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Wüstenrot & Württembergische AG
Interim / Quarterly Report • Aug 14, 2025
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Interim / Quarterly Report
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Interim Report as at 30 June 2025
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)
| Consolidated balance sheet | 30.6.2025 | 31.12.2024 | |
|---|---|---|---|
| Total assets | in € billion | 72.8 | 72.3 |
| Capital investments | in € billion | 39.3 | 39.9 |
| Senior debenture and registered bonds | in € billion | 3.6 | 3.8 |
| Senior fixed-income securities | in € billion | 18.9 | 19.2 |
| Building loans | in € billion | 29.2 | 28.4 |
| Liabilities to customers | in € billion | 27.3 | 27.5 |
| Technical provisions | in € billion | 31.8 | 32.3 |
| Equity | in € billion | 5.0 | 4.9 |
| Equity per share (equity without minority interests, number of shares without treasury shares) | in € | 52.86 | 52.29 |
| Consolidated income statement | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|
| Total net financial result | in € million | 91 | 250 |
| Technical result | in € million | 241 | –44 |
| Earnings before income taxes from continued operations | in € million | 122 | –18 |
| Consolidated net income | in € million | 91 | –14 |
| Total comprehensive income | in € million | 123 | –51 |
| Earnings per share | in € | 0.96 | –0.15 |
| Other disclosures | 30.6.2025 | 31.12.2024 | |
| Average annual number of employees | 7,588 | 7,565 | |
| Key sales figures | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|
| Housing segment | |||
| New business volume (new lending and home loan savings business) | in € million | 8,479 | 7,816 |
| Life and Health insurance segment |
| Total premiums in new life insurance business | in € million | 1,766 | 1,588 |
|---|---|---|---|
| Gross premiums written health insurance | in € million | 172 | 162 |
| Gross premiums written life insurance | in € million | 889 | 846 |
| of which regular premiums | in € million | 667 | 679 |
| of which single premiums | in € million | 222 | 167 |
| Property/Casualty insurance segment | |||
| Annual contribution to the portfolio (new and replacement business) | in € million | 293 | 269 |
| Gross premiums written | in € million | 1,921 | 1,821 |
Wüstenrot & Württembergische AG Contents
| Group Interim Management Report | 4 |
|---|---|
| Economic report | 4 |
| Related party disclosures | 11 |
| Opportunity and risk report | 12 |
| Outlook | 15 |
| Condensed consolidated half-year financial statements | 18 |
| Consolidated statement of financial position | 18 |
| Consolidated income statement | 20 |
| Consolidated statement of comprehensive income | 22 |
| Consolidated statement of changes in equity | 24 |
| Condensed consolidated statement of cashflows | 26 |
| Selected explantory notes | 27 |
| Responsibility statement | 65 |
| Auditor's review report | 66 |
Wüstenrot & Württembergische AG Interim Group Management Report
Economic report
Business environment
Macroeconomic environment
The macroeconomic environment remained challenging in the first half of 2025 due to geopolitical and economic tensions. Nevertheless, the German economy achieved an unexpected increase in economic output of 0.3% in the first quarter of 2025 compared to the previous quarter. However, according to preliminary figures from the Statistisches Bundesamt (German Federal Statistical Office), gross domestic product fell again in the second quarter by 0.1% compared to the previous quarter. The most important growth drivers were both private consumer demand and exports.
After the high inflation phase in 2022/2023, price increase rates in Germany reached a level on par with the longterm average of 2.0% in the first half of 2025. This corresponds exactly to the target value of the European Central Bank (ECB). However, core inflation excluding energy and food prices was still at 2.7%.
Capital markets
Bond markets
Yields on the German bond market showed a fairly stable trend overall in the first half of 2025. The ECB's ongoing interest rate cuts led to a decline in short-term interest rates. For example, the yield on two-year German government bonds fell from 2.08% at the end of 2024 to 1.86% at the end of June 2025. In the long-term maturity segment, the reform of the debt brake and the creation of additional special funds by the new federal government at the beginning of March initially led to a jump in yields on ten-year German government bonds of around 40 basis points. However, fears of the negative economic impact of increased US tariffs on European exports, a continued decline in inflation and further ECB interest rate cuts led to a countermovement. Overall, the yield on ten-year German government bonds rose moderately in the first half of 2025 from 2.37% to 2.61%.
Equity markets
The European stock markets were strongly influenced by political developments in the first half of 2025 and experienced significant price fluctuations. After a positive start to the year with double-digit percentage price gains for indices such as the Euro STOXX 50 and the DAX, the announcement of a substantial increase in US tariffs at the beginning of April led to a slump in share prices. The subsequent temporary suspension of US tariffs quickly led to a significant rise in share prices. Further cuts in ECB key interest rates and hopes for higher economic growth in Germany in the future supported this trend. Overall, the Euro STOXX 50 rose by 8.3% and the DAX by 20.1% in the reporting period. The world's leading stock markets in the US, as measured by the S&P 500 Index, performed significantly weaker in the first half of 2025, rising by 5.5%, than in the first half of 2024, when it rose by 14.5%.
Industry trends
Gross new home loan savings business in the sector was unable to match the growth of previous years in the first half of 2025. Following the boom in new business in previous years due to the turnaround in interest rates, new business declined in the first half of 2025.
The market volume of newly committed residential property loans rose by 30.9% in the first half of the year to €121.6 billion (previous year: €92.8 billion). This growth is due in particular to the high demand for financing for portfolio purchases and modernisation measures. In particular, the stabilisation of building finance interest rates and high rent increases, which make buying a home more attractive, as well as the continuation of state subsidies for energy-efficient refurbishment measures, are favouring this development.
The normalisation of the yield curve was decisive for the business expectations of life insurers, i.e. interest rates rose at the long end and fell at the short end. As shortterm time deposits now earn lower interest rates but are still available in large volumes, life insurers were able to offer attractive products. According to preliminary industry figures published by the Gesamtverband der Deutschen Versicherungswirtschaft e. V. (German Insurance Association – GDV), new premiums for life insurance policies and pension funds rose by 32.4% in the first half of 2025 to €20.8 billion (previous year: €15.7 billion). New single-premium business grew by 39.8%, and new business with regular premium payments by 3.8%. This development was supported by the rise in real wages, more attractive long-term interest rates and the increase in the maximum interest rate at the turn of the year. Gross premiums written increased by 10.9% compared to the same period in the previous year and totalled €50.2 billion (previous year: €45.3 billion).
In property and casualty insurance, the GDV expects premium income to continue its strong growth with 7.8% in 2025, with average premiums in motor insurance in particular set to rise significantly in order to get out of the red. Expenses for natural disasters have been lower in the year to date than in the previous year. Overall, the GDV expects an increase in claims expenditure (+5.5%) for the year as a whole that is significantly lower than the growth in premiums. This means that the technical profit is also expected to be above the previous year's level.
W&W share
In a favourable overall market environment, the W&W share rose from a year-end price of €11.64 in 2024 to over €14 by the end of March 2025. In the course of the pronounced market correction following the announcement of increased US tariffs at the beginning of April, the W&W share also fell below €13 once again. However, a countermovement quickly set in, taking the W&W share to its high for the year to date of €15.18 in mid-May. The subsequent consolidation and the ex-dividend markdown ultimately caused the W&W share to end the first half of 2025 at a price of €13.66. Based on a 2024 year-end closing price of €11.64, this equates to a share price increase of 17.4% in the first half of 2025. Taking into account the dividend payment of €0.65 per share, the overall performance for the reporting period was 22.9%. The W&W share is listed in the SDAX.
Ratings
Standard & Poor's (S&P) once again confirmed the ratings with a stable outlook in the reporting year. This means that the core W&W Group companies are still rated "A–", with the holding company W&W AG retaining its "BBB+" rating.
The Short-Term Issuer Credit Rating of Wüstenrot Bausparkasse AG remains at "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 a stable outlook.
The subordinated bonds of Wüstenrot Bausparkasse AG issued on the stock exchange continue to be rated "BBB". In addition, Wüstenrot Bausparkasse AG issued a senior preferred bond in May 2025, which has an "A-" rating. The subordinated bonds issued by Wüstenrot & Württembergische AG continue to be rated "BBB-".
Development of business and position of the Group (IFRS)
Development of business
The W&W Group recorded a positive first half of 2025 overall. In the Property/Casualty Insurance segment, premium adjustments, portfolio restructuring and the absence of storm damage in the first half of the year led to a significant increase in the technical result. IFRS consolidated net profit improved to €91 million (previous year: -€14 million).
Composition of consolidated net income
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|
| Housing segment | -51 | 24 |
| Life and Health Insurance segment | 33 | 21 |
| Property/Casualty Insurance segment | 107 | -79 |
| All other segments/reconciliation | 2 | 20 |
| C o n s o l i d a t e d n e t i n c o m e a f t e r t a x e s |
91 | -14 |
The main portfolio volume expanded compared to the previous year. The portfolio of building loans rose from €28.4 billion to €29.2 billion. Insurance revenue (technical income) in accordance with IFRS 17 also increased. In the Life and Health Insurance segment, sales rose by 1.6% to €630 million (previous year: €620 million), in the Property/Casualty Insurance segment by 6.0% to €1,441 million (previous year: €1,359 million).
New business figures increased in all segments. New business in life insurance, consisting of regular premiums and single premiums, grew by 27.5%. In the Housing segment, new business volume grew by 8.5%. In the Property/Casualty Insurance segment, annual premium income from new and replacement business also rose by 8.9%.
Selected Group key figures
| 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
Change | |
|---|---|---|---|
| in € millions | in € millions | in % | |
| Building loan portfolio1 | 29,209 | 28,401 | +2.8 |
| New business volume Housing (new construction financing business (including brokering for third parties) & new home loan savings business (gross)) |
8,479 | 7,816 | +8.5 |
| Insurance revenue Life and Health Insurance segment |
630 | 620 | +1.6 |
| New life insurance business (regular and single premium) |
269 | 211 | +27.5 |
| Insurance revenue Property/Casualty Insurance segment |
1,441 | 1,359 | +6.0 |
| Annual contribution to the portfolio (new and replacement business; property/casualty insurance) |
293 | 269 | +8.9 |
| 1 Values as at 30 June 2025 and 31 December 2024. |
W&W Besser!
The W&W Group strives to sustainably increase its enterprise value. To this end, we position ourselves as a pension group that makes financial provision tangible from a single source. No significant changes have been made to our Group strategy since the publication of our 2024 annual report.
Sustainability
The W&W Group has fully applied the European Sustainability Reporting Standards (ESRS) as a European framework for the first time for the 2024 financial year. On 26 February 2025, the European Commission published a proposal for the omnibus regulation. The regulation is intended to combine the obligations of the Corporate Sustainability Reporting Directive (CSRD), the Supply Chain Directive (CSDDD), the Taxonomy Regulation and the Sustainable Finance Disclosure Regulation (SFDR). The aim of the omnibus regulation is to reduce the bureaucratic burden on companies. The initial effects for reporting in 2025, in relation to the W&W Group and subsidiaries in the scope of application, are currently being analysed.
The W&W Group received the highest award "Platinum" from the German Sustainable Building Council (DGNB) for the W&W Campus. Economic, socio-cultural, functional and ecological aspects were assessed. The results included operating costs, energy efficiency, green space design, the air conditioning concept, employee satisfaction, interior design and mobility.
Financial performance
Total comprehensive income
Consolidated income statement
In the first half of 2025, consolidated net profit after taxes rose significantly to €91 million (previous year: -€14 million). Earnings per share totalled €0.96 (previous year: -€0.15).
Financial income (gross) totalled €469 million (previous year: €1,027 million). With the IFRS 17 accounting standard, a significant portion of consolidated net financial income is attributable to insurance contracts with direct participation features in Life and Health Insurance. After the corresponding policyholder participation, net financial income fell to €91 million (previous year: €250 million). The following earnings components were responsible for the development (gross):
- Current net income totalled €652 million (previous year: €692 million). The increase in dividend income could not compensate for the decline in net interest income.
- The result from risk provision fell to -€36 million (previous year: -€13 million), which is mainly attributable to the Housing segment.
- The net measurement result was -€128 million (previous year: €377 million). Due to the slightly less positive stock market performance compared to the previous year, there was a lower result from equities, alternative investments and investments for unit-linked life insurance policies. The rise in the euro against the US dollar also reduced the net currency income.
- The result from disposals totalled -€19 million (previous year: -€29 million).
The technical result (net) saw significant improvement with an increase to €241 million (previous year: -€44 million). In Property/Casualty Insurance, premium adjustments, portfolio reorganisation and the absence of storm damage in the first half of the year led to a higher technical result. The technical result in the Life and Health Insurance segment was also up on the previous year.
Due to the increase in new business and a positive valuation effect in the previous year for building society provisions in the Housing segment, net commission income fell to -€12 million (previous year: €4 million).
General administrative expenses (gross), i.e. before allocation to the technical result, totalled €573 million (previous year: 559 million). While personnel expenses increased due to collective wage agreements, active cost management enabled material expenses to be reduced once again. Among other things, consulting and advertising expenses declined. In addition, there was an impairment on capitalised software, which led to higher amortisation in the low double-digit million range. General administrative expenses (net) totalled €242 million (previous year: €256 million).
As a result of higher income from settlement campaigns in connection with home loan savings deposits, the other operating result totalled €44 million (previous year: €28 million).
Consolidated statement of comprehensive income
Total comprehensive income amounted to €123 million in the first half of 2025 (previous year: -€51 million). It is made up of consolidated net profit plus other comprehensive income (OCI).
OCI totalled €32 million (previous year: -€37 million). The rise in interest rates in the first half of 2025 led to falling market values for fixed-interest securities and registered securities. Their unrealised result with an impact on OCI amounted to -€420 million (previous year: -€510 million). This was offset by the technical liabilities/provisions under IFRS 17. The unrealised result from this was €419 million (previous year: €434 million). Actuarial gains and losses from defined benefit plans for retirement provision totalled €33 million (previous year: €39 million). Interest rates had also risen in the same period of the previous year, leading to unrealised losses on investments and unrealised gains on provisions.
