b), whereby it is not necessary to discount expected future cash flows if claims are settled within one year or less from the date the claims are incurred.

The W&W Group uses the PAA for short-term contracts in health insurance. In property and casualty insurance, primary insurance business is measured according to the BBA. The PAA is also used in both of the cases described above. This also applies to reinsurance business held in health insurance and property and casualty insurance. Reinsurance business in the area of life insurance is measured according to the BBA.

Presentation and disclosure

Portfolios of insurance contracts that the W&W Group considers assets as at the end of the reporting period are included in the balance sheet under Technical assets, with insurance contracts issued and reinsurance contracts held recognised separately. On the assets side, these portfolios replace the previous IFRS 4 items Receivables from direct insurance business (under IFRS 4 part of Other receivables / Financial assets carried at amortised cost) and reinsurers' portion of technical provisions. In line with this, portfolios of insurance contracts that the W&W Group considers liabilities are shown under Technical liabilities, separately for insurance contracts issued and reinsurance contracts held. Under equity and liabilities, these replace the previous IFRS 4 items Liabilities from direct insurance business (under IFRS 4 part of Other liabilities / Financial liabilities measured at amortised cost) and Technical provisions. For more details, please see the consolidated balance sheet under the section Effects of the initial application.

The Technical result comprises technical income and technical expenses, which are shown separately for insurance contracts issued and reinsurance contracts held. The amounts recognised in the consolidated income statement as Earned premiums and Insurance benefits under IFRS 4 are, under IFRS 17, part of the cash flows included in the measurement of all insurance contracts in accordance with IFRS 17.29 et seqq. Based on the provisional IFRS Interpretations Committee (IFRS IC) decision (March 2023), this also applies to cash flows in connection with brokers. In comparison to IFRS 4, insurance revenue is recognised as changes from the provision for future policy benefits in relation to the services provided in the period as opposed to premium income in each period. Under IFRS 17, payments and receipts of investment components are not directly recognised in technical income or expenses. The difference between actual and expected investment components is offset against the CSM and is indirectly accounted for in the income statement as a result of their reversal over the coverage period. The same applies for changes to assumptions not relating to interest rates or financial risks. Where they relate to future insurance coverage, these are initially posted against the CSM and distributed with this over the remaining coverage period as insurance revenue in the income statement. Changes in estimates are recognised immediately in insurance expenses through profit or loss only for GICs where there is a risk of losses.

Exercising the option under in IFRS 17.86, technical income or expenses from a group of reinsurance contracts held are recognised in the consolidated income statement as a net amount under the item net result from reinsurance contracts held.

Technical finance income or expenses are the result of the effects of the time value of money and financial risks and the impact of a change in the time value of money and financial risks.

As is typical in the industry, the banks' income statements are usually prepared in accordance with the nature-of-expense method, whereas those of insurance companies are prepared using the cost of sales method, based on the insurance business's functional areas. W&W AG's consolidated income statement essentially includes income and expenses, both of Wüstenrot Bausparkasse AG as a special institution and of companies that conduct insurance business. To ensure standardised presentation of the Group's financial performance, the nature-of-expense method was applied in the consolidated financial statements prior to applying IFRS 17. This presentation of the income statement is no longer possible following introduction of IFRS 17, as recognising a technical result is mandatory under IFRS 17.83 et seqq. The nature-of-expense method as it stands is not suitable for this, as under IFRS 17 technical expenses are allocated to the technical result. For this reason, the following modifications were made in the reporting of income and expenses:

• The item Net commission income previously included performance figures from the insurance business, primarily expenses for concluding and maintaining insurance contracts. These expenses are now recognised in the technical result in accordance with IFRS 17.28A et seqq.
• The item General administrative expenses (gross) still includes all of the Group's administrative expenses, calculated using the nature-of-expense method. Expenses of insurance companies included in this item and that are also included as part of the technical result due to their insurance nature are reported separately as "deductions" under "General administrative expenses" ("General administrative expenses attributable to the technical result"). These are expenses for managing insurance contracts, managing capital investments (provided business measured using the VFA is affected), concluding insurance contracts and settling insurance claims, surrenders and recoveries.

For further quantitative disclosures on the technical result and on technical finance income or expenses, please see Note (30), Note (31) and the consolidated income statement.

In comparison to IFRS 4, IFRS 17 contains extensive changes and additions to the quantitative and qualitative information in the notes to the consolidated financial statements. The aim is to increase transparency regarding the effects of primary and reinsurance contracts on the reporting entity's net assets, financial position and financial performance and risk situation. Please refer to the section "Explanatory notes on insurance contracts" for information on the amended and new quantitative disclosures in accordance with the requirements of IFRS 17. The disclosures are shown at the level of the W&W Group's reportable segment breakdown in accordance with IFRS 8 after consolidation. W&W AG reinsures Württembergische Versicherung AG and passes the risks on to the reinsurance market (demand reinsurance). As underwriting risks are managed within the Württembergische insurance group, demand reinsurance is presented directly at Württembergische Versicherung AG (Property/Casualty Insurance segment) as opposed to at W&W AG (All other segments). In connection with this, the internal Group reinsurance relationship between Württembergische Versicherung AG and W&W AG in the Property/Casualty Insurance and All other segments and cross-segment consolidation is no longer reported. W&W AG assumed reinsurance business outside the Group covered by the scope of IFRS 17 is included in the non-reportable "All other segments" segment. This is of minor significance as reinsurance business outside the Group is limited, is in the process of being wound up and no further external business is being concluded. Accordingly, it is recognised in the notes combined with the tables for "property/casualty insurance". More information on the definition and structure of the segments can be found in the W&W Group's annual report.

Use of discretionary decisions and estimates

The presentation of insurance-specific business transactions in accordance with the new principles of IFRS 17 Insurance Contracts is subject to various discretionary judgements by management that may materially influence the consolidated half-year financial statements of the W&W Group. The new measurement approaches also require assumptions and estimates that affect the carrying amount of the W&W Group's insurance and reinsurance contracts and the resulting net income in the income statement / in other comprehensive income (OCI). The significant discretionary judgements and assumptions and estimates applied by the W&W Group for the valuation and presentation of insurance contracts under IFRS 17 are discussed below.

The W&W Group uses the year-to-date concept in accordance with IFRS 17.B137 for measurement. Under this approach, the entire GIC is remeasured at each reporting date, regardless of whether contracts were added to the group in the last or a preceding quarter.

When determining expected future cash flows, the W&W Group considers all cash flows within the boundaries of the contract and thus directly related to meeting contractual obligations. In particular, these include payments to policyholders, commission payments and other payments for the purposes of fulfilling the contract. With the transition to IFRS 17, the W&W Group also treats cash flows in connection with brokers as future cash flows within the scope of insurance contracts. This approach is consistent with the provisional IFRS Interpretations Committee (IFRS IC) decision (March 2023), according to which both the regulations of IFRS 17 and those of IFRS 9 can be applied for these cash flows.

All reasonable and supportable information available as at the reporting date is used when generating the cash flows. The estimates reflect the W&W Group's own current assessment of future developments that may have a significant impact on cash flows. Expectations regarding future changes in the law that would amend or replace an existing obligation or create obligations from existing contracts are not taken into account until these take effect.

Where necessary, the W&W Group uses stochastic modelling methods that project future cash flows using a high number of potential economic scenarios for market variables (such as interest rates and equity returns). These methods are used to account for the customary options and guarantees included, in particular, in life insurance. The cash flows are allocated to closing activities, other settlement activities and other activities by way of process cost accounting methods. Cash flows allocated to closing and other settlement activities are allocated to groups of contracts using methods that are systematically applied appropriately and consistently to all costs with similar features. In the projection, assumptions are made from current company-specific and line-specific perspectives, relating to areas including actuarial bases (interest rates, biometrics and costs), policyholder behaviour when exercising contractual option rights (such as dynamic premium option, lump-sum payment, call-up and annuity commencement, cancellation) and the internal management of the transaction. These assumptions are consistent with those of the ORSA (own risk and solvency assessment) under Solvency II, provided IFRS 17 does not require deviations from these. A deterministic projection was applied in health insurance. The W&W Group believes that this model gives sufficient consideration to the value of options and guarantees that are customary for German health insurance business, as changes in the capital market have already been essentially compensated via an appropriate premium structure. Furthermore, in health insurance, a modification of the contract that would have to be modelled as new business in accordance with the annual cohort arrangement is represented in a simplified manner by a rate change probability as part of the premium adjustment. In property and casualty insurance, premium cash flows are determined on the basis of premium amounts and maturities from individual contract information and, where necessary, adjusted on the basis of empirical observations. Actuarial techniques/economic business models are used to estimate cash flows from future claims/claims already incurred. Here, basic losses, large losses and losses from natural events (such as storms, earthquakes, flooding and hail) are modelled separately to suitably present the differences in amount and frequency. Annual parameterisation is based on established actuarial procedures. The simulated expected loss ratios in the modelling risk model are validated by way of back testing.

Estimates of cash flows within the boundaries of the contract also cover cash flows of the investment components. Under IFRS 17, these are the amounts to which the policyholder is entitled under all circumstances – including the expiry of the contract. There is no investment component only if there is a scenario with commercial substance in which the policyholder does not receive any services. Investment components at the W&W Group are primarily in life insurance primary insurance contracts. These are often linked to the underlying insurance contract and thus not recognised separately.

In addition, costs attributable to underwriting must be projected for the future. Cost cash flows to determine the provision for future policy benefits include cash flows for future claim adjustment, contract administration and acquisition costs. Service commissions as part of administrative costs and, for direct participating business, asset management costs are considered separately here. On the other hand, provisions for outstanding insurance claims include exclusively provisions for claim adjustment costs. As a simplification, the W&W Group assumes that acquisition costs are incurred with the first premium. Accordingly, corresponding receivables are not capitalised before the initial recognition of an allocated GIC. Instead, the acquisition costs are taken into account directly in the estimated cash blows at the time of initial recognition in the VSM without offsetting in accordance with IFRS 17.38(c)(i) and are systematically distributed in the income statement over the coverage period of the GIC. The W&W Group exercises the option in accordance with IFRS 17.59(a) to recognise acquisition costs directly in the income statement for GICs that include insurance contracts with a coverage period of no more than one year and that are measured using the PAA.

The W&W Group uses the bottom-up approach for estimating the yield curve, which is based on a liquid risk-free yield curve derived from market-traded interest rates of securities. From a last liquid point, the yield curve is determined using the weighted average between the interest rates still observable on the market and the interest rates extrapolated to the ultimate forward rate using the Smith-Wilson method. The ultimate forward rate reflects the interest rate expected in the long term that changes if significant changes are made to long-term expectations. The "illiquidity premium" is added to this base yield curve to reflect the different liquidity characteristics of the securities and insurance contracts underlying the base yield curve. For this, a liquidity measure is established that differentiates between liquid and illiquid securities. The premium for the illiquidity of insurance contracts is calculated as the product of a liquidity spread based on the investments underlying the insurance contracts and an application ratio that reflects the illiquidity of the insurance contracts. The W&W Group uses fixed-for-floating swaps as securities used to determine the base yield curve. The host instrument underlying the fixed-for-floating swap is initially six-month Euribor (for EUR) and an interest rate benchmark equivalent for foreign currencies (USD and GBP). Interest rates are provided for fixed interest periods of up to 120 years. Any fixed interest rates required during the year are determined by interpolating the interest rates in annual tranches. For fixed interest periods of up to two years, fixed interest periods can be supplemented in sixmonth tranches to make the greatest possible use of market data in accordance with IFRS 17.B78(a).

A discount was applied to the credit risk of the market interest rates used (credit risk adjustment) when determining the yield curve used for discounting on account of the crisis in Ukraine and the sustained increase in the capital market spread from the second quarter of 2022 onwards.

The following table shows the (base) yield curve used at the reporting date in question:

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in %	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
EUR	ƊƐƈ	ƉƇƌ	ƉƈƋ	ƉƇƉ	ƈƏƏ	ƉƇƇ	ƈƏƉ	ƉƐƊ	ƈƎƐ	ƈƎƊ
GBP	ƌƈƊ	ƊƉƏ	ƋƊƇ	ƊƇƐ	ƊƌƋ	ƉƌƏ	ƊƊƊ	Ɖƌƌ	ƊƉƇ	ƉƋƎ
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(Base) yield curve

The (base) yield curve shown is adjusted to account for the illiquidity premium. At both reporting dates, this was between 0.37% - 0.51% for life and health insurance companies and 0.46% for property/casualty insurance.

The risk adjustment for non-financial risks is the compensation requested for bearing the uncertainty about the amount and timing of the technical cash flows when fulfilling insurance contracts. Pursuant to the requirements under IFRS 17, the W&W Group incorporates the entity's own perspective when quantifying the risk adjustment and takes account only of the risks identified as underwriting risks in line with the entity's own risk and solvency assessment (ORSA). The legal units individually apply the methods of computation and allocation procedures that are appropriate for their risks and in terms of the timing of calculation requirements. Diversification effects between the units are not taken into account here. The risk adjustment is initially determined at the level of the legal units and so diversification effects between the GICs formed are accounted for directly. The risk adjustment is then allocated to the GIC – generally proportionally or on the basis of volume using the undiversified risk capital of the individual groups. The capital cost method was selected as the method for calculating the risk adjustment. Under this method, the required one-year risk capital at the 99.5% quantile is calculated at each measurement date to fulfil future obligations under the insurance contracts. The cost of capital, which is calculated using the company-specific cost of capital, is applied to this risk capital and used for present value calculation to determine the risk adjustment. For Life and Health Insurance, the risk capital projection from Solvency II was used, which involves making the required adjustments based on specific requirements under IFRS 17. The company's own economic business model is used in property/casualty insurance.

Applying a confidence level method, net income corresponds to a confidence level as at 31 December 2022 and as at 30 June 2023 in life and health insurance within the range of 90% to 95% for Württembergische Lebensversicherung AG. The confidence level for companies in property/casualty insurance ranged from 75% to 80% and from 95% to 100% for all other companies.

Changes to the risk adjustment for non-financial risks are generally to be broken down into the technical result and insurance finance income and expenses (such as the effects from the change in the discount rate). However, IFRS 17.81, allows the entire change in the risk adjustment to be recognised in the technical result. The W&W Group makes use of this option in Life and Health Insurance.

The CSM is realised on the basis of coverage units. At the W&W Group, these are determined in the relevant area depending on the product. For insurance contracts with direct participation features, the coverage unit in life insurance comprises two components: Investment-related services are measured at the amount of capital under management. Either risk capital or the insured pension is used for insurance services, depending on the nature of insurance coverage. These components are weighted based on expert evaluations and reviewed each year. In health insurance, earned premiums are used to measure insurance and investment-related services. In addition, the entity's share of the excess return expected for the past reporting period is taken into account when reversing the CSM in life and health insurance through profit or loss. For contracts without direct participation features, earned premiums are used as the coverage unit. The coverage unit for the passive reinsurance business is based on the coverage unit for the underlying primary insurance business, taking account of the cover ratio. The expected reversal through profit or loss of the remaining CSM at the reporting date is presented in Note (26) using appropriate time bands.

For VFA portfolios, as described above, the other comprehensive income (OCI) option in accordance with IFRS 17.89(b) provides the option to divide technical finance income or expenses between the consolidated income statement and Other comprehensive income (OCI). Under this option, the amount is to be recognised in the consolidated income statement through profit or loss is the amount that eliminates measurement discrepancies for the income and expenses of the underlying items recognised through profit or loss. The remaining amount is recognised through other comprehensive income (OCI). The W&W Group applied the OCI option to all VFA portfolios. In accordance with IFRS 17.88(b), this option also applies to the effects from insurance contracts without direct participation features resulting from changes to financial assumptions. To reduce volatility in the income statement, the W&W Group applies the OCI option described to all portfolios within the scope of the IFRS 17 measurement models in life and health and property/casualty insurance.

In addition, pursuant to IFRS 17.C29 there is the option to redesignate financial assets under IFRS 9 on initial application of IFRS 17. Based on analyses of the categorisation of financial assets under IFRS 9 in connection with interactions from the OCI option under IFRS 17, the W&W Group decided not to exercise the redesignation option.

Measurement at the transition date

Full retrospective application using the full retrospective approach (FRA) is the transitional approach generally applicable under IFRS 17, unless it proves impracticable for the entity concerned within the meaning of IFRS. As part of this, each GIC must be identified, recognised and measured as if IFRS 17 had always applied. The decision as to which transitional approach can be used depends on factors including the date of initial recognition of the relevant GIC. In the case of insurance contracts that have already been in force for a longer period of time, data availability is not comparable with that of recently concluded contracts and so the W&W Group applies the modified retrospective approach (MRA) in particular for the portfolio available as at the transition date 1 January 2022. In this case, evidence must be provided for the GIC that no sufficient data is available. Within the framework of the MRA, the W&W Group simplifies the identification and classification of GIC, the valuation of the CSM/the loss component for contracts with and without direct participation contracts at the transition date and the allocation of insurance finance income or expenses. The W&W Group did not use the fair value approach (FVA), which can be used for groups of insurance contracts with direct participation features as an alternative to MRA if the FRA is impracticable or if the requirements of IFRS 17.C5A are met.

In life insurance, the MRA was used for the primary insurance portfolio available as at the transition date, which is valued using the VFA. Information available as at the transition date 1 January 2022 was used to define the GIC. In accordance with IFRS 17.C10, no annual cohorts were formed. For the initial valuation of technical liabilities (technical provisions) at the end of the years from 2019 to 2021, the yield curves available at the start of the year were used for discounting. The CSM was measured under the MRA as at 31 December 2019 and was further developed in the subsequent valuation at the transition date. For GIC in health insurance, the MRA was applied with the exception of short-term property insurance rates and passive reinsurance contracts. The same approach was taken to recognising the GIC as in life insurance. By contrast, the FRA was used in full for short-term rates. The CSM and the loss components for insurance contracts with direct participation features in life and health insurance was determined in line with IFRS 17.C17 and the simplification options provided here. By exercising the OCI option IFRS 17.89(b), insurance finance income or expenses for direct participation contracts are divided into through profit or loss and through other comprehensive income. The OCI amount was determined at the value recognised for the underlying items at the transition date.

Based on the remaining coverage, a distinction was drawn between different contract components when accounting for property and casualty insurance contracts. Firstly, there are contracts without remaining coverage in 2017 that were in the process of being settled and for which a provision was recognised only for already incurred claims. Secondly, there are contracts with remaining coverage in 2017. Contracts without remaining coverage with more than one year between the underwriting dates were measured as one GIC within the corresponding portfolio using the MRA in line with IFRS 17.C10. For reasons of simplicity, illiquidity when determining the yield curve was taken into account for the period from 2017 until the transition date. For years prior to 2017, the arithmetic mean of the illiquidity premium from 2017 to 2022 was used in accordance with the relief under IFRS 17.C13. The FRA was used for contracts with remaining coverage. Regardless of this, methodological simplifications were used in determining cost and loss ratios, in risk adjustment and in testing for onerous business.

Effects of the initial application

The following table shows a condensed version of the consolidated balance sheet as at 1 January 2022 under IFRS 17 Insurance Contracts compared to the corresponding consolidated balance sheet under IFRS 4. Selected items were added to the condensed balance sheet that show the material effects of the initial application of IFRS 17.

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Assets
Cash reserve	ƍƈƇƉƌ	ƍƈƇƉƌ	–
Non-current assets held for sale and discontinued operations	ƎƈƋƎ	ƎƈƋƎ	–
Financial assets at fair value through profit or loss	ƇƐƍƈƇƌƎƎ	ƇƐƍƈƇƌƎƎ	–
Financial assets at fair value through other comprehensive income (OCI)	ƉƊƊƏƈƋƇƎ	ƉƊƊƏƈƋƇƎ	–
Financial assets at amortised cost	ƈƌƇƍƇƇƈƎ	ƈƋƎƍƈƏƈƎ	ŌƈƏƎƈƐƐ
Positive market values from hedges	ƌƐƏƏ	ƌƐƏƏ	–
Assets from insurance business	ƊƇƌƊƊƎ	ƋƐƏƌƌƐ	ƏƉƈƇƈ
Reinsurers' portion of technical provisions	ƊƇƌƊƊƎ	–	ŌƊƇƌƊƊƎ
Insurance contracts issued that are assets	–	ƇƇƌƊƉƋ	ƇƇƌƊƉƋ
Estimation of the present value of future cash flows	–	ƈƈƊƍƋƊ	ƈƈƊƍƋƊ
Risk adjustment for non-financial risks	–	ŌƇƉƌƎƎ	ŌƇƉƌƎƎ
Contractual service margin (CSM)	–	ŌƏƊƌƉƇ	ŌƏƊƌƉƇ
Premium allocation approach (PAA)	–	–	–
Reinsurance contracts held that are assets	–	ƉƏƉƈƈƋ	ƉƏƉƈƈƋ
Estimation of the present value of future cash flows	–	–	–
Risk adjustment for non-financial risks	–	–	–
Contractual service margin (CSM)	–	–	–
Premium allocation approach (PAA)	–	ƉƏƉƈƈƋ	ƉƏƉƈƈƋ
Financial assets accounted for under the equity method	ƏƐƌƉƎ	ƏƐƌƉƎ	–
Investment property	ƇƏƐƏƉƏƉ	ƈƋƊƇƉƏƈ	ƌƉƇƏƏƏ
Other assets	ƇƉƈƊƌƈƐ	ƇƌƇƇƍƐƏ	ƈƎƍƐƎƏ
of which deferred tax assets	ƊƐƏƊƋƎ	ƍƈƎƇƉƋ	ƉƇƎƌƍƍ
T o t a l a s s e t s	ƍƋƈƇƈƏƈƌ	ƍƋƏƈƍƐƈƌ	ƍƇƊƇƐƐ

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Equity and liabilities
Financial liabilities at fair value through profit or loss	ƈƇƎƈƐƇ	ƈƇƎƈƐƇ	–
Liabilities	ƈƍƏƌƉƍƏƇ	ƈƍƈƋƎƌƌƉ	ŌƍƐƋƇƈƎ
of which miscellaneous liabilities	ƏƈƇƐƊƐ	ƈƇƋƎƎƋ	ŌƍƐƋƇƋƋ
Negative market values from hedges	–	–	–
Technical liabilities	ƉƎƊƈƉƉƉƋ	ƉƏƇƈƎƏƈƇ	ƍƐƋƋƎƌ
Technical provisions	ƉƎƊƈƉƉƉƋ	–	ŌƉƎƊƈƉƉƉƋ
Insurance contracts issued that are liabilities	–	ƉƏƇƇƈƎƐƊ	ƉƏƇƇƈƎƐƊ
Estimation of the present value of future cash flows	–	ƉƌƇƋƋƉƎƊ	ƉƌƇƋƋƉƎƊ
Risk adjustment for non-financial risks	–	ƋƋƇƇƏƉ	ƋƋƇƇƏƉ
Contractual service margin (CSM)	–	ƇƉƇƍƉƇƏ	ƇƉƇƍƉƇƏ
Premium allocation approach (PAA)	–	ƇƐƎƎƏƐƎ	ƇƐƎƎƏƐƎ
Reinsurance contracts held that are liabilities	–	ƇƌƇƇƍ	ƇƌƇƇƍ
Estimation of the present value of future cash flows	–	ƈƋƉƈƍƈ	ƈƋƉƈƍƈ
Risk adjustment for non-financial risks	–	ŌƊƋƏƌ	ŌƊƋƏƌ
Contractual service margin (CSM)	–	ŌƈƉƊƉƇƍ	ŌƈƉƊƉƇƍ
Premium allocation approach (PAA)	–	ƇƍƋƎ	ƇƍƋƎ
Other provisions	ƈƍƈƐƐƋƉ	ƈƍƈƐƐƋƉ	–
Other liabilities	ƉƍƈƎƍƊ	ƍƏƏƈƋƋ	ƊƈƌƉƎƇ
of which deferred tax liabilities	ƇƊƍƊƐƇ	ƋƍƉƍƎƈ	ƊƈƌƉƎƇ
Subordinated capital	ƌƊƇƐƏƎ	ƌƊƇƐƏƎ	–
W & W c o n s o l i d a t e d e q u i t y	ƊƎƍƉƋƍƊ	ƋƇƌƐƎƉƋ	ƈƎƍƈƌƇ
Share in paid-in capital attributable to shareholders of W&W AG	ƇƊƎƋƋƎƎ	ƇƊƎƋƋƎƎ	–
Share in retained earnings attributable to shareholders of W&W AG	ƉƉƋƏƈƋƏ	ƉƌƊƎƎƈƉ	ƈƎƏƋƌƊ
Retained earnings	ƉƊƊƇƍƉƉ	ƉƎƏƐƊƐƎ	ƊƊƎƌƍƋ
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Other reserves (OCI)	ŌƎƈƊƍƊ	ŌƈƊƇƋƎƋ	ŌƇƋƏƇƇƇ
Reserve for pension commitments	ŌƌƎƍƇƊƉ	ŌƍƈƉƏƍƌ	ŌƉƌƎƉƉ
Reserve for financial assets at fair value through other comprehensive income (FVOCI)	ƌƐƊƌƌƌ	ƇƉƇƋƎƍƏ	ƍƇƇƈƇƉ
Reserve for financial assets accounted for under the equity method	Ɖ	ŌƊƌ	ŌƊƏ
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Non-controlling interests in equity	ƈƎƍƈƍ	ƈƌƊƈƊ	ŌƈƉƐƉ
T o t a l e q u i t y a n d l i a b i l i t i e s	ƍƋƈƇƈƏƈƌ	ƍƋƏƈƍƐƈƌ	ƍƇƊƇƐƐ

As shown in the table below, the initial application of IFRS 17 as at 1 January 2022 both increased and decreased Group equity. Overall, Group equity rose by Ŵ287 million after tax at the transition date.

