W&W Group has succesful start to 2021
- Consolidated net profit in the first quarter rises to EUR 104.4 million.
- Strong growth in construction financing and insurance.
- Result in the upper range of the target corridor of EUR 220 to 250 million targeted for 2021 as a whole.
- Executive Board Chair Jürgen A. Junker: “The strong start to the year shows the success that the W&W Group is having with its restructuring and increased market presence.”
The Wüstenrot & Württembergische Group (W&W) has had a successful start to the 2021 financial year. The Group posted consolidated net profit of EUR 104.4 million in the first quarter of 2021, an increase from EUR 25.0 million in the prior-year period, when results were highly affected by the coronavirus-related upheavals on the capital markets. The figure also significantly exceeded the amount for the first quarter of the pre-coronavirus year of 2019 (EUR 78.5 million). Important drivers for this result were continued solid new business, particularly in construction financing, good claims development and improved net financial income. Accordingly, the W&W Group is confident that it will be able to post consolidated net profit for 2021 as a whole in the upper range of the strategic target corridor of EUR 220 to 250 million.
Jürgen A. Junker, Chair of the Executive Board of W&W AG: “The strong start to the year shows that our Group has been able to significantly increase its market presence as a result of its extensive restructuring. In addition, these efforts have made us more robust and internally resilient. Despite the persistently difficult market environment, we are nevertheless succeeding in acquiring new customers and expanding our range of products. In addition, we are keeping costs in check and pushing ahead with the transformation of our Group to meet the digital future. In this regard, we are growing more strongly than the market in important areas. After the solid first quarter, we are – with all due caution – very confident about the further course of the year.”
In the first quarter of 2021, the W&W Group posted an increase in construction financing business (including brokering for partner banks) of 23.1 percent to EUR 1.79 billion (prior-year quarter: EUR 1.45 billion). At Wüstenrot Bausparkasse, gross new business of EUR 2.97 billion outperformed the market and was almost at the previous year’s level (–1.5%). Net new business (paid-in new business) came in at EUR 2.38 billion, which was lower than in the previous year (EUR 2.65 billion) due to the pandemic.
In Life and Health Insurance, gross premiums rose by 3.7 percent to EUR 653.1 million (previous year: EUR 629.7 million). Property/Casualty Insurance posted growth in gross premiums of 5.3 percent to EUR 1.04 billion (prior-year period: EUR 989.2 million). In motor business as well as in the business lines corporate customers and retail customers, claims expenses fell not just as a result of the coronavirus lockdowns but also due to intelligent claims management. The combined ratio (combined ratio of claims and expenses) in Property/Casualty Insurance improved quarter-on-quarter from 87.4 percent to 76.6 percent.
In the first quarter, the digital brand “Adam Riese” continued its impressive growth course. At the end of March, it had approximately 200,000 customers, an increase from 164,000 customers at the end of last year. Nearly all of the rise was attributable to new customers. In addition, “FinanzGuide”, the personal digital financial assistant for W&W customers, proved to be very popular in the first three months of 2021, recording more than 20,000 new registrations.
Outlook for 2021 as a whole
Following the solid first quarter, the Executive Board is confident of posting consolidated net profit for 2021 as a whole in the upper range of the strategic target corridor of EUR 220 to 250 million, which has long been the objective. Because of the continued uncertainties about the further course of the coronavirus pandemic, a more specific forecast is not possible at this time.