As a supplement to the consolidated income statement, OCI is used to show the gains and losses recognised directly in equity that result from accounting in accordance with IFRS 9 and IFRS 17, among others. It essentially reflects the interest rate sensitivity of the assets side of our balance sheet and of underwriting on the liabilities side.
Housing segment
New business
The volume of new business for residential purposes such as immediate financing, modernisation and building up equity (sum of gross new business and the volume of new construction financing business including brokering for third parties) rose to €8,479 million (previous year: €7,816 million).
Gross new business by building savings contract volume totalled €5,717 million (previous year: €5,651 million), was slightly higher than in the previous year and therefore outperformed the market.
As a result of the low gross new business, net new business (paid-in new business) decreased as expected in 2024 to €4,197 million (previous year: €5,505 million).
New construction financing business (including brokering for third parties) increased to €2,762 million (previous year: €2,165 million). This enabled us to further consolidate our market position.
New business key figures
| 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
Change | |
|---|---|---|---|
| in € millions | in € millions | in % | |
| New business volume | 8,479 | 7,816 | +8.5 |
| New construction financing business (including brokering for third parties) |
2,762 | 2,165 | +27.6 |
| Gross new home loan savings business |
5,717 | 5,651 | +1.2 |
Financial performance
Segment net income after taxes according to IFRS fell to - €51 million (previous year: €24 million). The hedging measures taken to manage interest rate risks in terms of economic present value will have a negative impact on the IFRS result for 2025. Overall, however, the interest
rate book value increased to €4.9 billion (previous year: €4.3 billion) at the end of the first half of 2025. Due to the different accounting rules, this is also clearly reflected in a positive HGB result.
Net financial income fell to €60 million (previous year: €177 million) . This was due to the following factors:
- The current net financial income decreased to €99 million (previous year: €148 million). Net interest income from the interest rate swaps used for interest book management and higher refinancing expenses had a negative impact. Interest income in the mortgage lending business developed positively.
- The net expense for risk provision fell to -€33 million (previous year: -€19 million) mainly as a result of the economic slowdown due to higher additions to risk provisions in the mortgage lending business .
- The net measurement result decreased to -€5 million (previous year: €34 million). This development is due to a decline in the result from derivatives concluded to manage interest rate risk.
- Net income from disposals fell to -€1 million (previous year: €14 million). In the context of asset/liability management, higher income was achieved than in the previous year.
Net commission income fell to -€7 million mainly due to the increase in gross new home loan savings business and a positive valuation effect on home loan savings provisions included in the previous year(previous year: €0 million).
General administrative expenses fell to €158 million (previous year: €165 million). Material costs fell, partly as a result of lower contributions to the deposit guarantee scheme and lower consultancy expenses. Personnel expenses increased due to collectively agreed salary increases.
Other operating income rose to €34 million as a result of higher income from settlement campaigns in connection with home savings deposits (previous year: €22 million).
Life and Health Insurance segment
New business/premium development
Total premiums for new life insurance business increased to €1,766 million (previous year: €1,588 million).
In company pension schemes, premiums totalled €569 million (previous year: €574 million) and were therefore on a similar level as the previous year.
The premium sum for unit-linked insurance (incl. Genius) showed a positive trend and increased by 27% to €1,142 million (previous year: €899 million).
In health insurance, new annual premiums rose to €5.9 million (previous year: €5.6 million).
| New business key figures | |||
|---|---|---|---|
| 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
Change | |
| in € millions | in € millions | in % | |
| Total premiums in new business Life |
1,766 | 1,588 | +11.2 |
| Total premiums in new business (not including company pension schemes) |
1,197 | 1,014 | +18.1 |
| Total premiums in new business for company pension schemes |
569 | 574 | -0.9 |
| Annual new health insurance premiums |
5.9 | 5.6 | +5.4 |
Financial performance
Segment net income after taxes increased to €33 million (previous year: €21 million).
Financial income (gross) totalled €369 million (previous year: €768 million). With the IFRS 17 accounting standard, a significant portion of consolidated net financial income is attributable to insurance contracts with direct participation features in life and health insurance. After the corresponding policyholder participation, the net financial income was -€3 million (previous year: -€2 million). The following earnings components were responsible for the development (gross):
■ Current net financial income increased to €475 million (previous year €471 million). This was primarily due to higher dividend income and lower interest expenses for subordinated capital.
- The net measurement result fell to -€91 million (previous year: €324 million). The development of the stock market led to lower price gains in equities, alternative investments and capital investments for unit-linked life insurance policies. Due to the rise in the euro against the US dollar, net currency income fell significantly.
- Net income from disposals was -€13 million (previous year: -€32 million).
The technical result (net) increased to €63 million (previous year: €51 million). Insurance revenue (technical income) rose to €630 million (previous year: €620 million). Technical expenses totalled €561 million (previous year: €562 million). The technical result (net) was up on the previous year in both life insurance and health insurance.
General administrative expenses (gross), i.e. before corresponding policyholder participation, totalled €130 million (previous year: €130 million). While material costs decreased, personnel expenses increased slightly. After policyholder participation, general administrative expenses (net) totalled €19 million (previous year: €17 million).
Property/Casualty Insurance segment
New business/premium development
New business, measured in terms of the annual contribution to the portfolio, rose to €293 million (previous year: €269 million). New business was increased in the area of motor vehicles and corporate customers. As expected, retail customer business remained at the same high level as the previous year.
New business key figures
| 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
Change |
|---|---|---|
| in € millions | in € millions | in % |
| 293 | 269 | +8.9 |
| 185 | 165 | +11.7 |
| 71 | 66 | +7.3 |
| 37 | 38 | -1.8 |
Financial performance
Segment net income after taxes rose significantly to €107 million (previous year: -€79 million).
Net financial income totalled €8 million (previous year: €27 million). It comprises the following components:
- The current net financial income increased to €48 million (previous year: €44 million). Dividend income was increased.
- The measurement result totalled -€14 million (previous year: €18 million). The result from alternative investments and investment funds declined compared to the previous year due to the slightly less positive stock market performance. In addition, as in the Life and Health Insurance segment, there were exchange rate losses.
- The result from disposals totalled -€4 million (previous year: -€9 million).
- The technical financial result amounted to -€22 million (previous year: -€27 million).
The technical result (net) increased to €177 million (previous year: -€95 million). Overall, there was pleasing growth in the insurance portfolio as a result of new and replacement business and premium adjustments. As a result, insurance revenue (technical income) rose in all business areas to €1,441 million (previous year: €1,359 million). Claims expenses (gross) fell due to portfolio restructuring, active claim control and the absence of accumulation events. While the previous year was characterised by losses resulting from accumulation events in the second quarter, the current financial year also saw settlement gains from prior-year claims and gains from the reversal of loss components due to lower loss expectations. The reinsurance result totalled -€56 million (previous year: -€31 million). The combined ratio (gross) in accordance with IFRS 17 saw a significant improvement at 83.8% (previous year: 104.7%). The combined ratio (net) in accordance with IFRS 17 was 87.7% (previous year: 107.1%).
General administrative expenses (gross) totalled €244 million (previous year: €229 million). While personnel expenses decreased slightly, material costs increased. This was primarily due to an impairment recognised in connection with an IT project. After allocation to the technical result, general administrative expenses (net) totalled €24 million (previous year: €38 million).
All other segments
"All other segments" covers the divisions that cannot be allocated to any other segment. These essentially include W&W AG, including its subsidiaries Wüstenrot Immobilien GmbH, W&W Asset Management GmbH, Wüstenrot Haus- und Städtebau GmbH, W&W brandpool GmbH and the Group's internal service providers.
After taxes, the segment result totalled €29 million (previous year: €36 million).
Net financial income fell to €41 million (previous year: €52 million). The following components were factors in this development:
- As a result of higher dividend income, the current net financial income rose to €50 million (previous year: €36 million).
- The measurement result fell to -€9 million (previous year: €18 million). A decline in earnings from alternative investments and write-ups on investments in the previous year led to this development.
Net commission income totalled €19 million (previous year: €18 million).
General administrative expenses rose to €42 million (previous year: €37 million). Higher wages and salaries led to an increase in personnel expenses. Materials costs were about the same year on year.
Net other operating income totalled €9 million (previous year: €8 million).
Net assets
Asset structure
The W&W Group's total assets amounted to €73 billion (previous year: €72 billion). The assets side essentially consists of building loans and capital investments.
Building loans increased to €29.2 billion (previous year: €28.4 billion). This upturn is due primarily to the higher number of advance and bridge financing loans.
Capital investments totalled €39.3 billion (previous year: €39.9 billion). The rise in interest rates over the course of the year resulted in a slight decline in the market value of portfolio securities. Capital investments for unit-linked life insurance policies rose slightly due to portfolio growth and valuation effects.
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 liabilities and liabilities to customers.
Technical liabilities (technical provisions) totalled €31.8 billion (previous year: €32.3 billion). Of this, €27.4 billion (previous year: €28.1 billion) was attributable to life insurance, €2.8 billion (previous year: €2.6 billion) to property/casualty insurance, and €1.6 billion (previous year: €1.6 billion) to health insurance.
Liabilities primarily comprised liabilities to customers of €27.3 billion (previous year: €27.5 billion). Of these, deposits from home loan savings business and savings deposits totalled €19.8 billion (previous year: €19.8 billion). Overnight and term deposits totalled €7.5 billion (previous year: €7.7 billion). Securitised liabilities amounted to €4.6 billion (previous year: €3.4 billion).
The balance sheet value of the subordinated capital totalled €408 million (previous year: €406 million). It was issued by W&W AG and Wüstenrot Bausparkasse AG.
Consolidated equity
As at 30 June 2025, the equity of the W&W Group amounted to €4,989 million, having amounted to €4,930 million as at 31 December 2024. Consolidated net profit and the results recognised in equity increased equity by a total of €123 million. In addition, there were further effects of -€2 million. The dividend payment reduced equity by €62 million.
Liquidity
The W&W Group had sufficient liquidity at all times in the year under review. Cash pooling has been implemented as part of liquidity management to optimise cash flows in the W&W Group. For more information on liquidity management, please see the risk report.
In the cash flow statement, there was a cash inflow from operating activities of €1,293 million (previous year: -€476 million) and for investing activities, including capital investments, a cash outflow of -€759 million (previous year: €259 million). Financing activities led to a cash outflow of -€74 million (previous year: -€71 million). Overall, there was a net change in cash and cash equivalents in the year under review of €460 million (previous year: -€288 million). Further information can be found in the cash flow statement.
Related party disclosures
Detailed related party disclosures can be found in the notes under Other disclosures.
Opportunity and risk report
Opportunity report
Recognising and leveraging opportunities is a fundamental prerequisite for the successful further development of the W&W Group. We therefore aim to systematically identify, analyse and evaluate opportunities and to initiate appropriate measures to seize them. The starting point is our firmly established strategy, planning and control processes. Among other things, we assess market and environmental trends and look at the direction of our product portfolio, cost drivers and other critical success factors. This takes place from the standpoint of sustainable value orientation.
Opportunities are derived from this, which are discussed in strategic dialogues within the Executive Board and other management bodies, and incorporated into strategic planning. We also have governance and control structures in place in order to evaluate and pursue opportunities based on their potential, investment requirements and risk profile.
The opportunities presented in our 2024 Annual Report have not changed materially in the first six months of 2025, so we refer to this report in this context.
Risk report
Risk management
The risk management objectives and principles presented in the Group Management Report 2024 continue to apply as at 30 June 2025. As at 30 June 2025, the organisational and operational structure of our risk management continued to correspond to the structures described in the 2024 Annual Report.
General conditions
The general conditions for the W&W Group continue to be characterised by the uncertain macroeconomic and geopolitical situation (including the volatile capital market environment, US customs policy, the war in Ukraine and armed conflicts in the Middle East, high cyber threat level).
For more information on macroeconomic performance and developments on capital markets, see the "Business environment" section of this interim Group management report.
Current risk situation
The risk areas, objectives, and risk management measures presented in the 2024 Annual Report remain valid as at 30 June 2025. The risk strategy of the W&W Group includes an economic risk-bearing capacity ratio of over 145% based on a confidence level of 99.5%, and over 125% for W&W AG. The calculations as at 30 June 2025 show a risk-bearing capacity ratio above these target ratios. Compared to the risk report in the 2024 Group Management Report, we see significant developments or changes in general conditions due to internal and external influencing factors in the following risk areas:
Market price risks
Due to the US tariff announcements and the Iran-Israel war, the capital markets were very volatile, which emphasises the importance of interest rate, credit spread, equity and foreign currency risks in particular.
Against this backdrop, the W&W Group is continuing to implement the interest rate risk management measures described in the Group Management Report.
The EUR interest rates that are particularly relevant for the W&W Group's portfolios saw a moderate rise in the longer-term maturity range in the first half of 2025. The performance of the investments is also influenced by interest rates in other currencies such as the US dollar. Under IFRS, higher interest rates on financial instruments result in increased valuation losses or charges to other comprehensive income (OCI) and hidden losses on portfolios measured at amortised cost.
As at 30 June 2025, the ITraxx Senior Financials 5Y was quoted at 59 basis points, 5 basis points below the 2024 year-end level. Spreads were very volatile in the wake of the uncertainties surrounding US customs policy. Accordingly, there is a risk of a further widening of spreads due to the uncertain macroeconomic and geopolitical situation, which could lead to a decline in the market value of the investments concerned.
As at 30 June 2025, the equity ratio of the W&W Group remained unchanged at 1.3%, as at the end of the previous year. The alternative investments portfolio declined slightly due to transactions and foreign currency effects. Depending on further economic and geopolitical developments, falls in value cannot be ruled out.
The euro/US dollar exchange rate rose by a total of 13% in the first half of 2025, which had a negative impact on the value of investments denominated in US dollars. Currency risks are minimised by hedging instruments, but an environment-related increase in volatility is nevertheless reflected in rising risks.