In property and casualty insurance, the effects of initial application led to a decrease in technical provisions (after reinsurance). Accordingly, Group equity in the initial application reserve (IFRS 17), including Other reserves (OCI), increased by Ŵ533 million. This is primarily because IFRS 17 reflects the economic value of the insurance contracts as fulfilment cash flows in the sense of the best estimate and at the time of initial application, it adjusted the reserves established under IFRS 4 in accordance with the prudence principle of German commercial law.

In life and health insurance, on the other hand, the effects of initial application of IFRS 17 resulted in a decline in Group equity in the initial application reserve (IFRS 17) including Other reserves (OCI) of Ŵ246 million. This is partly because, under the variable fee approach (VFA), all hidden assets/liabilities for the underlying items are now accounted for in full as part of technical provisions. In this context, the investment property underlying the insurance contracts was measured at fair value retrospectively as at 1 January 2022 in accordance with IAS 40.32A (see "Investment property" section). This avoided an accounting mismatch and limited the decline in Group equity in life and health insurance. The carrying amount of investment property rose by Ŵ632 million to Ŵ2,541 million. Other reserves (OCI) include the reserve for pension commitments and the reserve for financial assets at fair value through other comprehensive income (FVOCI), which reflect the reversal of the deferred provision for premium refunds under IFRS 4. This is countered by the use of the OCI option under IFRS 17. At the transition date, the recognition of the contractual service margin (CSM) under IFRS 17 meant that gains from retained earnings recognised under IFRS 4 had to be reclassified to the CSM.

Additional amendments to be applied for the first time

• Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies. The amendments provide greater detail on the materiality of accounting policies and disclosures. The requirement to disclose "significant" accounting policies is replaced by a requirement to disclose "material" accounting policies on the basis of a flow chart. The Practice Statement 2 adds guidelines and illustrative examples to help apply the materiality concept when assessing disclosures of accounting policies.
• Amendments to IAS 8 Definition of Accounting Estimates specifies the difference between accounting policies and accounting estimates to make it easier for companies to distinguish these. The distinction is important as changes to accounting policies are generally to be applied retrospectively while changes in estimates are accounted for prospectively.
• Amendments to IAS 12 Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction. Under certain circumstances, entities are exempt from recognising deferred taxes when recognising assets or liabilities for the first time (initial recognition exemption). The amendments stipulate that the exemption does not apply if the transaction gives rise to equal deductible and taxable differences. In these cases, entities must recognise deferred taxes for these transactions.

The amendments were adopted in EU law on 2 March and the latter on 11 August 2022. The amendments have no material impact on the presentation of the W&W Group's net assets, financial position and financial performance.

Accounting requirements that have been published but are not yet mandatory

Other amendments

The IASB also published the following amendments:

Amendments with initial application for financial years beginning on or after 1 January 2023

Amendments to IAS 12 Income Taxes: International Tax Reform – Pillar Two Model Rules include a temporary exemption from the requirement to recognise deferred taxes resulting from the implementation of global minimum taxation by the countries in question and explicit disclosure requirements.

EU endorsement has not yet been granted for the amendment. The recognition exception is to be applied immediately after publication of the amendment. The amendments affecting the notes are applicable to financial years beginning on or after 1 January 2023. The developments and impact are currently being further analysed and the regulations will be implemented on time.

Amendments with initial application for financial years beginning on or after 1 January 2024

• Amendments to IAS 1 Presentation of Financial Statements:
  • Classification of Liabilities as Current or Non-current and Classification of Liabilities as Current or Non-current - Deferral of Effective Date: The amendment clarifies that the classification of liabilities as current depends on the entity's right as at the reporting date to defer settlement of a liability for at least twelve months. This liability is classified as non-current if the entity is entitled to do so. If it is not, the liability is considered current. The effective date was deferred from 1 January 2023 to 1 January 2024.
  • Non-current Liabilities with Covenants: Clarifies that, for non-current liabilities, covenants are to be taken into account for the classification as current or non-current where these must be complied with on or before the reporting date.
• Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback provides additional details about the subsequent measurement of the lease liability as a result of a sale and leaseback transaction. It states that the lease liability is to be subsequently measured in a way that it does not recognise any amount of the gain or loss that relates to the right of use it retains.
• Amendments to IAS 7, Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures Supplier Finance Arrangements supplement existing disclosure requirements for supplier finance arrangements and improve entities' understanding of the effects these have on liabilities, cash flows and liquidity risks.

EU endorsement has not yet been granted for these amendments. The amendments are not expected to have any material impact on the presentation of the W&W Group's net assets, financial position and financial performance.

Changes in estimates

Recalibration of option adjusted spread

Improvements to the model for calculating the option adjusted spread (OAS) resulted in a change in estimates when measuring technical liabilities. Credit spread volatility was added to the existing standard measurement model used on the market as the second factor for calculating the OAS. There was a shift within the technical liabilities item in the high single-digit millions. This reduced the risk adjustment for non-financial risks and increased the contractual service margin (CSM). The model improvement did not have any material impact on the income statement.

Change in expected customer behaviour in collective business (former Aachener Bausparkasse AG)

A hidden liability was determined for customer contracts in collective business in connection with the acquisition of the former Aachener Bausparkasse AG as at 1 January 2020. Under IFRS, this was a component of home loan savings deposits classified as liabilities to customers and was measured at amortised cost. The sharp rise in interest rates in the first half of 2023 resulted in a significant shift in expected customer behaviour. Estimated incoming and outgoing payments were revised as a result of this change and amortised cost adjusted accordingly to the present value of estimated future contractual cash flows. The additional amount recognised as a liability as part of the purchase price allocation for acquired contracts with customers in collective business was thus reversed through profit or loss. The W&W Group saw a high double-digit million benefit as a result of this reversal.

Amendment in accordance with IAS 8.41

Separate line items

Until the second half of 2022, the associated separate line items (SLI) of hedged items still in the portfolio whose cash flows were reallocated to other maturity bands as part of the monthly redesignation process due to interest rate changes were derecognised on a pro rata basis. As the SLIs were to be derecognised only for hedged items that had actually been disposed of, this process was not in line with IFRS requirements. As a result of the flat yield curve, this had immaterial effects by the end of the 2021 financial year.

Given the sharp rise in interest rates combined with high interest volatility, this effect was more pronounced in the 2022 financial year and so a material correction was required after publication of the 2022 half-year financial report. In the second half of 2022, the system of amortisation and derecognition of separate line items from the portfolio fair value hedge in the hedged items was therefore retrospectively modified for the entire 2022 financial year so that no corrections were required in the financial statements as at 31 December 2022.

The half-year result was understated by Ŵ23.8 million due to this correction requirement. It was restated retrospectively in this report. The restated amounts were identified in the comparative disclosures with the foot note "Previous year's figure restated".

In the half-year financial report as at 30 June 2022, the "passive portfolio hedge adjustment" item was overstated by Ŵ33.6 million and "active portfolio hedge adjustment" was understated by Ŵ0.3 million.

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Changes to the scope of consolidation

Additions and disposals in the scope of consolidation

City Immobilien GmbH & Co. KG der Württembergischen was merged with Württembergische Lebensversicherung AG in the first half of 2023.

The change to the scope of consolidation had no effect on the comparability with the previous year.

Methods and rules

Calculating the fair value of financial instruments

The following method is used to calculate the fair values of financial instruments, regardless of the category or class to which the financial instrument is assigned and whether the fair value calculated is used for the accounting measurement or the information in the notes.

As a general rule, the class assigned for measuring fair value in accordance with IFRS 13 is the same as the class used for the expanded notes for financial instruments in accordance with IFRS 7. This is expanded by incorporating non-current assets held for sale and discontinued operations and, in line with this, incorporating liabilities from non-current assets held for sale and discontinued operations in order to cover the relevant assets and liabilities.

Given the business models used in the W&W Group and the high relevance of capital investments, a detailed classification is used for financial instruments. They are divided into classes on the basis of characteristics such as the nature of the cash flows underlying the financial instruments and their risks. This includes differentiation based on ranking. The nature of the financial instruments is concisely reflected in the respective class names. The following classes of debt instruments are also explained separately:

the class "senior fixed-income securities", which can be found in the "financial assets at fair value through profit or loss" and "financial assets at fair value through other comprehensive income (OCI)" categories, includes senior (bearer) bonds with mainly fixed interest rates.

In the "financial assets at fair value through other comprehensive income (OCI)" category, the class "subordinated securities and receivables" comprises bonds and other securities and receivables. Based on the class volume, these are essentially floating rate notes or, depending on the contractual structure, bonds with a changing coupon type (e.g. fixed rate to variable).

The class "Fixed-income financial instruments that do not pass the SPPI test" within the "financial assets at fair value through profit or loss" category covers all financial instruments that are not solely cash flows for payments of principal and interest on the principal amount outstanding and so do not meet the SPPI criterion in IFRS 9. This class includes various types of bonds, promissory note loans and other securities and receivables with a range of rankings, which may be subject to several risks. Given the individual contract structure, industrial companies and other financial services providers represent the largest group here.

The "Senior debenture bonds and registered bonds" class in the "financial assets at fair value through other comprehensive income (OCI)" category includes exclusively non-fungible bonds and promissory note loans with fixed coupons. Public institutions and credit institutions account for the majority of issuers here.

The "Derivative financial instruments under assets and equity and liabilities" class essentially includes forward exchange contracts, swaps, other interest rate and currency derivatives and quoted and unquoted equity and index-linked options.

The class "Positive and negative market values from hedges" covers instruments designated as hedges as part of hedge accounting. At the W&W Group, these are generally unquoted interest rate swaps.

The class "Capital investments for the account and risk of life insurance policyholders" primarily contains fund units in which the W&W Group does not participate itself and thus does not bear any risks or opportunities.

The fair value of a financial instrument is the price that the W&W Group would receive on the measurement date in an arm's length transaction between market participants for the sale of an asset or that it would have to pay to transfer a liability. Fair value is thus a market-based measurement, not an entity-specific measurement.

Further procedures and the principles of measuring fair value are described in the section "Explanations of financial instruments and fair value".

Risk provision – financial assets

The model for determining risk provision under IFRS 9 is based on expected credit losses and is therefore also referred to as the expected credit loss model. This model requires estimates regarding the extent to which the expected credit losses are affected by changes in economic or macroeconomic factors. This estimate is made on the basis of weighted probabilities.

IFRS 9 regulations on risk provision are applied to financial assets measured at amortised cost, debt instruments measured at fair value through other comprehensive income and loan commitments and financial guarantees issued. In the case of assets at amortised cost, the risk provision is recognised directly in the risk provision position associated with the respective balance sheet item. In the case of assets at fair value through other comprehensive in-come, the risk provision is recognised in the income statement by adjusting the reserve for financial assets at fair value through other comprehensive income, which is recognised in equity. The risk provision for off-balance-sheet business is recognised as an expense under "Other provisions". This risk provision is essentially calculated the same way as that for financial assets. Financial assets at fair value through profit or loss and equity instruments not subject to any credit risk are not covered by the IFRS 9 risk provision model.

Under IFRS 9, the risk provision is determined using a three stage approach. In stage 1, impairment at the time of initial recognition is determined on the basis of 12-month credit defaults. These are expected credit losses due to potential default events within 12 months of the reporting date. If the credit risk (not accounting for securities) has increased significantly as at the measurement date, the financial asset is transferred from stage 1 to stage 2 unless a default event occurs. In stage 2, valuation is based on potential default events over the remaining term of the financial asset (lifetime perspective). If defaults occur over the course of time and thus there are objective indications of credit impairment, the asset is assigned to stage 3. Impairment in stage 3 is calculated in line with stage 2 impairment on the basis of the lifetime perspective, taking account of the certain occurrence of a default event. In stages 1 and 2, interest income is calculated on the basis of the gross carrying amount; in stage 3 interest income is calculated based on the gross carrying amount less the risk provision. The impact of the war in Ukraine on the risk provision is discussed in detail in the respective section.

It is essentially assumed that contracts in the customer lending business where payment is delayed by 30 or more days are deemed to have a significantly higher credit risk and are allocated to stage 2. This presumption was rebutted only for a small share of the total portfolio, which was still assigned to stage 1 despite being more than 30 days past due.

Significant decrease in credit rating

In the lending business, the change in the probability of default (PD) is used to carry out a quantitative assessment of whether the credit rating has experienced a material decrease since first-time recognition. The quantitative assessment criterion for a decrease in the credit rating is an actual reduction in the internal credit rating for the borrower's contract in question, which is used in the internal assessment of default risk. In addition to empirical values and credit ratings, forward-looking macroeconomic information is also taken into account here on a quantitative basis. This macroeconomic information is generally used based on qualitative considerations in risk management or technical considerations to determine the point-in-time components. Within the meaning of the true and fair view, there is a demonstrated link, which is also considered when determining the risk provision under IFRS 9, between the relevant forward-looking information and the relevant risk parameters. Further details can be found in the section Modelling the point-in-time components.

In the case of building loans, the portfolios are assigned to an internal rating class using a scoring method. Each rating class is associated with a probability of default. At the acquisition date, they are allocated to a rating class using application scoring. Over time, the change in credit quality is reviewed by way of behavioural scoring and the portfolio is assigned to the respective rating class. The question of whether there has been a significant decrease in the credit rating is determined based on the relative change in the probability of default. In addition, a qualitative criterion in the form of the need for forbearance measures is used when ascertaining a significant decrease in the credit rating. Further details can be found in the section "Concessions and renegotiations (forbearance measures)".

In the case of securities, this is based on the external issuer rating and other criteria, such as a change in price (average price for the last six months is permanently 20% lower than the carrying amount, average price for the last 12 months is permanently 10% lower than the carrying amount). Securities with an investment grade issuer ranking are assigned to stage 1. They are transferred to stage 2 if the rating changes from investment grade to non-investment grade. If, in addition to the significantly higher credit risk, there are objective indications that a security is impaired or the issuer experiences a default event, the security is transferred to stage 3.

It is allocated to stage 3 if the impairment trigger or the regulatory definition in accordance with Article 178 CRR is met. In accordance with this, the following criteria are used:

• the W&W Group considers it unlikely that liabilities to the W&W Group will be settled in full without the W&W Group having to take measures such as liquidating securities, and/or
• the receivable is more than 90 days past due.

A write-off is the direct reduction in a financial asset's gross carrying amount due to impairment by the amount that is expected to be uncollectible. A write-off results in the (partial) derecognition of an asset. A write-off is generally recognised only when the remaining receivable is considered uncollectible after successfully liquidating the securities. This amount generally represents the utilisation of a previously recognised risk provision.

The W&W Group does not have any material financial assets that were already impaired upon initial recognition.

Measurement of the expected credit risk/loss

To determine the expected credit loss/expected credit risk, the W&W Group uses a model based on parameters for the probability of default (PD), the exposure at default (EAD) and the loss given default (LGD). The expected credit risk is calculated based on existing (one-year) parameters that are used to determine the minimum capital requirement for credit institutions under the internal ratings-based approach (IRB) and adjusted for the requirements of IFRS 9 (e.g. multi-year horizon in the sense of a remaining term perspective and inclusion of macroeconomic factors). As part of this, existing one-year models are used and the term-dependent probability of default is approximated using one-year PDs. The central feature for determining multi-year, conditional PD profiles is the 12-month/one-year default indicator.

In the lending business, probability of default (PD) is calculated using an internal rating system. Within the W&W Group, each loan is assigned a probability of default based on a master scale. The rating is based on specific customer behaviour, taking into account factors such as general customer behaviour (e.g. income, family status), external data (e.g. Schufa information) and payment history.

As part of determining the parameters for calculating the exposure at default (EAD), the contractually agreed payments of interest and principal and optional special repayments are modelled for all products.

When determining the expected percentage loss at the time of default (LGD), multi-year parameters are modelled on the basis of features that vary over time. As well as the EAD stated, these features that vary over time comprise, for example, securities or loan-to-value ratios. Here, a point-in-time component is modelled to recognise macroeconomic effects on the loss ratio. The price index for existing residential properties is relevant for real securities, whereas nonreal securities reference the long-term ten-year interest rate for German government bonds. Further details can be found in the section Modelling the point-in-time components.

Cash flows must also be discounted when determining a risk provision under IFRS 9. The effective interest rate is used as the discount factor.

Modelling the point-in-time components (forward-looking information)

Models of point-in-time components should cover forecasts of future economic changes as well as past and current information. Due to the multi-year horizon of these components, information on expected future economic development must therefore be taken into account when assessing the default risk of a loan. Using the macroeconomic factors, forecasts extend up to a maximum of three years into the future.

Making a forward-looking correction of this nature constitutes an adjustment of the probability of default (PD). This forward-looking perspective requires including forecasts of the economic factors relevant to the default rate. First, the effect of the relevant macroeconomic factors on the default rate is determined. The point-in-time correction of the probability of default is then based on the forecast for this default rate. Accordingly, a contract-specific point-in-time corrected settlement LGD is also modelled.

In the customer lending business, the change in the probability of default in relation to macroeconomic factors depends chiefly on the change in the unemployment rate and nominal GDP growth. The probability of default and, in turn, the risk provision, tends to increase when the unemployment rate rises or nominal GDP growth declines. In the customer lending business, the amount of the expected percentage loss in the case of default in relation to macroeconomic factors depends chiefly on developments in the price index for existing residential properties and developments in the ten-year interest rate for German government bonds. The expected percentage loss at the time of default and, in turn, the risk provision, tends to increase if the price index for existing residential properties falls or the long-term ten-year interest rate for German government bonds increases.

The model for calculating the risk provision requires estimates regarding the extent to which the expected credit losses are affected by changes in macroeconomic factors. The forecast for the macroeconomic factors relevant to determining the IFRS 9 risk provision in the individual scenarios was essentially based on internal company planning and the availability of data for the forecasts.

The following scenarios were considered as at 30 June 2023 to calculate the risk provision under IFRS 9 and its sensitivity in the customer lending business. The specific features of the alternative scenarios took account of the latest developments after the reporting date, including the war in Ukraine and the global economic environment, and were based on the macroeconomic forecasts. Actual developments may differ from these assumptions as a result of how the war in Ukraine progresses moving forward and other developments and events affecting the global economy.

Forecast of relevant macroeconomic factors in the …

	Basis scenario	Alternative scenario – optimistic	Alternative scenario – pessimistic
Price index for existing residential propertiesƇ	ƈƐƎƐ	ƈƈƏƉ	ƇƌƌƊ
Unemployment rate in %ƈ	ƉƐ	ƈƋ	ƊƐ
Nominal GDP growth in %Ɖ	ƊƋ	ƌƋ	ƈƋ
Long-term ten-year interest rate for German government bonds in %Ɗ	ƈƉ	ƉƉ	ƐƉ

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Ɗ 4XDUWHUO\ 2(&' GDWD IRUHFDVW RYHU WZR \HDUV The macroeconomic factors listed above relate to Germany.

The risk provision in accordance with IFRS 9 in the customer lending business is based exclusively on the base scenario. The risk parameters modelled in the base already account for various model scenarios (including default, no default, recovery and settlement) within the meaning of IFRS 9. In addition, the model data base used covers different economic cycles. In addition, macroeconomic factors are used for the point-in-time correction that result from the weighting of various future economic developments. A purely model scenario-weighted calculation of the risk provision in the customer lending business, taking into account the probability of the individual scenarios occurring, would not result in any material effects on the IFRS 9 risk provision recognised.

In terms of capital investments, risk parameters are derived based on information from ratings agencies and the capital markets, especially when deriving multi-year default parameters taking account of internal measurement yield curves and empirical (multi-year) default rates of unsatisfied bonds, which are regularly published by the rating agencies. Information from ratings agencies is also used when modelling multi-year parameters for the loss given default (LGD). Probabilities of default are adjusted for forward-looking macroeconomic factors in the form of a correction factor based on market-implied probabilities of default, as the macroeconomic factors listed above are implicitly included in the risk

provision calculation by way of market participant expectations. This correction factor describes the relationship between current and the long-term capital market investor expectations of debtors' credit ratings, based on the credit spread. If this is greater than 1 in the pessimistic alternative scenario (less than 1 in the optimistic alternative scenario), the capital market assumes a higher (lower) probability of default for an issuer, which then has a corresponding impact on risk provision in line with the correction factor.

In the pessimistic alternative scenario, the risk provision under IFRS 9 for the W&W Group would rise by a total of Ŵ54.3 million as at 30 June 2023 for customer lending business and capital investments. In the optimistic alternative scenario, it would decline by Ŵ16.6 million for both areas.

Investment property

Investment property in Life and Health Insurance measured using the cost model in these consolidated financial statements for the 2022 reporting year were accounted for at fair value in accordance with IAS 40.32A in connection with the initial application of IFRS 17. The aim of this change is to avoid inconsistencies that would result when measuring insurance contracts with direct participation features under the VFA and underlying property under the original cost model. Applying the fair value model involves recognising annual changes in fair value of the properties in the measurement result through profit or loss. They are not written down. As the properties are included in the measurement as underlying items under the VFA, offsetting technical finance income or expenses are recognised that correspond to the expenses and income from the measurement in accordance with IAS 40.32A.

The fair value of investment property is essentially determined using the discounted cash flow method, with deposits and withdrawals planned in detail. In this regard, significant non-observable inputs are used, for which reason this method for investment property is allocated to Level 3 in the measurement hierarchy for determining fair value.

In connection with determining fair value, expected future cash inflows (rents, other revenues) and cash outflows (maintenance, non-apportionable operating expenses, vacancy costs, costs for re-leasing) are discounted to present value for a 10-year forecast period and planned in detail.

Cash inflows and outflows are considered on an individual basis, i.e. each lease and each construction measure is planned separately. Likewise, vacancy periods, real estate agent costs, etc. in the commercial area are viewed separately for each rental unit. With regard to residential properties, market-based assumptions about the change in the average rents of all residential units over the forecast period are taken as a basis. Because residential units are similar, we dispense with individual planning.

Investment property is initially valued using outside appraisers. Thereafter, it is valued on an ongoing basis by commercial and technical employees (portfolio managers, controllers, architects and engineers) from the property department. Management's assumptions are taken into consideration in making valuations. With property investments under outside management, fair value is normally determined by outside appraisers.

Group companies' investment property outside life and health insurance is still measured using the cost model.

Segment reporting

The segment information is prepared in accordance with IFRS 8 Operating Segments on the basis of internal reporting, which the chief operating decision maker regularly uses to assess the segments' business performance and make decisions regarding allocating resources to the segments (known as the 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 purpose, individual business segments are included in the Life and Health Insurance segment. The products and services used by the reportable segments to generate income are listed below. There is no dependency on individual major customers.

Housing

The reportable Housing segment has one business segment and covers home loan and savings and banking products, essentially for retail customers in Germany, e.g. home loan and savings contracts, advance loans, bridge loans and mortgages.

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 provides a comprehensive selection of insurance products for retail and corporate customers, including liability, personal accident, motor, household, residential building, legal, transport and technical insurance.

All other segments

All W&W Group's other business activities, such as central Group functions, asset management, building developer activities, were grouped under All other segments as these 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).

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 are conducted at arm's length conditions.

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. 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 (OCI, not reclassified to the consolidated income statement).

Segment income statement

		Housing		Life and Health Insurance
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Current net financial result	ƇƌƇƎƏƇ	ƇƇƎƋƉƎ	ƊƈƐƇƈƐ	ƊƈƐƍƏƈ
Net income/expense from risk provision	ŌƇƋƉƊƈ	ŌƇƈƇƈƌ	ƇƍƎƎ	ƊƊƐƋ
Net measurement gain/loss	ƊƎƎƐƎ	Ƌ ƉƉƎƎƎ	ƇƈƊƎƉƏ	ŌƇƐƐƈƇƉƎ
Net income from disposals	ƇƐƉƊƇƋ	ƏƎƌƎ	ƎƈƍƏ	ƈƇƎƍƌƉ
Net technical financial result	–	–	ŌƋƋƈƍƊƐ	ƉƋƏƐƎƊ
Net financial result	ƈƏƎƍƍƈ	Ƌ ƇƋƐƇƌƎ	ƈƈƎƌ	ƏƐƌ
of which: net income/expense from financial assets accounted for under the equity method	–	–	ŌƊƊƎƏ	ƌƈƋƋ
Technical result (net)	–	–	ƊƉƋƉƋ	ƋƏƈƌƎ
Net commission income	ŌƇƎƉƈƉ	ƎƏƊƎ	ŌƈƐƍƐ	ŌƉƐƊƎ
General administrative expenses (gross)	ŌƇƍƎƈƎƍ	ŌƇƌƍƋƊƋ	ŌƇƈƏƎƐƎ	ŌƇƈƇƉƌƐ
General administrative expenses attributable to the technical result	–	–	ƇƐƎƐƐƇ	ƇƐƌƇƉƊ
General administrative expenses (net)ƈ	ŌƇƍƎƈƎƍ	ŌƇƌƍƋƊƋ	ŌƈƇƎƐƍ	ŌƇƋƈƈƌ
Net other operating income/expenseƈ	ƈƌƏƎƌ	ƇƇƈƉƊƐ	ŌƇƐƏƐ	ƇƇƋƍ
Segment net income before income taxes from continued operations	ƇƈƏƇƊƎ	Ƌ ƇƐƉƏƇƇ	ƈƐƎƋƊ	ƊƉƐƋƍ
Income taxes	ŌƉƏƋƌƌ	Ƌ ŌƉƈƍƇƏ	ŌƌƉƈƋ	ŌƇƊƋƋƍ
S e g m e n t n e t i n c o m e a f t e r t a x e s	ƎƏƋƎƈ	Ƌ ƍƇƇƏƈ	ƇƊƋƈƏ	ƈƎƋƐƐ
Other disclosures
Total sales revenuesƉ	ƋƉƇƇƎƐ	ƊƈƐƊƎƐ	ƇƐƈƐƍƉƌ	ƏƍƏƌƇƍ
of which with other segments	ƊƉƊ	ƇƈƇƊƉ	ƇƐƎƈƉ	ƇƋƈƏ
of which with external customers	ƋƉƐƍƊƌ	ƊƐƎƉƉƍ	ƇƐƐƏƏƇƉ	ƏƍƎƐƎƎ
Segment assetsƊ	ƈƏƏƐƇƐƉƐ	ƈƏƈƏƋƉƊƌ	ƉƈƇƏƇƍƐƌ	ƉƇƏƈƊƊƎƈ
Segment liabilitiesƊ	ƈƎƊƍƊƍƎƈ	ƈƍƎƏƎƈƉƉ	ƉƇƊƍƍƐƉƐ	ƉƇƈƋƎƐƊƍ
Financial assets accounted for under the equity method	–	–	ƊƈƇƌƉ	ƊƌƌƋƇ

Ƈ 7KH FROXPQ "Consolidation/reconciliation" includes the effects of consolidation between the segments and the reconciliation of segment-internal valuations with the Group valuation.

