Analyst Presentation - Wüstenrot & Württembergische

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Group accounts Q2/2012 and YoY 2011
W&W Group – Strong Q2-figures
Dr. Jan Martin Wicke, CFO
10 August 2012
Disclaimer
This presentation and the information contained herein, as well as any additional documents and explanations (together the “material“), are issued by Wüstenrot &
Württembergische AG (“W&W”).
This presentation contains certain forward-looking statements and forecasts reflecting W&W management’s current views with respect to certain future events. These
forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding W&W’s
future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where W&W participates or is
seeking to participate. The W&W Group’s ability to achieve its projected results is dependent on many factors which are outside management’s control. Actual results
may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward-looking information involves risks
and uncertainties that could significantly affect expected results and is based on certain key assumptions. The following important factors could cause the Group’s
actual results to differ materially from those projected or implied in any forward-looking statements:
– the impact of regulatory decisions and changes in the regulatory environment;
– the impact of political and economic developments in Germany and other countries in which the Group operates;
– the impact of fluctuations in currency exchange and interest rates; and
– the Group’s ability to achieve the expected return on the investments and capital expenditures it has made in Germany and in foreign countries.
The foregoing factors should not be construed as exhaustive. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forwardlooking statements as a prediction of actual results. All forward-looking statements included herein are based on information available to W&W as of the date hereof.
W&W undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as
may be required by applicable law. All subsequent written and oral forward-looking statements attributable to W&W or persons acting on our behalf are expressly
qualified in their entirety by these cautionary statements. The material is provided to you for informational purposes only, and W&W is not soliciting any action based
upon it. The material is not intended as, shall not be construed as and does not constitute, an offer or solicitation for the purchase or sale of any security or other
financial instrument or financial service of W&W or of any other entity. Any offer of securities, other financial instruments or financial services would be made pursuant
to offering materials to which prospective investors would be referred. Any information contained in the material does not purport to be complete and is subject to the
same qualifications and assumptions, and should be considered by investors only in light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the definitive offering materials. The information herein supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions, including any offering materials. W&W is not obliged to update or periodically review the material. All information in the
material is expressed as at the date indicated in the material and is subject to changes at any time without the necessity of prior notice or other publication of such
changes to be given. The material is intended for the information of W&W´s institutional clients only. The information contained in the material should not be relied on
by any person.
In the United Kingdom this communication is being issued only to, and is directed only at, intermediate customers and market counterparties for the purposes of the
Financial Services Authority’s Rules ("relevant persons"). This communication must not be acted on or relied on by persons who are not relevant persons. To the extent
that this communication can be interpreted as relating to any investment or investment activity then such investment or activity is available only to relevant persons and
will be engaged in only with relevant persons.
page 2
Agenda
1. W&W at a glance
2. Financials
Q2/2012 results
Yearly comparison 2012/2011
3. W&W profile
page 3
W&W at a glance
Vision

The world is changing, at an ever-increasing pace. Given the complexity of
today's world, many customers are looking for a reliable, long-term partner to
satisfy their needs in terms of financial services. We want to be their partner of
choice.

Our position in the market is unique: With the two well established strong
brands "Wüstenrot" and "Württembergische", the W&W Group is a specialized
one-stop shop for financial planning of retail clients and small/medium
commercial customers in Germany and the Czech Republic.

Personal services delivered locally by our mobile sales force of about 6,000 tied agents ensure
a customer relationship which is characterized by trust, understanding, and reliability.

We offer solutions for each customer's individual needs, throughout
all stages in life, in the areas of
 retail banking with focus on banking products and mortgage lending (B),
 life and health insurance (L/H)
 property and casualty insurance (P/C).

We deliver clear and systematically defined quality standards. Continuous quality management
forms an integral part of our corporate culture.

Six million customers rely on our expertise and financial strength.
page 4
W&W at a glance
Structure
W&W Group
Banking Products and
Mortgage lending (B)
Life and Health
Insurance (L/H)
Property and
Casualty Insurance (P/C)
Others
 Württembergische
Lebensversicherung AG
 Wüstenrot
Bausparkasse AG
(BSW)
 Wüstenrot Bank AG
Pfandbriefbank (WBP)
 ARA Pensionskasse AG
 Karlsruher Lebensversicherung AG
 Württembergische
Versicherung AG
 Service entities
 Czech W&W companies
 Württembergische
Krankenversicherung AG

