Wuestenrot & Wuerttembergische (WUW) Q2 2024 earnings summary

Executive summary

• Consolidated net income for H1 2024 dropped to EUR -14 million from EUR 181 million in H1 2023, mainly due to severe storm losses, especially from the "Orinoco" event and regional storms impacting the property/casualty segment.

• Total comprehensive income was EUR -51 million, down from EUR 161 million in H1 2023, reflecting operational losses and negative OCI from rising interest rates.

• Strategic initiatives in AI and digitalization advanced, with a new “Data, Processes and AI” department and AI Competence Centre established.

• Executive Board reduced from four to three members following the departure of the Chief Risk Officer.

• Acquisition of start:bausparkasse AG completed in July 2024, expected to add double-digit million new business volume annually.

Financial highlights

• Financial income before policyholder participation rose to EUR 1,027 million (up from EUR 913 million year-over-year).

• Net financial result fell to EUR 250 million (H1 2023: EUR 348 million); technical result dropped to EUR -44 million (H1 2023: EUR 136 million).

• Equity decreased to EUR 4.8 billion (31 Dec 2023: EUR 5.0 billion), reflecting the net loss, a decline in OCI, and dividend payments.

• Total assets increased to EUR 69.2 billion (31 Dec 2023: EUR 68.7 billion).

• Earnings per share declined to EUR -0.15 (H1 2023: EUR 1.92).

Outlook and guidance

• Full-year 2024 consolidated net income is expected to be significantly below the previous year’s EUR 141 million, mainly due to extraordinary storm losses and claims inflation.

• Property/Casualty segment result forecasted to be well below 2023’s EUR 8 million.

• New home loan and savings business expected to decline sharply from record levels, while new mortgage lending is projected to remain above 2023 and market average.

• Outlook assumes no further extraordinary natural events; risks include economic trends, inflation, capital markets, and geopolitical developments.