ƈ 6HUYLFH UHYHQXHV DQG UHQWDO LQFRPH ZLWK RWKHU VHJPHQWV ZHUH UHFODVVLILHG IURP QHW RWKHU RSHUDWLQJ LQFRPH WR JHQHUDO DGPLQLVWUDWLYH H[SHQVHV ,Q OLQH ZLWK LQWHUQDO UHSRUWLQJWKH\ ZLOO QRW EH reclassified in the future. The previous year's figures have been restated.

Ɖ ,QWHUHVW GLYLGHQG FRPPLVVLRQ DQG UHQWDO LQFRPH IURP SURSHUW\ GHYHORSPHQW EXVLQHVV DQG WHFKQLFDO LQFRPH

Ɗ )LJXUHV DV DW ƉƐ -XQH ƈƐƈƉƉƇ 'HFHPEHU ƈƐƈƈ

Ƌ Previous year'V ILJXUH UHVWDWHG LQ DFFRUGDQFH ZLWK ,\$6 Ǝ VHH VHFWLRQ "Amendment in accordance with IAS ƎƊƇŘ

Group		Consolidation/reconciliationƇ		All other segments		Total for reportable segments		Property/Casualty Insurance
ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ
ƌƐƐƏƏƈ	ƌƉƎƍƐƈ	ƊƌƐƍ	ŌƊƐƇƍ	Ƈƈƌƈƌ	ƈƏƈƍƎ	ƋƎƉƍƋƏ	ƌƇƉƊƊƇ	ƊƊƊƈƏ	ƉƇƊƉƐ
ŌƌƏƈƍ	ŌƇƉƇƈƏ	ƈƊƇ	ƊƊ	ŌƉƈ	ƊƇ	ŌƍƇƉƌ	ŌƇƉƈƇƊ	ƋƎƋ	ƉƊƐ
Ƌ ŌƇƐƐƎƍƏƐ	ƇƎƉƊƐƈ	ƉƈƎƊƍ	ŌƇƐƏƐƌ	ŌƈƏƋƏƊ	ƇƎƈƏƐ	Ƌ ŌƇƐƇƈƐƊƉ	ƇƍƌƐƇƎ	ŌƊƉƍƏƉ	ƈƉƍƇ
ƈƐƎƏƋƍ	ƇƐƉƏƈƋ	Əƈ	ŌƊ	ŌƌƇƐƎ	ŌƉƊƇƋ	ƈƇƊƏƍƉ	ƇƐƍƉƊƊ	ŌƇƉƌƋƎ	ŌƊƉƋƐ
ƉƋƋƊƐƇ	ŌƋƌƊƌƏƇ	ŌƈƎƋƐ	ŌƈƋƌƍ	ŌƊƉƌ	Ɖƌ	ƉƋƎƌƎƍ	ŌƋƌƈƇƌƐ	ŌƉƏƍ	ŌƏƊƈƐ
Ƌ ƇƊƏƌƉƉ	ƉƊƎƈƐƏ	ƉƊƏƉƍ	ŌƇƍƊƋƐ	ŌƈƉƋƊƊ	ƊƊƈƉƐ	Ƌ ƇƉƎƈƊƐ	ƉƈƇƊƈƏ	ŌƇƈƎƉƊ	ƈƐƉƍƇ
ƇƉƈƎƌ	ŌƍƊƍƈ	–	–	ƍƍƌ	ƇƋƐƌ	ƇƈƋƇƐ	ŌƎƏƍƎ	ƌƈƋƋ	ŌƊƊƎƏ
ƇƋƏƋƏƈ	ƇƉƋƏƌƉ	ŌƈƏƇ	ŌƈƈƍƋ	ƉƇƍƊ	ƋƌƎ	ƇƋƌƍƐƏ	ƇƉƍƌƍƐ	ƏƍƊƊƇ	ƏƊƇƉƋ
ŌƌƌƏƉ	ŌƈƊƍƋƊ	ŌƈƋƍƍƈ	ŌƇƍƍƋƇ	ƇƍƋƋƍ	ƇƏƉƍƎ	ƇƋƈƈ	ŌƈƌƉƎƇ	ŌƊƉƍƎ	ŌƋƏƎƎ
ŌƋƈƎƍƊƈ	ŌƋƌƐƍƇƏ	ƋƏƊƌ	ƇƊƇƋƊ	ŌƊƇƐƍƎ	ŌƊƉƈƋƊ	ŌƊƏƉƌƇƐ	ŌƋƉƇƌƇƏ	ŌƈƐƊƍƐƋ	ŌƈƈƉƋƈƊ
ƈƎƉƇƊƌ	ƈƏƎƉƇƊ	–	–	–	–	ƈƎƉƇƊƌ	ƈƏƎƉƇƊ	ƇƍƍƐƇƈ	ƇƏƐƉƇƉ
ŌƈƊƋƋƏƌ	ŌƈƌƈƊƐƋ	ƋƏƊƌ	ƇƊƇƋƊ	ŌƊƇƐƍƎ	ŌƊƉƈƋƊ	ŌƈƇƐƊƌƊ	ŌƈƉƉƉƐƋ	ŌƈƍƌƏƉ	ŌƉƉƈƇƇ
ƇƉƋƊƈƌ	ƌƇƌƐƌ	ŌƇƐƏƊƉ	ƇƇƎƉƐ	ƈƍƊƇƋ	ƍƊƇƉ	ƇƇƎƏƋƊ	ƊƈƉƌƉ	ƋƊƋƍ	ƇƌƊƌƍ
Ƌ ƇƏƈƉƌƈ	ƈƋƎƌƇƏ	ƉƎƍƍ	ŌƇƇƊƏƈ	ŌƇƌƊƍƌ	ƈƎƉƉƋ	Ƌ ƈƐƊƏƌƇ	ƈƊƇƍƍƌ	ƋƍƏƏƉ	ƏƇƍƍƊ
Ƌ ŌƊƌƌƍƋ	ŌƍƍƎƎƋ	ŌƈƉƉƍ	ƍ	ƇƇƇƇƍ	ŌƌƈƏ	Ƌ ŌƋƋƊƋƋ	ŌƍƍƈƌƉ	ŌƎƇƍƏ	ŌƉƇƉƍƈ
Ƌ ƇƊƋƌƎƍ	ƇƎƐƍƉƊ	ƇƋƊƐ	ŌƇƇƊƎƋ	ŌƋƉƋƏ	ƈƍƍƐƌ	Ƌ ƇƊƏƋƐƌ	ƇƌƊƋƇƉ	ƊƏƎƇƊ	ƌƐƊƐƈ
ƈƍƈƌƇƉƋ	ƈƏƊƉƉƐƏ	ŌƋƇƋƋƐ	ŌƌƌƐƇƐ	ƇƏƉƎƍƌ	ƇƊƇƌƍƏ	ƈƋƎƉƎƐƏ	ƈƎƌƍƌƊƐ	ƇƇƎƉƍƇƈ	ƇƉƇƋƍƈƊ
–	–	ŌƋƊƈƋƉ	ŌƍƈƌƐƈ	ƈƎƏƌƉ	ƊƊƏƈƍ	ƈƋƈƏƐ	ƈƍƌƍƋ	ƇƇƌƇƎ	ƇƌƊƇƎ
ƈƍƈƌƇƉƋ	ƈƏƊƉƉƐƏ	ƈƍƐƉ	ƌƋƏƈ	ƇƌƊƏƇƉ	ƏƌƍƋƈ	ƈƋƋƎƋƇƏ	ƈƎƉƏƏƌƋ	ƇƇƍƈƐƏƊ	ƇƈƏƏƉƐƌ
ƌƌƋƎƏƉƏƎ	ƌƍƊƈƇƍƊƍ	ŌƊƌƋƊƉƇƇ	ŌƊƏƌƊƇƏƏ	ƋƎƎƈƈƌƌ	ƋƎƐƇƐƌƎ	ƌƋƉƌƇƊƊƉ	ƌƌƋƎƊƎƍƎ	ƊƇƊƇƌƇƋ	ƊƊƏƈƇƊƈ
ƌƇƌƏƋƇƈƈ	ƌƈƊƈƎƐƉƇ	ŌƇƐƏƌƋƇƏ	ŌƇƊƐƌƐƌƊ	ƇƎƇƋƏƋƎ	ƇƍƌƍƐƎƊ	ƌƐƏƍƋƌƎƉ	ƌƈƐƌƍƐƇƇ	ƇƎƇƏƊƐƉ	ƈƇƇƋƇƏƏ
ƇƐƏƌƐƊ	ƇƐƈƇƉƈ	ŌƇƋƐƉƋ	ŌƇƏƎƐƊ	ƇƇƋƉƊ	ƇƍƎƐƍ	ƇƇƉƇƐƋ	ƇƐƊƇƈƏ	ƌƌƊƋƊ	ƌƇƏƌƌ

Break-down by region (Group)
		Sales revenues with external customersƇ	Non-current assetsƈ
LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Germany	ƈƏƊƈƌƌƎ	ƈƍƈƋƇƉƌ	ƉƇƊƌƍƍƌ	ƉƇƐƌƇƋƇ
Other countries	ƌƊƇ	ƏƏƏ	ƋƊƐ	ƋƍƉ
T o t a l	ƈƏƊƉƉƐƏ	ƈƍƈƌƇƉƋ	ƉƇƊƍƉƇƌ	ƉƇƐƌƍƈƊ

Ƈ 6DOHV UHYHQXHV ZHUH DOORFDWHG LQ DFFRUGDQFH ZLWK WKH RSHUDWLQJ XQLWVŖ FRXQWU\ RI UHVLGHQFH 7KLV UHODWHV WR LQWHUHVW GLYLGHQG FRPPLVVLRQ DQG UHQWDO LQFRPH IURP SURSHUW\ GHYHORSPHQW EXVLQHVV and technical income. ƈ 1RQFXUUHQW DVVHWV LQFOXGH LQYHVWPHQW SURSHUW\ LQWDQJLEOH DVVHWV DQG SURSHUW\ SODQW DQG HTXLSPHQW

Disclosures on the consolidated balance sheet

(1) Non-current assets held for sale and discontinued operations

LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Other assets	–	ƉƌƊƍ
N o n - c u r r e n t a s s e t s h e l d f o r s a l e a n d d i s c o n t i n u e d o p e r a t i o n s	–	ƉƌƊƍ

A property for own use in the property/casualty insurance segment, which was included in assets held for sale as at 31 December 2022, was sold in 2023. The property was sold for reasons of diversification. This resulted in income from disposals of Ŵ10.9 million.

(2) Financial assets at fair value through profit or loss

LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Equity investments not including alternative investments	ƊƉƋƉƐƎ	ƊƊƐƋƈƌ
Equity investments in alternative investments	ƉƉƊƇƈƋƍ	ƉƇƇƏƌƐƍ
Equities	ƊƐƋƍƌƈ	ƉƏƍƉƍƏ
Investment fund units	ƇƐƈƋƋƎƉ	ƏƎƐƍƈƉ
Fixed-income financial instruments that do not pass the SPPI test	ƈƇƏƍƏƇƈ	ƈƋƈƏƍƊƉ
Derivative financial instruments	ƌƌƉƉƉ	ƉƌƊƊƋƏ
Senior fixed-income securities	ƈƌƉƇƐ	ƇƌƋƏƊƎ
Capital investments for the account and risk of life insurance policyholders	ƈƍƇƈƐƍƍ	ƈƈƍƍƌƊƌ
F i n a n c i a l a s s e t s a t f a i r v a l u e t h r o u g h p r o f i t o r l o s s	ƇƐƈƇƐƋƊƈ	ƇƐƈƍƌƐƉƇ

Capital investments for the account and risk of life insurance policyholders primarily contains fund units and, to a lesser extent, derivatives such as index options.

(3) Financial assets at fair value through other comprehensive income (OCI)

Senior fixed-income securities	ƇƎƈƋƋƋƌƇ	ƇƍƊƋƉƋƇƍ
Senior debenture bonds and registered bonds	ƊƐƐƊƋƇƈ	ƊƌƏƈƐƐƎ
Subordinated securities and receivables	ƍƊƉƏƌƌ	ƍƉƈƎƊƇ
LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ

Risk provision per class debt instruments mandatorily measured at fair value through other comprehensive income (OCI)

LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Subordinated securities and receivables	ŌƇƇƈƈ	ŌƇƇƐƏ
Senior debenture bonds and registered bonds	ŌƈƍƌƇ	ŌƉƇƎƏ
Senior fixed-income securities	ŌƈƏƐƎƇ	ŌƉƐƇƊƌ
R i s k p r o v i s i o n	ŌƉƈƏƌƊ	ŌƉƊƊƊƊ

(4) Financial assets at amortised cost

		Carrying amount		Fair value
LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Subordinated securities and receivables	ƈƐƎƌƐƌ	ƇƎƋƌƈƋ	ƇƏƈƌƐƈ	ƇƌƎƈƌƐ
Senior debenture bonds and registered bondsƇ	ƌƐƍƊƈ	ƊƏƎƏƏ	ƋƎƏƏƏ	ƊƍƌƈƏ
Senior fixed-income securities	Ə	Ə	Ə	Ə
Building loans	ƈƋƏƋƍƌƌƎ	ƈƋƊƈƊƏƈƍ	ƈƋƈƇƏƈƋƐ	ƈƊƍƐƎƇƏƋ
Other receivables	ƈƋƎƍƍƏƈ	ƈƈƊƊƇƇƇ	ƈƋƌƏƊƉƍ	ƈƈƊƌƈƌƐ
Other receivablesƇ	ƈƋƌƌƐƐƏ	ƈƈƈƍƉƏƌ	ƈƋƊƍƌƋƊ	ƈƈƈƏƋƊƋ
Miscellaneous receivablesƈ	ƈƇƍƎƉ	ƇƌƍƇƋ	ƈƇƍƎƉ	ƇƌƍƇƋ
Active portfolio hedge adjustment	ƈƎƊƇ	ŌƇƇƉƇƍƋ	n/a	n/a
F i n a n c i a l a s s e t s a t a m o r t i s e d c o s t	ƈƎƎƇƍƌƋƎ	ƈƍƍƏƇƉƏƌ	ƈƎƐƊƐƈƏƍ	ƈƍƇƍƐƉƋƉ
Ƈ 5HFHLYDEOHV WKDW FRQVWLWXWH D FODVV LQ DFFRUGDQFH ZLWK ,)56 ƍ

ƈ 5HFHLYDEOHV WKDW FRQVWLWXWH D FODVV LQ DFFRUGDQFH ZLWK ,)56 ƍ EXW WKDW DUH QRW FRYHUHG E\ WKH VFRSH RI ,)56 ƍ DQG LQFOXGH H[FOXVLYHO\ UHFHLYDEOHV RXWVLGH WKH LQVXUDQFH EXVLQHVV

To improve the depth of information, the table below provides a more detailed break-down of the carrying amounts of assets measured at amortised cost after risk provision:

LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Subordinated securities and receivables	ƈƐƎƌƐƌ	ƇƎƋƌƈƋ
Credit institutions	ƇƇƏƊƏƌ	ƇƐƊƍƋƊ
Other financial enterprises	ƋƊƌƋƇ	ƊƋƈƏƐ
Other enterprises	ƉƊƊƋƏ	ƉƋƋƎƇ
Senior debenture bonds and registered bonds	ƌƐƍƊƈ	ƊƏƎƏƏ
Senior fixed-income securities	Ə	Ə
Building loans	ƈƋƏƋƍƌƌƎ	ƈƋƊƈƊƏƈƍ
Loan under a building savings contract	ƇƋƇƋƏƈƋ	ƇƊƐƍƎƏƍ
Advance and bridge financing loans	ƇƍƊƏƏƈƊƌ	ƇƌƏƋƎƇƊƎ
Other building loans	ƌƏƊƈƊƏƍ	ƍƐƋƎƎƎƈ
Other receivables	ƈƋƎƍƍƏƈ	ƈƈƊƊƇƇƇ
Other receivablesƇ	ƈƋƌƌƐƐƏ	ƈƈƈƍƉƏƌ
Miscellaneous receivablesƈ	ƈƇƍƎƉ	ƇƌƍƇƋ
Active portfolio hedge adjustment	ƈƎƊƇ	ŌƇƇƉƇƍƋ
F i n a n c i a l a s s e t s a t a m o r t i s e d c o s t	ƈƎƎƇƍƌƋƎ	ƈƍƍƏƇƉƏƌ
Ƈ 5HFHLYDEOHV WKDW FRQVWLWXWH D FODVV LQ DFFRUGDQFH ZLWK ,)56 ƍ

ƈ 5HFHLYDEOHV WKDW FRQVWLWXWH D FODVV LQ DFFRUGDQFH ZLWK ,)56 ƍ EXW WKDW DUH QRW FRYHUHG E\ WKH VFRSH RI ,)56 ƍ DQG LQFOXGH H[FOXVLYHO\ UHFHLYDEOHV RXWVLGH WKH LQVXUDQFH EXVLQHVV

Without accounting for risk provisions, loans and advances to credit institutions included in Other receivables came to Ŵ1, 947.9 (previous year: Ŵ1,601.3) million, of which Ŵ1,756.6 (previous year: Ŵ1,342.3) million of which are payable on demand and Ŵ191.3 (previous year: 259.0) million are not.

The "Active portfolio hedge adjustment" item is a measurement item from the interest-induced measurement of financial assets at amortised cost designated as part of the fair value hedge portfolio. The change in the hedged item in relation to the hedged risk is recognised here.

Risk provision per class for financial assets at amortised cost

LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Subordinated securities and receivables	Ōƈƌƌ	ŌƈƉƌ
Senior debenture bonds and registered bonds	Ōƍƈ	ŌƌƉ
Building loans	ŌƎƊƎƉƏ	ŌƎƇƎƋƎ
Other receivables	ŌƊƏƍƎƌ	ŌƋƐƊƐƎ
R i s k p r o v i s i o n	ŌƇƉƊƏƌƉ	ŌƇƉƈƋƌƋ

(5) Positive market values from hedges

P o s i t i v e m a r k e t v a l u e s f r o m h e d g e s	ƈƋƏƎ	Ƌƈƈ
Hedge of the interest rate risk	ƈƋƏƎ	Ƌƈƈ
Fair value hedges	ƈƋƏƎ	Ƌƈƈ
LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ

(6) Assets from insurance business

	Asset for remaining coverage		Asset for incurred claims		Total
LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Insurance contracts issued that are assets	ƏƐƐƉƌ	ƍƍƈƎƌ	ŌƌƇƈƎ	ŌƋƏƈƈ	ƎƉƏƐƎ	ƍƇƉƌƊ
Life and Health Insurance	ƏƐƐƉƌ	ƍƍƈƎƌ	ŌƌƇƈƏ	ŌƋƏƈƉ	ƎƉƏƐƍ	ƍƇƉƌƉ
Property/Casualty Insurance	–	–	Ƈ	Ƈ	Ƈ	Ƈ
Reinsurance contracts held that are assets	ƊƈƌƎƋ	ŌƇƐƋƌ	ƈƌƊƉƈƏ	ƈƍƊƋƐƉ	ƉƐƍƐƇƊ	ƈƍƉƊƊƍ
Life and Health Insurance	ƊƈƊƎƈ	ƉƎƉƐƎ	Ƌƈƍƍ	ƇƇƌƍƐ	ƊƍƍƋƏ	ƊƏƏƍƎ
Property/Casualty Insurance	ƈƐƉ	ŌƉƏƉƌƊ	ƈƋƏƐƋƈ	ƈƌƈƎƉƉ	ƈƋƏƈƋƋ	ƈƈƉƊƌƏ
A s s e t s f r o m i n s u r a n c e b u s i n e s s	ƇƉƈƍƈƇ	ƍƌƈƉƐ	ƈƋƎƈƐƇ	ƈƌƎƋƎƇ	ƉƏƐƏƈƈ	ƉƊƊƎƇƇ

Further remarks can be found in the section Explanatory notes on insurance contracts.

(7) Investment property

I n v e s t m e n t p r o p e r t y	ƈƊƏƌƇƋƍ	ƈƊƊƐƊƊƈ
Measured using the fair value model	ƈƉƍƋƍƏƏ	ƈƉƉƇƊƎƍ
Measured using the cost model	ƇƈƐƉƋƎ	ƇƐƎƏƋƋ
LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ

The fair value of investment property came to Ŵ2,555.8 (previous year: 2,491.9) million. The fair value of investment property in life and health insurance is essentially determined using the discounted cash flow method. This is based on discount rates of 3.54% to 7.93% (previous year: 3.24% to 7.43%).

In 2023, Württembergische Lebensversicherung reclassified a property from the portfolio for own use to the investment property portfolio. The fair value impairment loss was reversed against other reserves through other comprehensive income in the amount of Ŵ1.5 million.

The impact of the first-time application of IFRS 17 is discussed in the section International Financial Reporting Standards (IFRS) to be applied for the first time in the reporting period.

(8) Property, plant and equipment

There were obligations to purchase property, plant and equipment. This was the result primarily of final payments for the construction of the campus in Ludwigsburg/Kornwestheim of Ŵ5.0 (previous year: 6.2) million.

(9) Liabilities

		Carrying amount		Fair value
LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Liabilities evidenced by certificates	ƈƉƍƌƐƉƏ	ƇƎƎƋƉƐƌ	ƈƇƉƊƐƍƎ	ƇƌƈƊƐƎƐ
Liabilities to credit institutions	ƇƏƈƇƎƋƐ	ƈƌƏƍƊƈƈ	ƇƎƉƍƎƌƍ	ƈƌƌƉƉƍƉ
Liabilities to customers	ƈƉƉƇƊƎƐƐ	ƈƈƏƉƈƊƏƎ	ƈƉƈƊƊƎƊƊ	ƈƈƎƈƏƏƊƌ
Lease liabilities	ƋƈƋƎƏ	ƋƉƊƋƋ	ƋƐƏƉƌ	ƋƉƊƋƋ
Miscellaneous liabilities	ƋƉƉƋƌƏ	ƋƏƎƊƋƍ	ƋƈƇƊƋƎ	ƋƏƎƊƏƉ
Other liabilitiesƇ	ƉƍƋƍƉƏ	ƊƐƇƐƇƉ	ƉƌƉƌƈƎ	ƊƐƇƐƊƏ
Miscellaneous liabilitiesƈ	ƇƋƍƎƉƐ	ƇƏƍƊƊƊ	ƇƋƍƎƉƐ	ƇƏƍƊƊƊ
Passive portfolio hedge adjustment	ŌƍƈƉƍƏƉ	ŌƎƌƎƇƐƇ	n/a	n/a
L i a b i l i t i e s	ƈƍƊƍƋƐƋƊ	ƈƍƈƏƏƐƉƍ	ƈƍƍƎƏƇƎƉ	ƈƍƍƌƏƉƊƍ
Ƈ /LDELOLWLHV WKDW FRQVWLWXWH D FODVV LQ DFFRUGDQFH ZLWK ,)56 ƍ

ƈ /LDELOLWLHV H[FOXGLQJ OLDELOLWLHV XQGHU LQVXUDQFH FRQWUDFWV WKDW FRQVWLWXWH D FODVV LQ DFFRUGDQFH ZLWK ,)56 ƍ EXW WKDW DUH QRW FRYHUHG E\ WKH VFRSH RI ,)56 ƍ

To improve the depth of information, the following table provides a detailed break-down of liabilities:

LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Liabilities evidenced by certificates	ƈƉƍƌƐƉƏ	ƇƎƎƋƉƐƌ
Liabilities to credit institutions	ƇƏƈƇƎƋƐ	ƈƌƏƍƊƈƈ
Home loan savings business deposits	ƋƍƐƈ	ƎƉƍƈƏ
Other liabilities	ƇƏƇƌƇƊƎ	ƈƌƇƉƌƏƉ
Liabilities to customers	ƈƉƉƇƊƎƐƐ	ƈƈƏƉƈƊƏƎ
Home loan savings business deposits and savings deposits	ƇƏƍƍƇƇƊƋ	ƇƏƍƊƍƊƎƉ
Other liabilities	ƉƋƊƉƌƋƋ	ƉƇƎƊƏƈƇ
Advances received	–	ƏƊ
Lease liabilities	ƋƈƋƎƏ	ƋƉƊƋƋ
Miscellaneous liabilities	ƋƉƉƋƌƏ	ƋƏƎƊƋƍ
Other liabilitiesƇ	ƉƍƋƍƊƐ	ƊƐƇƐƇƉ
Miscellaneous liabilitiesƈ	ƇƋƍƎƈƏ	ƇƏƍƊƊƊ
Passive portfolio hedge adjustment	ŌƍƈƉƍƏƉ	ŌƎƌƎƇƐƇ
L i a b i l i t i e s	ƈƍƊƍƋƐƋƊ	ƈƍƈƏƏƐƉƍ

Ƈ /LDELOLWLHV WKDW FRQVWLWXWH D FODVV LQ DFFRUGDQFH ZLWK ,)56 ƍ

ƈ /LDELOLWLHV H[FOXGLQJ OLDELOLWLHV XQGHU LQVXUDQFH FRQWUDFWV WKDW FRQVWLWXWH D FODVV LQ DFFRUGDQFH ZLWK ,)56 ƍ EXW WKDW DUH QRW FRYHUHG E\ WKH VFRSH RI ,)56 ƍ

Of the other liabilities to credit institutions included in liabilities to credit institutions, Ŵ252.7 (previous year: 56.8) million were payable on demand and Ŵ1,663.4 (previous year: 2,556.9) million were not. These liabilities not payable on demand include securities lending and open market operations and margin liabilities.

