Wuestenrot & Wuerttembergische (WUW) Q4 2024 earnings summary

Executive summary

• IFRS consolidated net profit fell sharply to EUR 36 million from EUR 141 million year-over-year, mainly due to severe storm losses and a challenging economic environment.

• Despite headwinds, main portfolios expanded: building loans rose to EUR 28.4 billion and home loan and savings business reached EUR 130.0 billion.

• Insurance sales increased: Life & Health up 6.2% to EUR 1,303 million, Property/Casualty up 7.2% to EUR 2,767 million.

• Acquisition of start:bausparkasse AG and new sales cooperation with Südwestbank to boost future growth.

• Digital transformation initiatives continued under the W & W Besser! program.

Financial highlights

• Net financial income (gross) increased to EUR 1,803 million from EUR 1,676 million year-over-year.

• Technical result (net) dropped to EUR -16 million from EUR 122 million, mainly due to natural hazard losses.

• Consolidated net income before taxes was EUR 27 million, down from EUR 202 million.

• Segment net income: Housing EUR 55 million, Life & Health EUR 44 million, Property/Casualty EUR -91 million.

• Combined ratio (gross) in Property/Casualty worsened to 102.7% from 99.3%.

Outlook and guidance

• Expectation of significantly higher consolidated net income in 2025, assuming improved claims experience.

• Administrative expenses (gross) projected to rise slightly in 2025, offset by productivity gains.

• Target to acquire at least 450,000 new customers in 2025.

• Dividend proposal of EUR 0.65 per share for 2024, unchanged from prior year.

• Q1 2025 off to a strong start: double-digit growth in all segments, 22.6% increase in mortgage lending acceptances.