W&W Group is based on several strong pillars
page 5
W&W at a glance
Q2/2012 Highlights
W&W strategy
Business environment
New business
Earnings
 We stay on track with our efficiency programme “W&W 2012“ and focus on profitable growth
 In a challenging economic environment W&W benefits from its solid business model
 The new efficiency programme "W&W 2015" is to strengthen our competitive position
 Extremely low domestic interest rates are a challenge for providers of financial services
 Higher capital requirements
 Increased consumer protection
 Growth in new home loan savings business above market level
 L/H shows clear increase in new business
 New business in P/C above market, driven by motor insurance
 W&W exceeds its profit targets: Q2-profit is € 131 m against a year to day target of € 125 m
Risk assessment
 Risk-bearing ability is stable
 Unsolved debt crisis poses a threat for the entire financial sector in extreme scenarios
 Sustainable solution of debt crisis is required for short and medium-term success of the W&W
Group
Guidance
 2012 profit target € 250 m is to be achieved
 Costs of additional risk measures will to be compensated if business development continues to
outperform plan
 Ongoing period of low interest rates could affect results negatively from 2013 onwards
 Rising interest rates could influence results positively
page 6
W&W at a glance
Master data
Sound background
 1828
 1921
 1999
Württembergische founded
Wüstenrot established
Merger of Wüstenrot and
Württembergische into W&W AG
 8.497
Fulltime employees
 6m
Customers
 Multi-channel distribution by own sales force of 6,000
tied agents; 5,000 brokers; online-banking; sales
cooperations
Customer base FY 2011







in home loan savings
in property/casualty insurance
in life insurance
3.8 m
773,616
2.7 m
8.0 m
470,142
283,000
302,000
Business volume FY 2011
Domestic market position
 No 2
 No 9
 No 12
Number of savings contracts (B)
Mortgage loans (Group)
Life insurance contracts
P/C insurance contracts
Health insurance customers
Current accounts (B)
Call deposit accounts (B)




Gross premiums (L/H)
Gross premiums (P/C)
Building society deposits (B)
Volume of building savings
contracts (B)
 Mortgage disbursements (B)
 Assets under management (Group)
€ 2.4
€ 1.4
€ 17.6
bn
bn
bn
€ 104.3 bn
€ 4.4 bn
€ 27.9 bn
As of: 31 December 2011
page 7
W&W at a glance
Key figures 2011
New business





New home loan savings, gross (B)
New home loan savings, net (B)
Total new mortgages (Group)
New premiums (P/C)
Annual Premium Equivalent (L/H)
Income statement
€
€
€
€
€
15.3 bn
11.8 bn
5.9 bn
206.7 m
240.0 m





Financial result
Premiums earned
Insurance benefits incl. paid claims
Net profit
Earnings per share
€
1.4
€
3.8
€
3.5
€ 191.6
€ 1.94
bn
bn
bn
m
Profit target
Balance sheet
 Total assets
 Investments
 Retail mortgages
€ 75.4 bn
€ 43.5 bn
€ 27.4 bn
 Insurance liabilities
 Customer savings
 Equity
€ 29.7 bn
€ 27.0 bn
€ 3.0 bn
 W&W has set the following profit target:
 In 2012 net profit will rise to € 250 m
page 8
W&W at a glance
Key figures 2011
Risk profile
Solvency ratios
W&W financial conglomerate
2011
2010
129 %
133 %
Distribution of required capital as of 31 December:
5% 2%
Insurance Group
236 %
246 %
Total capital ratio (BSW)
9.9 %
11.0 %
12%
Operational risk
Collective risk
49%
Insurance risk
Total capital ratio (WBP)
10.1 %
9.5 %
Market risk
32%
Risk-bearing capacity via internal model
(VaR 99,5), (solvency/economic capital ratio)
192 %
Ratings*
Issuer Credit / Default
Ratings
Covered Bonds/Pfandbriefe
Wüstenrot Bank
Shareholders of W&W AG
S&P
Fitch
—
AAA
Wüstenrot Bausparkasse
BBB+ outlook stable
BBB+ outlook negative
Wüstenrot Bank AG
Pfandbriefbank
BBB+ outlook stable
BBB+ outlook negative
Württembergische
Krankenversicherung
Württembergische
Lebensversicherung
—
BBB+ outlook stable
Credit risk
337 %
BBB+ outlook positive





