DGAP-News: Wüstenrot & Württembergische AG
/ Key word(s): Quarterly / Interim Statement
Operationally, W&W Group starts the year strongly
- Significant growth in new business in the first quarter of 2022 – digital business is also doing well.
- In the first quarter, consolidated net profit reached €56.7 million, having been influenced by fluctuations on financial markets.
- Forecast for consolidated net profit for 2022 as a whole unchanged.
- W&W CEO Jürgen A. Junker: “The W&W Group benefits from both its operating efficiency and its resilient balance sheet. We are cautiously optimistic that we can continue operating successfully despite increasing market uncertainty.”
The Wüstenrot & Württembergische Group (W&W) has reported a strong start in operational terms to the 2022 financial year despite a significantly more uncertain market environment. The financial planning group has increased its new business significantly. Consolidated net profit came in at €56.7 million. The fall compared with the previous year’s substantial figure (€104.4 million) was primarily attributable to lower net measurement income under IFRS reporting caused by fluctuations on financial markets. Württembergische Versicherung also reported an increase in natural disaster claims resulting from the winter storms. For 2022 as a whole, the W&W Group still believes – subject to negative external developments over the course of the year – that it will achieve a consolidated net profit of around €250 million.
Jürgen A. Junker, CEO of W&W AG: “Following the extraordinarily successful financial year in 2021, in which we achieved record earnings, the W&W Group is now operating in a very different environment. Rising inflation, higher interest rates and increasing market uncertainty, due to the war in Ukraine, are confronting companies and private individuals with entirely new challenges. Despite all adversities, I am cautiously optimistic that we, as W&W Group, will also be able to navigate this phase successfully. Our company is stable, sustainable, innovative and prepared for all eventualities. This and the operational strength that we have developed over recent years will ensure that we are able to continue operating successfully even in the face of increasing market uncertainty. We are now benefiting not least from the highly comprehensive program for change, which also includes far-reaching digitalisation, that we initiated in good time. “Everything within our control is continuing to do well.”
New business development in the first three months of 2022
In the insurance division, property/casualty insurance performed very well in the first quarter of 2022, achieving growth in gross premiums of 7.4 per cent to €1.12 billion (first quarter of 2021: €1.04 billion), which was mainly attributable to business with corporate customers. The combined ratio in property/casualty insurance was once again a very impressive 85.9 per cent (prior-year period: 76.6 per cent). Growth in the digital brand Adam Riese again outperformed expectations, reaching 250.000 customers..
In life and health insurance, gross premiums stood at €609.7 million against €653.1 million in the prior-year period (minus 6.6 per cent), as single premiums were deliberately restricted. Health insurance increased by 5.0 per cent to €75.8 million (previous year: €72.2 million).
In the Housing division, gratifying total new business was achieved in the first quarter In construction financing alone, growth in new business (including brokering for third parties) amounted to 13.3 per cent to €1.9 billion (prior-year quarter: €1.67 billion). New business in terms of gross total home loan savings contracts increased by 17.0 per cent to €3.48 billion against €2.97 billion – significantly above market growth. The real estate activities of Wüstenrot Haus- und Städtebau and Wüstenrot Immobilien also continued to perform well.
Outlook for the full year of 2022
The W&W Group expects market uncertainty to increase over the rest of the year as a result of the fragile macroeconomic and political environment. However, based on its good operational business development and the stable position of the W&W Group, the company still believes that it will achieve a consolidated net profit of around €250 million for 2022 as a whole. This does, however, presuppose that there are no additional upheavals on capital markets, economic slumps or unforeseen major loss events.
13.05.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||Wüstenrot & Württembergische AG|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Tradegate Exchange|
|EQS News ID:||1352173|
|End of News||DGAP News Service|