Of the Other liabilities from liabilities to customers, Ŵ2,126.7 (previous year: 2,235.2) million were payable on demand and Ŵ1,416.9 (previous year: 949.8) million had an agreed term.

The "Passive portfolio hedge adjustment" item is a measurement item from the interest-induced measurement of liabilities designated as part of the fair value hedge portfolio. The change in the hedged item in relation to the hedged risk is recognised here.

(10) Negative market values from hedges

LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Fair value hedges	ƈƊƈƇƎ	ƈƋƊƌƌ
Hedge of the interest rate risk	ƈƊƈƇƎ	ƈƋƊƌƌ
N e g a t i v e m a r k e t v a l u e s f r o m h e d g e s	ƈƊƈƇƎ	ƈƋƊƌƌ

(11) Technical liabilities

		Provision for future policy benefits (liability for remaining coverage)	Provision for outstanding insurance claims (liability for incurred claims)		Total
LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Insurance contracts issued that are liabilities	ƈƏƐƎƋƍƋƏ	ƈƎƊƈƋƏƊƇ	ƇƏƌƍƊƇƋ	ƇƎƍƇƊƋƋ	ƉƇƐƋƉƇƍƊ	ƉƐƈƏƍƉƏƌ
Life and Health Insurance	ƈƎƋƍƍƋƎƎ	ƈƎƇƎƌƈƊƈ	ƇƊƏƈƎƉ	ƇƊƏƊƋƌ	ƈƎƍƈƌƎƍƇ	ƈƎƉƉƋƌƏƎ
Property/Casualty Insurance	ƋƐƎƇƍƇ	ƈƉƏƌƏƏ	ƇƎƇƎƇƉƈ	ƇƍƈƇƏƏƏ	ƈƉƈƌƉƐƉ	ƇƏƌƇƌƏƎ
Reinsurance contracts held that are liabilities	ƊƌƋƉ	ƇƊƐƏ	ŌƇƌƌƉ	ŌƇƊ	ƈƏƏƐ	ƇƉƏƋ
Life and Health Insurance	–	ƈƊ	–	–	–	ƈƊ
Property/Casualty Insurance	ƊƌƋƉ	ƇƉƎƋ	ŌƇƌƌƉ	ŌƇƊ	ƈƏƏƐ	ƇƉƍƇ
T e c h n i c a l l i a b i l i t i e s	ƈƏƐƏƐƊƇƈ	ƈƎƊƈƍƉƋƐ	ƇƏƌƋƍƋƈ	ƇƎƍƇƊƊƇ	ƉƇƐƋƌƇƌƊ	ƉƐƈƏƎƍƏƇ

Further remarks can be found in the section Explanatory notes on insurance contracts.

(12) Other provisions

LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Provisions for pensions and other long-term employee benefits	ƇƇƎƌƐƌƐ	ƇƇƋƍƎƌƍ
Miscellaneous provisions	ƌƏƍƐƊƋ	ƍƊƍƌƏƋ
O t h e r p r o v i s i o n s	ƇƎƎƉƇƐƋ	ƇƏƐƋƋƌƈ

The actuarial assumptions regarding the actuarial interest rate on which the pension commitments are based were reviewed in the reporting period in line with market conditions. The actuarial interest rate used to measure the pension commitments declined by 3.7% compared to the figure as at 31 December 2022 to 3.6% as a result. The adjustment of the interest rate is recognised as an actuarial loss, taking account of deferred taxes, within the reserve for pension commitments through other comprehensive income and is a component of Other comprehensive income (OCI).

Miscellaneous provisions were reversed in the amount of Ŵ8.0 (previous year: 14.7) million in the financial year.

(13) Subordinated capital

	Carrying amount		Fair value
LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Subordinated liabilities	ƌƊƏƍƌƊ	ƌƉƏƉƌƋ	ƋƌƈƐƉƈ	ƋƊƌƏƈƉ
Participation rights capital	ƈƐƇƌ	ƈƇƐƉ	ƈƐƍƈ	ƈƇƍƈ
S u b o r d i n a t e d c a p i t a l	ƌƋƇƍƎƐ	ƌƊƇƊƌƎ	ƋƌƊƇƐƊ	ƋƊƏƐƏƋ

(14) Equity

The Annual General Meeting of W&W AG resolved on 23 May 2023 to distribute a dividend of Ŵ0.65 (previous year: 0.65) per no-par value registered share in cash from net retained profits under German commercial law of Ŵ80.0 (previous year: 77.6) million for the 2022 financial year.

The dividend was paid out on 26 May 2023 in the amount of Ŵ60,915,000.25.

Disclosures on the consolidated income statement

(15) Current net financial result

LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Interest income	ƌƏƍƎƉƐ	ƋƌƐƈƍƋ
Subordinated securities and receivables	ƇƉƌƈƋ	ƏƏƍƈ
Fixed-income financial instruments that do not pass the SPPI test	ƊƊƈƉƐ	ƊƊƎƊƌ
Derivative financial instruments	ƏƈƋƊƏ	ƍƇƉƊ
Senior debenture bonds and registered bonds	ƊƎƈƈƇ	ƌƉƌƍƏ
Senior fixed-income securities	ƈƇƏƌƏƋ	ƈƇƇƏƇƐ
Building loans	ƈƈƌƏƏƋ	ƈƐƍƏƌƊ
Other receivables	ƊƈƍƌƉ	ƍƍƇƈ
Other receivables	ƊƈƇƐƍ	ƍƐƎƐ
Miscellaneous receivables	ƌƋƌ	ƌƉƈ
Negative interest on liabilities	ƏƍƋƈ	ƍƐƋƎ
Interest expenses	ŌƈƉƎƎƉƉ	ŌƇƌƍƐƇƈ
Liabilities evidenced by certificates	ŌƇƈƉƋƍ	ŌƉƈƉƋ
Deposit liabilities and other liabilities	ŌƊƈƇƌƇ	ŌƇƇƐƎƌƉ
Lease liabilities	ŌƉƉƌ	ŌƈƋƏ
Miscellaneous liabilities	ŌƏƈƌ	ŌƎƐƌ
Subordinated capital	ŌƇƇƍƎƇ	ŌƇƇƍƍƍ
Derivative financial instruments	ŌƇƉƍƈƐƇ	ŌƈƋƊƌƇ
Negative interest on receivables	ŌƈƇ	ŌƊƏƉƊ
Other	ŌƉƊƐƋƐ	ŌƏƌƍƍ
Dividend income	ƇƈƋƇƇƊ	ƇƉƋƇƎƊ
Other current net income	ƋƊƋƏƇ	ƍƈƋƊƋ
Net income/expense from financial assets accounted for under the equity method	ŌƍƊƍƈ	ƇƉƈƎƌ
Net income from investment property	ƌƈƐƊƎ	ƋƏƈƋƉ
Other	ƇƋ	ƌ
C u r r e n t n e t f i n a n c i a l r e s u l t	ƌƉƎƍƐƈ	ƌƐƐƏƏƈ

The interest expenses listed essentially correspond to the W&W Group's financing expenses.

(16) Net income/expense from risk provision

LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Income from credit risk adjustments	ƊƈƈƉƏ	ƌƍƈƊƊ
Reversal of risk provision	ƉƌƋƊƍ	ƋƏƏƏƇ
Subordinated securities and receivables	ƇƉƉ	ƋƌƐ
Senior debenture bonds and registered bonds	ƌƇƐ	ƇƐƋƏ
Senior fixed-income securities	ƋƏƇƈ	ƇƉƏƌƏ
Building loans	ƈƎƈƋƌ	ƊƈƎƏƏ
Other receivables	ƇƌƉƌ	ƇƋƐƊ
Other receivables	ƇƌƉƌ	ƇƋƐƊ
Reversal of provisions in the lending business, for irrevocable credit commitments, for financial guarantees	ƈƊƊƊ	ƈƋƍƏ
Reversals of write-downs/payments received on securities and receivables written down	ƉƈƊƎ	ƊƌƍƊ
Expenses for credit risk adjustments	ŌƋƋƉƌƎ	ŌƍƊƇƍƇ
Addition to risk provision	ŌƋƉƊƉƌ	ŌƍƇƐƊƇ
Subordinated securities and receivables	ŌƇƍƎ	ŌƉƎƊ
Senior debenture bonds and registered bonds	ŌƇƏƇ	ŌƍƉƉ
Senior fixed-income securities	ŌƊƍƎƉ	ŌƇƐƐƋƎ
Building loans	ŌƉƊƐƉƐ	ŌƉƎƉƋƎ
Other receivables	ŌƇƊƈƋƊ	ŌƈƇƋƐƎ
Other receivables	ŌƇƉƉƐƉ	ŌƈƐƏƋƋ
Miscellaneous receivables	ŌƏƋƇ	ŌƋƋƉ
Addition to provisions in the lending business, for irrevocable credit commitments, for financial guarantees	ŌƇƏƉƈ	ŌƉƇƉƐ
N e t i n c o m e / e x p e n s e f r o m r i s k p r o v i s i o n	ŌƇƉƇƈƏ	ŌƌƏƈƍ

(17) Net measurement gain/loss

LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Net income from financial assets/liabilities at fair value through profit or loss	ƉƈƏƈƇƐ	ŌƇƉƇƏƉƐƏ
Participating interests, shares, investment fund units and participating interests in alternative investments	ƍƍƎƋƏ	ŌƈƈƇƉƐƌ
Senior fixed-income securities	ƍƎƐ	ŌƈƐƈƌ
Derivative financial instruments	ŌƋƋƈƎƌ	ŌƇƍƋƋƉƇ
Capital investments for the account and risk of life insurance policyholders	ƈƎƇƐƎƋ	ŌƋƇƈƈƈƍ
Fixed-income financial instruments that do not pass the SPPI test	ƈƊƍƍƈ	ŌƊƐƎƈƇƏ
Net income from discounting provisions for home loan savings business	ŌƉƈƍƌ	ƇƐƋƊƏƍ
Hedge incomeƇ	ŌƈƊƉƊƏ	ƈ ƊƋƉƍƏ
Impairment/reversal of investment property	ŌƈƊƍƏƉ	ƏƋƌƇƋ
Currency result	ŌƏƉƉƏƐ	ƌƊƐƈƎ
Participating interests, shares, investment fund units and participating interests in alternative investments	ŌƉƈƊƏƉ	ƇƉƐƌƌƏ
Fixed-income financial instruments that do not pass the SPPI test	ŌƈƐƋƊƉ	ƎƊƊƊƏ
Senior fixed-income securities	ŌƏƇƊƇƌ	ƉƊƋƊƏƌ
Other receivables	ŌƈƇƋƎƈ	ƍƈƇƋƊ
Derivative financial instruments	ƎƈƇƏƋ	ŌƌƐƎƍƐƎ
Capital investments for the account and risk of life insurance policyholders	ŌƌƎƋƎ	ƊƇƈƐƇ
Liabilities	ŌƌƋƉ	ŌƇƈƉƉ
N e t m e a s u r e m e n t g a i n / l o s s	ƇƎƉƊƐƈ	ƈ ŌƇƐƐƎƍƏƐ
Ƈ +HGJH DFFRXQWLQJ ƈ 3UHYLRXV \HDUŖV ILJXUH UHVWDWHG LQ DFFRUGDQFH ZLWK ,\$6 ƎƊƇ

(18) Net income from disposals

LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Income from disposals	ƇƍƋƐƈƈ	ƊƈƊƏƈƎ
Subordinated securities and receivables	–	ƇƎƍƊ
Senior debenture bonds and registered bonds	ƇƈƈƎƇƏ	ƇƎƍƋƎƇ
Senior fixed-income securities	ƋƈƇƍƈ	ƈƉƋƇƇƊ
Other receivables	–	ƉƉ
Investment property	–	Ɖƈƌ
Other	ƉƇ	–
Expenses from disposals	ŌƍƇƐƏƍ	ŌƈƇƋƏƍƇ
Subordinated securities and receivables	ŌƎƇƈ	ŌƇƈƏƎ
Senior debenture bonds and registered bonds	ŌƈƏƎƇƐ	ŌƇƊƐƊƊ
Senior fixed-income securities	ŌƉƏƍƋƍ	ŌƈƐƐƌƈƏ
Other receivables	ŌƇƇƈ	–
Investment property	ŌƋƌƏ	–
Other	ŌƉƍ	–
N e t i n c o m e f r o m d i s p o s a l s	ƇƐƉƏƈƋ	ƈƐƎƏƋƍ

(19) Technical finance income or expenses

LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
L i f e a n d H e a l t h I n s u r a n c e
Net technical financial result	ŌƋƋƋƉƐƎ	ƉƋƌƈƉƊ
Gross technical financial result	ŌƋƋƋƉƇƐ	ƉƋƌƈƈƏ
Technical finance income from insurance contracts issued	ƇƍƉƏƎƍƌ	ƎƐƎƇƈƐ
Technical finance expenses from insurance contracts issued	ŌƈƈƏƋƇƎƌ	ŌƊƋƇƎƏƇ
Technical financial result from reinsurance contracts held	ƈ	Ƌ
Technical financial income from reinsurance contracts held	ƊƉ	ƇƋƇ
Technical financial expenses from reinsurance contracts held	ŌƊƇ	ŌƇƊƌ
P r o p e r t y / C a s u a l t y I n s u r a n c e
Net technical financial result	ŌƏƉƎƉ	ŌƎƉƉ
Gross technical financial result	ŌƇƐƌƎƇ	ŌƇƍƌƎ
Technical finance income from insurance contracts issued	ƉƇƉƊ	ƏƊƊƎ
Technical finance expenses from insurance contracts issued	ŌƇƉƎƇƋ	ŌƇƇƈƇƌ
Technical financial result from reinsurance contracts held	ƇƈƏƎ	ƏƉƋ
Technical financial income from reinsurance contracts held	ƇƉƏƎ	ƇƈƊƍ
Technical financial expenses from reinsurance contracts held	ƇƐƐ	ƉƇƈ
T e c h n i c a l f i n a n c e i n c o m e o r e x p e n s e s	ŌƋƌƊƌƏƇ	ƉƋƋƊƐƇ

(20) Technical result

LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
L i f e a n d H e a l t h I n s u r a n c e
Technical result (net)	ƊƉƈƐƊ	ƋƎƏƍƎ
Technical result (gross)	ƊƏƏƎƐ	ƌƊƇƌƋ
Technical income	ƋƍƐƊƇƍ	ƋƊƊƉƐƏ
Technical expenses	ŌƋƈƐƊƉƍ	ŌƊƎƐƇƊƊ
Net result from reinsurance contracts held	Ōƌƍƍƌ	ŌƋƇƎƍ
P r o p e r t y / C a s u a l t y I n s u r a n c e
Technical result (net)	ƏƈƍƋƏ	ƇƐƐƌƇƊ
Technical result (gross)	ƌƌƌƍƐ	ƇƊƇƊƈƌ
Technical income	ƇƈƋƊƋƇƏ	ƇƇƈƌƊƏƏ
Technical expenses	ŌƇƇƎƍƎƊƏ	ŌƏƎƋƐƍƉ
Net result from reinsurance contracts held	ƈƌƐƎƏ	ŌƊƐƎƇƈ
T e c h n i c a l r e s u l t ( t o t a l )	ƇƉƋƏƌƉ	ƇƋƏƋƏƈ

(21) Net commission income

LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Commission income	ƇƋƏƇƇƌ	ƇƋƇƐƐƇ
from bank/home loan savings business	ƇƊƐƍƏƐ	ƇƈƇƍƎƌ
from consulting/brokering activities	ƇƊƇƈƎ	ƈƊƍƉƌ
from investment business	Ƈƌƈƈ	Ƈƌƍƍ
from other business	ƈƋƍƌ	ƈƎƐƈ
Commission expenses	ŌƇƎƉƎƍƐ	ŌƇƋƍƌƏƊ
from bank/home loan savings business	ŌƇƌƈƍƋƊ	ŌƇƈƌƎƐƏ
from consulting/brokering activities	ŌƌƊƊƈ	ŌƇƐƍƈƈ
from investment business	ŌƈƊƇƈ	ŌƉƋƈƍ
from other business	ŌƇƈƈƌƈ	ŌƇƌƌƉƌ
N e t c o m m i s s i o n i n c o m e	ŌƈƊƍƋƊ	ŌƌƌƏƉ

(22) Net other operating income/expense

LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Other operating income	ƇƊƊƊƈƌ	ƉƌƊƎƍƇ
Income from disposals of inventories (property development business)	ƌƎƉƋƋ	ƇƊƉƍƍƐ
Release of provisions	ƍƏƎƈ	ƇƊƌƇƏ
Miscellaneous income	ƌƎƐƎƏ	ƈƐƌƊƎƈ
Other operating expenses	ŌƎƈƎƈƐ	ŌƈƈƏƊƊƋ
Other taxes	ŌƇƉƇƏ	ŌƇƉƊƍ
Expenses from inventories (property development business)	ŌƍƊƐƌƎ	ŌƈƐƉƌƉƍ
Additions to provisions	ŌƊƈƌƏ	ŌƇƊƉƌ
Miscellaneous expenses	ŌƉƇƌƊ	ŌƈƉƐƈƋ
N e t o t h e r o p e r a t i n g i n c o m e / e x p e n s e	ƌƇƌƐƌ	ƇƉƋƊƈƌ

(23) Income taxes

LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Current taxes on income for the reporting period	ŌƊƏƈƉƍ	ŌƇƈƊƌƈƈ
Current taxes of prior periods	ƍƋ	ŌƈƈƇƉ
Deferred taxes	ŌƈƎƍƈƉ	Ƈ ƎƐƇƌƐ
I n c o m e t a x e s	ŌƍƍƎƎƋ	Ƈ ŌƊƌƌƍƋ
Ƈ 3UHYLRXV \HDUŖV ILJXUH UHVWDWHG LQ DFFRUGDQFH ZLWK ,\$6 ƎƊƇ

(24) Earnings per share

Basic earnings per share is calculated as the ratio of consolidated net profit to the weighted average number of shares.

		ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Result attributable to shareholders of W&W AG	LQ Ƒ	ƇƎƐƇƈƊƐƉƈ	Ƈ ƇƊƊƎƍƋƌƋƊ
Number of shares at the beginning of the financial year	Share	ƏƉƍƇƋƐƎƎ	ƏƉƌƌƏƍƋƊ
Treasury shares held as at the reporting date	Share	ŌƉƊƉƉƋ	ŌƉƊƌƉƈ
Weighted average shares	Share	ƏƉƍƇƋƐƈƐ	ƏƉƌƏƈƊƈƇ
B a s i c ( = d i l u t e d ) e a r n i n g s p e r s h a r e	LQ Ƒ	ƇƏƈ	Ƈ ƇƋƋ
Ƈ 3UHYLRXV \HDUŖV ILJXUH UHVWDWHG LQ DFFRUGDQFH ZLWK ,\$6 ƎƊƇ

There are not any dilutive potential shares at present. Diluted earnings per share is thus equal to basic earnings per share.

Disclosures on financial instruments and fair value

(25) Disclosures on fair value measurement

Calculating the fair value of financial instruments

For reasons of comparability, consistency and measurement quality, a hierarchy is used for the financial instruments measured at fair value in the consolidated balance sheet that reflects the significance of the inputs used in making the measurements. The inputs used in the measurement process to determine fair value are assigned to three levels and this allocation is applied to all assets and liabilities that are measured at fair value on a regular basis, a one-off basis or for the purposes of preparing the notes. The uniform measures and principles listed below apply here. In conceptual terms, the hierarchy is based on the market-based nature of the inputs. It gives the highest priority to quoted and unadjusted prices in active markets for identical assets and liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3).

The level to which the financial instrument is assigned in its entirety is decided on the basis of the lowest input in the hierarchy that is significant to determining fair value as a whole. For this purpose, the significance of an input is assessed compared to the fair value in its entirety. To assess the significance of an individual input, the specific features of the asset or liability are analysed and regularly reviewed during the reporting period.

Level 1: This level covers financial instruments measured at quoted stock exchange or market prices (unadjusted) in active markets for identical assets or liabilities. The material features of an active market are a regular trading frequency and sufficiently traded market volumes to ensure reliable price information.

Level 2: If they are not priced on active markets, the fair value is based on comparable financial instruments or determined by applying generally accepted measurement models using parameters that can be observed directly or indirectly on the market (e.g. interest rate, exchange rate, volatility or indicative prices calculated by third party providers).

Level 3: If financial instruments cannot be measured using stock exchange or market prices or using a measurement model based on inputs that can be observed directly or indirectly on the market or if they cannot be measured in full, the financial instruments are measured using factors that are not based on observable market data (unobservable factors) (level 3). This generally uses a measurement technique that is used by market participants to price a financial instrument and that has been demonstrated to provide a reliable estimate of a price obtained in a market transaction.

If the fair value cannot be reliably determined, the carrying amount is used as an approximation of the fair value. In such event, these financial instruments are allocated to Level 3.

Level classifications are assigned periodically within the reporting period. If there is a change in the relevant inputs, this can result in a reclassification between levels at this time. Financial instruments can be reclassified from Level 1 to Level 2 if the previously identified active market on which it was quoted ceases to exist. The material features of an active market are a regular trading frequency and sufficiently traded market volumes to ensure reliable price information. The prices used for measurement are monitored daily in conjunction with a price review process. In the event of conspicuous developments in prices, the quality of the source of prices is analysed and the classification can be amended in there is insufficient market liquidity. Accordingly, reclassification from Level 2 to Level 1 is possible once an active market can be identified.

Financial instruments can be reclassified to Level 3 if their fair value can no longer be measured on the basis of observable inputs. However, if observable inputs are identified for financial instruments that had previously been assigned to Level 3, they can be reclassified to Level 1 or Level 2 if there are reliable quoted prices on an active market or inputs observable on the market.

There were no reclassifications between levels in the reporting period or the comparative period.

Unadjusted quoted or market prices are used as Level 1 inputs for financial instruments recognised under "Financial assets at fair value through profit or loss" and "Financial liabilities at fair value through profit or loss" in the statement of financial position. These are essentially quoted equities and derivative financial instruments such as futures that are traded on a regulated market.

The valuation techniques used to calculate fair value in Levels 2 and 3 consist of generally accepted measurement models such as the present value method, where the expected future cash flows are discounted at current interest rates applicable to the corresponding remaining term, credit risks and markets. Here, too, prices used for measurement

and inputs are monitored daily in conjunction with a price review process. This valuation technique is used to measure securities, including debt securities, with agreed cash flows that are recognised as "Financial assets at fair value through profit or loss", "Financial liabilities at fair value through profit or loss" and "Financial assets at fair value through other comprehensive income". The present value method is used to measured unquoted derivative financial instruments such as interest rate swaps and non-optional forward contracts (e.g. currency forwards) in Level 2. These are recognised in "Financial assets at fair value through profit or loss", "Financial liabilities at fair value through profit or loss", "Positive market values from hedges" and "Negative market values from hedges". Fund units and investments for the benefit of life insurance policyholders who bear the investment risk are also essentially allocated to Level 2. The most recently available redemption price for the underlying investment certificate is used in measurement.

The main valuation methods and parameters for measuring the fair value of the individual assets and liabilities in Levels 2 and 3 are presented below.