Wüstenrot Holding
LBBW
UniCredito
L-Bank
Schweizerische Rück
 Free float
66.10 %
8.78 %
7.54 %
4.99 %
4.67 %
7.92 %
BBB+ outlook positive
As of: 31 December 2011
* Ratings as of 26 July 2012. For more
details concerning W&W ratings see page 34.
page 9
Agenda
1. W&W at a glance
2. Financials
Q2/2012 results
Yearly comparison 2012/2011
3. W&W profile
page 10
Financials
Business segments Q2/2012
Banking products and Mortgage
lending
1.1.2012 to
30.6.2012
1.1.2011 to
30.6.2011
7. Net financial result
252 001
206 311
9. Net fee and commission result
- 4 391
10. Net premiums earned
Life and Health Insurance
Property / Casualty Insurance
1.1.2012 to
30.6.2012
1.1.2011 to
30.6.2011
1.1.2012 to
30.6.2012
1.1.2011 to
30.6.2011
648 409
521 268
31 031
32 739
- 12 441
- 69 781
- 69 770
- 88 621
0
0
1 238 302
1 159 439
11. Insurance benefits to customers
0
0
1 630 597
1 438 595
12. General administrative expenses
197 135
214 877
130 217
138 027
7 150
14 472
- 34 203
- 21 723
14. Earnings before taxes
57 625
- 6 535
1
38 319
21 785
15. Taxes
16 402
- 6 876
1
11 647
16. Net profit after taxes
41 223
341
1
26 672
€000's
13. Others
1
1
Other Segments
Consolidation / Reconciliation
1.1.2012 to
30.6.2012
1.1.2011 to
30.6.2011
1.1.2012 to
30.6.2012
1.1.2011 to
30.6.2011
130 166
92 779
- 104 357
- 76 194
- 83 237
- 22 226
- 19 384
3 108
591 053
554 204
124 280
115 095
1
328 445
282 988
85 528
70 952
1
161 085
167 006
1
47 927
37 406
5 171
18 227
1
13 240
2 608
1
50 387
73 108
1
112 088
83 303
6 029
1
15 222
9 116
1
- 638
15 756
1
35 165
63 992
1
112 726
1
Group
1.1.2012 to
30.6.2012
1.1.2011 to
30.6.2011
957 250
776 903
4 333
- 181 911
- 180 499
- 13 805
- 13 492
1 939 830
1 815 246
- 12 462
- 12 669
2 032 108
1 779 866
6 772
5 648
1
543 136
562 964
1
7 508
5 298
1
- 1 134
18 882
1
1
- 100 653
- 73 084
1
157 766
98 577
1
15 243
1
- 15 841
- 17 037
1
26 792
6 475
1
68 060
1
- 84 812
- 56 047
1
130 974
92 102
1
1
1
1
1
1 Adjustment of previous year account according to IAS 8.
page 11
Balance Sheet
Liabilities (IFRS)
Assets (IFRS)
€000's
31 June 2012
31 Dec 2011
1 041 563
862 526
37 673 755
37 879 966
635 353
574 655
30 466 239
29 670 522
2 322 763
2 110 246
F. Other liabilities
915 485
853 948
278 707
G. Subordinated capital
468 329
436 966
212 460
212 772
H. Equity
3 138 612
2 962 747
1
I. Investment property
1 363 480
1 399 664
J. Reinsurers' share in technical provisions
1 348 397
1 353 007
K. Other assets
1 617 616
1 627 958
1
76 662 099
75 351 576
1
76 662 099
75 351 576
1
30 June 2012
31 Dec 2011
A. Cash reserve
247 426
165 886
B. Non-current assets held for sale and disposal
109 412
2 929
2 506 625
2 367 610
D. Available for sale financial assets
19 913 566
18 733 691
D. Insurance provisions
E. Receivables
49 194 763
49 422 493
E. Other provisions
- 220 807
- 213 141
G. Positive market value of hedges
369 161
H. Investment accounted for using the equity method
C. Financial assets at fair value through profit or loss
F. Allowances for credit losses
TOTAL ASSETS
A. Financial liabilities at fair value through profit or loss
B. Liabilities
C. Negative market value of hedges
TOTAL EQUITY AND LIABILITIES
1
1 Adjustment of previous year account according to IAS 8.
page 12
PIIGS-Exposure of the W&W Group
Exposure as of 30 June 2012
Nominal value
€ mn
Book value/Fair value
Other comprehensive income
30 June 2012
31 Dec 2011
30 June 2012
31 Dec 2011
30 June 2012
31 Dec 2011
33,0
58,8
23,9
31,4
-12,1
-26,4
335,5
484,8
320,6
408,4
-108,6
-128,1
Ireland
10,0
37,0
9,0
31,4
-1,1
-5,4
Greece
0,0
208,9
0,0
50,1
0,0
0,0
Spain
0,0
142,0
0,0
120,5
0,0
-17,9
Total
378,5
931,5
353,5
641,8
-121,8
-177,8
Portugal
Italy
Duration Nominal
in mn €
< 6 months
30 June 2012
6-12 months
31 Dec 2011
30 June 2012
1-3 months
31Dec 2011
30 June 2012
3-5 months
31 Dec 2011
30 June 2012
> 5 months
31 Dec 2011
30 June 2012
T o t al
31 Dec 2011
30 June 2012
31 Dec 2011
Portugal
0,0
0,0
0,0
0,0
0,0
0,0
5,0
5,0
28,0
54,0
3 3 ,0
59,0
Italy
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
335,5
482,0
3 3 5,5
482,0
Ireland
0,0
0,0
0,0
0,0
0,0
15,0
0,0
0,0
10,0
22,0
10 ,0
37,0
Greece
0,0
0,0
0,0
0,0
0,0
28,0
0,0
30,0
0,0
136,0
0 ,0
194,0
Spain
T o t al
0,0
0,0
0,0
0,0
0,0
0,0
0,0
5,0
0,0
137,0
0 ,0
142,0
0 ,0
0 ,0
0 ,0
0 ,0
0 ,0
4 3 ,0
5,0
4 0 ,0
3 73 ,5
8 3 1,0
3 78 ,5
9 14 ,0
page 13
Financials
Main figures of the segments Q2/2012
Building society
New home loan savings, gross
New home loan savings, net
Life/Health
Q2 2012
Q2 2011
€ 7.95 bn
€ 7.51 bn
€ 5.82 bn
€ 5.68 bn
∆
Q2 2012
Q2 2011
∆
+ 5.8 %
Total new premiums
€ 386.2 m
€ 330.9 m
+ 16.7 %
+ 2.4 %
Single premiums
Regular premiums
€ 312.1 m
€ 66.0 m
€ 254.0 m
€ 67.7 m
+ 22.9 %
- 2.5 %
Gross premiums
Banking
€ 1 224.9 m € 1 162.4 m + 5.4 %
P/C
∆
Q2 2012
Q2 2011
New mortgages
€ 1.90 bn
€ 1.99 bn
- 4.6 %
Total new mortgages (W&W
group)
€ 2.73 bn
€ 3.12 bn
- 12.6 %
∆
Q2 2012
Q2 2011
New premiums
€ 152.1 m
€ 120.0 m
+ 26.8 %
Gross premiums
€ 937.6 m
€ 871.8 m
+ 7.5 %
page 14
Agenda
1. W&W at a glance
2. Financials
Q2/2012 results
Yearly comparison 2011/2010
3. W&W profile
page 15
Financials
Business segments yearly comparison 2011/2010
Segment Income
Statement
Banking products and
Mortgage lending
Life and Health Insurance
Property / Casualty
Insurance
Other Segments
Consolidation /
Reconciliation
Group
1.1.2011 to
31.12.2011
1.1.2010 to
31.12.2010
1.1.2011 to
31.12.2011
1.1.2010 to
31.12.2010
1.1.2011 to
31.12.2011
1.1.2010 to
31.12.2010
1.1.2011 to
31.12.2011
1.1.2010 to
31.12.2010
1.1.2011 to
31.12.2011
1.1.2010 to
31.12.2010
1.1.2011 to
31.12.2011
1.1.2010 to
31.12.2010
435 711
407 680
837 036
1 180 689
83 233
63 918
152 094
159 692
- 116 240
- 140 375
1 391 834
1 671 604
- 23 835
- 22 156
- 158 226
- 139 320
- 177 446
- 174 314
- 43 079
- 20 384
2 064
1 461
- 400 522
- 354 713
10. Net premiums earned
0
0
2 407 829
2 531 585
1 124 650
1 082 445
235 325
217 962
- 17 291
- 50 034
3 750 513
3 781 958
11. Insurance benefits to customers
0
0
2 760 934
3 248 816
574 595
597 891
145 678
150 952
- 19 049
- 55 383
3 462 158
3 942 276
12. General administrative expenses
426 121
402 923
292 139
287 894
340 467
337 893
100 249
101 055
3 963
7 604
1 162 939
1 137 369
12 608
126 918
- 2 298
- 6 070
13 143
11 805
24 710
27 386
2 149
8 059
75 463
195 431
- 1 637
109 519
52 502
54 487
130 867
50 556
123 985
133 372
- 113 526
- 133 299
192 191
214 635
- 22 460
- 19
12 322
13 918
23 371
24 169
26 652
19 844
- 39 289
- 23 026
596
34 886
20 823
109 538
40 180
40 569
107 496
26 387
97 333
113 528
- 74 237
- 110 273
191 595
179 749
€000's
7. Net financial result
9. Net fee and commission result
13. Others
14. Earnings before taxes
15. Taxes
16. Net profit after taxes
page 16
Financials
Key figures of the W&W Group (1)
2011/2010, German market