The situation on the commercial property markets in particular recovered slightly in the first half of 2025, but remains tense. Against the backdrop of rising construction costs and the general economic situation, the property projects developed by the W&W Group itself are exposed to cost and earnings risks if sales fail to materialise or can only be made at a discount.
Against the background of the aforementioned developments, the measurement result fell to -€128 million (previous year: €377 million). The measurement result is presented in Note 14 to the consolidated financial statement.
Counterparty credit risks
In line with the presentation in the 2024 Annual Report, the focus for interest-bearing investments continues to be on ensuring a high credit rating, balanced diversification and a high proportion of collateralised investments. The carrying amount of this portfolio fell by €486 million to €26,902 million in the first half of 2025 and, with a share of 91.0% (31 December 2024: 90.2%) invested in the investment grade segment.
In accordance with the HGB (German Commercial Code), Wüstenrot Bausparkasse AG's annualised loan loss provision ratio (loan loss provisions in relation to the loan portfolio) rose to 0.21% in the course of the first half of the year. At 0.01%, the annualised credit loss ratio (loan default rate) in accordance with HGB remains at a low level.
Against the backdrop of the existing geopolitical and economic risks, there may nevertheless be an increase in rating downgrades, deterioration in credit ratings and credit defaults.
Technical risks
The technical risks of the W&W Group continue to be characterised by risks from property/casualty insurance, in particular natural disaster risks. At €24 million, the loss volume from natural disaster events in the first half of 2025 (previous year: €108 million) was lower than in the same period of the previous year.
An increase in the cancellation rate can be observed across the market in life insurance. At 5.1%, the cancellation rate of Württembergische Lebensversicherung AG measured against the current annual premium in the first half of 2025 is slightly above the year-end level of 2024, by 0.1 percentage points.
Operational risks
There is still a high risk of cyberattacks in Germany, which the W&W Group is unable to avoid. The measures introduced in previous years and described in the Group Management Report to strengthen information security were continued against this backdrop.
The measures established to implement the DORA Regulation are intended to improve digital operational resilience and support the management of outsourcing risks.
In the W&W Group, specialist, technical and infrastructure projects are set up with high investment budgets and complex project content, which entail corresponding project and cost risks, for example due to the lack of project benefits and potential write-down of investments. Projects are managed using the implemented project management procedures.
New legal framework conditions and new or amended legal interpretations by authorities and courts may have a negative impact on the future financial position and financial performance. Of particular relevance here are possible changes in the interpretations of the supervisory authorities on capital adequacy in the home loan and savings business on the basis of the new CRR III, the effects of changing tax legislation on current and deferred taxes and the interpretation of the tax authorities on the tax treatment of interest bonus provisions.
Liquidity risks
According to liquidity planning, liquidity balances at W&W Group will be positive for the next 36 months, so that sufficient liquidity is available to ensure solvency. Refinancing is secured at present. The current situation on capital markets does not indicate any acute material market liquidity risks for the W&W Group's capital investments. Nevertheless, the management of liquidity risks continues to be of great importance in the current capital market environment.
Business risks
Due to the uncertain macroeconomic and geopolitical situation, there are still considerable risks in the business environment.
We present the development of new business and the portfolio as well as the net assets, financial position and results of operations in the section Business report – Business performance and situation and in the Outlook for the W&W Group.
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 2025. 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 2025, S&P confirmed the ratings of the W&W core companies W&W AG, Wüstenrot Bausparkasse AG, Württembergische Lebensversicherung AG and Württembergische Versicherung AG.
The further course and consequences of geopolitical conflicts and global economic conditions, including the US customs policy, remain difficult to predict. Accordingly, depending on future developments, a decline in earnings and a negative impact on the financial, asset and risk position cannot be ruled out.
Outlook
Macroeconomic developments and relevant general conditions are based on estimates of the company, which are derived from relevant analyses and publications of various well-respected business research institutes, Germany's federal government, the Deutsche Bundesbank, Bloomberg consensus and industry and business associations.
Macroeconomic outlook
The mid-term outlook for the German economy is more optimistic than in previous years. There are signs of a revival, e.g. in the industrial sector. A growth rate of over 1% could be achieved again next year, in particular due to the significantly more expansive fiscal policy and the creation of new special funds. Private consumer demand should also make a positive contribution to growth due to real wage growth and the resulting increase in consumers' financial room for manoeuvre. Both the lowered key interest rate level and more favourable growth prospects are likely to stimulate investment activity. However, these prospects are still subject to the absence of unfavourable geopolitical developments. The US government's trade policy towards the EU in particular could lead to recurring distortions and a significant deterioration in the economic outlook. Military conflicts in the global hotspots could also lead to negative effects.
Following the massive rise in inflation rates at the turn of 2022/23, overall inflation in the first half of 2025 returned to the ECB's target value of 2%. Core inflation, which is currently still somewhat higher, should also continue to ease over the next few months and thus converge with overall inflation.
Short-term interest rates track key interest rates very closely. The ECB lowered its deposit interest rate to 2%. This also suggests that short-term interest rates will remain stable over the remainder of the year, provided there are no unexpected political or economic events. Yields on long-term bonds are expected to rise slightly due to the increase in government debt over the next few years, among other things.
Following the price gains already achieved on the European stock markets in the first half of the year, the outlook for the stock markets is somewhat more cautious. On the one hand, the lowered key interest rate level of the ECB
and possible upcoming interest rate cuts by the US Federal Reserve speak for a favourable monetary environment for the equity markets. The business-friendly economic policy of the new US administration and the expected positive share price performance of the US stock market also speak in favour of rising share prices worldwide. In previous years, the major European companies also proved that they were able to increase their profits even in a subdued economic environment. On the other hand, important stock market indices, such as the DAX, are close to record highs. This is likely to increase the tendency of investors to take profits and sell shares at the first unfavourable news. The political environment could also be a burden for the European stock markets in particular in view of recurring military conflicts. Overall, limited price gains on the stock market are the most likely scenario for the remainder of 2025. However, a significant drop in stock prices triggered by adverse economic or geopolitical developments cannot be ruled out. By contrast, surprisingly significant price gains would be conceivable if the war in Ukraine were to end, for example.
Company forecasts
With a view to 2025 as a whole, we are maintaining the earnings forecast from the 2024 Annual Report. We are aiming for a consolidated net profit significantly above the previous year.
Depending on interest rate developments in the second half of the year, the Housing segment's earnings could fall significantly below the previous year's level, contrary to our forecast in the 2024 annual report. In new business for construction financing (assumptions), we continue to expect significant growth and the achievement of targets based on developments in the first half of 2025. In terms of net new business in building society savings, we will probably not be able to achieve our ambitious targets, partly due to the declining market trend despite our increasing market share.
Due to the immediate tax investment programme adopted by the Bundesrat (Federal Council) in July 2025 and the resulting burdens from the revaluation of deferred tax assets, we now expect the result in the Life and Health Insurance segment to be significantly below the previous year.
For the result in the Property/Casualty Insurance segment, on the other hand, we expect a significant increase compared to the previous year. In contrast to the previous forecast, we expect Württembergische Versicherung AG's new and replacement business (in terms of annual portfolio premium) to be slightly above the previous year.
W&W AG's net profit for the year in accordance with the German Commercial Code (HGB) is forecast to be slightly above the level of the 2024 financial year.
Also the other forecasts for 2025 communicated in the "Outlook" section of the 2024 Annual Report remain unchanged.
The forecast is subject to the further development of the economy, inflation and capital markets as well as the further development of claims, in particular from 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. The many factors that influence the business activities of the companies can lead to actual results differing 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 balance sheet
| Assets | |||
|---|---|---|---|
| in € millions | see Note no.1 | 30.6.2025 | 31.12.2024 |
| Cash and cash equivalents | 1,457 | 997 | |
| Financial assets at fair value through profit or loss | 1 | 11,540 | 11,538 |
| Financial assets at fair value through other comprehensive income (OCI) | 2 | 23,352 | 23,809 |
| thereof: sold under repurchase agreements or lent under securities lending transactions | 9 | 13 | |
| Financial assets at amortised cost | 3 | 32,092 | 31,362 |
| Subordinated securities and receivables | 296 | 218 | |
| Senior debenture bonds and registered bonds | 73 | 72 | |
| Building loans | 29,209 | 28,401 | |
| Other receivables | 2,175 | 2,249 | |
| Active portfolio hedge adjustment | 339 | 422 | |
| Positive market values from hedges | - | 2 | |
| Technical assets | 4 | 254 | 330 |
| Insurance contracts issued that are assets | 31 | 41 | |
| Reinsurance contracts held that are assets | 223 | 289 | |
| Financial assets accounted for under the equity method | 60 | 60 | |
| Investment property | 5 | 2,347 | 2,466 |
| Other assets | 1,739 | 1,702 | |
| Intangible assets | 6 | 113 | 124 |
| Property, plant and equipment | 521 | 533 | |
| Inventories | 57 | 62 | |
| Current tax assets | 9 | 14 | |
| Deferred tax assets | 987 | 932 | |
| Other assets | 52 | 37 | |
| T o t a l a s s e t s | 72,841 | 72,266 | |
| 1 See numbered explanations in the selected explanatory notes. |
| Liabilities | ||
|---|---|---|
| in € millions Cf. Note no. |
30.6.2025 | 31.12.2024 |
| Financial liabilities at fair value through profit or loss | 49 | 237 |
| Liabilities 7 |
33,423 | 32,225 |
| Liabilities evidenced by certificates | 4,596 | 3,365 |
| Liabilities to credit institutions | 1,523 | 1,271 |
| Liabilities to customers | 27,269 | 27,468 |
| Lease liabilities | 38 | 44 |
| Miscellaneous liabilities | 478 | 474 |
| Passive portfolio hedge adjustment | -481 | -397 |
| Negative market values from hedges | 1 | 1 |
| Technical liabilities 8 |
31,823 | 32,253 |
| Insurance contracts issued that are liabilities | 31,822 | 32,252 |
| Reinsurance contracts held that are liabilities | 1 | 1 |
| Other provisions 9 |
1,630 | 1,721 |
| Other liabilities | 518 | 493 |
| Current tax liabilities | 154 | 137 |
| Deferred tax liabilities | 355 | 350 |
| Other liabilities | 9 | 6 |
| Subordinated capital 10 |
408 | 406 |
| Equity 11 |
4,989 | 4,930 |
| Share in paid-in capital attributable to shareholders of W&W AG | 1,486 | 1,486 |
| Share in retained earnings attributable to shareholders of W&W AG | 3,469 | 3,411 |
| Retained earnings | 4,144 | 4,117 |
| Other reserves (OCI) | -675 | -706 |
| Non-controlling interests in equity | 34 | 33 |
| 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 | 72,841 | 72,266 |
Consolidated income statement
| in € millions | Cf. Note no. | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|---|
| Current net financial income | 12 | 652 | 692 |
| Interest result | 413 | 477 | |
| Interest income | 762 | 766 | |
| thereof: calculated using the effective interest rate method | 695 | 643 | |
| Interest expenses | -349 | -289 | |
| Dividend income | 179 | 149 | |
| Other current result | 60 | 66 | |
| Result from risk provision | 13 | -36 | -13 |
| Income from credit risk adjustments | 46 | 52 | |
| Expenses for credit risk adjustments | -82 | -65 | |
| Measurement result | 14 | -128 | 377 |
| Measurement gains | 2,271 | 1,383 | |
| Measurement losses | -2,399 | -1,006 | |
| Result from disposals | 15 | -19 | -29 |
| Income from disposals | 15 | 31 | |
| Expenses for disposals | -34 | -60 | |
| of which gains/losses from the disposal of financial assets measured at amortised cost | –1 | – | |
| Technical finance result (net) | 16 | -378 | -777 |
| Technical finance income or expenses from insurance contracts issued (gross) | -380 | -779 | |
| thereof: technical finance income or expenses from reinsurance contracts held | 2 | 2 | |
| N e t f i n a n c i a l i n c o m e , t o t a l | 91 | 250 | |
| thereof: result from financial assets accounted for using the equity method | - | 2 | |
| Technical result (net) | 17 | 241 | -44 |
| Technical result (gross) | 303 | -5 | |
| Technical income | 2,068 | 1,978 | |
| Technical expenses | -1,765 | -1,983 | |
| Result from reinsurance contracts held | -62 | -39 | |
| Net commission income | 18 | -12 | 4 |
| Commission income | 99 | 112 | |
| Commission expenses | -111 | -108 | |
| C a r r y o v e r | 320 | 210 |
| in € millions | Cf. Note no. | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|---|
| C a r r y o v e r | 320 | 210 | |
| General administrative expenses (net) | -242 | -256 | |
| General administrative expenses (gross) | -573 | -559 | |
| Personnel expenses | -343 | -331 | |
| Materials costs | -180 | -193 | |
| Depreciation, amortisation and write-downs | -50 | -35 | |
| General administrative expenses attributable to the technical result | 331 | 303 | |
| Other operating result | 19 | 44 | 28 |
| Other operating income | 59 | 53 | |
| Other operating expenses | -15 | -25 | |
| 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 | 122 | -18 | |
| thereof: from revenue1 | 3,181 | 3,089 | |
| Income taxes | 20 | -31 | 4 |
| C o n s o l i d a t e d n e t p r o f i t | 91 | -14 | |
| Result attributable to shareholders of W&W AG | 90 | -15 | |
| Result attributable to non-controlling interests | 1 | 1 | |
| 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 i n € | 21 | 0.96 | -0.15 |
| thereof: from continued operations in € | 0.96 | -0.15 | |
| 1 Interest, dividend, commission and rental income from property development business and technical income. |
Consolidated statement of comprehensive income
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|
| Consolidated net profit | 91 | -14 |
| Other comprehensive income | ||
| Elements not reclassified to the consolidated income statement: | ||
| Actuarial gains/losses (-) from pension commitments (gross) | 46 | 55 |
| Deferred taxes | -13 | -16 |
| Actuarial gains/losses (-) from pension commitments (gross) | 33 | 39 |
| Elements subsequently reclassified to the consolidated income statement: | ||
| Unrealised gains/losses (-) from financial assets at fair value through other comprehensive income (OCI; gross) | -597 | -723 |
| Deferred taxes | 177 | 213 |
| Unrealised gains/losses (-) from financial assets at fair value through other comprehensive income (net) | -420 | -510 |
| Unrealised technical finance income or expenses from insurance contracts issued (gross) | 587 | 614 |
| Unrealised technical finance income or expenses from reinsurance contracts held (gross) | 4 | -1 |
| Deferred taxes | -172 | -179 |
| Unrealised technical finance income or expenses (net) | 419 | 434 |
| Total other comprehensive income (gross) | 40 | -55 |
| Total deferred taxes | -8 | 18 |
| Total other comprehensive income (net) | 32 | -37 |
| 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 | 123 | -51 |
| Result attributable to shareholders of W&W AG | 121 | -51 |
| Result attributable to non-controlling interests | 2 | - |
in € millions
Consolidated statement of changes in equity
| Share in paid-in capital attributable to shareholders of W&W AG Cf. Note no. |
|
|---|---|
| Share capital Capital reserve |
| E q u i t y a s a t 1 J a n u a r y 2 0 2 4 | 490 | 996 | |
|---|---|---|---|
| Total comprehensive income for the period | |||
| Consolidated net profit | - | - | |
| Other comprehensive income | - | - | |
| Total comprehensive income for the period | - | - | |
| Dividends to shareholders 11 |
- | - | |
| Treasury shares | - | - | |
| Other | - | - | |
| E q u i t y a s a t 3 0 J u n e 2 0 2 4 | 490 | 996 |
| E q u i t y a s a t 1 J a n u a r y 2 0 2 5 | 490 | 996 | |
|---|---|---|---|
| Total comprehensive income for the period | |||
| Consolidated net profit | - | - | |
| Other comprehensive income | - | - | |
| Total comprehensive income for the period | - | - | |
| Dividends to shareholders 11 |
- | - | |
| Treasury shares | - | - | |
| Other | - | - | |
| E q u i t y a s a t 3 0 J u n e 2 0 2 5 | 490 | 996 |
| Retained | Share in retained earnings attributable to shareholders of W&W AG | Equity attributable to W&W shareholders |
Non controlling interests in equity |
Total equity | |||
|---|---|---|---|---|---|---|---|
| earnings | Other reserves (OCI) | ||||||
| Reserve for pension commitments |
Reserve for the remeasuremen t of real estate |
Reserve for financial assets measured at fair value through other comprehensive income (OCI) |
Reserves for technical finance income or expenses |
||||
| 4,133 | -404 | 1 | -3,803 | 3,514 | 4,927 | 34 | 4,961 |
| -15 | - | - | - | - | -15 | 1 | -14 |
| - | 39 | - | -490 | 415 | -36 | -1 | -37 |
| -15 | 39 | - | -490 | 415 | -51 | - | -51 |
| -61 | - | - | - | - | -61 | - | -61 |
| - | - | - | - | - | - | - | - |
| -2 | - | - | - | -1 | -3 | - | -3 |
| 4,055 | -365 | 1 | -4,293 | 3,928 | 4,812 | 34 | 4,846 |
| 4,117 | -398 | - | -3,899 | 3,591 | 4,897 | 33 | 4,930 |
|---|---|---|---|---|---|---|---|
| 90 | - | - | - | - | 90 | 1 | 91 |
| - | 32 | - | -399 | 398 | 31 | 1 | 32 |
| 90 | 32 | - | -399 | 398 | 121 | 2 | 123 |
| -61 | - | - | - | - | -61 | -1 | -62 |
| 1 | - | - | - | - | 1 | - | 1 |
| -3 | - | - | - | - | -3 | - | -3 |
| 4,144 | -366 | - | -4,298 | 3,989 | 4,955 | 34 | 4,989 |
Condensed consolidated statement of cash flows
Cash flows from operating activities are determined using the indirect method. Cash and cash equivalents correspond to the balance sheet item "Cash and cash equivalents".