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Class	Valuation technique	Main parameters
Non-current assets held for sale and discontinued operations	In accordance with the respective statement of financial position items
Financial assets at fair value through profit or loss
Equity investments not including alternative investments	Income capitalisation approach Approximation Net asset value method	Discount rate, future net cash inflows
Equity investments in alternative investments	Income capitalisation approach Approximation Adjusted net asset value method	Discount rate, future net cash inflows
Equities	Approximation Adjusted net asset value method
Investment fund units	Redemption price Approximation Adjusted net asset value method
Fixed-income financial instruments that do not pass the SPPI test	Present value method	Liquidity and credit spreads, yield curves
Derivative financial instruments	Present value method Black-Scholes model LIBOR market model, Hull-White model	Foreign exchange rates (spot and forward), yield curves Quoted prices/index, volatilities, yield curves, exercise price and remaining term Yield curves, volatilities
Senior fixed-income securities	Present value method	Liquidity and credit spreads, yield curves
Capital investments for the account and risk of life insurance policyholders	Redemption price Black-Scholes model	Index weighting, volatility
Financial assets at fair value through other comprehensive income (OCI)
Subordinated securities and receivables	Present value method	Liquidity and credit spreads, yield curves
Senior debenture bonds and registered bonds	Present value method	Liquidity and credit spreads, yield curves
Senior fixed-income securities	Present value method	Liquidity and credit spreads, yield curves
Positive market values from hedges	Present value method	Yield curves
Financial liabilities at fair value through profit or loss
Derivative financial instruments	Present value method Black-Scholes model LIBOR market model, Hull-White model	Foreign exchange rates (spot and forward), yield curves Quoted prices/index, volatilities, yield curves, exercise price and remaining term Yield curves, volatilities
Negative market values from hedges	Present value method	Yield curves

The fair values of options not traded on an exchange are calculated using generally accepted option pricing models appropriate to the types and underlying assets of options and the generally accepted assumptions on which they are based. In particular, the value of options is determined by the value of the underlying asset and its volatility, the agreed exercise price, interest rate or index, the risk-free interest rate and the remaining term of the contract. There are assigned to the class "Derivative financial instruments" under "Financial assets at fair value through profit or loss" and "Financial liabilities at fair value through profit or loss" in the statement of financial position.

Level 3 for "Financial assets at fair value through profit or loss" is defined by non-exchange-traded equities and equity investments, including alternative investments. The fair value is essentially determined on the basis of net asset value (NAV). The net asset value, which is calculated quarterly in line with industry standards, is provided by fund managers and then reviewed by risk controlling units and adjusted if necessary to account for outstanding performance-based remuneration claims. This also applies to indirect property investments that are assigned to "Equity investments not including alternative investments". The fair value of equity investments not assigned to alternative investments or property investments is typically calculated from the pro rata interest in equity according to the current annual financial statements. Amortised cost is used as an approximate fair value if no information is available.

For all classes, the liquidity and rating spreads observable on the financial market are taken into account when measuring interest-bearing financial instruments that are assets (Level 2). The measurement spread is determined by comparing benchmark curves against the corresponding risk-free money market and swap curves of the financial instrument. Maturity-based spreads that also take into account the issuer's quality within the various issuer groups within a rating class are used for measurement purposes. The yield curves and rating- and term-based spreads provided by market data providers are automatically updated on an intraday basis. The discounting curve is typically specific to a given currency. Swaps hedged under master agreements are measured using interest rate curves specific to a given tenor in the multi-curve approach.

Measurement gains and losses are largely influenced by the underlying assumptions, including in particular the determination of cash flows and discount rates.

The following table "2023 measurement hierarchy (at fair value)" shows all financial assets and liabilities that were measured at fair value. It shows the level used in the respective items of the statement of financial position.

For accounting purposes, the only financial instruments typically measured at fair value in the W&W Group are those that are assigned to the categories:

• financial assets/liabilities at fair value through profit or loss;
• financial assets at fair value through other comprehensive income; and
• Positive/negative market values from hedges

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(at fair value)

T o t a l a s s e t s
Positive market values from hedges	–	ƈƋƏƎ	–	ƈƋƏƎ
Public authorities	–	ƇƐƇƋƊƐƇƈ	–	ƇƐƇƋƊƐƇƈ
Other enterprises	–	ƇƌƈƈƌƐƇ	–	ƇƌƈƈƌƐƇ
Other financial enterprises	–	ƇƉƐƌƐƇƉ	–	ƇƉƐƌƐƇƉ
Credit institutions	–	ƋƇƍƈƏƉƋ	–	ƋƇƍƈƏƉƋ
Senior fixed-income securities	–	ƇƎƈƋƋƋƌƇ	–	ƇƎƈƋƋƋƌƇ
Public authorities	–	ƇƋƌƇƏƉƏ	–	ƇƋƌƇƏƉƏ
Other enterprises	–	ƋƌƐƉƇ	–	ƋƌƐƉƇ
Other financial enterprises	–	ƇƇƐƐƈƇ	–	ƇƇƐƐƈƇ
Credit institutions	–	ƈƈƍƌƋƈƇ	–	ƈƈƍƌƋƈƇ
Senior debenture bonds and registered bonds	–	ƊƐƐƊƋƇƈ	–	ƊƐƐƊƋƇƈ
Subordinated securities and receivables	–	ƍƊƉƏƌƌ	–	ƍƊƉƏƌƌ
Financial assets at fair value through other comprehensive income (OCI)	–	ƈƉƐƐƊƐƉƏ	–	ƈƉƐƐƊƐƉƏ
Capital investments for the account and risk of life insurance policyholders	–	ƈƍƐƇƊƐƈ	ƇƐƌƍƋ	ƈƍƇƈƐƍƍ
Senior fixed-income securities	–	ƈƌƉƇƐ	–	ƈƌƉƇƐ
Other derivatives	–	ƇƉƊ	–	ƇƉƊ
Equity/index-based derivatives	ƋƋƐƌ	ƇƐƉƍƏ	–	ƇƋƎƎƋ
Currency derivatives	–	ƊƏƇƋƈ	–	ƊƏƇƋƈ
Interest rate derivatives	ƊƌƏ	ƌƏƉ	–	ƇƇƌƈ
Derivative financial instruments	ƋƏƍƋ	ƌƐƉƋƎ	–	ƌƌƉƉƉ
Fixed-income financial instruments that do not pass the SPPI test	–	ƈƇƌƇƊƈƎ	ƉƌƊƎƊ	ƈƇƏƍƏƇƈ
Investment fund units	–	ƇƐƈƉƎƏƉ	ƇƌƏƐ	ƇƐƈƋƋƎƉ
Equities	ƉƍƉƊƎƌ	–	Ɖƈƈƍƌ	ƊƐƋƍƌƈ
Other enterprises	–	–	ƎƇƊƋƎ	ƎƇƊƋƎ
Other financial enterprises	–	–	ƉƈƋƏƍƏƏ	ƉƈƋƏƍƏƏ
Equity investments in alternative investments	–	–	ƉƉƊƇƈƋƍ	ƉƉƊƇƈƋƍ
Equity investments not including alternative investments	–	–	ƊƉƋƉƐƎ	ƊƉƋƉƐƎ
Financial assets at fair value through profit or loss	ƉƍƏƊƌƇ	ƋƏƍƉƉƏƇ	ƉƎƋƍƌƏƐ	ƇƐƈƇƐƋƊƈ
LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƐƌƈƐƈƉ	ƉƐƌƈƐƈƉ	ƉƐƌƈƐƈƉ
	/HYHO Ƈ	/HYHO ƈ	/HYHO Ɖ	Fair value/carrying amount

ƈƐƈƉ PHDVXUHPHQW KLHUDUFK\ (at fair value) Continuation

Financial liabilities at fair value through profit or loss Derivative financial instruments	ƇƉƐƎ ƇƉƐƎ	ƉƏƌƎƋ ƉƏƌƎƋ	– –	ƊƐƏƏƉ ƊƐƏƏƉ
Interest rate derivatives	ƌƐƍ	ƇƍƏƐƋ	–	ƇƎƋƇƈ
Currency derivatives	–	ƈƇƊƎƎ	–	ƈƇƊƎƎ
Equity/index-based derivatives	ƍƐƇ	ƈƏƈ	–	ƏƏƉ
Negative market values from hedges	–	ƈƊƈƇƎ	–	ƈƊƈƇƎ
T o t a l e q u i t y a n d l i a b i l i t i e s	ƇƉƐƎ	ƌƉƏƐƉ	–	ƌƋƈƇƇ

*ƈƐƈƈ PHDVXUHPHQW KLHUDUFK*

(at fair value)

	/HYHO Ƈ	/HYHO ƈ	/HYHO Ɖ	Fair value/carrying amount
LQ Ƒ WKRXVDQGV	ƉƇƇƈƈƐƈƈ	ƉƇƇƈƈƐƈƈ	ƉƇƇƈƈƐƈƈ	ƉƇƇƈƈƐƈƈ
Financial assets at fair value through profit or loss	ƉƎƐƌƎƈ	ƌƈƌƈƌƋƎ	ƉƌƉƈƌƏƇ	ƇƐƈƍƌƐƉƇ
Equity investments not including alternative investments	–	–	ƊƊƐƋƈƌ	ƊƊƐƋƈƌ
Equity investments in alternative investments	–	–	ƉƇƇƏƌƐƍ	ƉƇƇƏƌƐƍ
Other financial enterprises	–	–	ƉƐƉƈƈƏƏ	ƉƐƉƈƈƏƏ
Other enterprises	–	–	ƎƍƉƐƎ	ƎƍƉƐƎ
Equities	ƉƌƋƇƐƉ	–	Ɖƈƈƍƌ	ƉƏƍƉƍƏ
Investment fund units	–	ƏƍƎƐƐƉ	ƈƍƈƐ	ƏƎƐƍƈƉ
Fixed-income financial instruments that do not pass the SPPI test	–	ƈƊƏƉƈƋƏ	ƉƌƊƎƊ	ƈƋƈƏƍƊƉ
Derivative financial instruments	ƇƋƋƍƏ	ƉƊƎƎƎƐ	–	ƉƌƊƊƋƏ
Interest rate derivatives	ƈƈƊƉ	ƇƈƋƊƌƊ	–	ƇƈƍƍƐƍ
Currency derivatives	–	ƈƇƈƐƇƊ	–	ƈƇƈƐƇƊ
Equity/index-based derivatives	ƇƉƉƉƌ	ƇƇƉƎƇ	–	ƈƊƍƇƍ
Other derivatives	–	ƈƇ	–	ƈƇ
Senior fixed-income securities	–	ƇƌƋƏƊƎ	–	ƇƌƋƏƊƎ
Capital investments for the account and risk of life insurance policyholders	–	ƈƈƍƌƋƌƎ	ƇƐƍƎ	ƈƈƍƍƌƊƌ
Financial assets at fair value through other comprehensive income (OCI)	–	ƈƈƎƍƎƉƌƌ	–	ƈƈƎƍƎƉƌƌ
Subordinated securities and receivables	–	ƍƉƈƎƊƇ	–	ƍƉƈƎƊƇ
Senior debenture bonds and registered bonds	–	ƊƌƏƈƐƐƍ	–	ƊƌƏƈƐƐƍ
Credit institutions	–	ƈƎƌƍƇƌƉ	–	ƈƎƌƍƇƌƉ
Other financial enterprises	–	ƇƐƎƌƋƌ	–	ƇƐƎƌƋƌ
Other enterprises	–	ƋƊƇƉƈ	–	ƋƊƇƉƈ
Public authorities	–	ƇƌƌƈƐƋƌ	–	ƇƌƌƈƐƋƌ
Senior fixed-income securities	–	ƇƍƊƋƉƋƇƎ	–	ƇƍƊƋƉƋƇƎ
Credit institutions	–	ƊƌƍƈƊƋƏ	–	ƊƌƍƈƊƋƏ
Other financial enterprises	–	ƇƉƇƊƐƏƊ	–	ƇƉƇƊƐƏƊ
Other enterprises	–	ƇƋƐƉƌƏƈ	–	ƇƋƐƉƌƏƈ
Public authorities	–	ƏƏƌƉƈƍƉ	–	ƏƏƌƉƈƍƉ
Positive market values from hedges	–	Ƌƈƈ	–	Ƌƈƈ
T o t a l a s s e t s	ƉƎƐƌƎƈ	ƈƏƇƊƇƋƊƌ	ƉƌƉƈƌƏƇ	ƉƉƇƋƊƏƇƏ

ƈƐƈƈ PHDVXUHPHQW KLHUDUFK\ (at fair value) Continuation

	/HYHO Ƈ	/HYHO ƈ	/HYHO Ɖ	Fair value/carrying amount
LQ Ƒ WKRXVDQGV	ƉƇƇƈƈƐƈƈ	ƉƇƇƈƈƐƈƈ	ƉƇƇƈƈƐƈƈ	ƉƇƇƈƈƐƈƈ
Financial liabilities at fair value through profit or loss	ƈƈƇƎ	ƉƎƈƊƊ	–	ƊƐƊƌƈ
Derivative financial instruments	ƈƈƇƎ	ƉƎƈƊƊ	–	ƊƐƊƌƈ
Interest rate derivatives	–	ƈƏƋƋƇ	–	ƈƏƋƋƇ
Currency derivatives	–	ƍƎƎƎ	–	ƍƎƎƎ
Equity/index-based derivatives	ƈƈƇƎ	ƎƐƋ	–	ƉƐƈƉ
Negative market values from hedges	–	ƈƋƊƌƌ	–	ƈƋƊƌƌ
T o t a l e q u i t y a n d l i a b i l i t i e s	ƈƈƇƎ	Ƈ ƌƉƍƇƐ	–	Ƈ ƌƋƏƈƎ
Ƈ 3UHYLRXV \HDUŖV ILJXUH UHVWDWHG

'HYHORSPHQW LQ /HYHO Ɖ IRU ILQDQFLDO DVVHWV DW IDLU YDOXH WKURXJK SURILW RU ORVV

	Equity investments not including alternative investments	Equity investments in alternative investments (other financial enterprises)	Equity investments in alternative investments (other enterprises)
LQ Ƒ WKRXVDQGV
\$V DW ƇƇƈƐƈƈ	ƉƎƋƊƊƐ	ƈƊƉƊƍƍƉ	ƇƇƋƊƐƐ
Total comprehensive income for the period	ƊƌƏƐƎ	ƇƋƈƊƏƌ	ƇƉƊƋƊ
Income recognised in the consolidated income statementƇ	ƋƐƇƎƎ	ƈƈƊƍƐƌ	ƇƌƇƌƉ
Expenses recognised in the consolidated income statementƇ	ŌƉƈƎƐ	ŌƍƈƈƇƐ	ŌƈƍƐƏ
Purchases	ƈƌƉƋƌ	ƊƌƈƋƊƉ	ƎƐƌƉ
Sales	ŌƇƐƊƎ	ŌƈƐƌƍƇƊ	ŌƇƇƐƎƏ
\$ V D W Ɖ Ɛ ƌ ƈ Ɛ ƈ ƈ	ƊƋƍƌƋƌ	ƈƎƊƉƐƏƎ	ƇƈƋƎƈƎ
Income recognised in the consolidated income statement as at the end of the reporting periodƈ	ƋƐƇƎƎ	ƈƈƊƍƐƌ	ƇƌƇƌƉ
Expenses recognised in the consolidated income statement as at the end of the reporting periodƈ	ŌƉƈƎƐ	ŌƍƈƈƇƐ	ŌƈƍƐƏ
\$V DW ƇƇƈƐƈƉ	ƊƊƐƋƈƌ	ƉƐƉƈƈƏƏ	ƎƍƉƐƎ
Total comprehensive income for the period	ƎƉƈƊ	ƉƇƌƏƌ	ŌƍƍƉƐ
Income recognised in the consolidated income statementƇ	ƎƍƍƉ	ƇƈƉƐƋƈ	ƈƌƍƌ
Expenses recognised in the consolidated income statementƇ	ŌƊƊƏ	ŌƏƇƉƋƌ	ŌƇƐƊƐƌ
Purchases	ƏƋƍƐ	ƊƐƇƍƌƇ	ƈƋƎƋƌ
Sales	ŌƈƉƇƇƈ	ŌƈƐƋƏƋƍ	ŌƈƉƏƍƌ
\$ V D W Ɖ Ɛ ƌ ƈ Ɛ ƈ Ɖ	ƊƉƋƉƐƎ	ƉƈƋƏƍƏƏ	ƎƇƊƋƎ
Income recognised in the consolidated income statement as at the end of the reporting periodƈ	ƎƍƍƉ	ƇƈƉƐƋƈ	ƈƌƍƌ
Expenses recognised in the consolidated income statement as at the end of the reporting periodƈ	ŌƊƊƏ	ŌƏƇƉƋƌ	ŌƇƐƊƐƌ
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ƈ ,QFRPH DQG H[SHQVHV IRU WKH SHULRG IRU DVVHWV VWLOO LQ WKH SRUWIROLR DW WKH HQG RI WKH UHSRUWLQJ SHULRG

Financial assets at fair value through profit or loss Total

	Capital investments for the account and risk of life insurance policyholders	Fixed-income financial instruments that do not pass the SPPI test	Investment fund units	Equities
ƉƐƐƊƐƎƏ	ƊƏƇƎ	ƈƎƍƊƇ	ƉƇƍƌ	ƉƇƌƊƇ
ƈƐƏƎƌƐ	ŌƈƏƏƍ	–	Ƈƍ	ŌƇƎ
ƈƏƇƋƌƇ	–	–	ƋƐƊ	–
ŌƎƇƍƐƇ	ŌƈƏƏƍ	–	ŌƊƎƍ	ŌƇƎ
ƋƐƐƋƇƍ	ƉƋƋƈ	Ɖ	–	–
ŌƈƈƇƏƇƍ	ŌƈƎƍƎ	ŌƉ	ŌƇƎƋ	–
ƉƊƏƈƋƊƏ	ƈƋƏƋ	ƈƎƍƊƇ	ƉƐƐƎ	ƉƇƌƈƉ
ƈƏƇƋƌƇ	–	–	ƋƐƊ	–
ŌƎƇƍƐƇ	ŌƈƏƏƍ	–	ŌƊƎƍ	ŌƇƎ
ƉƌƉƈƌƏƇ	ƇƐƍƎ	ƉƌƊƎƊ	ƈƍƈƐ	Ɖƈƈƍƌ
ƉƍƋƍƊ	ƋƊƉƊ	–	ŌƇƋƐ	–
ƇƉƏƏƉƏ	ƋƊƉƊ	–	Ɗ	–
ŌƇƐƈƉƌƋ	–	–	ŌƇƋƊ	–
ƊƊƇƉƋƐ	ƊƇƌƉ	–	–	–
ŌƈƋƉƏƈƋ	–	–	ŌƎƎƐ	–
ƉƎƋƍƌƏƐ	ƇƐƌƍƋ	ƉƌƊƎƊ	ƇƌƏƐ	Ɖƈƈƍƌ
ƇƉƏƏƉƏ	ƋƊƉƊ	–	Ɗ	–
ŌƇƐƈƉƌƋ	–	–	ŌƇƋƊ	–

Description of the measurement processes used and effects of alternative assumptions for Level 3 financial instruments

The income capitalisation method, the adjusted net asset value method and approximations are typically used in the measurement process to determine fair value.

In the income capitalisation method, which is applied uniformly throughout the Group, future net cash inflows and distributions are discounted by Controlling on the basis of internal planning values and estimates applying risk parameters derived from the market.

The adjusted net asset value method is based on the net asset value, whose individual investments are calculated outside the Group using recognised measurement methods such as the DCF, multiplier and income capitalisation methods. Measurement is typically based on the IPEV Valuation Guidelines. The pro rata net asset value is adjusted for, among other things, the fund manager's outstanding performance-based remuneration claims. The W&W Group then verifies and validates the net asset values provided by the relevant fund companies and, if necessary, reviews the key portfolio companies held by each of the fund companies. It also monitors the carrying amounts, fair values, distributions, payment and additional funding obligations. An exception to the external delivery of the pro rata net asset value is made for self-measured equity investments in properties that are assigned to "Equity investments not including alternative investments".

When using approximations, amortised cost is typically used to measure fair value for reasons of simplicity. This method is used, for example, when there are no quoted prices or the financial instruments are immaterial.

Level 3 securities essentially comprise unquoted interests in equity investments including alternative investments, which in turn include private equity, private debt and infrastructure projects. The fair values of these Level 3 holdings are usually calculated by the management of the respective company. The fair value for most of the interests measured by third parties (Ŵ3,473.5 million; previous year: Ŵ3,269.1 million) is determined on the basis of the net asset value. By contrast, the net asset value of equity investments not including alternative investments is calculated internally in all cases. Unquoted equities and fund certificates account for Ŵ173.0 million (previous year: Ŵ185.7 million) of all interests measured by third parties while equity investments in alternative investments account for Ŵ3,300.5 million (previous year: Ŵ3,083.4 million). The net asset value of these interests measured by third parties is calculated based on specific information that is not publicly available and that the W&W Group cannot access. A sensitivity analysis is therefore not an option.

In the W&W Group, net asset values of Ŵ208.5 million (previous year: Ŵ208.0 million) are measured internally for property equity investments that are assigned to "Equity investments not including alternative investments". The value of the properties in this category is calculated using income-based present value methods. These accepted measurement methods are based on discount rates of 3.47% to 6.55% (previous year: 5.17% to 6.72%), which largely determine the properties' fair values. A change in discount rates of +100 basis points assumed in conjunction with a sensitivity analysis results in a reduction in fair value to Ŵ188.3 million (previous year: Ŵ187.8 million), while a change in discount rates of -100 basis points results in an increase to Ŵ223.0 million (previous year: Ŵ222.4 million).

The most significant measurement parameters for interests measured internally using the income capitalisation approach of Ŵ59.6 million (previous year: Ŵ52.8 million) are the risk-adjusted discount rate and future net inflows. A significant increase in the discount rate reduces fair value, while a reduction in this factor increases the fair value. However, a change in these measurement parameters of 10% has only a minor impact on the presentation of the financial position and financial performance of the W&W Group.

In addition, as an exception for certain interests, amortised cost is considered an appropriate approximation of fair value. Here, too, a sensitivity analysis is not possible given the lack of the specific parameters used.

All changes in the "Financial assets at fair value through profit or loss" category in Level 3 are reflected in the consolidated income statement. Meanwhile, there are no financial assets at fair value through other comprehensive income in Level 3.

The measurement methods used are listed in the table below (Quantitative information on fair value measurement in Level 3).

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		Fair value	Valuation techniques	Unobservable inputs		Range in %
LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ			ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Financial assets at fair value through profit or loss	ƉƎƋƍƌƏƐ	ƉƌƉƈƌƏƇ
Equity investments not including alternative investments	ƊƉƋƉƐƎ	ƊƊƐƋƈƌ
	ƉƊƎƐƋ	ƈƍƏƎƐ	Income capitalisation approach	Discount rate, future net cash inflows	ƎƐƎƇƊƎ	ƈ ƎƐƎŌƇƊƏƋ
	ƇƎƇƉƍ	ƇƎƐƍƋ	Approximation	n/a	n/a	n/a
	ƉƎƈƉƌƌ	ƉƏƊƊƍƇ	Net asset value method	n/a	n/a	n/a
Equity investments in alternative investments	ƉƉƊƇƈƋƍ	ƉƇƇƏƌƐƍ
Other financial enterprises	ƉƈƋƏƍƏƏ	ƉƐƉƈƈƏƏ
	ƇƋƎƉƐ	ƇƇƉƊƏ	Approximation	n/a	n/a	n/a
	ƉƈƊƉƏƌƏ	ƉƐƈƐƏƋƐ	Adjusted net asset value methodƇ	n/a	n/a	n/a
Other enterprises	ƎƇƊƋƎ	ƎƍƉƐƎ
	ƈƊƎƊƊ	ƈƊƎƊƉ	Income capitalisation approach	Discount rate, future net cash inflows	ƊƍƋ	ƊƍƋ
	ƋƋ	–	Approximation	n/a	n/a	n/a
	ƋƌƋƋƏ	ƌƈƊƌƋ	Adjusted net asset value methodƇ	n/a	n/a	n/a
Equities	Ɖƈƈƍƌ	Ɖƈƈƍƌ
	ƉƈƈƐƌ	ƉƈƈƐƌ	Approximation	n/a	n/a	n/a
	ƍƐ	ƍƐ	Adjusted net asset value methodƇ	n/a	n/a	n/a
Investment fund units	ƇƌƏƐ	ƈƍƈƐ	Adjusted net asset value methodƇ	n/a	n/a	n/a
Fixed-income financial instruments that do not pass the SPPI test	ƉƌƊƎƊ	ƉƌƊƎƊ	Approximation	n/a	n/a	n/a
Capital investments for the account and risk of life insurance policyholders	ƇƐƌƍƋ	ƇƐƍƎ	Black-Scholes Model	Index weighting, volatility	n/a	n/a

Ƈ 7KH QHW DVVHW YDOXHV SURYLGHG DUH FDOFXODWHG IRU WKH LQGLYLGXDO LQYHVWPHQWV RXWVLGH WKH *URXS XVLQJ UHFRJQLVHG PHDVXUHPHQW PHWKRGV VXFK DV WKH '&) PXOWLSOLHU DQG LQFRPH FDSLWDOLVDWLRQ methods. Measurement is typically based on the IPEV Valuation Guidelines. A range has not been disclosed as the calculation of the net asset values incorporates a variety of investments and the information on the measurement methods and parameters used (including, for example, adjustments for the fund manager's outstanding performance-based remuneration claims) is either incompletely or inconsistently available.

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Explanatory notes on insurance contracts

(26) Disclosures on the amounts recognised

The following tables reconcile the opening balance to the closing balance for the net carrying amounts of insurance contracts issued / reinsurance contracts held. They are broken down by provision for future policy benefits and by the provision for outstanding insurance claims for the reporting segment in question.