Home loan savings contracts (B)
Savings (B)
Gross premiums (L/H)
Gross premiums (P/C)
 Assets u. Management (Group)
Comments
€ 104.3 (vs.103.4) bn
€ 17.6 (vs.17.7) bn
€ 2.4 (vs. 2.5) bn
€ 1.38 (vs.1.32) bn
€ 27.9 (vs. 27.7) bn
Group net profit in € m
 Growth in all segments except for life
 Profit (€ 191.6 m) exceeds target of € 180 m significantly
despite debt crisis in the market
 Acquisition of Allianz Dresdner strenghtens sales force;
integration in line
 Write down of Greek bonds significantly impact financial
result (€ 69,9 m)
 Positive one-offs in taxes (€ 53 m net profit)
Czech companies
250
200
150
100
222,1
209,5
50
179,7
191,6
2010
2011
67,1
 Due to reduced government premiums on building
society contracts, new business declined by 9 %
 Significant growth in mortgage business. Market
share is 4.6 % (vs. 3.6 %)
 Czech life insurance business decreased by 28 % due
to market induced lower single premiums
 P/C is on previous year level
0
2007
2008
2009
page 17
Financials
Key figures of W&W Group (2)
5 years‘ view
IFRS
2007
2008
2009
2010
2011
Equity
bn €
2,5
2,3
2,6
2,8
1
3,0
Total assets
bn €
68,1
64,4
69,5
76,0
1
75,4
Mortgages
bn €
25,3
24,6
25,4
27,3
27,4
Investments
bn €
34,0
31,1
34,4
37,0
36,0
Premiums earned
bn €
3,8
3,7
3,8
3,8
3,8
Net asset value per share
€
24,54
25,63
28,71
29,47
1
32,18
Earnings per share
€
2,32
0,69
2,40
1,79
1
1,94
Targets
Management priorities
Net profit
Evaluation
ROE 6,7 %
2008: ROE 2.8 %
Not achieved due
to financial crisis
 Improvement of mortgage loan processing
ROE 9 %
2009: ROE 9.1 %
Achieved
 Transformation of life business
€ 140 m net profit
2010: € 179.7 m
Exceeded due to „W&W
2009 „ efficiency
programme
 Cost efficiency improvements
€ 180 m net profit
2011: € 191.6 m
Exceeded
 Value based management of new business
€ 250 m net profit
2012: tba
Target on previous year basis
1 Adjustment of previous year according to IAS 8
page 18
Financials
Key figures banking products and mortgage lending (1)
New business 2011/2010
Comments
 New home loan savings, gross
+ 4.4 % to € 15.3 bn
 and net + 3.4 % to € 11.8 bn
 New business growth based on enhanced multi channel
distribution
 New mortgages (B) € 3.9 bn (- 6.2 %)
 Increasing new business for the fifth year in a row
 New business in mortgages slightly declined due to
intensified focus on profitability
Net profit in € m
 Net profit declined notably from € 109.5 to € 20.8 due to
Greek bond impairments (€ 64,2 m loss after tax) and
enduring period of low interest rates
120
100
80
60
112,6
109,5
40
20
29
20,8
0
2008
2009*
2010
2011
* Since 2009, building society and retail banking form one segment „banking products and mortgage lending“. Previous years are not comparable.
page 19
Financials
Key figures banking products and mortgage lending (2)
5 years‘ view
IFRS
2007
2008
2009
2011
2012
Customer deposits (BSW)
bn €
13,7
12,3
14,2
17,8
17,6
Building societies' guarantee fund (BSW)
mn €
261,0
261,0
296,0
356,0
356,0
Allocations (BSW)
bn €
4,9
5,8
4,6
5,1
5,4
Loans disbursed for building purposes (BSW)
bn €
3,2
4,2
4,0
4,9
4,4
New mortgages (WBP)
bn €
1,8
1,8
1,2
1,3
1,4
New bonds (Pfandbriefe) (WBP)
bn €
1,3
1,6
0,8
0,3
0,6
Targets
Management priorities
Target on previous year basis
Net profit
Net profit in home loan saving will clearly increase
Stabilisation of net profit in banking expected *
2008: € 29
m
Achieved
 Improvement of mortgage loan processing
Net profit will rise
2009: € 112.6 m
Achieved
Less net profit due to investments in W&W 2012
2010: € 109.5 m
In line with
forecast
 Technical integration Allianz Dresdner
Bauspar
Net profit clearly below previous year
2011: € 20.8 m
In line with forecast
due to impairments
on Greek bonds
Net profit 2012 with € 80-100 m significantly above
level of 2011
2012: tba
Evaluation
 Cost efficiency improvements
 Value based management of new business
* Since 2009, building society and retail banking form one segment „banking products and mortgage lending“. Previous years are not comparable.
page 20
Financials
Key figures life and health insurance (1)
New business 2011/2010
Comments
 Total new premiums (L/H)
 Single premiums
 Regular premiums
€ 734.9 m (- 12.8 %)
€ 549.9 m (- 18.1 %)
€ 167.5 m (+ 8.3 %)
 New business (Health only)
€ 17.5 m (+ 6.1 %)
 APE (L/H)
€ 240
 Premium development impacted by significantly reduced
single premiums business