Cash flow from financing activities includes proceeds from the sale of treasury shares as part of an employee share programme and payments from the repurchase of treasury shares on the market totalling €1 million (previous year: -€1 million). The W&W Group can freely access the balance of cash and cash equivalents. As at 30 June 2025, the legally required balance at the Deutsche Bundesbank, in accordance with the minimum reserve
requirements of the European System of Central Banks, amounted to €73 million (previous year: €51 million).
Condensed consolidated statement of cash flows
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|
| Consolidated net profit | 91 | -14 |
| -/+ increase/decrease in building loans | -895 | -816 |
| +/- increase/decrease in technical assets and liabilities | 249 | 781 |
| +/- increase/decrease in securitised liabilities | 1,231 | 73 |
| +/- increase/decrease in liabilities to credit institutions | 252 | -122 |
| +/- increase/decrease in liabilities to customers | -199 | 602 |
| Other changes | 564 | -980 |
| 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 | 1,293 | -476 |
| Cash payments for investments in intangible assets and property, plant and equipment | -21 | -36 |
| Cash receipts from the disposal of financial assets | 2,920 | 3,526 |
| Cash payments to acquire financial assets | -3,658 | -3,231 |
| I I . C a s h f l o w f r o m i n v e s t i n g a c t i v i t i e s | -759 | 259 |
| Dividend payments to shareholders | -61 | -61 |
| Dividend payments to minority interests | -1 | -1 |
| Transactions between shareholders | 1 | -1 |
| Change in funds resulting from subordinated capital | -2 | 3 |
| Interest payments on subordinated capital | -2 | -1 |
| Cash payments for the reduction of lease liabilities | -9 | -10 |
| I I I . C a s h f l o w f r o m f i n a n c i n g a c t i v i t i e s | -74 | -71 |
| in € millions | 2025 | 2024 |
| C a s h a n d c a s h e q u i v a l e n t s a s a t 1 J a n u a r y | 997 | 1,046 |
| Net change in cash and cash equivalents (I. + II. + III.) | 460 | -288 |
| C a s h a n d c a s h e q u i v a l e n t s a s a t 3 0 J u n e | 1,457 | 758 |
Selected explanatory notes
General accounting principles and application of IFRS
General disclosures
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 comprises condensed consolidated half-year financial statements, an interim Group 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 interim Group management report is prepared in accordance with the applicable provisions of Section 115 (4) WpHG and Deutsche Rechnungslegungs-Standard 16 (German Accounting Standard –DRS 16).
The condensed consolidated half-year financial statements of Wüstenrot & Württembergische AG – consisting of the consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity, condensed consolidated statement of cash flows and selected explanatory notes – are presented in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting and were prepared on the basis of Section 315e HGB in accordance with IFRS Accounting Standards, as adopted by the European Union (EU), and contain a condensed scope of reporting compared to the consolidated financial statements as at 31 December 2024. The Wüstenrot & Württembergische AG Executive Board authorised the Group's half-year financial report for publication on 12 August 2025.
The accounting policies applied were the same as those used for the consolidated annual financial statements as at 31 December 2024, as well as those applicable from 1 January 2025 for the first time. The provisions applicable for the first time had no material impact on the presentation of the assets, financial position and financial performance of the W&W Group.
Rounding differences may occur due to the figures being stated in € million.
Employee share ownership programme
An employee share ownership programme ran again in the first half of 2025 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 €8.88 (€5.00 discount). The employees must hold these shares for at least three years.
Treasury shares held by the company were issued to employees for the programme. They acquired a total of 71,607 shares, while a further 30,272 shares were returned to the market at the end of the programme. Personnel expenses of €0.4 million were incurred as part of the employee share programme. As at the reporting date of 30 June 2025, W&W AG did not hold any treasury shares.
Effects of geopolitical uncertainties on financial reporting in the W&W Group
The macroeconomic environment remained challenging in the first half of 2025 due to geopolitical and economic tensions. In the W&W Group, there were no material effects in a large number of areas in the first half of 2025, as the effects of geopolitical uncertainties were either not relevant to the business models or were insignificant due to their indirect impact.
Selected material effects are disclosed in the disclosures on the measurement result in the notes.
Climate-related circumstances
Climate-related circumstances can have an impact on the value of the W&W Group's assets and liabilities in various ways. The climate-related matters presented in the 2024 Annual Report remain valid as at 30 June 2025. In the first half of 2025, there were no significant burdens on the technical result from climate-related matters.
Accounting policies
Changes in accounting policies
IFRS accounting standards 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 2024.
■ Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of exchangeability The amendments concretise the provisions on accounting for a lack of exchangeability of a currency and close existing loopholes.
The amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability were adopted into EU law on 12 November 2024. The amendments had no impact on the presentation of the net assets, financial position and financial performance of the W&W Group.
Accounting requirements that have been published but are not yet mandatory
Amendments with initial application for financial years beginning on or after 1 January 2026
- Amendments to Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) contain amendments and clarifications to the application of cash flow criteria for certain contractual constellations for financial instruments with ESG conditions, among other things. Furthermore, these relate to the derecognition of financial liabilities that were repaid electronically and additional disclosure requirements.
- Amendments relating to Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7) contain clarifications for contracts relating to nature-dependent electricity. They regulate the application of the own use exemption, specify accounting requirements for the use of these as a hedging instrument and include further disclosure requirements.
- Annual improvements from the Annual Improvements to IFRS Accounting Standards-Volume 11 with amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7. These are minor adjustments in the form of clarifications within the standards.
The amendments to Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) were adopted into EU law on 27 May 2025 and are to be applied retrospectively. The effects with regard to the categorisation of financial assets with ESG or similar conditions of the W&W Group that do not meet the cash flow criteria of IFRS 9 in the version applicable to date and are therefore reported in the measurement category "Financial assets at fair value through profit or loss" are currently being investigated. The amendments to Contracts Referencing Nature-dependent Electricity – (Amendments to IFRS 9 and IFRS 7) were adopted into EU law on 30 June 2025 and the amendments from the published Annual Improvements to IFRS Accounting Standards-Volume 11 were adopted into EU law on 9 July 2025. Both changes have only an insignificant impact on the net assets, financial position and financial performance of the W&W Group.
Publication of two new standards with first-time application for financial years beginning on or after 1 January 2027:
■ IFRS 18 Presentation and Disclosure in Financial Statements is intended to improve the assessment of a company's financial performance for users of financial statements by increasing comparability in presentation and will replace IAS 1 in future. IFRS 18 contains updated requirements for the presentation and disclosure of financial information in IFRS financial statements. Specifically, in future, expenses and income, with the exception of those related to income taxes or discontinued operations, will be allocated to the three new categories, and two predefined subtotals will be introduced.
The three new categories in the income statement are:
- Operating
- Investing
- Financing
In addition, management-defined performance measures (MPMs), which are based on a subtotal of expenses and income and are used by the company outside the financial statements to communicate its overall earnings position, must be defined, disclosed and reconciled to comparable (subtotals) totals. The MPMs do not include any key figures already defined or required to be disclosed by IFRS 18 or other standards. In addition, the introduction of IFRS 18 provides new rules on the aggregation and disaggregation rules according to which (homogeneous) items in the financial statements are to be recognised and disclosures made in the notes. Limited amendments are also being made to IAS 7 Statement of Cash Flows. Due to the different business activities of the W&W Group as a financial services provider and its extensive range of pension products, the W&W Group is likely to be affected in particular by the categorisation and allocation of expenses and income. The specified main business activities anchored in IFRS 18, which require mandatory allocation to the operating segment, play a central role here.
■ IFRS 19 Subsidiaries without Public Accountability: Disclosures allows certain subsidiaries to apply the IFRS accounting standards with reduced disclosures in the notes if there is no public accountability obligation.
Neither standard has been endorsed by the EU to date. The W&W Group will not apply IFRS 19 for its subsidiaries. The implementation of IFRS 18 has an impact on the presentation of the net assets, financial position and financial performance of the W&W Group. To ensure the timely application of IFRS 18 as of 1 January 2027, the W&W Group has set up an implementation project, according to which the effects of the new standard are currently being examined and adjustments to the first-time application are being implemented.
Changes in estimates
Valuation discount for bonus liabilities of home loan savings deposits
Due to the observed customer behaviour in certain collective pool tariffs, a change in estimate is being made by introducing a valuation discount for bonus liabilities for interest-bearing home savings deposits. The resulting positive effect on earnings amounts to a high single-digit million euro figure.
Changes to the scope of consolidation
Additions and disposals in the scope of consolidation
There were no changes to the scope of consolidation in the first half of 2025; comparability with the previous year is ensured.
Accounting policies
Classes of assets and liabilities at fair value
In general, the classification for the measurement of fair value in accordance with IFRS 13 corresponds to the classification used for the purposes of the extended disclosures for financial instruments in accordance with IFRS 7. The inclusion of non-current assets held for sale and discontinued operations and, similarly, liabilities from non-current assets held for sale and discontinued operations, investment property and property for own use results in an expansion in order to cover the relevant assets and liabilities.
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. 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 categories "Financial assets at fair value through profit or loss" and "Financial assets at fair value through other comprehensive income (OCI)", includes senior (bearer) bonds with mainly fixed interest rates.
In the category "Financial assets at fair value through other comprehensive income (OCI)", the class "Subordinated securities and receivables" comprises bonds and other securities and receivables. In terms of class volume, these are mainly fixed-rate bonds.
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. Industrial companies and other financial service providers make up the largest group of issuers here due to the customised nature of their contracts.
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-based 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.
Further procedures and the principles of measuring fair value are described in the section "Explanations of financial instruments and fair value".
Risk provision (expected credit loss)
The model for determining risk provision in accordance with IFRS 9 is based on expected credit losses, and is therefore also referred to as the expected credit loss model.
The model is primarily applied to financial assets measured at amortised cost, debt instruments measured at fair value through other comprehensive income (OCI), irrevocable loan commitments and other contract assets. The calculation of risk provisions for off-balance sheet business corresponds to the calculation of risk provisions for financial assets.
The W&W Group does not have any material financial assets that were already impaired upon initial recognition.
