W&W Group continues positive trend in the third quarter W&W - PowerPoint PPT Presentation

Wüstenrot & Württembergische AG W&W Group continues positive trend in the third quarter W&W Group 9M/19

Agenda 1 Snapshot W&W share 2 Financials 3 Strategy 4 Outlook 5 Page 2

Snapshot Our W&W Group mission Key elements of the W&W- Wüstenrot & Württembergische-Group business model:  Long-term strategy Creating values, securing values  Risk-averse  Focus on growth We focus our efforts in four fields We provide people with the experience of financial planning from a single source. of action:  Financial security  Real estate ownership  Risk protection  Private asset formation Page 3

Snapshot Focused strategy on investor satisfaction 1 + 1 = 3 Our diversified business We further improve our Omni-channel We enhance our strategic portfolio focuses on market position market access and options by acquisitions customers’ needs high brand awareness are our strengths We seize the opportunities We pursue a sustainable We offer an attractive and Our commitment: We aim approach to business presented by digitalisation stable €0,65 dividend, at twice the market growth which translates into a dividend yield of 4% Page 4

Snapshot Strong market performance guarantees value creation Strong brands Value Housing Life & Health Property & Casualty brandpool creating Insurance Insurance segments Strong # 2 in Bausparen # 12 in life insurance # 9 in P/C market New digital approaches position 13.8% market share 2.1% life market share * 2.5% market share 2018 * Business unit Life Page 5

Snapshot Strong sales force to capture further growth > 10.000 ~ 3000 ~ 3000 Broker, independent Württembergische Wüstenrot sales agents and sales agents sales agents pools wuestenrot.de wuerttembergische.de Direct sales Partnerships and cooperations W&W sales force Brokers Excellent sales mix offers high cross selling potential to W&W Group. Page 6

Agenda 1 Snapshot W&W share 2 Financials 3 Strategy 4 Outlook 5 Page 7

W&W share Price level with significant upside potential Analysts' estimates W&W-Share W&W-Share DAXsector Insurance DAX DAXsector Banks Commerzbank 06/11/19 buy / targetprice: 23.00 € 130% Lampe 15/11/19 buy / targetprice: 26.00 € 120% Metzler 15/11/19 buy / targetprice: 23.50 € Montega 15/11/19 buy / targetprice: 23.00 € 110% LBBW 14/11/19 buy / targetprice: 23.00 € 100% 90%  Analysts see a clear upside potential and recommend the stock as a buy. 80%  31/12/2018: 70%  Equity per share: 45.51 €  Earnings per share: 2.29 € Current valuation offers attractive entry level. Page 8

W&W share Dividend policy: Reliable dividend at least at previous year‘s level 4.06% Wüstenrot Stiftung as anchor investor 3.23% 3.01% 2.81% 2.78% Free float 23,7% 2.88 2.74 Wüstenrot Holding AG* 2.52 2.49 39,9% 2.29 0.65 0.65 0.60 0.60 0.50 Horus 10,0% 2014 2015 2016 2017 2018 Earnings per share Dividend per share Dividend yield W&W registered shares are listed on the Stuttgart and Frankfurt stock 26,4% exchange. W&W AG fulfills prime standard is part of the SDAX since WS Holding AG* March 2016. Wüstenrot Stiftung as non-profit foundation is interested in long-term stability and appreciates regular dividend payments. *Wüstenrot Holding AG and WS Holding AG are wholly-owned by Wüstenrot Stiftung, i.e. the indirect shareholding of the latter amounts to 66.31% Page 9

Agenda 1 Snapshot W&W share 2 Financials 3 Strategy 4 Outlook 5 Page 10

Financials 9M/2019 Successful new business +4% +13% +6% +9% Bausparen (gross) Construction Financing Property & Casualty Life & Health Insurance Insurance Page 11

Financials 9M/2019 Positive business performance thanks to transformation and digitalisation After tax profit increased by 28% 1 2 High measurement gains from fixed-income securities in net financial income New digital brand Adam Riese shows a customer base of nearly 80,000 3 New business developed positively in all respects 4 5 Mid-term guidance of €220mn to 250mn reiterated Pay out of €0.65 for FY2018 translating into a dividend yield of 4.06% vs. MDAX of 2,75 and SDAX of 6 2.09% Page 12

Financials 9M/2019 Results 2014 – 9M/2019: Overview Group Net Profit (IFRS) 2014 2015 2016 2017 2018 9M/2018 9M/2019 in €mn Housing segment 51.8 57.0 58.7 58.5 59.1 45.5 32.6 Segment Life and Health Insurance 45.7 40.3 49.7 31.8 24.7 12.4 31.0 Segment Property/Casualty Insurance 128.2 114.9 108.3 125.8 131.4 106.8 124.0 Others/Consolidation 16.3 62.1 18.6 41.9 0.0 7.6 32.4 Group Net Profit 242.0 274.3 235.3 258.0 215.2 172.3 220.0 Earnings before income taxes 283.0 323.6 291.6 292.4 320.5 257.5 316.5 Income taxes -41.0 - 49.3 - 56.3 -34.4 -105.3 -85.2 -96.4 Page 13