m (+ 0.8 %)
 Product mix changed in line with value targets
(significantly higher unit-linked new business)
 Net profit clearly above target and almost on previous
Net profit in € m
year‘s level despite critical market environment
45
40
 Greek bond impairments impact business segment with
€ 5,7 m after tax
35
30
25
40,6
20
15
10
18,8
5
13,4
40,2
16,7
0
2007
2008
2009
2010
2011
page 21
Financials
Key figures life and health insurance (2)
5 years‘ view
IFRS
2007
2008
2009
2010
2011
Investments (L)
bn €
27,47
26,03
27,19
27,61
27,54
Insurance Liabilities (L)
bn €
26,27
25,29
25,85
26,41
26,31
Return on Investments (L)
bn €
1,08
0,38
0,92
1,13
0,92
Insurance benefits (L)
bn €
3,13
2,20
3,15
3,32
2,79
Administrative expense ratio (L)
%
3,1
3,1
3,0
2,7
2,7
Acquisition cost ratio (L)
%
6,1
6,1
6,5
6,2
5,5
Gross premiums (L)
bn €
2,41
2,34
2,44
2,55
2,41
Gross premiums (H)
bn €
0,85
0,97
0,11
0,12
0,13
Targets
Management priorities
Target on previous year basis
Net profit
Clear improvement of revenues as to
2007: € 18.8 m
2008: € 13.4 m
Not achieved due
to decline in
financial result
 Transformation strategy for life business
Higher net profit vs. previous year
2009: € 16.7 m
Achieved
 Value based management of new business
Net profit above level of 2009
2010: € 40.6 m
Achieved
 Cost efficiency improvements
Net profit 2011: € 29 m
2011: € 40.2 m
Exceeded
Net profit 2012 at 2011-level: € 30 m to € 40 m
2012: tba
Evaluation
page 22
Financials
Key figures property and casualty insurance (1)
Comments
Selected data 2011/2010
 New premiums
€ 206.7 m (+ 5.7 %)
 Total gross premiums
 Gross premiums
motor segment
 Corporate clients
€ 1.4
bn (+ 4.2 %)
€ 568.2 m (+ 7.2 %)
€ 293.7 m (+ 5.2 %)
Net profit in € m
 New business and premium development clearly above
market. Growth particularly in motor and SME-lines
 Significantly higher profit due to improved technical
result (combined ratio in local business 92,7 %)
120
 No Greek bonds in portfolio of P&C segment
100
80
60
107,5
81,1
40
53,9
20
26,4
16,1
0
2007
2008
2009
2010
2011
page 23
Financials
Key figures property and casualty insurance (2)
5 years‘ view
IFRS
2007
2008
2009
2010
2011
Gross premiums earned
bn €
1,47
1,30
1,32
1,32
1,38
Expenses for insurance claims
bn €
0,80
0,68
0,75
0,75
0,72
Insurance business expenditure
bn €
0,34
0,30
0,32
0,32
0,32
Number of contracts
mn €
7,70
7,70
7,78
7,78
7,95
Number of claims covered
in €
000's
541
528
526
546
543
Investments
bn €
2,49
2,45
2,35
2,35
2,32
Combined Ratio
%
97,3
100,1
90,1
96,2
92,7
Management priorities 2011/2012
Targets
Target on previous year basis
Net profit
Evaluation
Higher net profit vs. previous year
2008: € 16.1 m
Achieved
Higher net profit vs. previous year
2009: € 81.8 m
Achieved
Less net profit due to investments in „W&W 2012“
efficiency programme
2010: € 26.4 m
Achieved
Net profit above level of 2010
2011: € 107.5 m
Achieved
2012: Net profit € will be € 80 to 90 m
2012: tba
 Underwriting disciplin to be continued
 Multi-channel distribution offers growth
opportunities
 Cost management
page 24
Financials
Balance sheet 2011/2010
Liabilities (IFRS)
Assets (IFRS)
€000's
31 Dec 2011
31 Dec 2010
862 526
533 918
37 881 462
39 127 743
574 655
397 337
29 670 522
29 785 764
2 110 246
2 011 254
F. Other liabilities
853 948
853 126
264 464
G. Subordinated capital
436 966
448 631
212 772
212 990
H. Equity
2 969 004
2 832 090
I. Investment property
1 399 664
1 326 611
J. Reinsurers' share in technical provisions
1 353 007
1 750 438
K. Other assets
1 635 711
1 456 269
75 359 329
75 989 863
75 359 329
75 989 863
31 Dec 2011
31 Dec 2010
165 886
171 737
2 929
95 220
2 367 610
2 148 108
D. Available for sale financial assets
18 733 691
19 489 246
D. Insurance provisions
E. Receivables
49 422 493
49 305 152
E. Other provisions
- 213 141
- 230 372
G. Positive market value of hedges
278 707
H. Investment accounted for using the equity method
A. Cash reserve
B. Non-current assets held for sale and disposal
C. Financial assets at fair value through profit or loss
F. Allowances for credit losses
TOTAL ASSETS
A. Financial liabilities at fair value through profit or loss
B. Liabilities
C. Negative market value of hedges
TOTAL EQUITY AND LIABILITIES
page 25
Financials
Balance sheet details (W&W Group)
Equity and
Liabilities
Assets
6%
4%
1%
20%
1%
38%
36%
58%
36%
Investments