Valuation of insurance contracts
All insurance contracts concluded and held by companies in the W&W Group transfer a significant insurance risk and are therefore measured in accordance with the principles of IFRS 17 Insurance Contracts. 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. This mainly relates to policy loans and premium deposits. These are still accounted for in accordance with IFRS 9.
The significant accounting policies in the W&W Group for the accounting treatment of insurance contracts under IFRS 17 and the judgements and estimates used in this context are presented in the consolidated financial statements as at 31 December 2024.
In the condensed consolidated half-year financial statements, the W&W Group follows the "year-to-date concept" in accordance with IFRS 17.B137. Accordingly, insurance contract groups are remeasured at each reporting date on the basis of current accounting estimates, regardless of whether contracts were added to the group in the last quarter or in a previous quarter.
The following table shows the (basic) yield curve used as at the respective reporting date. This was adjusted in each case by the company-specific illiquidity premium applicable as at 31 December 2024, which remained unchanged as at 30 June 2025. For further information on the illiquidity premium, please refer to the consolidated financial statements as at 31 December 2024.
| 1 year | 5 years | 10 years | 15 years | 20 years | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| in % | 30.6.2025 | 31.12.2024 | 30.6.2025 | 31.12.2024 | 30.6.2025 | 31.12.2024 | 30.6.2025 | 31.12.2024 | 30.6.2025 | 31.12.2024 |
| EUR | 1.86 | 2.21 | 2.16 | 2.15 | 2.49 | 2.25 | 2.65 | 2.31 | 2.70 | 2.25 |
| GBP | 3.80 | 4.47 | 3.67 | 4.11 | 3.99 | 4.10 | 4.26 | 4.22 | 4.39 | 4.27 |
| USD | 3.87 | 4.17 | 3.45 | 4.03 | 3.73 | 4.06 | 3.93 | 4.11 | 4.01 | 4.10 |
(Base) yield curve
The risk adjustment for non-financial risks included in the valuation of insurance contracts is determined in the W&W Group using the cost of capital method. Using a confidence level method, the corresponding confidence level on the reporting date and in the previous year was in the range of 95% to 99.9% for life and health insurance and in the range of 75% to 80% for property/casualty insurance companies. For further information on the calculation of the risk adjustment for non-financial risks, please refer to the consolidated financial statements as at 31 December 2024.
Segment reporting
Segment information is prepared in accordance with IFRS 8 Operating Segments on the basis of the internal reporting system, which is used by the chief operating decision maker on a regular basis to analyse the business development
of the segments and to make decisions on the allocation of resources to the segments (management approach). The Management Board is the chief operating decision maker in the W&W Group.
The reportable segments are identified on the basis of products and services and regulatory requirements. For this purpose, individual business segments are included in the Life and Health Insurance segment. The following section lists the products and services through which revenue is generated by the reportable segments. There is no dependence on individual major accounts.
Housing
The reportable segment Housing consists of one business segment and includes home loan savings and banking products primarily for retail customers in Germany, e.g. home loan and savings contracts, pre-financing and interim financing loans as well as other building loans such as mortgage loans.
Life and Health Insurance
The reportable Life and Health Insurance segment has several business segments, all of which have similar characteristics and are comparable in terms of all IFRS 8 aggregation criteria. In particular, the group of persons, sales channels, regulatory framework, underlying actuarial calculations and the product type all have similar economic characteristics.
The reportable Life and Health Insurance segment provides a wide range of life and health insurance products for individuals and groups, including classic and unit-linked life and pension insurance, term life insurance and health insurance policies, occupational disability insurance, comprehensive and supplementary private health insurance and long-term care insurance.
Property/Casualty Insurance
The reportable Property/Casualty Insurance segment offers a comprehensive range of insurance products for retail and corporate customers, including motor, liability, personal accident, legal expenses, homeowners, household contents, transport and technical insurance.
All other segments
All other business activities of the W&W Group, such as central Group functions, asset management activities and property development activities, have been summarised under "All other segments", as they are not directly related to the other reportable segments. This also includes interests in subsidiaries of W&W AG that cannot be consolidated in All other segments (e.g. Wüstenrot Bausparkasse AG, Württembergische Lebensversicherung AG, Württembergische Versicherung AG and Württembergische Krankenversicherung AG), because they are allocated to another segment (Housing, Life and Health Insurance, Property/Casualty Insurance).
W&W AG is the reinsurer of Württembergische Versicherung AG and passes the majority of assumed risks on to the reinsurance market. The externally held reinsurance business (retrocession) is recognised in the Property/Casualty Insurance reporting segment in accordance with the management approach of IFRS 8. The segment information for Property/Casualty Insurance thus fully reflects the technical risk profile of property and casualty insurance, taking into account the externally held reinsurance contracts.
Consolidation/reconciliation
Consolidation measures that are necessary for reconciliation to Group figures are shown under the column Consolidation/reconciliation.
As in previous years, each individual segment's performance is measured by the segment result under IFRS. Transactions between the segments were carried out on an arm's length basis.
Measurement principles
The measurement principles used in segment reporting are the same as the accounting policies used in the IFRS consolidated financial statements, with the following exceptions. In line with internal Group reporting and management, IFRS 16 is not applied to leases under the law of obligations within the Group. 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 | ||||
|---|---|---|---|---|---|
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|
| Current financial result | 99 | 148 | 475 | 471 | |
| Result from risk provision | -33 | -19 | -2 | 5 | |
| Measurement result | -5 | 34 | -91 | 324 | |
| Result from disposals | -1 | 14 | -13 | -32 | |
| Insurance finance result (net) | - | - | -372 | -770 | |
| Net financial income | 60 | 177 | -3 | -2 | |
| thereof: result from financial assets accounted for using the equity method | - | - | - | - | |
| Technical result (net) | - | - | 63 | 51 | |
| Net commission income | -7 | - | - | - | |
| General administrative expenses (gross) | -158 | -165 | -130 | -130 | |
| General administrative expenses attributable to the technical result | - | - | 111 | 113 | |
| General administrative expenses (net) | -158 | -165 | -19 | -17 | |
| Other operating result | 34 | 22 | 1 | 1 | |
| Segment result before income taxes from continued operations | -71 | 34 | 42 | 33 | |
| Income taxes | 20 | -10 | -9 | -12 | |
| S e g m e n t r e s u l t a f t e r t a x e s | -51 | 24 | 33 | 21 | |
| Other disclosures | |||||
| Total sales revenue2 | 541 | 534 | 1,116 | 1,109 | |
| thereof: with other segments | 13 | 12 | 10 | 13 | |
| thereof: with external customers | 528 | 522 | 1,106 | 1,096 | |
| Segment assets3 | 35,688 | 34,462 | 31,392 | 32,040 | |
| Segment liabilities3 | |||||
| 34,389 | 33,096 | 30,638 | 31,299 | ||
| Financial assets accounted for under the equity method3 | - | - | 30 | 30 |
1 The consolidation/reconciliation column contains the consolidation effects between the segments, the reconciliation of the intra-segment valuations to the Group valuation and rounding effects.
2 Interest, dividend, commission and rental income as well as income from property development business and technical income.
3 Values as at 30 June 2025 and 31 December 2024.
4 Previous year's figure adjusted.
| Group | All other segments | Consolidation/ reconciliation1 |
Total for reportable segments |
Property/Casualty Health Insurance |
|||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1.1.2024 to 30.6.2024 |
1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
1.1.2025 to 30.6.2025 |
||
| 692 | 652 | -7 | -20 | 36 | 50 | 663 | 622 | 44 | 48 | ||
| -13 | -36 | - | -1 | - | - | -13 | -35 | 1 | - | ||
| 377 | -128 | -17 | -9 | 18 | -9 | 376 | –110 | 18 | -14 | ||
| -29 | -19 | - | -1 | -2 | - | -27 | -18 | -9 | -4 | ||
| -777 | -378 | 20 | 16 | - | - | -797 | -394 | -27 | -22 | ||
| 250 | 91 | -4 | -15 | 52 | 41 | 202 | 65 | 27 | 8 | ||
| 2 | - | - | - | 2 | - | - | - | - | - | ||
| -44 | 241 | -2 | - | 2 | 1 | -44 | 240 | -95 | 177 | ||
| 4 | -12 | -8 | -17 | 18 | 19 | -6 | -14 | -6 | -7 | ||
| -559 | -573 | 2 | 1 | -37 | -42 | -524 | -532 | -229 | -244 | ||
| 303 | 331 | - | - | - | - | 303 | 331 | 190 | 220 | ||
| -256 | -242 | 2 | 1 | -37 | -42 | -221 | -201 | -39 | -24 | ||
| 28 | 44 | -3 | 4 | 8 | 9 | 23 | 31 | - | -4 | ||
| -18 | 122 | -15 | -27 | 43 | 28 | -46 | 121 | -113 | 150 | ||
| 4 | -31 | -1 | - | -7 | 1 | 12 | -32 | 34 | -43 | ||
| -14 | 91 | -16 | -27 | 36 | 29 | -34 | 89 | -79 | 107 | ||
| 3,089 | 3,181 | -71 | -91 | 90 | 102 | 3,070 | 3,170 | 1,427 | 1,513 | ||
| - | - | -77 | -96 | 41 | 62 | 36 | 34 | 11 | 11 | ||
| 3,089 | 3,181 | 6 | 5 | 49 | 40 | 3,034 | 3,136 | 1,416 | 1,502 | ||
| 72,266 | 72,841 | -4,7074 | -4,934 | 5,611 | 5,536 | 71,3624 | 72,239 | 4,8604 | 5,159 | ||
| 67,336 | 67,852 | -1,156 | -1,383 | 1,590 | 1,536 | 66,902 | 67,699 | 2,507 | 2,672 | ||
| 60 | 60 | -144 | -14 | - | - | 744 | 74 | 444 | 44 | ||
| Information by region (Group) | ||||
|---|---|---|---|---|
| Sales revenues with external customers1 |
Non-current assets2 |
|||
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
30.6.2025 | 31.12.2024 |
| Germany | 3,181 | 3,082 | 2,980 | 3,239 |
| Other countries | - | 7 | - | 1 |
| T o t a l | 3,181 | 3,089 | 2,980 | 3,240 |
1 Revenue was allocated in accordance with the country in which the operational units are based.
This relates to interest, dividend, commission and rental income as well as income from property development business and technical income.
2 Non-current assets include investment property, intangible assets and property, plant and equipment.
Notes concerning the consolidated balance sheet
(1) Financial assets at fair value through profit or loss
| in € millions | 30.6.2025 | 31.12.2024 |
|---|---|---|
| Participating interests, not including alternative investments | 521 | 538 |
| Participating interests in alternative investments | 3,529 | 3,685 |
| Equities | 397 | 391 |
| Investment fund units | 976 | 1,019 |
| Fixed-income financial instruments that do not pass the SPPI test | 1,740 | 1,975 |
| Derivative financial instruments | 252 | 28 |
| Capital investments for the account and risk of life insurance policyholders | 4,125 | 3,902 |
| 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 | 11,540 | 11,538 |
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.
(2) Financial assets at fair value through other comprehensive income (OCI)
| in € millions | 30.6.2025 | 31.12.2024 |
|---|---|---|
| Subordinated securities and receivables | 930 | 881 |
| Senior debenture bonds and registered bonds | 3,533 | 3,727 |
| Senior fixed-income securities | 18,889 | 19,201 |
| 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 o t h e r c o m p r e h e n s i v e i n c o m e ( O C I ) | 23,352 | 23,809 |
Risk provision by class for debt instruments required to be measured at fair value through other comprehensive income
| in € millions | 30.6.2025 | 31.12.2024 |
|---|---|---|
| Subordinated securities and receivables | -1 | -1 |
| Senior debenture bonds and registered bonds | -3 | -3 |
| Senior fixed-income securities | -28 | -26 |
| R i s k p r o v i s i o n | -32 | -30 |
(3) Financial assets at amortised cost
| Carrying amount | Fair value | |||
|---|---|---|---|---|
| in € millions | 30.6.2025 | 31.12.2024 | 30.6.2025 | 31.12.2024 |
| Subordinated securities and receivables | 296 | 218 | 300 | 220 |
| Senior debenture bonds and registered bonds | 73 | 72 | 74 | 72 |
| Building loans | 29,209 | 28,401 | 28,908 | 28,075 |
| Other receivables | 2,175 | 2,249 | 2,175 | 2,247 |
| Active portfolio hedge adjustment | 339 | 422 | 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 | 32,092 | 31,362 | 31,457 | 30,614 |
To improve the depth of information, the table below provides a more detailed breakdown of the carrying amounts of assets measured at amortised cost after risk provision:
| in € millions | 30.6.2025 | 31.12.2024 |
|---|---|---|
| Subordinated securities and receivables | 296 | 218 |
| Credit institutions | 185 | 126 |
| Other financial enterprises | 71 | 57 |
| Other enterprises | 40 | 35 |
| Senior debenture bonds and registered bonds | 73 | 72 |
| Building loans | 29,209 | 28,401 |
| Loans under a building savings contract | 2,465 | 2,242 |
| Advance and bridge financing loans | 19,667 | 19,085 |
| Other building loans | 7,077 | 7,074 |
| Other receivables | 2,175 | 2,249 |
| Active portfolio hedge adjustment | 339 | 422 |
| 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 | 32,092 | 31,362 |
Without accounting for risk provisions, loans and advances to credit institutions included in other receivables came to €1,663 million (previous year: €1,742 million), of which €1,575 million (previous year: €1,469 million) are payable on demand and €88 million (previous year: €273 million) are not.