Financials 9M/2019 Housing segment Construction finance Gross new business in € mn in € mn +1% +14% 5,517 13,766 13,569 +4% +15% 4,839 4,672 10,068 9,679 4,061 2017 2018 9M 2018 9M 2019 2017 2018 9M 2018 9M 2019 Administrative expenses Core capital ratio in € mn in % -6% 360.0 -4% 337.9 25.7 24.1 24.1 251.7 241.9 19.4 18.9 18.4 17.1 15.6 15.3 14.1 13.8 12.7 2017 2018 9M 2018 9M 2019 2014 2015 2016 2017 2018 30.06.2019 Wüstenrot Bausparkasse AG Financial holding group Page 14

Financials 9M/2019 Housing segment: acquisition of Aachener Bausparkasse Wüstenrot Bausparkasse is THE cooperation Bausparkasse in The Acquisition of Aachener Bausparkasse in 2019 Germany with a huge network of exclusive distribution partnerships. grants Wüstenrot new exclusive distribution partnerships with 8 insurance companies. &  Potential access to more than 55 million customers. Page 15

Financials 9M/2019 Life & Health Insurance segment Additional interest reserve Total premiums for new life insurance business in € mn in € mn +2% +11% +10% 3,395 2,626 3,319 2,502 2,377 2,201 301 2,046 880 828 155 446 2,201 2,046 2,491 2,515 1,600 2017 2018 9M 2019 2017 2018 9M 2018 9M 2019 Appropr. Opening company pension schemes private pensions schemes Administrative expenses Return on new investments (WL) SII-Ratio in % in € mn in %, as of Sep 2019 2.6 2.4 +1% +3% 263.3 198.4 260.9 245 192.8 186 140 124 2017 2018 WL SII Group 2017 2018 9M 2018 9M 2019 w/o Trans with Trans Page 16

Financials 9M/2019 Life & Health Insurance segment Yield on capital investments vs. actuarial interest rate in %  Our average current yield on capital investments (local 4 GAAP) is above the average balance-sheet actuarial 3,5 interest rate (with ZZR*). 3  Since 2017 even our average current yield on new 2,5 capital investments is above the average balance-sheet 2 actuarial interest rate (with ZZR*). 1,5  This means that Württembergische Lebensversicherung 1 has a strong financial basis and was and still is able to 0,5 finance its obligations. 0 2014 2015 2016 2017 2018 Avg. balance-sheet actuarial interest rate (with ZZR) Avg. current yield on new capital investments Avg. current yield on capital investments (Local GAAP) *ZZR = Additional interest reserve Page 17

Financials 9M/2019 Property & Casualty Insurance segment Gross premiums written Gross loss ratio business year in % in EUR mn 73.9 6% 1.848 1.900 1.700 74 72.7 1.645 72.1 71.6 -0.4% 1.751 1.800 72 1.600 1.556 69.9 70.0 1.678 69.7 1.700 70 1.636 70 1.579 1.500 1.600 68 68 1.500 66 66 1.400 1.400 64 64 1.300 1.300 62 62 1.200 1.200 60 60 2014 2015 2016 2017 2018 9M 2018 9M 2019 2014 2015 2016 2017 2018 9M 2018 9M 2019 Combined ratio Gross natural disaster claims and Underwriting income (local GAAP) in € mn in % 200 100 150 95.5 95.5 167 125 95 152 95 92.1 90.4 90.6 91.9 106 89.3 90.7 135 90.1 150 89.8 89.5 88.0 90 88.9 88.1 90 100 80 105 85 89 64 85 100 80 74 65 80 52 80 50 41 50 75 75 70 70 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 9M 2018 9M 2019 9M 2018 9M 2019 Net Gross Underwriting income Gross natural disaster claims Page 18

Financials 9M/2019 Increased results: strong development Consolidated net profit (IFRS), in €mn 300 250 250 236 224 strategic target 202 220 200 166 150 100 x14 50 16 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -50 “W&W 2009” “W&W 2012” “W&W Besser!” “W&W 2015” -100 Restructuring Expansion Programme to programme programme reinforce our strengths Annual figures Multi-year average Page 19

Agenda 1 Snapshot W&W share 2 Financials 3 Strategy 4 Outlook 5 Page 20

Strategy Long term top strategic goals Financial planning. Diversity. Solidarity. At W&W Group, it is our mission to help our customers with financial planning. The solutions offered by our companies are as varied as the wishes of our customers. Opening up Inspiring Leading core Increasing speed, new customer 6 millionen businesses into efficiency and and market the future customers service quality segments through through through through unconditional bold further innovative digital an efficient customer orientation development business models infrastructure Page 21