Retail mortgages
Others
Equity
Hybrid capital
Insurance liabilities
Liabilities to customers (savings)
Provison for premium refunds (RfB)
Others
Assets are dominated by investments and retail mortgages;
Liabilities are dominated by insurance liabilities and liabilities to customers.
Over all business segments W&W Group has a comfortable liquidity position.
page 26
Financials
Solvency ratios
Available funds according to
VAG/KWG
Requirements according to
VAG/KWG
Percentage
2012
2011
2012
2011
2012
2011
€mn
€mn
€mn
€mn
in %
in %
1 763,2
1 732,6
38,4
40,3
4 593,0
4 304,1
Wüstenrot Bausparkasse AG2)
806,8
773,5
8 183,0
7 030,1
9,9
11,0
Wüstenrot Bank AG Pfandbriefbank2)
563,0
543,5
5 563,7
5 700,4
10,1
9,5
1)
325,7
325,6
195,3
190,3
166,8
171,1
1 621,5
1 711,4
1 037,3
998,6
156,3
171,4
17,8
15,8
9,3
8,6
192,7
183,7
Wüstenrot & Württembergische AG1)
Württembergische Versicherung AG
Württembergische Lebensversicherung AG 1)
Württembergische Krankenversicherung AG 1)
1 Requirement of 100,0 %
2 Requirement of 8,0 %