Risk provision per class for financial assets at amortised cost
| R i s k p r o v i s i o n | -169 | -149 |
|---|---|---|
| Other receivables | -41 | -41 |
| Building loans | -128 | -108 |
| in € millions | 30.6.2025 | 31.12.2024 |
(4) Technical assets
| Asset for remaining coverage |
Asset for incurred claims |
Total | |||||
|---|---|---|---|---|---|---|---|
| in € million | 30.6.2025 | 31.12.2024 | 30.6.2025 | 31.12.2024 | 30.6.2025 | 31.12.2024 | |
| Insurance contracts issued that are assets |
38 | 49 | -7 | -8 | 31 | 41 | |
| Life and Health Insurance | 38 | 49 | -9 | -8 | 29 | 41 | |
| Property/Casualty Insurance | - | - | 2 | - | 2 | - | |
| Reinsurance contracts held that are assets |
8 | -8 | 215 | 297 | 223 | 289 | |
| Life and Health Insurance | 26 | 11 | 5 | 10 | 31 | 21 | |
| Property/Casualty Insurance | -18 | -19 | 210 | 287 | 192 | 268 | |
| T e c h n i c a l a s s e t s | 46 | 41 | 208 | 289 | 254 | 330 |
Further explanations can be found in Note 8 "Technical liabilities."
(5) Investment property
| in € millions | 30.6.2025 | 31.12.2024 |
|---|---|---|
| Measured using the cost model | 156 | 157 |
| Measured using the fair value model | 2,191 | 2,309 |
| I n v e s t m e n t p r o p e r t y | 2,347 | 2,466 |
The fair value of investment property measured using the cost model is €235 million (previous year: €238 million).
The calculation of the fair value of investment property in Life and Health Insurance in the amount of €2,191 million (previous year: €2,309) million is essentially based on a discounted cash flow method. This is based on discount rates of between4.33% and 8.52% (previous year: 4.24% to 8.22%). A change in discount rates of +100 basis points assumed as part of a sensitivity analysis leads to a reduction in fair value of €161 million (previous year: €171 million), while a change in the discount rate of -100 basis points led to an increase of €177 million (previous year: €188 million). A change in the cash flows included in the valuation of +10% leads to an increase in fair value of €208 million (previous year: €223 million), while a change of -10% results in a reduction of €208 million (previous year: €223 million).
(6) Intangible assets
Due to the early termination of a software project in the Property/Casualty Insurance segment, the acquisition costs of the associated intangible assets in the low double-digit million range were fully impaired.
(7) Liabilities
| Carrying amount | Fair value | ||||
|---|---|---|---|---|---|
| in € millions | 30.6.2025 | 31.12.2024 | 30.6.2025 | 31.12.2024 | |
| Liabilities evidenced by certificates | 4,596 | 3,365 | 4,536 | 3,266 | |
| Liabilities to credit institutions | 1,523 | 1,271 | 1,518 | 1,247 | |
| Liabilities to customers | 27,269 | 27,468 | 27,231 | 27,448 | |
| Lease liabilities | 38 | 44 | 38 | 44 | |
| Miscellaneous liabilities | 478 | 474 | 475 | 473 | |
| Other liabilities | 303 | 311 | 300 | 310 | |
| Sundry liabilities | 175 | 163 | 175 | 163 | |
| Passive portfolio hedge adjustment | -481 | -397 | n/a | n/a | |
| L i a b i l i t i e s | 33,423 | 32,225 | 33,798 | 32,478 |
To enable a better understanding of the information, the following table provides a detailed breakdown of liabilities:
| in € millions | 30.6.2025 | 31.12.2024 |
|---|---|---|
| Liabilities evidenced by certificates | 4,596 | 3,365 |
| Liabilities to credit institutions | 1,523 | 1,271 |
| Home loan savings business deposits | 4 | 4 |
| Other liabilities to credit institutions | 1,519 | 1,267 |
| Liabilities to customers | 27,269 | 27,468 |
| Home loan savings business deposits and savings deposits | 19,756 | 19,815 |
| Other liabilities to customers | 7,513 | 7,653 |
| Lease liabilities | 38 | 44 |
| Miscellaneous liabilities | 478 | 474 |
| Other liabilities | 303 | 311 |
| Sundry liabilities | 175 | 163 |
| Portfolio hedge adjustment | -481 | -397 |
| L i a b i l i t i e s | 33,423 | 32,225 |
Of the other liabilities to credit institutions included in liabilities to credit institutions, €74 million (previous year: €9 million) were due on demand and €1,445 million (previous year: €1,258 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, €4,994 million (previous year: €4,975 million) were due on demand, and €2,519 million (previous year: €2,678 million) had an agreed term.
(8) Technical liabilities
| Provision for future policy benefits (liability for remaining coverage) |
Provision for outstanding insurance claims (liability for incurred claims) |
Total | |||||
|---|---|---|---|---|---|---|---|
| in € millions | 30.6.2025 | 31.12.2024 | 30.6.2025 | 31.12.2024 | 30.6.2025 | 31.12.2024 | |
| Insurance contracts issued that are liabilities |
29,485 | 29,843 | 2,337 | 2,409 | 31,822 | 32,252 | |
| Life and Health Insurance | 28,881 | 29,518 | 165 | 183 | 29,046 | 29,701 | |
| Property/Casualty Insurance | 604 | 325 | 2,172 | 2,226 | 2,776 | 2,551 | |
| Reinsurance contracts held that are liabilities |
1 | 1 | - | - | 1 | 1 | |
| Property/Casualty Insurance | 1 | 1 | - | - | 1 | 1 | |
| T e c h n i c a l l i a b i l i t i e s | 29,486 | 29,844 | 2,337 | 2,409 | 31,823 | 32,253 |
The provision for future policy benefits in Life and Health Insurance from insurance contracts issued, measured using the variable fee approach (VFA), taking into account the corresponding technical assets (see Note 4), includes a contractual service margin (CSM) of €1,835 million. The following effects of the comparative period relate to the corresponding CSM as at 30 June 2024 in the amount of €1,792 million. The effect from new business in the reporting period totalled €25 million (previous year: €27 million). In addition, the changes in estimates in connection with future benefits led to an increase in CSM of €69 million (previous year: decrease of €21 million) due to experience adjustments. The risk adjustment for non-financial risks included in the provision for future policy benefits from insurance contracts issued amounts to €288 million; as at 30 June 2024, this amounted to €301 million.
The provision for future policy benefits in Property/Casualty Insurance from issued insurance contracts valued using the building block approach (BBA) includes a CSM of €378 million. As at 30 June 2024, this amounted to €374 million. In the reporting period, the CSM from new business was increased by €149 million (previous year: €141 million), and by €7 million due to changes in estimates regarding future benefits (previous year: €46 million). In relation to current benefits, the provision for future policy benefits decreased as a result of experience adjustments by €72 million (previous year: increase of €82 million). The risk adjustment for non-financial risks amounts to €90 million; as at 30 June 2024, this amounted to €82 million. The changes relating to past benefits increased the technical liabilities by €10 million (previous year: €38 million). The reversal of the loss component contained in the provision for future policy benefits from insurance contracts issued totalled €21 million (previous year: €1 million) during the reporting period and resulted from the lower loss expectations compared to the previous year. As at the reporting date, the resulting loss component amounted to €20 million; as at 30 June 2024, this amounted to €31 million.
The carrying amount of the CSM for reinsurance contracts held, which represent total technical assets in the W&W Group (see Note 4), amounted to €226 million as at the reporting date. As at 30 June 2024, this amounted to €244 million.
(9) Other provisions
| in € millions | 30.6.2025 | 31.12.2024 |
|---|---|---|
| Provisions for pensions and other long-term employee benefits | 1,158 | 1,215 |
| Miscellaneous provisions | 472 | 506 |
| O t h e r p r o v i s i o n s | 1,630 | 1,721 |
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 pension obligations rose from 3.3% to 3.6% compared to 31 December 2024. The adjustment of the interest rate is recognised as an actuarial gain, taking account of deferred taxes, within the reserve for pension commitments through other comprehensive income and is a component of Other comprehensive income (OCI).
In the financial year, there were reversals of other provisions totalling €12 million (previous year: €13 million).
(10) Subordinated capital
| Carrying amount | Fair value | |||
|---|---|---|---|---|
| in € millions | 30.6.2025 | 31.12.2024 | 30.6.2025 | 31.12.2024 |
| Subordinated liabilities | 408 | 404 | 368 | 353 |
| Participation rights capital | - | 2 | - | 2 |
| S u b o r d i n a t e d c a p i t a l | 408 | 406 | 368 | 355 |
(11) Equity
On 22 May 2025, the Annual General Meeting of W&W AG resolved to use the unappropriated surplus for the 2024 financial year in the amount of €80 million (previous year: €80 million), to distribute a dividend in the amount of € 0.65 (previous year: €0.65) per share in cash.
The dividend totalling €61 million was paid out on 23 May 2025.
Notes concerning the consolidated income statement
(12) Current net financial income
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|
| Interest income | 762 | 766 |
| Subordinated securities and receivables | 20 | 16 |
| Fixed-income financial instruments that do not pass the SPPI test | 40 | 38 |
| Derivative financial instruments | 27 | 84 |
| Senior debenture bonds and registered bonds | 33 | 37 |
| Senior fixed-income securities | 260 | 249 |
| Building loans | 327 | 275 |
| Other receivables | 56 | 53 |
| Negative interest on liabilities | -1 | 14 |
| Interest expenses | -349 | -289 |
| Liabilities evidenced by certificates | -39 | -25 |
| Deposit liabilities and other liabilities | -179 | -116 |
| Lease liabilities | - | -1 |
| Miscellaneous liabilities | -1 | -1 |
| Subordinated capital | -6 | -12 |
| Derivative financial instruments | -96 | -105 |
| Other | -28 | -29 |
| Dividend income | 179 | 149 |
| Other current result | 60 | 66 |
| Result from financial assets accounted for using the equity method | - | 3 |
| Net income from investment property | 60 | 63 |
| C u r r e n t n e t f i n a n c i a l i n c o m e | 652 | 692 |
The interest expenses listed essentially correspond to the W&W Group's financing expenses.
Net income from investment property includes income from letting and leasing (operating leasing) in the amount of €62 million (previous year: €68 million). In addition, it includes directly attributable operating expenses for repairs, maintenance and management, as well as depreciation. These amount to€12 million (previous year: €13 million) on investment property from which rental income was generated; €1 million (previous year: €1 million) is attributable to investment property with which no rental income was generated.
(13) Result from risk provision
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|
| Income from credit risk adjustments | 46 | 52 |
| Release of risk provision | 41 | 47 |
| Senior fixed-income securities | 7 | 14 |
| Building loans | 34 | 32 |
| Other receivables | - | 1 |
| Release of provisions in the lending business, for irrevocable loan commitments | 2 | 2 |
| Reversals of write-downs/payments received on securities and receivables written down | 3 | 3 |
| Expenses for credit risk adjustments | -82 | -65 |
| Addition to risk provision | -80 | -63 |
| Senior fixed-income securities | -9 | -8 |
| Building loans | -57 | -45 |
| Other receivables | -14 | -10 |
| Allocation to provisions in the lending business, for irrevocable loan commitments | -2 | -2 |
| R e s u l t f r o m r i s k p r o v i s i o n | -36 | -13 |
(14) Measurement result
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|
| Result from financial assets/liabilities at fair value through profit or loss | 160 | 461 |
| Participating interests, shares, investment fund units and participating interests in alternative investments | 45 | 129 |
| Senior fixed-income securities | - | 1 |
| Derivative financial instruments | -12 | 61 |
| Capital investments for the account and risk of life insurance policyholders | 107 | 281 |
| Fixed-income financial instruments that do not pass the SPPI test | 20 | -11 |
| Result from the discounting of provisions for home loan savings business | 6 | -6 |
| Hedge income1 | -32 | -33 |
| Result from properties measured at fair value | -7 | -38 |
| Currency result | -255 | -7 |
| Participating interests, shares, investment fund units and participating interests in alternative investments | -207 | 47 |
| Fixed-income financial instruments that do not pass the SPPI test | -87 | 22 |
| Senior fixed-income securities | -511 | 124 |
| Other receivables | -32 | 18 |
| Derivative financial instruments | 635 | -230 |
| Capital investments for the account and risk of life insurance policyholders | -54 | 13 |
| Liabilities | 1 | -1 |
| M e a s u r e m e n t r e s u l t | -128 | 377 |
| 1 Hedge accounting (hedged items and hedging instruments) |
Due to the geopolitical changes and the associated fall in the US dollar/euro exchange rate in the first half of 2025, the currency result fell significantly. The exchange rate losses on US dollar securities are offset by gains from derivative financial instruments that were concluded to hedge exchange rate risks.
(15) Result from disposals
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|
| Income from disposals | 15 | 31 |
| Subordinated securities and receivables | - | 1 |
| Senior debenture bonds and registered bonds | - | 2 |
| Senior fixed-income securities | 12 | 26 |
| Investment property | 3 | 2 |
| Expenses for disposals | -34 | -60 |
| Senior debenture bonds and registered bonds | -1 | - |
| Senior fixed-income securities | -32 | -60 |
| Other receivables | -1 | - |
| Investment property | - | - |
| R e s u l t f r o m d i s p o s a l s | -19 | -29 |
(16) Technical finance income or expenses
| 1.1.2025 to | 1.1.2024 to | |
|---|---|---|
| in € millions | 30.6.2025 | 30.6.2024 |
| L i f e a n d H e a l t h I n s u r a n c e | ||
| Technical finance result (net) | -356 | -751 |
| Technical finance result (gross) | -356 | -751 |
| Technical finance income from insurance contracts issued | 335 | 1,115 |
| Technical finance expenses for insurance contracts issued | -691 | -1,866 |
| 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 finance result (net) | -22 | -26 |
| Technical finance result (gross) | -24 | -28 |
| Technical finance income from insurance contracts issued | 7 | 4 |
| Technical finance expenses for insurance contracts issued | -31 | -32 |
| Technical finance result from reinsurance contracts held | 2 | 2 |
| Technical finance income from reinsurance contracts held | 2 | 2 |
| 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 | -378 | -777 |
Technical finance expenses from insurance contracts issued include positive changes in the fair value of underlying reference values in the amount of €373 million (previous year: €785 million). In addition, negative changes in fair value totalling €597 million were recorded in the reporting period (previous year: €596 million) in Other comprehensive income (OCI) via the reserves from technical finance income or expenses.