Provision for future policy benefits (liability for remaining coverage)

Insurance contracts issued by remaining coverage and incurred claims /LIH DQG KHDOWK LQVXUDQFH ƈƐƈƉ

	excluding loss components	loss components
LQ Ƒ WKRXVDQGV
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƉ	ƈƎƇƎƌƈƊƈ	–
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƇƇƈƐƈƉ	ŌƍƍƈƎƌ	–
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ Ɖ	ƈƎƇƐƎƏƋƌ	–
Changes in the income statement and in Other comprehensive income (OCI)
Technical result	ŌƇƈƇƎƉƋƐ	–
Technical income	ŌƋƍƐƊƇƍ	–
Insurance contracts measured using the modified retrospective approach (MRA) that existed at the transition date	ŌƋƉƉƎƈƍ	–
Insurance contracts measured using the fair value approach (FVA) that existed at the transition date	–	–
All other insurance contracts	ŌƉƌƋƏƐ	–
Technical expenses	ƇƉƉƇƎƈ	–
Incurred claims and other expenses for services in accordance with the insurance contract	ƋƇƌƎƊ	–
Amortisation of acquisition costs	ƎƇƊƏƎ	–
Changes relating to past services	–	–
Investment components	ŌƍƎƇƇƇƋ	–
Technical finance income or expenses	ƍƇƈƎƇƎ	–
Other matters required for reconciliation	ƇƐƈƍƊ	–
Total change in the income statement and Other comprehensive income (OCI)	ŌƊƏƋƈƋƎ	–
Net income from cash flows	ƎƍƉƎƋƋ	–
Premiums received	ƇƐƇƌƏƉƐ	–
Claims payments and other expenses for services in accordance with the insurance contract	ŌƋƇƋƏƇ	–
Acquisition costs	ŌƏƇƊƎƊ	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ Ɖ	ƈƎƊƎƍƋƋƉ	–
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƉ	ƈƎƋƍƍƋƎƏ	–
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƉƐƌƈƐƈƉ	ŌƏƐƐƉƌ	–

	Provision for outstanding insurance claims (liability for incurred claims)
	Measurement under the premium allocation approach (PAA)		Measurement under the variable fee approach (VFA)
Total	Risk adjustment for non financial risks	Estimation of the present value of future cash flows
ƈƎƉƉƋƌƏƎ	–	ƈƏƍ	ƇƊƏƇƋƏ
ŌƍƇƉƌƉ	–	–	ƋƏƈƉ
ƈƎƈƌƊƉƉƋ	–	ƈƏƍ	ƇƋƋƐƎƈ
ŌƊƏƏƎƐ	–	ƇƊƉƎ	ƇƇƌƌƏƉƈ
ŌƋƍƐƊƇƍ	–	–	–
ŌƋƉƉƎƈƍ	–	–	–
–	–	–	–
ŌƉƌƋƏƐ	–	–	–
ƋƈƐƊƉƍ	–	ƇƊƉƎ	ƉƎƋƎƇƍ
ƊƉƇƍƍƎ	–	ƇƇƈƊ	ƉƍƎƏƍƐ
ƎƇƊƏƎ	–	–	–
ƍƇƌƇ	–	ƉƇƊ	ƌƎƊƍ
–	–	–	ƍƎƇƇƇƋ
ƍƇƈƎƇƎ	–	–	–
ƇƐƈƍƊ	–	–	–
ƌƍƉƇƇƈ	–	ƇƊƉƎ	ƇƇƌƌƏƉƈ
ŌƈƏƊƊƎƉ	–	ŌƇƊƈƇ	ŌƇƇƌƌƏƇƍ
ƇƐƇƌƏƉƐ	–	–	–
ŌƇƈƇƏƏƈƏ	–	ŌƇƊƈƇ	ŌƇƇƌƌƏƇƍ
ŌƏƇƊƎƊ	–	–	–
ƈƎƌƊƈƏƌƊ	–	ƉƇƊ	ƇƋƋƐƏƍ
ƈƎƍƈƌƎƍƇ	–	ƉƇƊ	ƇƊƎƏƌƎ
ŌƎƉƏƐƍ	–	–	ƌƇƈƏ

Insurance contracts issued by remaining coverage and incurred claims /LIH DQG KHDOWK LQVXUDQFH ƈƐƈƈ

Provision for future policy benefits (liability for remaining coverage)

	excluding loss components	loss components
LQ Ƒ WKRXVDQGV
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƈ	ƉƌƌƏƉƉƎƍ	–
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƇƇƈƐƈƈ	ŌƇƈƉƇƎƍ	–
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ ƈ	ƉƌƋƍƐƈƐƐ	–
Changes in the income statement and in Other comprehensive income (OCI)
Technical result	ŌƇƈƊƍƋƎƐ	–
Technical income	ŌƋƊƊƉƐƏ	–
Insurance contracts measured using the modified retrospective approach (MRA) that existed at the transition date	ŌƋƈƍƉƎƏ	–
Insurance contracts measured using the fair value approach (FVA) that existed at the transition date	–	–
All other insurance contracts	ŌƇƌƏƈƐ	–
Technical expenses	ƇƉƇƏƊƎ	–
Incurred claims and other expenses for services in accordance with the insurance contract	ƋƋƏƇƎ	–
Amortisation of acquisition costs	ƍƌƐƉƐ	–
Changes relating to past services	–	–
Investment components	ŌƎƉƋƈƇƏ	–
Technical finance income or expenses	ŌƌƊƊƊƉƎƎ	–
Total change in the income statement and Other comprehensive income (OCI)	ŌƍƌƏƇƏƌƎ	–
Net income from cash flows	ƏƋƊƊƊƍ	–
Premiums received	ƇƇƇƇƏƉƌ	–
Claims payments and other expenses for services in accordance with the insurance contract	ŌƋƋƎƉƉ	–
Acquisition costs	ŌƇƐƇƌƋƌ	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ ƈ	ƈƏƎƉƈƌƍƏ	–
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƈ	ƈƏƏƉƋƈƋƇ	–
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƉƐƌƈƐƈƈ	ŌƇƐƈƋƍƈ	–

	Provision for outstanding insurance claims (liability for incurred claims)
	Measurement under the premium allocation approach (PAA)		Measurement under the variable fee approach (VFA)
Total	Risk adjustment for non-financial risks	Estimation of the present value of future cash flows
ƉƌƎƋƐƈƈƐ	–	ƇƇƇ	ƇƋƌƍƈƈ
ŌƇƇƌƊƉƋ	–	–	ƌƍƋƈ
ƉƌƍƉƉƍƎƋ	–	ƇƇƇ	ƇƌƉƊƍƊ
ŌƌƊƇƌƋ	–	ƌƎƏ	ƇƇƎƈƍƈƌ
ŌƋƊƊƉƐƏ	–	–	–
ŌƋƈƍƉƎƏ	–	–	–
–	–	–	–
ŌƇƌƏƈƐ	–	–	–
ƊƎƐƇƊƊ	–	ƌƎƏ	ƉƊƍƋƐƍ
ƊƐƊƉƉƐ	–	ƋƏƉ	ƉƊƍƎƇƏ
ƍƌƐƉƐ	–	–	–
ŌƈƇƌ	–	Əƌ	ŌƉƇƈ
–	–	–	ƎƉƋƈƇƏ
ŌƌƊƊƊƉƎƎ	–	–	–
ŌƌƋƐƎƋƋƉ	–	ƌƎƏ	ƇƇƎƈƍƈƌ
ŌƈƈƉƎƈƏ	–	ŌƌƎƊ	ŌƇƇƍƍƋƏƈ
ƇƇƇƇƏƉƌ	–	–	–
ŌƇƈƉƊƇƐƏ	–	ŌƌƎƊ	ŌƇƇƍƍƋƏƈ
ŌƇƐƇƌƋƌ	–	–	–
ƉƐƐƐƇƊƐƉ	–	ƇƇƌ	ƇƌƎƌƐƎ
ƉƐƐƏƍƇƎƍ	–	ƇƇƌ	ƇƌƇƎƈƐ
ŌƏƋƍƎƊ	–	–	ƌƍƎƎ

Reinsurance contracts held by remaining coverage and incurred claims /LIH DQG KHDOWK LQVXUDQFH ƈƐƈƉ

Asset for remaining coverage

	excluding loss reimbursement components	Loss reimbursement components
LQ Ƒ WKRXVDQGV
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƉ	ƈƊ	–
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH DVVHWV ƇƇƈƐƈƉ	ŌƉƎƉƐƎ	–
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ Ɖ	ŌƉƎƈƎƊ	–
Changes in the income statement and in Other comprehensive income (OCI):
Net result from reinsurance contracts held	ƇƈƇƈƇ	–
Premiums ceded to reinsurers	ƇƈƇƈƇ	–
Amounts recoverable from reinsurers for incurred claims	–	–
Amounts recoverable for insurance claims incurred and other service-related expenses	–	–
Technical finance income or expenses	ƈƇƋƍ	–
Total change in the income statement and Other comprehensive income (OCI)	ƇƊƈƍƎ	–
Net income from cash flows	ŌƇƎƊƍƌ	–
Premiums ceded to reinsurers	ŌƇƎƊƍƌ	–
Payments reimbursed	–	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ Ɖ	ŌƊƈƊƎƈ	–
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƉ	–	–
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH DVVHWV ƉƐƌƈƐƈƉ	ŌƊƈƊƎƈ	–

	Asset for incurred claims
	Measurement under the premium allocation approach (PAA)		Measurement under the building block approach (BBA)
	Risk adjustment for non	Estimation of the present value
Total	financial risks	of future cash flows
ƈƊ	–	–	–
ŌƊƏƏƍƎ	–	–	ŌƇƇƌƍƐ
ŌƊƏƏƋƊ	–	–	ŌƇƇƌƍƐ
ƌƍƍƌ	–	Ōƍƈ	ŌƋƈƍƉ
ƇƈƇƈƇ	–	–	–
ŌƋƉƊƋ	–	Ōƍƈ	ŌƋƈƍƉ
ŌƋƉƊƋ	–	Ōƍƈ	ŌƋƈƍƉ
ƈƇƋƍ	–	–	–
ƎƏƉƉ	–	Ōƍƈ	ŌƋƈƍƉ
ŌƌƍƉƎ	–	ƍƈ	ƇƇƌƌƌ
ŌƇƎƊƍƌ	–	–	–
ƇƇƍƉƎ	–	ƍƈ	ƇƇƌƌƌ
ŌƊƍƍƋƏ	–	–	ŌƋƈƍƍ
–	–	–	–
ŌƊƍƍƋƏ	–	–	ŌƋƈƍƍ

Reinsurance contracts held by remaining coverage and incurred claims /LIH DQG KHDOWK LQVXUDQFH ƈƐƈƈ

Asset for remaining coverage

	excluding loss reimbursement components	Loss reimbursement components
LQ Ƒ WKRXVDQGV
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƈ	ƈƌƎƉƋ	–
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH DVVHWV ƇƇƈƐƈƈ	–	–
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ ƈ	ƈƌƎƉƋ	–
Changes in the income statement and in Other comprehensive income (OCI)
Net result from reinsurance contracts held	ƇƇƌƐƋ	–
Premiums ceded to reinsurers	ƇƇƌƐƋ	–
Amounts recoverable from reinsurers for incurred claims	–	–
Amounts recoverable for insurance claims incurred and other service-related expenses	–	–
Technical finance income or expenses	ƊƎƋƋƈ	–
Total change in the income statement and Other comprehensive income (OCI)	ƉƌƏƊƍ	–
Net income from cash flows	ƈƇƍƎƉ	–
Premiums ceded to reinsurers	ƈƇƍƎƉ	–
Payments reimbursed	–	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ ƈ	ƉƇƎƏƋ	–
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƈ	–	–
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH DVVHWV ƉƐƌƈƐƈƈ	ŌƉƇƎƏƋ	–

	Asset for incurred claims
	Measurement under the premium allocation approach (PAA)		Measurement under the building block approach (BBA)
	Risk adjustment for non	Estimation of the present value
Total	financial risks	of future cash flows
ƇƊƉƍƊ	–	–	ƇƈƊƌƇ
–	–	–	–
ƇƊƉƍƊ	–	–	ƇƈƊƌƇ
ƋƇƎƍ	–	ƌƐ	ƌƉƋƎ
ƇƇƌƐƋ	–	–	–
ƌƊƇƎ	–	ƌƐ	ƌƉƋƎ
ƌƊƇƎ	–	ƌƐ	ƌƉƋƎ
ƊƎƋƋƈ	–	–	–
ƊƉƉƌƋ	–	ƌƐ	ƌƉƋƎ
Əƈƌƈ	–	ƌƐ	ƇƈƊƌƇ
ƈƇƍƎƉ	–	–	–
ƇƈƋƈƇ	–	ƌƐ	ƇƈƊƌƇ
ƉƎƈƋƉ	–	–	ƌƉƋƎ
–	–	–	–
ŌƉƎƈƋƉ	–	–	ŌƌƉƋƎ

Insurance contracts issued by remaining coverage and incurred claims Property/Casualty Insurance ƈƐƈƉ

Provision for future policy benefits (liability for remaining coverage)

	excluding loss components	loss components
LQ Ƒ WKRXVDQGV
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƉ	ƇƇƈƎ	ƈƉƍƌƉƌ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƇƇƈƐƈƉ	–	–
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ Ɖ	ƇƇƈƎ	ƈƉƍƌƉƌ
Changes in the income statement and in Other comprehensive income (OCI)
Technical result	ŌƏƐƎƈƌƐ	ŌƌƋƐƈ
Technical income	ŌƇƈƋƊƋƇƏ	–
Insurance contracts measured using the modified retrospective approach (MRA) that existed at the transition date	ƇƎ	–
Insurance contracts measured using the fair value approach (FVA) that existed at the transition date	–	–
All other insurance contracts	ŌƇƈƋƊƋƉƍ	–
Technical expenses	ƉƊƌƈƋƏ	ŌƌƋƐƈ
Incurred claims and other expenses for services in accordance with the insurance contract	ƈƎƐƉƈƌ	ŌƇƉƋƐƎ
Amortisation of acquisition costs	ƌƋƏƉƉ	–
Changes relating to past services	–	–
Changes relating to future services	–	ƍƐƐƌ
Technical finance income or expenses	ƎƋƍƈ	ƏƏ
of which from exchange rate fluctuations	–	–
Total change in the income statement and Other comprehensive income (OCI)	ŌƎƏƏƌƎƎ	ŌƌƊƐƉ
Net income from cash flows	ƇƇƍƎƉƎƈ	–
Premiums received	ƇƌƈƎƋƈƏ	–
Claims payments and other expenses for services in accordance with the insurance contract	ŌƈƊƍƍƍƇ	–
Acquisition costs	ŌƈƐƈƉƍƌ	–
Other matters required for reconciliation	ŌƇƏƊƎ	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ Ɖ	ƈƍƍƎƍƊ	ƈƉƇƈƉƉ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƉ	ƈƍƍƎƍƊ	ƈƉƇƈƉƉ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƉƐƌƈƐƈƉ	–	–

	Provision for outstanding insurance claims (liability for incurred claims)
	Measurement under the premium allocation approach (PAA)		Measurement under the building block approach (BBA)
	Risk adjustment for non financial risks	Estimation of the present value of future cash flows
Total
ƇƏƌƇƌƏƎ	ƌƍƈƏƐ	ƎƈƍƍƐƊ	ƎƈƍƏƊƐ
ŌƇ	–	–	ŌƇ
ƇƏƌƇƌƏƍ	ƌƍƈƏƐ	ƎƈƍƍƐƊ	ƎƈƍƏƉƏ
ŌƌƌƌƍƐ	ŌƏƋƌƇ	ƉƏƏƈƉƏ	ƊƋƎƊƇƊ
ŌƇƈƋƊƋƇƏ	–	–	–
ƇƎ	–	–	–
–	–	–	–
ŌƇƈƋƊƋƉƍ	–	–	–
ƇƇƎƍƎƊƏ	ŌƏƋƌƇ	ƉƏƏƈƉƏ	ƊƋƎƊƇƊ
ƇƇƐƊƊƌƏ	ƉƐƏƍ	ƉƏƋƈƉƏ	ƊƉƏƉƇƋ
ƌƋƏƉƉ	–	–	–
ƇƐƊƊƇ	ŌƇƈƌƋƎ	ƊƐƐƐ	ƇƏƐƏƏ
ƍƐƐƌ	–	–	–
ƈƍƊƉƎ	ƈƐƋƐ	ƇƉƍƏƇ	ƈƏƈƌ
ŌƋƇƏ	ŌƊƇ	ŌƊƍƎ	–
ŌƉƏƈƉƈ	ŌƍƋƇƇ	ƊƇƉƐƉƐ	ƊƌƇƉƊƐ
ƊƐƋƍƎƋ	–	ŌƊƐƊƏƈƈ	ŌƉƌƍƌƍƋ
ƇƌƈƎƋƈƏ	–	–	–
ŌƇƐƈƐƉƌƎ	–	ŌƊƐƊƏƈƈ	ŌƉƌƍƌƍƋ
ŌƈƐƈƉƍƌ	–	–	–
ŌƇƏƊƎ	–	–	–
ƈƉƈƌƉƐƈ	ƋƏƍƍƏ	ƎƉƋƎƇƈ	ƏƈƇƌƐƊ
ƈƉƈƌƉƐƉ	ƋƏƍƍƏ	ƎƉƋƎƇƈ	ƏƈƇƌƐƋ
ŌƇ	–	–	ŌƇ

Insurance contracts issued by remaining coverage and incurred claims 3URSHUW\&DVXDOW\ ,QVXUDQFH ƈƐƈƈ

Provision for future policy benefits (liability for remaining coverage)

	excluding loss components ƈƇƉƐƊƇ –	loss components
LQ Ƒ WKRXVDQGV
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƈ		ƈƉƍƋƏ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƇƇƈƐƈƈ		–
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ ƈ	ƈƇƉƐƊƇ	ƈƉƍƋƏ
Changes in the income statement and in Other comprehensive income (OCI)
Technical result	ŌƎƐƊƏƈƋ	ŌƋƐƇƐ
Technical income	ŌƇƇƈƌƊƏƏ	–
Insurance contracts measured using the modified retrospective approach (MRA) that existed at the transition date	ƇƊ	–
Insurance contracts measured using the fair value approach (FVA) that existed at the transition date	–	–
All other insurance contracts	ŌƇƇƈƌƋƇƉ	–
Technical expenses	ƉƈƇƋƍƊ	ŌƋƐƇƐ
Incurred claims and other expenses for services in accordance with the insurance contract	ƈƋƋƋƐƋ	ŌƇƐƐƊƉ
Amortisation of acquisition costs	ƌƌƐƌƏ	–
Changes relating to past services	–	–
Changes relating to future services	–	ƋƐƉƉ
Technical finance income or expenses	ŌƇƍƐƈƍ	ŌƉ
Total change in the income statement and Other comprehensive income (OCI)	ŌƎƈƇƏƋƈ	ŌƋƐƇƉ
Net income from cash flows	ƇƐƋƋƐƇƋ	–
Premiums received	ƇƊƊƉƈƏƌ	–
Claims payments and other expenses for services in accordance with the insurance contract	ŌƈƈƍƉƏƍ	–
Acquisition costs	ŌƇƌƐƎƎƊ	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ ƈ	ƊƊƌƇƐƊ	ƇƎƍƊƌ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƈ	ƊƊƌƇƐƊ	ƇƎƍƊƌ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƉƐƌƈƐƈƈ	–	–

		Provision for outstanding insurance claims (liability for incurred claims)
		Measurement under the premium allocation approach (PAA)
Total	Risk adjustment for non financial risks	Estimation of the present value of future cash flows
ƈƈƌƈƋƎƊ	ƎƏƌƇƐ	ƏƈƌƉƋƐ	ƇƐƐƏƎƈƊ
–	–	–	–
ƈƈƌƈƋƎƊ	ƎƏƌƇƐ	ƏƈƌƉƋƐ	ƇƐƐƏƎƈƊ
ŌƇƊƇƊƈƌ	ŌƈƌƋƌ	ƉƊƌƊƋƋ	ƉƈƊƍƇƐ
ŌƇƇƈƌƊƏƏ	–	–	–
ƇƊ	–	–	–
–	–	–	–
ŌƇƇƈƌƋƇƉ	–	–	–
ƏƎƋƐƍƉ	ŌƈƌƋƌ	ƉƊƌƊƋƋ	ƉƈƊƍƇƐ
ƏƇƎƉƐƎ	ƈƎƋƋ	ƉƉƉƋƉƇ	ƉƉƌƊƌƐ
ƌƌƐƌƏ	–	–	–
ŌƊƉƉƍ	ŌƋƋƇƇ	ƇƈƏƈƊ	ŌƇƇƍƋƐ
ƋƐƉƉ	–	–	–
ŌƇƊƎƉƊƍ	ŌƏƊƇƇ	ŌƎƐƎƎƊ	ŌƊƇƐƈƈ
ŌƈƎƏƍƍƉ	ŌƇƈƐƌƍ	ƈƌƋƋƍƇ	ƈƎƉƌƎƎ
ƈƏƉƊƉƎ	–	ŌƉƌƈƈƈƍ	ŌƉƏƏƉƋƐ
ƇƊƊƉƈƏƌ	–	–	–
ŌƏƎƎƏƍƊ	–	ŌƉƌƈƈƈƍ	ŌƉƏƏƉƋƐ
ŌƇƌƐƎƎƊ	–	–	–
ƈƈƌƌƈƊƏ	ƍƍƋƊƉ	ƎƈƏƌƏƊ	ƎƏƊƇƌƈ
ƈƈƌƌƈƊƏ	ƍƍƋƊƉ	ƎƈƏƌƏƊ	ƎƏƊƇƌƈ
–	–	–	–

Reinsurance contracts held by remaining coverage and incurred claims 3URSHUW\&DVXDOW\ ,QVXUDQFH ƈƐƈƉ

	Asset for remaining coverage
	excluding loss reimbursement components	Loss reimbursement components
LQ Ƒ WKRXVDQGV
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƉ	ƇƋƈƇ	ŌƇƉƍ
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH DVVHWV ƇƇƈƐƈƉ	ƊƐƊƍƎ	ŌƇƇƇƊ
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ Ɖ	ƊƇƏƏƏ	ŌƇƈƋƇ
Changes in the income statement and in Other comprehensive income (OCI)
Net result from reinsurance contracts held	ƎƏƎƊƎ	ƌƉƐ
Premiums ceded to reinsurers	ƎƏƎƊƎ	–
Amounts recoverable from reinsurers for incurred claims	–	ƌƉƐ
Amounts recoverable for insurance claims incurred and other service-related expenses	–	–
Loss compensation for groups of onerous contracts and adjustments/reversals of these losses	–	ƌƉƐ
Changes in amounts recoverable for incurred claims	–	–
Technical finance income or expenses	–	–
of which changes in the risk of non-performance by reinsurers	–	–
of which from exchange rate fluctuations	–	–
Total change in the income statement and Other comprehensive income (OCI)	ƎƏƎƊƎ	ƌƉƐ
Net income from cash flows	ŌƇƈƌƍƍƎ	–
Premiums ceded to reinsurers	ŌƇƈƌƍƍƎ	–
Payments reimbursed	–	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ Ɖ	ƋƐƌƏ	ŌƌƈƇ
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƉ	ƊƌƋƉ	ŌƇ
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH DVVHWV ƉƐƌƈƐƈƉ	ƊƇƌ	ŌƌƈƐ

	Asset for incurred claims
	Measurement under the premium allocation approach (PAA)
Total	Risk adjustment for non-financial risks	Estimation of the present value of future cash flows
ƇƉƍƇ	–	ŌƇƉ
ŌƈƈƉƊƌƏ	ŌƏƋƊƉ	ŌƈƋƉƈƏƐ
ŌƈƈƈƐƏƎ	ŌƏƋƊƉ	ŌƈƋƉƉƐƉ
ŌƈƌƐƎƏ	ƌƍƊ	ŌƇƇƍƈƊƇ
ƎƏƎƊƎ	–	–
ŌƇƇƋƏƉƍ	ƌƍƊ	ŌƇƇƍƈƊƇ
ŌƇƐƌƎƌƉ	ŌƇƏƐƊ	ŌƇƐƊƏƋƏ
ƌƉƐ	–	–
ŌƏƍƐƊ	ƈƋƍƎ	ŌƇƈƈƎƈ
ŌƉƊƌƐ	ƈƏƎ	ŌƉƇƌƈ
Ōƈƍƍ	–	ƈƍƍ
Ɖ	–	Ɖ
ŌƈƏƋƊƏ	Ɖƍƌ	ŌƇƈƐƊƐƉ
ŌƊƌƇƎ	–	ƇƈƈƇƌƐ
ŌƇƈƌƍƍƎ	–	–
ƇƈƈƇƌƐ	–	ƇƈƈƇƌƐ
ŌƈƋƌƈƌƋ	ŌƏƇƌƍ	ŌƈƋƇƋƊƌ
ƈƏƏƐ	Ɖƌ	ŌƇƌƈƌ
ŌƈƋƏƈƋƋ	ŌƏƇƉƇ	ŌƈƊƏƏƈƐ

Reinsurance contracts held by remaining coverage and incurred claims 3URSHUW\&DVXDOW\ ,QVXUDQFH ƈƐƈƈ

	Asset for remaining coverage
	excluding loss reimbursement components	Loss reimbursement components
LQ Ƒ WKRXVDQGV
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƈ	ƈƊƈƇ	ŌƊƉ
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH DVVHWV ƇƇƈƐƈƈ	ƎƊƊƐƎ	ŌƎƊƍ
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ ƈ	ƎƌƎƈƏ	ŌƎƏƐ
Changes in the income statement and in Other comprehensive income (OCI)
Net result from reinsurance contracts held	ƌƌƇƉƇ	ƈƊƈ
Premiums ceded to reinsurers	ƌƌƇƉƇ	–
Amounts recoverable from reinsurers for incurred claims	–	ƈƊƈ
Amounts recoverable for insurance claims incurred and other service-related expenses	–	–
Loss compensation for groups of onerous contracts and adjustments/reversals of these losses	–	ƈƊƈ
Changes in amounts recoverable for incurred claims	–	–
Technical finance income or expenses	–	–
of which changes in the risk of non-performance by reinsurers	–	–
of which from exchange rate fluctuations	–	–
Total change in the income statement and Other comprehensive income (OCI)	ƌƌƇƉƇ	ƈƊƈ
Net income from cash flows	ŌƇƍƇƏƉƎ	–
Premiums ceded to reinsurers	ŌƇƍƇƏƉƎ	–
Payments reimbursed	–	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ ƈ	ŌƇƎƏƍƎ	ŌƌƊƎ
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƈ	ƇƉƍƍ	ŌƉƈ
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH DVVHWV ƉƐƌƈƐƈƈ	ŌƈƐƉƋƋ	ŌƌƇƌ

	Asset for incurred claims
Measurement under the premium allocation approach (PAA)
Estimation of the present value of future cash flows	Risk adjustment for non-financial risks	Total
ŌƌƉƊ	ŌƇ	ƇƍƊƉ
ŌƊƌƈƎƊƏ	ŌƇƉƏƉƌ	ŌƉƏƉƈƈƊ
ŌƊƌƉƊƎƉ	ŌƇƉƏƉƍ	ŌƉƏƇƊƎƇ
ŌƈƍƋƋƌ	ƇƏƏƋ	ƊƐƎƇƈ
–	–	ƌƌƇƉƇ
ŌƈƍƋƋƌ	ƇƏƏƋ	ŌƈƋƉƇƏ
ŌƈƈƈƋƍ	ŌƉƍƉ	ŌƈƈƌƉƐ
–	–	ƈƊƈ
ŌƋƈƏƏ	ƈƉƌƎ	ŌƈƏƉƇ
ƇƇƉƐƏ	ƇƇƋƈ	ƇƈƊƌƇ
ŌƇƇƉƍ	–	ŌƇƇƉƍ
ŌƈƇ	Ōƈ	ŌƈƉ
ŌƇƌƈƊƍ	ƉƇƊƍ	ƋƉƈƍƉ
ƈƈƎƇƎƉ	–	ƋƌƈƊƋ
–	–	ŌƇƍƇƏƉƎ
ƈƈƎƇƎƉ	–	ƈƈƎƇƎƉ
ŌƈƋƇƋƊƍ	ŌƇƐƍƏƐ	ŌƈƎƇƏƌƉ
ŌƍƇ	ŌƇ	ƇƈƍƉ
ŌƈƋƇƊƍƌ	ŌƇƐƍƎƏ	ŌƈƎƉƈƉƌ

The following tables reconcile the opening balance to the closing balance for the net carrying amounts of insurance contracts, broken down by the measurement components in accordance with IFRS 17: Estimation of the present value of future cash flows, risk adjustment for non-financial risks and the contractual service margin (CSM).