Sound capitalization of W&W Group
page 27
Financials
Investments
<1%
14%
1% 5%
Derivatives, fund-based life
insurances
Fixed income securities, shares and
investments
3%
Other loans
<1%
At equity investments
Real estate
44%
Non-current assets held for sale and
discontinued operations
Municipal loans
33%
Financial Assets reclassified out of
available-for-sale-category to the
loans and receivables category
Investments of the W&W Group as of 31 December 2011 amount to € 43.5 (vs 44.3) bn

As a matter of principle, the Group monitors all exposures
continuously
page 28
Agenda
1. W&W at a glance
2. Financials
Q2/2012 results
Year on year 2011/2010
3. W&W profile
page 29
Profile
A short history of W&W
Established in 1828, Württembergische PrivatFeuer-Versicherungsgesellschaft is the first
private property insurance in southern
Germany
1991 Cooperation of Allgemeine Rentenanstalt and WürttFeuer;
names change to Württembergische Versicherung AG and
Württembergische Lebensversicherung AG
In 1833 Allgemeine Rentenanstalt, the first pension
insurance in Germany, was established
1999 Merger of Wüstenrot and Württembergische into „W&W AG“
2001 Merger of Wüstenrot and Leonberger Bausparkasse AG
2005 Acquisition of Karlsruher Versicherungsgruppe
2006 Start of fundamental restructuring of the Group and launch of
"W&W 2009" modernization programme, followed by "W&W
2012" efficiency programme aiming at net profit of € 250 m in
2012
2009 Acquisition of Vereinsbank Victoria Bauspar AG
Established in 1921, Wüstenrot is
Germany‘s first
home loan and savings bank
1828
2010 Acquisition of Allianz Dresdner Bauspar AG
1921
1991
2012
page 30
Profile
Multi-channel distribution
MobSF
Württ
MobSF
Würo
Direct1
Brokers
Banks / coop.
partners
Other
Partnerships and cooperations
~ 3,000
~ 3,000
@
Banks
Insurance
companies
Financial sales
networks