(17) Technical result
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|
| 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) | 63 | 51 |
| Technical result (gross) | 69 | 57 |
| Technical income | 627 | 617 |
| Technical expenses | -558 | -560 |
| Result from reinsurance contracts held | -6 | -6 |
| 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) | 178 | -95 |
| Technical result (gross) | 234 | -62 |
| Technical income | 1,441 | 1,361 |
| Technical expenses | -1,207 | -1,423 |
| Result from reinsurance contracts held | -56 | -33 |
| T e c h n i c a l r e s u l t ( t o t a l ) | 241 | -44 |
The changes in the risk adjustment for non-financial risks in the amount of €5 million (previous year: €3 million) were recognised in the technical income from Life and Health Insurance and the pro rata reversal of the contractual service margin (CSM) for the past coverage period in the amount of €65 million (previous year: €61 million) including the expected excess return in the mid-single-digit million range. The CSM reversal amount in Property/ Casualty Insurance is €119 million (previous year: €116 million) and the changes in the risk adjustment for non-financial risks €18 million (previous year: €17 million).
(18) Net commission income
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|
| Commission income | 99 | 112 |
| from banking/home loan savings business | 76 | 83 |
| from consulting/brokering activities | 18 | 18 |
| from investment business | 2 | 2 |
| from other business | 3 | 9 |
| Commission expenses | -111 | -108 |
| from banking/home loan savings business | -81 | -82 |
| from consulting/brokering activities | -9 | -8 |
| from investment business | -4 | -5 |
| from other business | -17 | -13 |
| N e t c o m m i s s i o n i n c o m e | -12 | 4 |
(19) Other operating result
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|
| Other operating income | 62 | 53 |
| Income from property management and urban development | 9 | 17 |
| Release of provisions | 12 | 13 |
| Miscellaneous income | 38 | 23 |
| Other operating expenses | -15 | -25 |
| Expenses for property management and urban development | -8 | -17 |
| Additions to provisions | - | -1 |
| Miscellaneous expenses | -9 | -6 |
| Other taxes | -1 | -1 |
| O t h e r o p e r a t i n g r e s u l t | 44 | 28 |
(20) Income taxes
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
|---|---|---|
| Current taxes on income for the reporting period | –87 | -32 |
| Current taxes of prior periods | - | -1 |
| Deferred taxes | 56 | 37 |
| I n c o m e t a x e s | -31 | 4 |
(21) Earnings per share
Basic earnings per share are calculated as the ratio of consolidated net profit to the weighted average number of shares:
| 1.1.2025 to 30.6.2025 |
1.1.2024 to 30.6.2024 |
||
|---|---|---|---|
| Result attributable to shareholders of W&W AG | in € | 90,121,609 | -14,492,048 |
| Number of shares at the beginning of the financial year | Share | 93,647,841 | 93,715,385 |
| Treasury shares held as at the reporting date | Share | - | -101,879 |
| Weighted average shares | Share | 93,698,781 | 93,681,613 |
| 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 | in € | 0.96 | -0.15 |
There are not any dilutive potential shares at present. Diluted earnings per share is thus equal to basic earnings per share.
Notes concerning financial instruments and fair value
(22) Disclosures concerning fair value measurement
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 input factors. 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). 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 a given instrument 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 the levels in the reporting period. In the comparative period, there was a reclassification from Level 3 to Level 2 in participating interests not including alternative investments, as there was an observable transaction price for the investment. There were no other reclassifications between the levels in the reporting period or in the comparative period.
Unadjusted quoted or market prices are used as Level 1 inputs for financial instruments recognised under the balance sheet items "Financial assets at fair value through profit or loss" and "Financial liabilities at fair value through profit or loss". 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 measure unquoted derivative financial instruments, such as interest rate swaps and non-optional forward transactions (e.g. currency forwards) in Level 2. These are included under the items "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 capital investments for the account and risk of life insurance policyholders are also essentially allocated to Level 2. The most recently available redemption price for the underlying investment certificate is used in measurement.
The main measurement methods and parameters for measuring the fair value of the individual assets and liabilities in Levels 2 and 3 are presented below:
Overview of the measurement techniques used for different classes in Levels 2 and 3
| Class | Measurement model | Main parameters |
|---|---|---|
| Financial assets at fair value through profit or loss | ||
| Capitalised earnings method | Discount rate, future net cash inflows | |
| Participating interests, not including alternative investments | Approximation method Net asset value method |
|
| Present value method | Discount rate, future net cash inflows | |
| Participating interests in alternative investments | Approximation method Adjusted net asset value method |
|
| Equities | Approximation method Adjusted net asset value method |
|
| Investment fund units | Redemption price Approximation method 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 |
| Present value method | Foreign exchange rates (spot and forward), yield curves |
|
| Derivative financial instruments | Black-Scholes model | Quoted prices/index, volatilities, yield curves, exercise price and remaining term |
| LIBOR market model, Hull-White model | 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 Adjusted net asset value method |
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 | ||
| Present value method | Foreign exchange rates (spot and forward), | |
| Derivative financial instruments | Black-Scholes model | yield curves Quoted prices/index, volatilities, yield curves, exercise price and remaining term |
| LIBOR market model, Hull-White model | 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. The value of options is determined in particular by the value of the underlying asset and its volatility, the agreed exercise price,
base interest rate or base index, the risk-free interest rate and the remaining term of the contract. They are assigned to the class "Derivative financial instruments" under the balance sheet items "Financial assets at fair value through profit or loss" and "Financial liabilities at fair value through profit or loss".
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 "Participating interests, 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.
2025 measurement hierarchy (at fair value)
| Fair value/ Carrying |
||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | amount | |
| in € millions | 30.6.2025 | 30.6.2025 | 30.6.2025 | 30.6.2025 |
| Financial assets at fair value through profit or loss | 365 | 6,972 | 4,203 | 11,540 |
| Participating interests, not including alternative investments | - | 5 | 516 | 521 |
| Participating interests in alternative investments | - | - | 3,529 | 3,529 |
| Other financial enterprises | - | - | 3,478 | 3,478 |
| Other enterprises | - | - | 51 | 51 |
| Equities | 357 | - | 40 | 397 |
| Investment fund units | - | 892 | 84 | 976 |
| Fixed-income financial instruments that do not pass the SPPI test | - | 1,714 | 26 | 1,740 |
| Derivative financial instruments | 8 | 244 | - | 252 |
| Interest rate-based derivatives | 1 | - | - | 1 |
| Currency-based derivatives | - | 237 | - | 237 |
| Equity/index-based derivatives | 7 | 7 | - | 14 |
| Capital investments for the account and risk of life insurance policyholders | - | 4,117 | 8 | 4,125 |
| Financial assets at fair value through other comprehensive income (OCI) | - | 23,352 | - | 23,352 |
| Subordinated securities and receivables | - | 930 | - | 930 |
| Senior debenture bonds and registered bonds | - | 3,533 | - | 3,533 |
| Credit institutions | - | 2,015 | - | 2,015 |
| Other financial enterprises | - | 120 | - | 120 |
| Other enterprises | - | 55 | - | 55 |
| Public authorities | - | 1,343 | - | 1,343 |
| Central banks | - | - | - | - |
| Senior fixed-income securities | - | 18,889 | - | 18,889 |
| Credit institutions | - | 5,408 | - | 5,408 |
| Other financial enterprises | - | 1,437 | - | 1,437 |
| Other enterprises | - | 1,577 | - | 1,577 |
| Public authorities | - | 10,467 | - | 10,467 |
| T o t a l a s s e t s | 365 | 30,324 | 4,203 | 34,892 |
2025 measurement hierarchy (at fair value) Continuation
| Level 1 | Level 2 | Level 3 | Fair value/ Carrying amount |
|
|---|---|---|---|---|
| in € millions | 30.6.2025 | 30.6.2025 | 30.6.2025 | 30.6.2025 |
| Financial liabilities at fair value through profit or loss | - | 49 | - | 49 |
| Derivative financial instruments | - | 49 | - | 49 |
| Interest rate-based derivatives | - | 37 | - | 37 |
| Currency-based derivatives | - | 11 | - | 11 |
| Equity/index-based derivatives | - | 1 | - | 1 |
| Negative market values from hedges | - | 1 | - | 1 |
| 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 | - | 50 | - | 50 |
2024 measurement hierarchy (at fair value)
| Level 1 | Level 2 | Level 3 | Fair value/ Carrying amount |
|
|---|---|---|---|---|
| in € millions | 31.12.2024 | 31.12.2024 | 31.12.2024 | 31.12.2024 |
| Financial assets at fair value through profit or loss | 361 | 6,829 | 4,348 | 11,538 |
| Participating interests, not including alternative investments | - | 5 | 533 | 538 |
| Participating interests in alternative investments | - | 29 | 3,656 | 3,685 |
| Other financial enterprises | - | - | 3,597 | 3,597 |
| Other enterprises | - | 29 | 59 | 88 |
| Equities | 351 | - | 40 | 391 |
| Investment fund units | - | 930 | 89 | 1,019 |
| Fixed-income financial instruments that do not pass the SPPI test | - | 1,949 | 26 | 1,975 |
| Derivative financial instruments | 10 | 18 | - | 28 |
| Interest rate-based derivatives | 1 | -1 | - | - |
| Currency-based derivatives | - | 6 | - | 6 |
| Equity/index-based derivatives | 9 | 13 | - | 22 |
| Capital investments for the account and risk of life insurance policyholders | - | 3,898 | 4 | 3,902 |
| Financial assets at fair value through other comprehensive income (OCI) | - | 23,809 | - | 23,809 |
| Subordinated securities and receivables | - | 881 | - | 881 |
| Senior debenture bonds and registered bonds | - | 3,727 | - | 3,727 |
| Credit institutions | - | 2,085 | - | 2,085 |
| Other financial enterprises | - | 122 | - | 122 |
| Other enterprises | - | 59 | - | 59 |
| Public authorities | - | 1,461 | - | 1,461 |
| Senior fixed-income securities | - | 19,201 | - | 19,201 |
| Credit institutions | - | 5,202 | - | 5,202 |
| Other financial enterprises | - | 1,434 | - | 1,434 |
| Other enterprises | - | 1,642 | - | 1,642 |
| Public authorities | - | 10,923 | - | 10,923 |
| Positive market values from hedges | - | 2 | - | 2 |
| T o t a l a s s e t s | 361 | 30,640 | 4,348 | 35,349 |
2024 measurement hierarchy (at fair value) Continuation
| Level 1 | Level 2 | Level 3 | Fair value/ Carrying amount |
|
|---|---|---|---|---|
| in € millions | 31.12.2024 | 31.12.2024 | 31.12.2024 | 31.12.2024 |
| Financial liabilities at fair value through profit or loss | 1 | 236 | - | 237 |
| Derivative financial instruments | 1 | 236 | - | 237 |
| Interest rate-based derivatives | 1 | 10 | - | 11 |
| Currency-based derivatives | - | 224 | - | 224 |
| Equity/index-based derivatives | - | 2 | - | 2 |
| Negative market values from hedges | - | 1 | - | 1 |
| 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 | 1 | 237 | - | 238 |
Development in Level 3 for financial assets at fair value through profit or loss
| Participating interests, not including alternative investments |
Participating interests in alternative investments (Other financial enterprises) |
Participating interests in alternative investments (Other enterprises) |
||
|---|---|---|---|---|
| in € millions | ||||
| As at 1.1.2024 | 422 | 3,352 | 76 | |
| Total comprehensive income for the period | –6 | 141 | –1 | |
| Income recognised in the consolidated income statement1 | 1 | 181 | 5 | |
| Expenses recognised in the consolidated income statement1 | –7 | –40 | –6 | |
| Purchases | 6 | 244 | 1 | |
| Sales | –23 | –181 | – | |
| Reclassifications from Level 3 | –63 | – | – | |
| A s a t 3 0 . 0 6 . 2 0 2 4 | 414 | 3,556 | 76 | |
| Income recognised in the consolidated income statement as at the end of the reporting period2 | 1 | 181 | 5 | |
| Expenses recognised in the consolidated income statement as at the end of the reporting period2 | -7 | -40 | -6 | |
| As at 01.01.2025 | 533 | 3,596 | 58 | |
| Total comprehensive income for the period | -14 | -143 | -6 | |
| Income recognised in the consolidated income statement1 | 2 | 118 | 2 | |
| Expenses recognised in the consolidated income statement1 | -16 | -261 | -8 | |
| Unrealised gains/losses (-) from investment property in Life and Health Insurance (OCI; gross) | - | - | - | |
| Purchases | 7 | 274 | - | |
| Sales | -10 | -249 | -1 | |
| A s a t 3 0 . 0 6 . 2 0 2 5 | 516 | 3,478 | 51 | |
| Income recognised in the consolidated income statement as at the end of the reporting period2 | 2 | 81 | 1 | |
| Expenses recognised in the consolidated income statement as at the end of the reporting period2 | -2 | -132 | -4 | |
1 Income and expenses are mainly included in the measurement result in the consolidated income statement. 2 Period income and expenses for assets still in the portfolio at the end of the reporting period.
3 Previous year's figure adjusted
| Total | ||||
|---|---|---|---|---|
| Equities | Investment fund units |
Fixed-income financial instruments, that do not pass the SPPI test |
Capital investments for the account and risk of life insurance policyholders |
|
| 36 | 1 | 40 | 8 | 3,935 |
| – | 3 | – | –1 | 136 |
| – | 3 | – | 1 | 191 |
| – | – | – | –2 | –55 |
| – | 85 | – | 6 | 342 |
| – | – | – | –5 | –1883 |
| – | – | – | – | –63 |
| 36 | 89 | 40 | 8 | 4,219 |
| - | 3 | - | 1 | 191 |
| - | - | - | -2 | -55 |
| 40 | 89 | 26 | 4 | 4,346 |
| - | - | - | -7 | -170 |
| - | - | - | - | 122 |
| - | - | - | -7 | -292 |
| - | - | - | - | - |
| - | - | - | 11 | 292 |
| - | -5 | - | - | -265 |
| 40 | 84 | 26 | 8 | 4,203 |
| - | - | - | - | 84 |
| - | - | - | -7 | -145 |
Description of the measurement processes used and effects of alternative assumptions for assets and liabilities measured at fair value in Level 3
The capitalised earnings method, the adjusted net asset value method and approximations are typically used in the measurement process to determine fair value.