These are disclosed separately for insurance contracts issued and reinsurance contracts held and are shown for the relevant reporting segment.

Insurance contracts issued by measurement components Life and heDOWK LQVXUDQFH ƈƐƈƉ

	Estimation of the present value of future cash flows	Risk adjustment for non-financial risks
LQ Ƒ WKRXVDQGV
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƉ	ƈƌƏƈƊƏƈƉ	ƈƐƌƐƉƎ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƇƇƈƐƈƉ	ŌƇƋƋƍƏƏ	ƊƉƇƊ
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ Ɖ	ƈƌƍƌƏƇƈƊ	ƈƇƐƉƋƈ
Changes in the income statement and in Other comprehensive income (OCI)
Technical result	ŌƇƉƌƇƉƈ	ŌƇƏƐƐƉ
Changes relating to current services	ƋƎƉƐ	ŌƈƎƈƍ
Changes in the contractual service margin (CSM) through profit or loss	–	–
Changes to the risk adjustment for non-financial risks	–	ŌƈƎƈƍ
Changes due to experience adjustments	ƋƎƉƐ	–
Changes relating to future services	ŌƇƉƍƈƋƏ	ŌƇƌƐƌƌ
Changes in estimates that adjust the contractual service margin (CSM)	ŌƇƐƏƋƇƌ	ŌƇƎƏƊƐ
Changes due to effects of contracts recognised for the first time in the period	ŌƈƍƍƊƉ	ƈƎƍƊ
Changes relating to past services	ƌƏƋƍ	ŌƇƇƐ
Change in obligation for incurred claims	ƌƏƋƍ	ŌƇƇƐ
Technical finance income or expenses	ƍƇƈƎƇƎ	–
Other matters required for reconciliation	ƇƐƈƍƊ	–
Total change in the income statement and Other comprehensive income (OCI)	ƋƎƌƏƌƐ	ŌƇƏƐƐƉ
Net income from cash flows	ŌƈƏƊƈƏƈ	–
Premiums received	ƇƐƇƋƋƌƌ	–
Claims payments and other expenses for services in accordance with the insurance contract	ŌƇƈƇƎƊƌƍ	–
Acquisition costs	ŌƏƇƉƏƇ	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ Ɖ	ƈƍƐƌƇƍƏƈ	ƇƏƇƉƊƏ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƉ	ƈƍƈƈƉƎƐƌ	ƇƎƍƋƌƇ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƉƐƌƈƐƈƉ	ŌƇƌƈƐƇƊ	ƉƍƎƎ

	Contractual service margin (CSM)
Total	All other insurance contracts	Insurance contracts that existed at the transition date and for which the fair value approach (FVA) was applied	Insurance contracts that existed at the transition date and for which the modified retrospective approach (MRA) was applied
ƈƎƉƉƊƉƋƉ	ƊƇƍƍƋ	–	ƇƇƌƇƌƇƍ
ŌƍƇƉƌƉ	Ɗƈƌƍ	–	ƍƋƎƋƋ
ƈƎƈƌƈƏƏƐ	ƊƌƐƊƈ	–	ƇƈƉƍƊƍƈ
ŌƋƐƇƏƈ	ƈƎƍƉƏ	–	ƍƌƈƐƊ
ŌƋƍƐƉƏ	Ōƈƈƈƌ	–	ŌƊƌƇƋƌ
ŌƊƎƉƎƈ	Ōƈƈƈƌ	–	ŌƊƌƇƋƌ
ŌƈƎƈƍ	–	–	–
ƋƎƉƐ	–	–	–
–	ƉƐƏƌƋ	–	ƇƈƈƉƌƐ
–	ƌƐƏƌ	–	ƇƈƈƉƌƐ
–	ƈƊƎƌƏ	–	–
ƌƎƊƍ	–	–	–
ƌƎƊƍ	–	–	–
ƍƇƈƎƇƎ	–	–	–
ƇƐƈƍƊ	–	–	–
ƌƍƈƏƐƐ	ƈƎƍƉƏ	–	ƍƌƈƐƊ
ŌƈƏƊƈƏƈ	–	–	–
ƇƐƇƋƋƌƌ	–	–	–
ŌƇƈƇƎƊƌƍ	–	–	–
ŌƏƇƉƏƇ	–	–	–
ƈƎƌƊƇƋƏƎ	ƍƊƍƎƇ	–	ƇƉƇƉƌƍƌ
ƈƎƍƈƋƋƐƋ	ƌƏƐƐƋ	–	ƇƈƊƋƇƉƉ
ŌƎƉƏƐƍ	Ƌƍƍƌ	–	ƌƎƋƊƉ

Insurance contracts issued by measurement components /LIH DQG KHDOWK LQVXUDQFH ƈƐƈƈ

	Estimation of the present value of future cash flows	Risk adjustment for non-financial risks
LQ Ƒ WKRXVDQGV
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƈ	ƉƋƉƉƌƌƌƉ	ƊƍƉƍƋƋ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƇƇƈƐƈƈ	ŌƈƈƊƍƋƊ	ƇƉƌƎƎ
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ ƈ	ƉƋƇƇƇƏƐƏ	ƊƎƍƊƊƉ
Changes in the income statement and in Other comprehensive income (OCI)
Technical result	ƇƍƋƋƌƏ	ŌƈƈƇƊƐƏ
Changes relating to current services	ƊƇƇ	ŌƇƋƎƏƌ
Changes in the contractual service margin (CSM) through profit or loss	–	–
Changes to the risk adjustment for non-financial risks	–	ŌƇƋƎƏƌ
Changes due to experience adjustments	ƊƇƇ	–
Changes relating to future services	ƇƍƋƋƐƌ	ŌƈƐƋƋƊƏ
Changes in estimates that adjust the contractual service margin (CSM)	ƈƇƐƉƏƍ	ŌƈƇƈƎƍƇ
Changes due to effects of contracts recognised for the first time in the period	ŌƉƊƎƏƇ	ƍƉƈƈ
Changes relating to past services	ŌƉƊƎ	Ɖƌ
Change in obligation for incurred claims	ŌƉƊƎ	Ɖƌ
Technical finance income or expenses	ŌƌƊƊƊƉƎƎ	–
Total change in the income statement and Other comprehensive income (OCI)	ŌƌƈƌƎƎƇƏ	ŌƈƈƇƊƐƏ
Net income from cash flows	ŌƈƈƊƉƋƍ	–
Premiums received	ƇƇƇƐƋƏƏ	–
Claims payments and other expenses for services in accordance with the insurance contract	ŌƇƈƉƉƉƎƌ	–
Acquisition costs	ŌƇƐƇƋƍƐ	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ ƈ	ƈƎƌƇƎƍƉƉ	ƈƌƌƐƉƊ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƈ	ƈƎƍƏƋƉƉƍ	ƈƋƏƇƎƐ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƉƐƌƈƐƈƈ	ŌƇƍƌƌƐƊ	ƌƎƋƊ

	Contractual service margin (CSM)
Total	All other insurance contracts	Insurance contracts that existed at the transition date and for which the fair value approach (FVA) was applied	Insurance contracts that existed at the transition date and for which the modified retrospective approach (MRA) was applied
ƉƌƎƊƏƐƍƏ	–	–	ƇƐƉƎƌƌƇ
ŌƇƇƌƊƉƋ	–	–	ƏƊƌƉƇ
ƉƌƍƉƈƌƊƊ	–	–	ƇƇƉƉƈƏƈ
ŌƌƉƌƈƈ	ƈƊƌƎƋ	–	ŌƊƈƊƌƍ
ŌƋƈƊƎƋ	Ōƍƈƌ	–	ŌƉƌƈƍƊ
ŌƉƍƐƐƐ	Ōƍƈƌ	–	ŌƉƌƈƍƊ
ŌƇƋƎƏƌ	–	–	–
ƊƇƇ	–	–	–
ŌƇƐƎƈƋ	ƈƋƊƇƇ	–	ŌƌƇƏƉ
ŌƇƐƎƈƋ	ŌƈƇƋƎ	–	ŌƌƇƏƉ
–	ƈƍƋƌƏ	–	–
ŌƉƇƈ	–	–	–
ŌƉƇƈ	–	–	–
ŌƌƊƊƊƉƎƎ	–	–	–
ŌƌƋƐƎƐƇƐ	ƈƊƌƎƋ	–	ŌƊƈƊƌƍ
ŌƈƈƊƉƋƍ	–	–	–
ƇƇƇƐƋƏƏ	–	–	–
ŌƇƈƉƉƉƎƌ	–	–	–
ŌƇƐƇƋƍƐ	–	–	–
ƉƐƐƐƐƈƍƍ	ƈƊƌƎƋ	–	ƇƐƏƐƎƈƋ
ƉƐƐƏƌƐƌƐ	ƈƇƎƇƊ	–	ƇƐƇƏƍƈƏ
ŌƏƋƍƎƉ	ƈƎƍƇ	–	ƍƇƐƏƌ

The expected excess return for the reporting period / the change in the entity's share of the fair value of the underlying items in the low single-digit millions in the first half of 2023 and the first half of 2022 were recognised in the technical result through changes in the contractual service margin (CSM) through profit or loss (for more information please see the section Initial application of IFRS 17 Insurance Contracts).

Reinsurance contracts held by measurement components /LIH DQG KHDOWK LQVXUDQFH ƈƐƈƉ

	Estimation of the present value of future cash flows	Risk adjustment for non-financial risks
LQ Ƒ WKRXVDQGV
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƉ	–	–
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH DVVHWV ƇƇƈƐƈƉ	ƇƎƋƊƋƌ	ŌƈƏƉƈ
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ Ɖ	ƇƎƋƊƋƌ	ŌƈƏƉƈ
Changes in the income statement and in Other comprehensive income (OCI)
Technical result	ƈƊƇƋ	ƇƇƏƈ
Changes relating to current services	ŌƊƌƍ	ƌƉ
Changes in the contractual service margin (CSM) through profit or loss	–	–
Changes to the risk adjustment for non-financial risks	–	ƌƉ
Changes due to experience adjustments	ŌƊƌƍ	–
Changes relating to future services	ƈƎƎƈ	ƇƇƈƏ
Changes in estimates that adjust the contractual service margin (CSM)	ƈƎƎƈ	ƇƇƈƏ
Technical finance income or expenses	ƈƇƇƌ	–
Total change in the income statement and Other comprehensive income (OCI)	ƊƋƉƇ	ƇƇƏƈ
Net income from cash flows	ŌƌƋƊƎ	–
Premiums ceded to reinsurers	ŌƇƎƈƇƊ	–
Payments reimbursed	ƇƇƌƌƌ	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ Ɖ	ƇƎƉƊƉƏ	ŌƇƍƊƐ
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƉ	–	–
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH DVVHWV ƉƐƌƈƐƈƉ	ƇƎƉƊƉƏ	ŌƇƍƊƐ

	Contractual service margin (CSM)
Total	All other insurance contracts	Insurance contracts that existed at the transition date and for which the fair value approach (FVA) was applied	Insurance contracts that existed at the transition date and for which the modified retrospective approach (MRA) was applied
–	–	–	–
ŌƊƏƏƍƎ	ŌƈƉƈƋƐƈ	–	–
ŌƊƏƏƍƎ	ŌƈƉƈƋƐƈ	–	–
ƌƍƉƐ	ƉƇƈƉ	–	–
ƌƍƉƇ	ƍƇƉƋ	–	–
ƍƇƉƋ	ƍƇƉƋ	–	–
ƌƉ	–	–	–
ŌƊƌƍ	–	–	–
ŌƇ	ŌƊƐƇƈ	–	–
ŌƇ	ŌƊƐƇƈ	–	–
ƈƇƋƍ	ƊƇ	–	–
ƎƎƎƍ	ƉƇƌƊ	–	–
ŌƌƋƊƎ ŌƇƎƈƇƊ	– –	– –	– –
ƇƇƌƌƌ	–	–	–
ŌƊƍƌƉƏ	ŌƈƈƏƉƉƎ	–	–
–	–	–	–
ŌƊƍƌƉƏ	ŌƈƈƏƉƉƎ	–	–

Reinsurance contracts held by measurement components /LIH DQG KHDOWK LQVXUDQFH ƈƐƈƈ

	Estimation of the present value of future cash flows	Risk adjustment for non-financial risks
LQ Ƒ WKRXVDQGV
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƈ	ƈƋƉƈƍƈ	ŌƊƋƏƌ
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH DVVHWV ƇƇƈƐƈƈ	–	–
1HW FDUU\LQJ DPRXQW ƇƇƈƐƈƈ	ƈƋƉƈƍƈ	ŌƊƋƏƌ
Changes in the income statement and in Other comprehensive income (OCI)
Net result from reinsurance contracts held	ƊƎƉƇ	ƇƍƇƋ
Changes relating to current services	ŌƇƍƍƎ	ƇƌƉ
Changes in the contractual service margin (CSM) through profit or loss	–	–
Changes to the risk adjustment for non-financial risks	–	ƇƌƉ
Changes due to experience adjustments	ŌƇƍƍƎ	–
Changes relating to future services	ƌƌƐƏ	ƇƋƋƈ
Changes in estimates that adjust the contractual service margin (CSM)	ƌƌƐƏ	ƇƋƋƈ
Technical finance income or expenses	ŌƊƎƌƏƏ	–
Total change in the income statement and Other comprehensive income (OCI)	ŌƊƉƎƌƎ	ƇƍƇƋ
Net income from cash flows	ŌƏƇƇƐ	–
Premiums ceded to reinsurers	ŌƈƇƋƍƇ	–
Payments reimbursed	ƇƈƊƌƇ	–
1HW FDUU\LQJ DPRXQW ƉƐƌƈƐƈƈ	ƈƐƐƈƏƊ	ŌƈƎƎƇ
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƈ	–	–
5HLQVXUDQFH FRQWUDFWV KHOG WKDW DUH DVVHWV ƉƐƌƈƐƈƈ	ƈƐƐƈƏƊ	ŌƈƎƎƇ

	Contractual service margin (CSM)
Total	All other insurance contracts	Insurance contracts that existed at the transition date and for which the fair value approach (FVA) was applied	Insurance contracts that existed at the transition date and for which the modified retrospective approach (MRA) was applied
ƇƊƉƋƏ	ŌƈƉƊƉƇƍ	–	–
–	–	–	–
ƇƊƉƋƏ	ŌƈƉƊƉƇƍ	–	–
ƋƇƋƏ	ŌƇƉƎƍ	–	–
ƋƇƋƎ	ƌƍƍƉ	–	–
ƌƍƍƉ	ƌƍƍƉ	–	–
ƇƌƉ	–	–	–
ŌƇƍƍƎ	–	–	–
Ƈ	ŌƎƇƌƐ	–	–
Ƈ	ŌƎƇƌƐ	–	–
ŌƊƎƋƋƉ	ƇƊƌ	–	–
ŌƊƉƉƏƊ	ŌƇƈƊƇ	–	–
ŌƏƇƇƐ	–	–	–
ŌƈƇƋƍƇ	–	–	–
ƇƈƊƌƇ	–	–	–
ŌƉƎƇƊƋ	ŌƈƉƋƋƋƎ	–	–
–	–	–	–
ŌƉƎƇƊƋ	ŌƈƉƋƋƋƎ	–	–

Insurance contracts issued by measurement components 3URSHUW\&DVXDOW\ ,QVXUDQFH ƈƐƈƉ

	Estimation of the present value of future cash flows	Risk adjustment for non-financial risks
LQ Ƒ WKRXVDQGV
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƉ	ƌƌƏƉƐƐ	ƌƈƎƍƊ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƇƇƈƐƈƉ	ŌƇ	–
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ Ɖ	ƌƌƏƈƏƏ	ƌƈƎƍƊ
Changes in the income statement and in Other comprehensive income (OCI)
Technical result	ŌƏƐƌƏƋ	ƌƈƊƌ
Changes relating to current services	ƈƏƌƎƈ	ŌƎƐƎƇ
Changes in the contractual service margin (CSM) through profit or loss	–	–
Changes to the risk adjustment for non-financial risks	–	ŌƎƐƎƇ
Changes due to experience adjustments	ƈƏƌƎƈ	–
Changes relating to future services	ŌƇƊƌƏƊƋ	ƈƐƎƌƈ
Changes in estimates that adjust the contractual service margin (CSM)	ŌƈƋƇƎƋ	ƊƏƐƎ
Changes in estimates that do not adjust the contractual service margin (CSM)	ŌƇƐƎƈ	ƎƇƏ
Changes due to effects of contracts recognised for the first time in the period	ŌƇƈƐƌƍƎ	ƇƋƇƉƋ
Changes relating to past services	ƈƌƋƌƎ	ŌƌƋƉƋ
Change in obligation for incurred claims	ƈƌƋƌƎ	ŌƌƋƉƋ
Technical finance income or expenses	ƎƌƇƈ	ƌƎƍ
Total change in the income statement and Other comprehensive income (OCI)	ŌƎƈƐƎƉ	ƌƏƉƉ
Net income from cash flows	ƈƇƌƉƌƊ	–
Premiums received	ƎƌƉƊƉƉ	–
Claims payments and other expenses for services in accordance with the insurance contract	ŌƋƈƐƇƌƐ	–
Acquisition costs	ŌƇƈƌƏƐƏ	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ Ɖ	ƎƐƉƋƎƐ	ƌƏƎƐƍ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƉ	ƎƐƉƋƎƇ	ƌƏƎƐƍ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƉƐƌƈƐƈƉ	ŌƇ	–

		Contractual service margin (CSM)
Total	All other insurance contracts	Insurance contracts that existed at the transition date and for which the fair value approach (FVA) was applied	Insurance contracts that existed at the transition date and for which the modified retrospective approach (MRA) was applied
ƏƏƋƍƊƈ	ƈƌƉƋƌƎ	–	–
ŌƇ	–	–	–
ƏƏƋƍƊƇ	ƈƌƉƋƌƎ	–	–
ŌƊƊƐƈƊ	ƊƐƊƈƋ	–	–
ŌƌƏƏƇƉ	ŌƏƇƋƇƊ	–	–
ŌƏƇƋƇƊ	ŌƏƇƋƇƊ	–	–
ŌƎƐƎƇ	–	–	–
ƈƏƌƎƈ	–	–	–
ƋƎƋƌ	ƇƉƇƏƉƏ	–	–
–	ƈƐƈƍƍ	–	–
ŌƈƌƉ	–	–	–
ƌƇƇƏ	ƇƇƇƌƌƈ	–	–
ƈƐƐƉƉ	–	–	–
ƈƐƐƉƉ	–	–	–
ƇƇƋƏƎ	ƈƈƏƏ	–	–
ŌƉƈƊƈƌ	ƊƈƍƈƊ	–	–
ƈƇƌƉƌƊ	–	–	–
ƎƌƉƊƉƉ	–	–	–
ŌƋƈƐƇƌƐ	–	–	–
ŌƇƈƌƏƐƏ	–	–	–
ƇƇƍƏƌƍƏ	ƉƐƌƈƏƈ	–	–
ƇƇƍƏƌƎƐ	ƉƐƌƈƏƈ	–	–
ŌƇ	–	–	–

Insurance contracts issued by measurement components 3URSHUW\&DVXDOW\ ,QVXUDQFH ƈƐƈƈ

	Estimation of the present value of future cash flows	Risk adjustment for non-financial risks
LQ Ƒ WKRXVDQGV
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƇƇƈƐƈƈ	ƎƇƎƍƈƈ	ƍƍƊƉƎ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƇƇƈƐƈƈ	–	–
1 H W F D U U \ L Q J D P R X Q W Ƈ Ƈ ƈ Ɛ ƈ ƈ	ƎƇƎƍƈƈ	ƍƍƊƉƎ
Changes in the income statement and in Other comprehensive income (OCI)
Technical result	ŌƇƊƎƇƉƏ	ƏƏƌ
Changes relating to current services	ŌƌƌƇƈ	ŌƎƉƎƉ
Changes in the contractual service margin (CSM) through profit or loss	–	–
Changes to the risk adjustment for non-financial risks	–	ŌƎƉƎƉ
Changes due to experience adjustments	ŌƌƌƇƈ	–
Changes relating to future services	ŌƇƉƋƍƍƈ	ƇƋƉƍƋ
Changes in estimates that adjust the contractual service margin (CSM)	ŌƈƈƇƏƇ	ƇƍƎƍ
Changes in estimates that do not adjust the contractual service margin (CSM)	ŌƈƎƋƇ	ŌƇƇ
Changes due to effects of contracts recognised for the first time in the period	ŌƇƇƐƍƉƐ	ƇƉƋƏƏ
Changes relating to past services	ŌƋƍƋƋ	ŌƋƏƏƌ
Change in obligation for incurred claims	ŌƋƍƋƋ	ŌƋƏƏƌ
Technical finance income or expenses	ŌƋƈƊƉƈ	ŌƊƉƉƊ
Total change in the income statement and Other comprehensive income (OCI)	ŌƈƐƐƋƍƇ	ŌƉƉƉƎ
Net income from cash flows	ƇƐƏƊƋƐ	–
Premiums received	ƍƋƐƋƉƐ	–
Claims payments and other expenses for services in accordance with the insurance contract	ŌƋƉƍƊƐƎ	–
Acquisition costs	ŌƇƐƉƌƍƈ	–
1 H W F D U U \ L Q J D P R X Q W Ɖ Ɛ ƌ ƈ Ɛ ƈ ƈ	ƍƈƍƌƐƇ	ƍƊƇƐƐ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH OLDELOLWLHV ƉƐƌƈƐƈƈ	ƍƈƍƌƐƇ	ƍƊƇƐƐ
,QVXUDQFH FRQWUDFWV LVVXHG WKDW DUH DVVHWV ƉƐƌƈƐƈƈ	–	–