Potential access to
40 million customers
Brokers
5,000 brokers
Cooperations
1) Direct sales, supporting the mobile sales force through mailshots, call centres, online transactions
page 31
Profile
Cross Selling potential of W&W
2009
Banking products
and home financing
17.7%
10%
Insurance
Division
Status quo 2010: More than 17% are customers of both segments
(acquired by own salesforce)
2012
Banking products
and home financing
20%
Insurance
Division
Target: 20% are customers of both segments
(acquired by own salesforce)

Target: One in five customers owns at least one product of the other
business segment
Seite 32
Profile
Market shares
Banking Products and Home Financing
Wüstenrot
Bausparkasse AG
(BSW)
Wüstenrot Bank AG
Pfandbriefbank
(WBP)
1.
Schwäbisch Hall
28.3 %
2.
Wüstenrot
13.7 %
3.
BHW
11.6 %

Wüstenrot Bank
2.9 %
Insurance Division
Württembergische
Lebensversicherung AG
Württembergische
Versicherung AG
Market share
New home loan savings
business (gross) 2011
(private sector)
New home financing
business 2011
Market share
1.
2.
Allianz Leben
R&V
17.4 %
5.4 %
Gross premiums 2011
...
12. Württembergische Lebensvers.
2.5 %
1.
2.
---
Allianz
AXA
15.0 %
5.3 %
9.
Württembergische Versicherung 2.3 %
Gross premiums 2010 *
* 2011 data will be published by Juli 2012
page 33
Profile
Ratings
Standard & Poor‘s
FitchRatings
Financial Strength
Rating
Issuer Credit Rating
BBB
outlook stable
BBB
outlook stable
BBB+
outlook positive
Wüstenrot Bausparkasse AG
BBB+
outlook stable
BBB+
outlook negative
Wüstenrot Bank AG Pfandbriefbank
BBB+
outlook stable
BBB+
outlook negative
Wüstenrot & Württembergische AG
Württembergische Krankenversicherung AG
Financial Strength
Rating
Issuer Default
Rating
Aoutlook positive
BBB+
outlook positive
Württembergische Lebensversicherung AG
BBB+
outlook stable
BBB+
outlook stable
Aoutlook positive
BBB+
outlook positive
Württembergische Versicherung AG
BBB+
outlook stable
BBB+
outlook stable
Aoutlook positive
BBB+
outlook positive
AAA
Covered Bonds / Pfandbriefe (B)
Hybrid capital bond (L)
Hybrid capital bond (P/C)

Hybrid capital bond: BBB-
Hybrid capital bond: BBB-
Hybrid capital bond : BBB-
In addition, Wüstenrot Bausparkasse AG is rated "A", outlook: stable
by GBB-Rating Gesellschaft für Bonitätsbeurteilung mbH
* Ratings as of 26 July 2012.
page 34
Profile
Shareholder structure of W&W AG
 Issued capital of W&W AG is € 481,067,777.39. It is divided into 91,992,622 no-par value shares.
 Pro-rata issued capital per share amounts to € 5.23
 All W&W shares are registered shares.
Shareholders national/international
6%
4,67%
7.91%
94%
4.99%
National
7.54%
8.79%
International
% of issued capital
3%
66.10%
97%
Wüstenrot Holding
Unicredit
Free float
LBBW
Landeskreditbank
Sw issRe
Private
Institutional
page 35
Profile
Investor Relations







Wüstenrot & Württembergische AG
Gutenbergstraße 30
70176 Stuttgart
Investor Relations, Ute Jenschur
[email protected]
internet: ww-ag.com/go/investor-relations (in German)
phone: +49 711 662 724034
page 36
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