With regard to the capitalised earnings method, which is uniform throughout the Group, internal plan values and estimates are used as the basis for discounting future net cash flows and distributions under application of risk parameters derived on 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 capitalised earnings 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 selfmeasured participating interests in properties that are assigned to "Participating interests, 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 mainly comprises participating interests in alternative investments, which 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 the majority of the interests measured by third parties amounting to€3,773 million (previous year: €3,878 million) is determined on the basis of the net asset value . Of the total amount of the interests measured externally using the net asset value, €129 million (previous year: €144 million) was attributable to unquoted equities and fund certificates, and €3,604 million (previous year: €3,734 million) to participations in alternative investments, including private equity. 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. Thus, it was not possible to subject them to a sensitivity analysis.
In the W&W Group, net asset values of €261 million (previous year: €271 million) are measured internally for property investments, which are allocated to participations without alternative investments. The value of the properties in this category is calculated using income-based present value methods. These recognised valuation methods are based on discount rates of 4.7% to 7.9% (previous year: 4.6% to 7.8%), which largely determine the fair value of the property. A change in the discount rates of +100 basis points assumed as part of a sensitivity analysis led to a reduction in the fair value to €249 million (previous year: €256 million) , while a change in the discount rate of - 100 basis points led to an increase to €294 million (previous year: €291 million).
The most significant measurement parameters for interests measured internally using the capitalised earnings approach of €73 million (previous year: €73 million ) are the risk-adjusted discount rate and the future net cash inflows. A significant increase in the discount rate reduces fair value, while a reduction in this factor increases the fair value. For the reporting period, there were no changes in the parameters used to measure the sensitivities compared to the sensitivities reported in the in Note 38 to the consolidated financial statements in the previous year.
All changes in the category "Financial assets at fair value through profit or loss" 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).
Quantitative information on fair value measurement in Level 3
| Unobservable | ||||||
|---|---|---|---|---|---|---|
| Fair value | Measurement methods | inputs | Range in % | |||
| in € millions | 30.6.2025 | 31.12.2024 | 30.6.2025 | 31.12.2024 | ||
| Financial assets at fair value through profit or loss |
4,203 | 4,348 | ||||
| Participating interests, not including alternative investments |
516 | 533 | ||||
| 73 | 73 | Capitalised earnings approach |
Discount rate, future net cash inflows |
8.0-9.83 | 8.0-9.83 | |
| 53 | 47 | Approximation method | n/a | n/a | n/a | |
| 390 | 413 | Net asset value method | n/a | n/a | n/a | |
| Participating interests in alternative investments |
3,529 | 3,656 | ||||
| Other financial enterprises | 3,478 | 3,597 | ||||
| 8 | 7 | Approximation method | n/a | n/a | n/a | |
| 3,470 | 3,590 | Adjusted net asset value method1 |
n/a | n/a | n/a | |
| Other enterprises | 51 | 59 | Adjusted net asset value method1 |
n/a | n/a | n/a |
| Equities | 40 | 40 | Approximation method | n/a | n/a | n/a |
| Investment fund units | 84 | 89 | Adjusted net asset value method1 |
|||
| Fixed-interest financial instruments that do not pass the SPPI test |
26 | 26 | Approximation method | n/a | n/a | n/a |
| Capital investments for the account and risk of life insurance policyholders |
8 | 4 | ||||
| 1 | 2 | Black-Scholes Model | Index weighting, volatility |
n/a | n/a | |
| 7 | 2 | Adjusted net asset value method1 |
n/a | n/a | n/a |
1 The net asset values provided are calculated for the individual investments outside the Group using recognised measurement methods such as DCF, the multiplier and capitalised earnings 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.
Other disclosures
(23) Revenue from contracts with customers
The following table shows a breakdown of revenue by type and its reconciliation to the respective reporting segment.
2025
| Housing | Life and Health Insurance |
Property/ Casualty Insurance |
All other Segments |
Consolidation/ Reconciliation |
Total | |
|---|---|---|---|---|---|---|
| in € millions | 1.1.2025 to 30.6.2025 |
1.1.2025 to 30.6.2025 |
1.1.2025 to 30.6.2025 |
1.1.2025 to 30.6.2025 |
1.1.2025 to 30.6.2025 |
1.1.2025 to 30.6.2025 |
| Commission income | 30 | - | 8 | 26 | -37 | 27 |
| from home loan savings business | 4 | - | - | - | - | 4 |
| from brokering activities | 24 | - | 8 | 6 | -20 | 18 |
| from investment business | - | - | - | 19 | -17 | 2 |
| from other business | 2 | - | - | 1 | - | 3 |
| Other operating result | 26 | 2 | - | 14 | -2 | 40 |
| Proceeds from the disposal of inventories (property development business) |
- | - | - | 6 | - | 6 |
| Other revenues | 26 | 2 | - | 8 | -2 | 34 |
| Result from disposals | - | 129 | - | - | - | 129 |
| Disposal revenue from investment property |
- | 129 | - | - | - | 129 |
| T o t a l | 56 | 131 | 8 | 40 | -39 | 196 |
| Type of revenue recognition | ||||||
| satisfied at a point in time | 54 | 129 | 8 | 30 | -38 | 183 |
| over time | 2 | 2 | - | 10 | -1 | 13 |
| Total | 56 | 131 | 8 | 40 | -39 | 196 |
2024
| in € millions | Housing 1.1.2024 to 30.6.2024 |
Life and Health Insurance 1.1.2024 to 30.6.2024 |
Property/ Casualty Insurance 1.1.2024 to 30.6.2024 |
All other Segments 1.1.2024 to 30.6.2024 |
Consolidation/ Reconciliation 1.1.2024 to 30.6.2024 |
Total 1.1.2024 to 30.6.2024 |
|---|---|---|---|---|---|---|
| Commission income | 28 | - | 8 | 16 | -20 | 32 |
| from home loan savings business | 3 | - | - | - | - | 3 |
| from brokering activities | 23 | - | 8 | - | -13 | 18 |
| from investment business | - | - | - | 9 | -7 | 2 |
| from other business | 2 | - | - | 7 | - | 9 |
| Other operating result | 23 | 2 | - | 19 | -2 | 42 |
| Proceeds from the disposal of inventories (property development business) |
- | - | - | 13 | - | 13 |
| Other revenues | 23 | 2 | - | 6 | -2 | 29 |
| Result from disposals | - | - | - | - | - | - |
| Disposal revenue from investment property |
- | - | - | - | - | - |
| T o t a l | 51 | 2 | 8 | 35 | -22 | 74 |
| Type of revenue recognition | ||||||
| satisfied at a point in time | 49 | - | 8 | 19 | -20 | 56 |
| over time | 2 | 2 | - | 16 | -2 | 18 |
| Total | 51 | 2 | 8 | 35 | -22 | 74 |
(24) 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 €34 million (previous year: €157 million) and currency expenses in the amount of €576 million (previous year: €17 million).
Currency income and expenses are essentially offset by opposing effects from currency derivatives. These are in an economic hedging relationship with the gains and losses recognised here. Detailed figures can be found in the note "Measurement result (currency result – derivative financial instruments)".
(25) Contingent assets, contingent liabilities and other obligations
| in € millions | 30.6.2025 | 31.12.2024 |
|---|---|---|
| Contingent liabilities | 1,513 | 1,685 |
| from the personal insurers' guarantee fund | 278 | 278 |
| from letters of credit and warranties | 10 | 10 |
| from uncalled capital | 1,169 | 1,314 |
| from contractual obligations to buy and to build investment property | 54 | 81 |
| Other contingent liabilities | 2 | 2 |
| Other commitments | 1,161 | 964 |
| Irrevocable loan commitments | 1,161 | 964 |
| T o t a l | 2,674 | 2,649 |
The nominal amount of irrevocable loan commitments is equal to the potential remaining obligations under loans and overdrafts granted but not yet or not fully utilised and is an appropriate approximation of the fair value.
The provisions for irrevocable loan commitments amounted to €2 million (previous year: €1 million).
(26) Related party disclosures
Parent company
The ultimate controlling company is Wüstenrot & Württembergische AG, Kornwestheim.
Transactions with related parties
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.
As at 30 June 2025, receivables from related persons amounted to €720 thousand (previous year: €474 thousand). Liabilities to related persons as at the reporting date amounted to €452 thousand (previous year: €1,088 thousand). In the first half of 2025 , interest income from related parties , resulting from loans granted ,totalled €6 thousand (previous year: €4 thousand); interest expenses for savings balances with related parties totalled €22 thousand (previous year: €14 thousand). In the first half of 2025, related parties paid premiums totalling €56 thousand for personal and property insurance (previous year: €61 thousand). Contributions made by related persons to the company pension scheme totalled €453 thousand (previous year: €513 thousand). The benefits received by related persons from the company pension scheme totalled €171 thousand (previous year: €168 thousand).
Transactions with related entities
Subsidiaries of W&W AG and other related entities
There are various service agreements, including in the area of capital investments management, between the W&W Group and subsidiaries of W&W AG as well as other related entities of W&W AG. There is a brand transfer and use agreement between Wüstenrot Holding AG and W&W AG. A financial liability in the amount of €765 thousand (previous year: . €3,524 thousand) was owed to Wüstenrot Holding AG under this agreement as at 30 June 2025. W&W AG pays Wüstenrot Holding AG a constant annual annuity amount (interest and amortisation) of €2,500 thousand plus statutory VAT.
Other related parties include the non-profit Wüstenrot Stiftung Gemeinschaft der Freunde Deutscher Eigenheimverein e. V., Wüstenrot Holding AG, WS Holding AG, Wüstenrot Förder GmbH and Pensionskasse der Württembergischen VVaG as a
plan for post-employment benefits in favour of employees.
The transactions were at arm's length.
The outstanding balances of transactions with related entities were as follows as at the reporting date:
| in € thousands | 30.6.2025 | 31.12.2024 |
|---|---|---|
| Financial assets from related companies | 289,461 | 282,110 |
| Subsidiaries | 263,158 | 255,402 |
| Other related parties | 26,303 | 26,708 |
| Financial liabilities to related companies | 46,108 | 30,915 |
| Subsidiaries | 30,122 | 14,388 |
| Associated companies | - | 403 |
| Other related parties | 15,986 | 16,124 |
As at the reporting date, the outstanding transactions with related entities of W&W AG in its capacity as the parent company of the Group amounted to €483 thousand (previous year: €605 thousand) and on the liabilities side €3,885 thousand (previous year: €6,740 thousand).
The income and expenses from transactions with related entities were as follows:
| 1.1.2025 to | 1.1.2024 to | |
|---|---|---|
| in € thousands | 30.6.2025 | 30.6.2024 |
| Income from transactions with related entities | 31,057 | 31,840 |
| Subsidiaries | 29,844 | 30,373 |
| Associated companies | 47 | 389 |
| Other related parties | 1,166 | 1,078 |
| Expenses for transactions with related companies | -42,826 | -49,2361 |
| Subsidiaries | -26,962 | -27,940 |
| Associated companies | -1,603 | -2,4491 |
| Other related parties | -14,261 | -18,847 |
| 1 Previous year's figure restated. |
Income from transactions with related parties of W&W AG in its capacity as the Group's parent company in the reporting period totalled €600 thousand (previous year: €637 thousand) , expenses €621 thousand (previous year: €763 thousand).
(27) Number of employees
In the W&W Group, there were an averageof 7,588 (previous year: 7,565) permanent employees in the last twelve months. This average is calculated as the arithmetic mean of the quarter-end figures as at the reporting dates between 30 September 2024 and 30 June 2025 or the same period of the previous year and is distributed across the individual segments as follows:
Average number of employees over the year by segment
| 30.6.2025 | 31.12.2024 | |
|---|---|---|
| Housing | 2,111 | 2,095 |
| Life and Health Insurance | 589 | 584 |
| Property/Casualty Insurance | 3,862 | 3,877 |
| All other segments | 1,026 | 1,009 |
| T o t a l | 7,588 | 7,565 |
(28) Events after the reporting date
The Gesetz für ein steuerliches Investitionssofortprogramm zur Stärkung des Wirtschaftsstandorts Deutschland (Act for an Emergency Tax Investment Programme to Strengthen Germany as a Business Location) was passed by the Bundestag on 26 June 2025 and approved by the Bundesrat on 11 July 2025. Among other things, this law includes a reduction in corporation tax by 1 percentage point p.a. from 2028 to 10% in 2032, which also affects the W&W Group. Due to the adoption in July 2025, this is a non-recognisable event after the reporting date that is not to be included in the measurement of deferred taxes as at 30 June 2025.
For subsequent reporting dates, the effects on the measurement of deferred taxes are currently being determined on the basis of the reversal dates of the temporary measurement differences and are expected to be in the mid to high double-digit million range for the 2025 financial year. Approximately half of the effects are expected to be recognised in profit or loss and half in other comprehensive income (OCI). The calculations are subject to uncertainties as, among other things, the planning calculations of the companies on which the reversal effects of the temporary valuation differences are based will not be finalised until autumn 2025.
No other material events that require reporting occurred after the reporting date.
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 interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.
Kornwestheim, 12 August 2025
Jürgen A. Junker
Matthias Bogk
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 2025, 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 August 2025
EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft
Public auditor Public auditor
Lösken Dr. Horstkötter
Wüstenrot & Württembergische AG Imprint and contact
Publisher
Wüstenrot & Württembergische AG 70801 Kornwestheim Germany phone + 49 711 662-0 www.ww-ag.com
Production
W&W Service GmbH, Stuttgart
Investor Relations
The financial reports of the W&W Group are available at www.ww-ag.com/go/geschaeftsberichte\_w&w\_gruppe In case of any divergences, the German original is legally binding.
E-mail: [email protected]
Investor relations hotline: + 49 711 662-725252
W&W AG is member of W&W AG is listed in
GBW&WEQ2/2025
