The 2024 financial year presented Wüstenrot & Württembergische AG (W&W AG) with considerable challenges. However, the Group showed remarkable resilience despite high claims burdens due to natural disasters and a volatile market environment.
💰 Key financial figures 2024
- Consolidated net income (IFRS): Net income was significantly below the previous year's figure of € 141 million, which is attributable to high claims expenses.
- HGB result: Despite the challenges, the aim is to achieve a surplus at the previous year's high level.
- Administrative expenses: Costs rose moderately by 4.7% to €1.09 billion, which is below the inflation rate.
🏡 Residential business division
- New lending business: In the first half of 2024, new lending business increased by 18.4% to € 2.17 billion, which is above the industry average of 15%.
- Building society loans: New business with building society loans grew by 38.2% to € 492.5 million.
- New home loan and savings business: Despite a decline to € 5.65 billion, new business remained at a solid level.
🛡️ Insurance business segment
- Life insurance: At € 1.59 billion, new business by premium sum was slightly below the previous year's figure (-1.3%), with occupational pension provision remaining stable.
- Health insurance: New annual premiums grew by almost a third compared to the previous year.
- Property/casualty insurance: Gross premiums written rose by 7.7% to €1.82 billion, with all three lines of business - private, motor and corporate customers - recording growth.
📊 Market environment and competitors
W&W AG operated in a challenging market environment characterized by:
- Natural disasters: High claims expenses due to severe weather events had a negative impact on the insurance industry as a whole.
- Interest rate environment: Rising interest rates had a positive impact on the home loan and savings business, but led to a reluctance to pay single premiums in life insurance.
- Competition: Despite intense competition, W&W AG was able to maintain its market position and achieve above-average growth in some areas.
🔮 Outlook for 2025
W&W AG is cautiously optimistic about the 2025 financial year:
- New business: a strong start to 2025 with double-digit growth rates in several divisions points to a positive development.
- Strategy: The focus is on digitalization, increasing efficiency and sustainable growth in order to meet the challenges of the market
- Risks: Unforeseeable major claims and economic uncertainties remain risk factors that are continuously monitored.
Conclusion: Despite considerable external burdens in 2024, W&W AG ($WUW (+2,35 %)) demonstrated stability and adaptability. With a clear strategic focus and a solid start to 2025, the company is well positioned to master future challenges.