	Contractual service margin (CSM)
Total	All other insurance contracts	Insurance contracts that existed at the transition date and for which the fair value approach (FVA) was applied	Insurance contracts that existed at the transition date and for which the modified retrospective approach (MRA) was applied
ƇƇƍƊƎƇƎ	ƈƍƎƌƋƎ	–	–
–	–	–	–
ƇƇƍƊƎƇƎ	ƈƍƎƌƋƎ	–	–
ŌƇƐƏƋƊƎ	ƉƍƋƏƋ	–	–
ŌƇƐƈƌƍƈ	ŌƎƍƌƍƍ	–	–
ŌƎƍƌƍƍ	ŌƎƍƌƍƍ	–	–
ŌƎƉƎƉ	–	–	–
ŌƌƌƇƈ	–	–	–
ƊƎƍƋ	ƇƈƋƈƍƈ	–	–
–	ƈƐƊƐƊ	–	–
ŌƈƎƌƈ	–	–	–
ƍƍƉƍ	ƇƐƊƎƌƎ	–	–
ŌƇƇƍƋƇ	–	–	–
ŌƇƇƍƋƇ	–	–	–
ŌƋƎƐƋƇ	ŌƇƈƎƋ	–	–
ŌƇƌƍƋƏƏ	ƉƌƉƇƐ	–	–
ƇƐƏƊƋƐ	–	–	–
ƍƋƐƋƉƐ	–	–	–
ŌƋƉƍƊƐƎ	–	–	–
ŌƇƐƉƌƍƈ	–	–	–
ƇƇƇƌƌƌƏ	ƉƇƊƏƌƎ	–	–
ƇƇƇƌƌƌƏ	ƉƇƊƏƌƎ	–	–
–	–	–	–

The following tables show the accounting effect on the measurement components resulting in the reporting period from the first-time recognition of insurance contracts issued / reinsurance contracts held, for which the premium allocation approach (PAA) was not applied:

1HZ EXVLQHVV LQVXUDQFH FRQWUDFWV LVVXHG OLIH DQG KHDOWK LQVXUDQFH ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ

	Total	of which onerous contracts
LQ Ƒ WKRXVDQGV
Estimation of the present value of future cash outflows	ƌƈƇƏƍƐ	–
Estimation of the present value of acquisition costs	ƌƊƇƊƐ	–
Estimation of the present value of other future cash outflows	ƋƋƍƎƉƐ	–
Estimation of the present value of future cash inflows	ŌƌƊƏƍƇƉ	–
Risk adjustment for non-financial risks	ƈƎƍƊ	–
Contractual service margin	ƈƊƎƌƏ	–
I n c r e a s e / d e c r e a s e i n p r o v i s i o n f o r f u t u r e p o l i c y b e n e f i t s / a s s e t f o r r e m a i n i n g c o v e r a g e d u e t o c o n t r a c t s r e c o g n i s e d i n t h e p e r i o d	–	–

1HZ EXVLQHVV LQVXUDQFH FRQWUDFWV LVVXHG OLIH DQG KHDOWK LQVXUDQFH ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ

	Total
LQ Ƒ WKRXVDQGV
Estimation of the present value of future cash outflows	ƏƍƊƇƋƈ
Estimation of the present value of acquisition costs	ƍƏƏƐƏ
Estimation of the present value of other future cash outflows	ƎƏƊƈƊƉ
Estimation of the present value of future cash inflows	ŌƇƐƐƏƐƊƉ
Risk adjustment for non-financial risks	ƍƉƈƈ
Contractual service margin	ƈƍƋƌƏ
I n c r e a s e / d e c r e a s e i n p r o v i s i o n f o r f u t u r e p o l i c y b e n e f i t s / a s s e t f o r r e m a i n i n g c o v e r a g e d u e t o c o n t r a c t s r e c o g n i s e d i n t h e p e r i o d	–	–

1HZ EXVLQHVV LQVXUDQFH FRQWUDFWV LVVXHG SURSHUW\FDVXDOW\ LQVXUDQFH ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ

	Total	of which onerous contracts
LQ Ƒ WKRXVDQGV
Estimation of the present value of future cash outflows	ƌƊƉƇƊƍ	ƇƐƉƋƌƏ
Estimation of the present value of acquisition costs	ƍƐƌƉƇ	ƎƈƎƏ
Estimation of the present value of other future cash outflows	ƋƍƈƋƇƌ	ƏƋƈƎƐ
Estimation of the present value of future cash inflows	ŌƍƌƉƎƈƋ	ŌƇƐƐƍƊƍ
Risk adjustment for non-financial risks	ƇƋƇƉƋ	ƉƉƎƊ
Contractual service margin	ƇƇƇƌƌƈ	ŌƍƐ
I n c r e a s e / d e c r e a s e i n p r o v i s i o n f o r f u t u r e p o l i c y b e n e f i t s / a s s e t f o r r e m a i n i n g c o v e r a g e d u e t o c o n t r a c t s r e c o g n i s e d i n t h e p e r i o d	ƌƇƇƏ	ƌƇƉƌ

1HZ EXVLQHVV LQVXUDQFH FRQWUDFWV LVVXHG SURSHUW\FDVXDOW\ LQVXUDQFH ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ

		of which
	Total	onerous contracts
LQ Ƒ WKRXVDQGV
Estimation of the present value of future cash outflows	ƋƌƇƇƍƊ	ƏƍƐƏƉ
Estimation of the present value of acquisition costs	ƌƊƊƌƈ	ƎƇƍƐ
Estimation of the present value of other future cash outflows	ƊƏƌƍƇƈ	ƎƎƏƈƉ
Estimation of the present value of future cash inflows	ŌƌƍƇƏƐƊ	ŌƏƈƌƊƊ
Risk adjustment for non-financial risks	ƇƉƋƏƏ	ƉƉƌƋ
Contractual service margin	ƇƐƊƎƌƎ	–
I n c r e a s e / d e c r e a s e i n p r o v i s i o n f o r f u t u r e p o l i c y b e n e f i t s / a s s e t f o r r e m a i n i n g c o v e r a g e d u e t o c o n t r a c t s r e c o g n i s e d i n t h e p e r i o d	ƍƍƉƍ	ƍƎƇƊ

The following table shows when the W&W Group expects to recognise the remaining contractual service margin (CSM) from insurance business in the consolidated income statement through profit or loss at the end of the reporting period. The CSM is the present value of unrealised expected future profit from the insurance contracts as at the end of the reporting period. Accordingly, the following reversal amounts do not include the income from unwinding the discount, which is calculated implicitly under the variable fee approach (VFA) by a risk-neutral valuation using a current yield curve and explicitly under the building block approach (BBA) using the locked-in yield curve after the end of a period. In addition, these do not include the entity's share of the excess return expected for future periods from insurance contracts with direct participation features in life and health insurance. This is not accounted for until the subsequent measurement for the previous reporting period for the CSM and released through profit or loss (for more information on this see the section Initial application of IFRS 17 Insurance Contracts). Accordingly, the reversal amounts shown below should not be interpreted in future periods as actual profit from the reversal of the remaining CSM at the reporting date. Instead, they are to be adjusted by the components described.

Expected recognition of the contractual service margin (CSM) through profit or loss Life and Health Insurance

	Insurance contracts issued	Reinsurance contracts held	Insurance contracts issued	Reinsurance contracts held
LQ Ƒ WKRXVDQGV		ƉƐƌƈƐƈƉ		ƉƇƇƈƈƐƈƈ
Ƈ WR Ƌ \HDUV	ƊƐƊƋƈƋ	ŌƍƐƊƌƉ	ƉƍƊƊƏƉ	ŌƍƇƈƎƍ
Ƌ WR ƇƐ \HDUV	ƈƏƉƏƍƎ	ŌƊƎƊƉƍ	ƈƌƏƋƋƊ	ŌƊƏƐƍƐ
ƇƐ WR ƇƋ \HDUV	ƈƇƉƐƈƐ	ŌƉƌƏƇƉ	ƇƏƈƇƋƈ	ŌƉƍƉƊƋ
ƇƋ WR ƈƐ \HDUV	ƇƋƋƉƎƌ	ŌƈƍƊƐƏ	ƇƊƐƍƏƎ	ŌƈƍƍƊƇ
PRUH WKDQ ƈƐ \HDUV	ƉƈƇƋƊƎ	ŌƊƌƇƇƌ	ƉƐƌƋƇƌ	ŌƊƍƐƋƏ
T o t a l	ƇƉƎƎƊƋƍ	ŌƈƈƏƉƉƎ	ƇƈƎƉƋƇƉ	ŌƈƉƈƋƐƈ

Expected recognition of the contractual service margin (CSM) through profit or loss Property/Casualty Insurance

	Insurance contracts issued	Reinsurance contracts held	Insurance contracts issued	Reinsurance contracts held
LQ Ƒ WKRXVDQGV		ƉƐƌƈƐƈƉ		ƉƇƇƈƈƐƈƈ
Ƈ \HDU RU OHVV	ƇƉƈƈƋƉ	–	ƇƐƍƈƇƊ	–
Ƈ WR ƈ \HDUV	ƍƊƋƉƋ	–	ƌƌƌƌƇ	–
ƈ WR Ɖ \HDUV	ƋƇƏƌƈ	–	ƊƌƍƉƏ	–
Ɖ WR Ɗ \HDUV	ƉƇƏƇƇ	–	ƈƏƈƎƇ	–
Ɗ WR Ƌ \HDUV	ƇƉƎƊƈ	–	ƇƈƊƊƋ	–
Ƌ WR ƇƐ \HDUV	ƇƍƎƏ	–	ƇƈƈƎ	–
PRUH WKDQ ƇƐ \HDUV	–	–	–	–
T o t a l	ƉƐƌƈƏƈ	–	ƈƌƉƋƌƎ	–

(27) Disclosures on technical finance income or expenses

The following table shows the underlying items for contracts with direct participation features in life and health insurance. Measurement under the variable fee approach (VFA) is based on the fair values of the underlying items shown prior to consolidation in the W&W Group.

Underlying items for insurance contracts prior to consolidation

LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Shares in affiliated companies	ƇƈƐƉƎƉƍƌ	ƇƈƐƏƇƐƊƇ
Financial assets at fair value through profit or loss	ƊƌƍƐƌƇƌ	ƊƊƈƈƉƐƇ
Financial assets at fair value through other comprehensive income (OCI)	ƏƈƋƈƇƎƐ	ƏƌƎƋƐƐƇ
Financial assets at amortised cost	ƇƏƍƇƏƋƍ	ƇƌƇƌƐƌƋ
Financial assets accounted for under the equity method	ƌƊƌƐƇ	ƌƊƏƊƉ
Investment property	ƈƐƐƇƉƌƍ	ƇƏƌƈƇƋƉ
Other assets	ƈƋƏƋƏ	ƇƇƍƍƉ
U n d e r l y i n g i t e m s i n c l u d e d i n a s s e t s	ƉƐƐƈƋƐƋƌ	ƈƏƎƋƉƈƍƍ
Financial liabilities at fair value through profit or loss	ƏƏƈƌ	ƇƉƇƌƋ
Liabilities	ƇƏƊƊƉƏ	ƊƇƈƌƎƐ
Other provisions	ƏƍƈƇƊ	ƏƊƏƎƎ
Other liabilities	ƇƇƊƉ	ƇƈƉƈ
Subordinated capital	ƋƇƊƏƌƌ	ƋƐƏƊƉƎ
Equity	ƋƎƈƏƌƈ	ƋƇƍƐƐƏ

(28) Disclosures on retrospective application

The reserve for financial assets at fair value through other comprehensive income (OCI), which relates to insurance contracts not measured using the full retrospective at the time of initial application, came to Ŵ1.3 billion as at 1 January 2022. The market values of assets declined as a result of the sharp increase in interest rates. As at 30 June 2023, this resulted in a negative reserve for financial assets at fair value through other comprehensive income (OCI).

Other disclosures

(29) Revenue from contracts with customers

The following tables shows a breakdown of revenue by type and its reconciliation to the respective reporting segment.

ƈƐƈƉ

		Life and Health	Property/Casu	All other	Consolidation/
	Housing	Insurance	alty Insurance	segments	reconciliation	Total
LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ
Commission income	ƇƉƋƍƎ	ƇƋ	ƎƏƉƋ	ƈƊƏƏƍ	ŌƈƌƇƍƊ	ƈƇƉƋƇ
from home loan savings business	ƉƐƈƋ	–	–	–	–	ƉƐƈƋ
from brokering activities	ƎƌƇƎ	ƇƋ	ƎƏƉƋ	ƌƍƌƇ	ŌƇƐƈƐƇ	ƇƊƇƈƎ
from investment business	–	–	–	ƇƍƋƏƋ	ŌƇƋƏƍƉ	Ƈƌƈƈ
from other business	ƇƏƉƋ	–	–	ƌƊƇ	–	ƈƋƍƌ
Net other operating income/expense	ƈƏƎƊƋ	ƇƈƊƎƏ	ƇƏƎƊƍ	ƍƌƇƊƊ	ŌƎƍƎƇ	ƇƈƏƋƊƊ
Income from disposals of inventories (property development business)	–	–	–	ƌƎƉƋƋ	–	ƌƎƉƋƋ
Income from disposals of property, plant and equipment	ƈƍ	–	ƇƊƋƐƐ	ƏƐ	–	ƇƊƌƇƍ
Other revenues	ƈƏƎƇƎ	ƇƈƊƎƏ	ƋƉƊƍ	ƍƌƏƏ	ŌƎƍƎƇ	ƊƌƋƍƈ
Net income from disposals	–	–	–	–	–	–
Income from disposals of investment property	–	–	–	–	–	–
T o t a l	ƊƉƊƈƉ	ƇƈƋƐƊ	ƈƎƍƎƈ	ƇƐƇƇƊƇ	ŌƉƊƏƋƋ	ƇƋƐƎƏƋ
Type of revenue recognition
at a point in time	ƉƎƇƉƌ	Ƈƌ	ƈƌƐƇƋ	ƍƉƈƌƉ	ŌƇƐƈƌƋ	ƇƈƍƇƌƋ
over time	ƋƈƎƍ	ƇƈƊƎƎ	ƈƍƌƍ	ƈƍƎƍƎ	ŌƈƊƌƏƐ	ƈƉƍƉƐ
Total	ƊƉƊƈƉ	ƇƈƋƐƊ	ƈƎƍƎƈ	ƇƐƇƇƊƇ	ŌƉƊƏƋƋ	ƇƋƐƎƏƋ

ƈƐƈƈ

	Housing	Life and Health Insurance	Property/Casu alty Insurance	All other segments	Consolidation/r econciliation	Total
LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Commission income	ƊƋƏƋƉ	ƇƉ	ƎƍƐƇ	ƈƇƇƏƋ	ŌƉƇƋƋƌ	ƊƊƉƐƌ
from home loan savings business	ƇƋƐƏƇ	–	–	–	–	ƇƋƐƏƇ
from brokering activities	ƈƏƐƋƎ	ƇƉ	ƎƍƐƇ	Ƌƈƍ	ŌƇƉƋƌƉ	ƈƊƍƉƌ
from investment business	–	–	–	ƇƏƌƍƐ	ŌƇƍƏƏƉ	Ƈƌƍƍ
from other business	ƇƎƐƊ	–	–	ƏƏƎ	–	ƈƎƐƈ
Net other operating income/expense	ƇƇƍƎƌƈ	ƈƉƈ	ƊƌƐƐ	ƇƊƏƍƋƇ	ŌƇƋƈƈ	ƈƍƐƏƈƉ
Income from disposals of inventories (property development business)	–	–	–	ƇƊƉƍƍƐ	–	ƇƊƉƍƍƐ
Income from disposals of property, plant and equipment	ƇƇƊƉ	–	ƈƐƎƐ	ƇƋƊ	–	ƉƉƍƍ
Other revenues	ƇƇƌƍƇƏ	ƈƉƈ	ƈƋƈƐ	ƋƎƈƍ	ŌƇƋƈƈ	ƇƈƉƍƍƌ
Net income from disposals	–	ƋƌƉƋƇ	–	–	–	ƋƌƉƋƇ
Income from disposals of investment property	–	ƋƌƉƋƇ	–	–	–	ƋƌƉƋƇ
T o t a l	ƇƌƉƎƇƋ	ƋƌƋƏƌ	ƇƉƉƐƇ	ƇƍƐƏƊƌ	ŌƉƉƐƍƎ	ƉƍƇƋƎƐ
Type of revenue recognition
at a point in time	ƇƋƐƉƊƍ	ƋƌƋƏƌ	ƇƉƉƐƇ	ƇƋƐƈƍƋ	ŌƈƐƐƋƇ	ƉƋƐƊƌƎ
over time	ƇƉƊƌƎ	–	–	ƈƐƌƍƇ	ŌƇƉƐƈƍ	ƈƇƇƇƈ
Total	ƇƌƉƎƇƋ	ƋƌƋƏƌ	ƇƉƉƐƇ	ƇƍƐƏƊƌ	ŌƉƉƐƍƎ	ƉƍƇƋƎƐ

(30) Currency translation gains and losses

Currency translation – with the exception of the currency translation of financial instruments at fair value through profit or loss – generated total currency income of Ŵ9.7 (previous year: 82.2) million and currency expenses of Ŵ33.9 (previous year: 11.3) million.

(31) Contingent assets, contingent liabilities and other obligations

LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Contingent liabilities	ƈƈƇƈƍƏƉ	ƈƈƉƈƊƌƐ
from deposit guarantee funds	ƉƋƎƐƇƌ	ƉƋƍƏƇƎ
from letters of credit and warranties	ƇƐƐƐƐ	ƇƐƐƐƐ
from uncalled capital	ƇƍƏƏ ƐƇƍ	ƇƎƈƉƊƍƉ
from contractual obligations to buy and to build investment property	ƉƎƏƋƉ	ƉƊƐƇƏ
from contractual obligations to buy and to build property, plant and equipment	ƋƉƐƍ	ƋƋƐƎ
Other contingent liabilities	ƇƋƐƐ	ƇƋƊƈ
Other commitments	ƇƈƐƋƎƉƌ	ƇƊƊƌƋƉƈ
Irrevocable loan commitments	ƇƈƐƋƎƉƌ	ƇƊƊƌƋƉƈ
T o t a l	ƉƊƇƎƌƈƏ	ƉƌƍƎƏƏƈ

The nominal amount of irrevocable loan commitments is equal to the potential remaining obligations under loans and overdrafts granted but not yet or not yet fully utilised and is an appropriate approximation of the fair value.

The provisions for irrevocable loan commitments amounted to Ŵ2.6 million on 30 June 2023 and Ŵ3.8 million on 31 December 2022.

(32) Related party disclosures

Parent company

The ultimate controlling company is Wüstenrot & Württembergische AG, Kornwestheim.

Transactions with related persons

Natural persons considered to be related parties in accordance with IAS 24 are members of management in key positions (the Management Board and the Supervisory Board of W&W AG) and their close relatives.

Transactions were performed with related persons of W&W AG in the course of the normal operating activities of Group companies. These essentially related to business relationships in the areas of home loan savings business and life, health and property insurance.

All transactions were at arm's length.

Receivables from related persons amounted to Ŵ189 thousand (previous year: Ŵ193 thousand) as at 30 June 2023. Liabilities to related persons amounted to Ŵ925 thousand (previous year: Ŵ687 thousand) as at the end of the reporting period. In the first half of 2023 financial year, interest income from loans to related persons amounted to Ŵ2 thousand (previous year: Ŵ4 thousand), while interest expenses for savings deposits of related persons amounted to Ŵ2 thousand (previous year: Ŵ16 thousand). Premiums of Ŵ54 thousand (previous year: Ŵ62 thousand) were paid by related persons for insurance policies in the areas of life, health and property insurance) in the first half of 2023. Premiums paid by related persons for company pension schemes came to Ŵ514 thousand (previous year: Ŵ531 thousand). Benefits received by related persons from company pension schemes totalled Ŵ166 thousand (previous year: Ŵ164 thousand).

Transactions with related companies

Subsidiaries of W&W AG and other related companies

There are various service agreements, including in the area of investment management, between the W&W Group and subsidiaries of W&W AG as well as other related companies of W&W AG. There is a brand transfer and use agreement between Wüstenrot Holding AG and W&W AG. As at 30 June 2023, there is a remaining financial liability to Wüstenrot Holding AG under this agreement of Ŵ6.1 million (previous year: Ŵ8.6 million). W&W AG pays Wüstenrot Holding AG a fixed annual amount (principal and interest) of Ŵ2.5 million plus statutory VAT.

The charity Wüstenrot Stiftung Gemeinschaft der Freunde Deutscher Eigenheimverein e. V., Wüstenrot Holding AG, WS Holding AG and Pensionskasse der Württembergischen VVaG are reported under "Other related parties" as the postemployment benefit plan for employees.

The transactions were at arm's length.

The outstanding balances of transactions with related companies are as follows as at the end of the reporting period:

LQ Ƒ WKRXVDQGV	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Financial assets from related companies	ƈƎƐƈƐƊ	ƈƎƏƐƉƏ
Subsidiaries	ƈƋƉƐƊƈ	ƈƌƉƐƊƋ
Other related parties	ƈƍƇƌƈ	ƈƋƏƏƊ
Financial liabilities to related companies	ƌƇƍƍƉ	ƎƈƊƇƌ
Subsidiaries	ƈƏƊƍƇ	ƋƈƌƍƇ
Associated company	ƇƐƇƇƍ	–
Other related parties	ƈƈƇƎƋ	ƈƏƍƊƋ

Financial liabilities to related associates included German covered bonds issued in the reporting period.

As at the end of the reporting period, the outstanding transactions with related companies of W&W AG in its capacity as the parent company of the Group comprised receivables of Ŵ5.8 million (previous year: Ŵ0.8 million) and liabilities of Ŵ9.2 million (previous year: Ŵ11.8 million).

The income and expenses from transactions with related companies are as follows:

LQ Ƒ WKRXVDQGV	ƇƇƈƐƈƉ WR ƉƐƌƈƐƈƉ	ƇƇƈƐƈƈ WR ƉƐƌƈƐƈƈ
Income from transactions with related companies	ƈƏƈƎƐ	ƈƋƌƉƋ
Subsidiaries	ƈƎƊƋƈ	ƈƊƍƐƇ
Associated company	Ɖƈ	ƊƋ
Other related parties	ƍƏƌ	ƎƎƏ
Expenses from transactions with related companies	ŌƋƈƇƈƎ	ŌƉƏƉƋƎ
Subsidiaries	ŌƈƌƎƇƇ	ŌƈƌƐƐƌ
Associated company	ŌƇƇƏ	Ōƈƌ
Other related parties	ŌƈƋƇƏƎ	ŌƇƉƉƈƌ

In the reporting period, the income from transactions with related companies of W&W AG in its capacity as the parent company of the Group amounted to Ŵ0.6 million (previous year: Ŵ0.6 million) with expenses of Ŵ0.7 million (previous year: Ŵ2.5 million).

(33) Number of employees

The W&W Group had 6,356 employees (full-time equivalents) as at 30 June 2023 (previous year: 6,306). Its headcount by employment contracts was 7,456 as at the end of the reporting period (previous year: 7,390).

The average number of employees over the past twelve months was 7,412 (previous year: 7,381). This average is calculated as the arithmetic mean of the average quarterly headcounts between 30 September 2022 and 30 June 2023 and the respective prior-year period. The Group's headcount breaks down by segment as follows:

Average number of employees over the year by segment

	ƉƐƌƈƐƈƉ	ƉƇƇƈƈƐƈƈ
Housing	ƈƇƋƍ	ƈƇƉƎ
Life and Health Insurance	ƋƇƉ	ƋƉƈ
Property/Casualty Insurance	ƉƍƊƉ	ƉƌƏƎ
All other segments	ƏƏƏ	ƇƐƇƉ
T o t a l	ƍƊƇƈ	ƍƉƎƇ

(34) Events after the reporting period

Wüstenrot Bausparkasse AG acquired a lending portfolio from BSQ Bauspar AG in a contract dated 20 July 2023 with legal effect from 1 October 2023. The lending portfolio comprises exclusively building loans, most of which are secured by property. The loan volume at the time of the acquisition is around Ŵ100 million.

The W&W Group Responsibility statement

To the best of our knowledge and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Group Interim Management Report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the material risks and opportunities associated with the expected development of the Group for the remaining months of the financial year.

Kornwestheim, 12 September 2023

Jürgen A. Junker

Alexander Mayer

Jürgen Steffan

Jens Wieland

The W&W Group Auditor's review report

To Wüstenrot & Württembergische AG, Kornwestheim

We have reviewed the condensed consolidated half-year financial statements – consisting of the consolidated balance sheet, consolidated income statement, consolidated balance sheet, consolidated statement of changes in equity, condensed consolidated cash flow statement, and select notes – and the interim group management report of Wüstenrot & Württembergische AG, Kornwestheim, for the period from 1 January to 30 June 2023, which form part of the half-year financial report pursuant to Section 115 of the German Securities Trading Act (WpHG). The preparation of the condensed consolidated half-year financial statements in accordance with IFRS applicable to interim reporting, as adopted by the EU, and of the interim group management report in accordance with the provisions of the WpHG applicable to interim group management reports is the responsibility of the company's management. Our responsibility is to issue a review report on the condensed consolidated half-year financial statements and on the interim group management report based on our review.

We conducted our review of the condensed consolidated half-year financial statements and the interim group management report in accordance with generally accepted German standards for the review of financial statements promulgated by the Institute of Public Auditors in Germany (IDW). Those standards require that we plan and perform the review in such a way that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated half-year financial statements were not prepared in all material respects in accordance with the IFRSs applicable to interim reporting, as adopted by the EU, and that the interim group management report was not prepared in all material respects in accordance with the provisions of the WpHG applicable to interim group management reports. A review is limited primarily to the questioning of company employees and analytical procedures and there-fore does not provide the assurance attainable through an audit of financial statements. Since, in accordance with our engagement, we have not performed an audit of financial statements, we cannot express an audit opinion.

Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated half-year financial statements were not prepared in all material respects in accordance with the IFRSs applicable to interim reporting, as adopted by the EU, or that the interim group management report was not prepared in all material respects in accordance with the provisions of the WpHG applicable to interim group management reports.

Stuttgart, 13 September 2023

Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft

Wagner Gehringer

Public auditor Public auditor