Group accounts Q2/2012 and YoY 2011

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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 “m
ate
rial“), 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 respe
ct 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 i
n t
he 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 outsi
de
management’s control. Actual results
may differ materially from (and be more negative than) those projected or implied in the forward
-
looking statements. Such forwar
d
-
looking information involves risks
and uncertainties that could significantly affect expected results and is based on certain key assumptions. The following imp
ort
ant 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
f
oreign countries.


The foregoing factors should not be construed as exhaustive. Due to such uncertainties and risks, readers are cautioned not t
o p
lace undue reliance on such forward
-
looking statements as a prediction of actual results. All forward
-
looking statements included herein are based on information av
ailable 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 act
ing 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

pu
rchase 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 pu
rpo
rt 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 assura
nce
s and representations and other
precautionary matters, as disclosed in the definitive offering materials. The information herein supersedes any prior version
s h
ereof 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

pr
ior 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
cou
nterparties for the purposes of the
Financial Services Authority’s Rules ("relevant persons"). This communication must not be acted on or relied on by persons wh
o a
re not relevant persons. To the extent
that this communication can be interpreted as relating to any investment or investment activity then such investment or activ
ity

is available only to relevant persons and
will be engaged in only with relevant persons.

page
2

page
3

Agenda


1.
W&W at a glance


2.
Financials




Q2/2012 results


Yearly comparison 2012/2011




3.
W&W profile









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.



W&W at a glance

page
4


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.



Wüstenrot
Bausparkasse AG
(BSW)



Wüstenrot Bank AG
Pfandbriefbank (WBP)

W&W Group

W&W at a glance

Structure



Württembergische
Lebens
-

versicherung AG



ARA Pensions
-

kasse AG



Karlsruher Lebens
-
versicherung AG



Württembergische
Kranken
-

versicherung AG



Württembergische
Versicherung AG



Service entities



Czech W&W companies

Property and

Casualty Insurance (P/C)

Others

Wüstenrot

page
5

Banking Products and

Mortgage lending (B)

Life and Health

Insurance (L/H)



W&W Group is based on several strong pillars


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

W&W strategy

W&W at a glance

Q2/2012 Highlights

page
6

Business environment

New business

Risk assessment

Guidance


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



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





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



Earnings


W&W exceeds its profit targets: Q2
-
profit is


131 m against a year to day target of


125 m



1828

Württembergische founded


1921

Wüstenrot established


1999

Merger of Wüstenrot and


Württembergische into W&W AG


8.497

Fulltime employees


6 m

Customers


Multi
-
channel distribution by own sales force of 6,000
tied agents; 5,000 brokers; online
-
banking; sales
cooperations


Sound background


Number of savings contracts (B)


3.8 m


Mortgage loans (Group) 773,616


Life insurance contracts




2.7 m


P/C insurance contracts




8.0 m


Health insurance customers


470,142


Current accounts

(B)



283,000


Call deposit accounts (B)



302,000

Customer base FY 2011


No 2

in home loan savings


No 9

in property/casualty insurance


No 12

in life insurance

Domestic market position

W&W at a glance

Master data


Gross premiums (L/H)





2.4 bn


Gross premiums (P/C)





1.4 bn


Building society deposits (B)




17.6 bn


Volume of building savings

contracts

(B)





104.3 bn


Mortgage disbursements (B)




4.4 bn


Assets under management (Group)




27.9 bn


Business volume FY 2011

page
7

As of: 31 December 2011


New home loan savings, gross (B)


15.3 bn


New home loan savings, net (B)


11.8 bn


Total new mortgages (Group)


5.9 bn


New premiums (P/C)


206.7

m


Annual Premium Equivalent (L/H)






240.0

m

New business



Financial result


1.4 bn


Premiums earned


3.8 bn


Insurance benefits incl. paid claims


3.5 bn


Net profit




191.6 m


Earnings per share




1.94


Income statement


Total assets





75.4 bn


Investments





43.5 bn


Retail mortgages





27.4 bn




Insurance liabilities




29.7 bn


Customer savings





27.0 bn


Equity





3.0 bn

Balance sheet



W&W has set the following profit target:



In 2012 net profit will rise to


250 m





Profit target

W&W at a glance

Key figures 2011

page
8

Solvency ratios


Risk profile

Ratings
*


Wüstenrot Holding


66.10 %


LBBW




8.78 %


UniCredito




7.54 %


L
-
Bank




4.99 %


Schweizerische Rück



4.67 %


Free float





7.92

%


Shareholders of W&W AG

W&W at a glance

Key figures 2011

page
9

Distribution of required capital as of 31 December:

As of: 31 December 2011

5%
2%
12%
32%
49%
Operational risk
Collective risk
Insurance risk
Market risk
Credit risk
* Ratings as of 26 July 2012. For more


details concerning W&W ratings see page 34.

BBB+ outlook positive

BBB+ outlook stable

Württembergische
Lebensversicherung

BBB+ outlook positive




Württembergische
Krankenversicherung

BBB+ outlook negative

BBB+ outlook stable

Wüstenrot Bank AG
Pfandbriefbank

BBB+ outlook negative

BBB+ outlook stable

Wüstenrot Bausparkasse

AAA

Covered Bonds/Pfandbriefe
Wüstenrot Bank

Fitch


S&P

Issuer Credit / Default
Ratings




337 %

192 %

Risk
-
bearing capacity via internal model

(VaR 99,5),
(solvency/economic capital ratio)


9.5 %

10.1 %

Total capital ratio (WBP)

11.0 %


9.9 %

Total capital ratio (BSW)


246 %

236 %

Insurance Group


133 %

129 %

W&W financial conglomerate

2010

2011

page
10

Agenda


1.
W&W at a glance


2.
Financials




Q2/2012 results

Yearly comparison

2012/2011




3.
W&W profile









Business segments Q2/2012

Financials


page
11

Banking products and Mortgage
lending
Life and Health Insurance
Property / Casualty Insurance
Other Segments
Consolidation / Reconciliation
Group

000
'
s
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
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
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
7. Net financial result
252 001
206 311
1
648 409
521 268
31 031
32 739
1
130 166
92 779
1
- 104 357
- 76 194
1
957 250
776 903
1
9. Net fee and commission result
- 4 391
- 12 441
- 69 781
- 69 770
- 88 621
- 83 237
- 22 226
- 19 384
3 108
4 333
- 181 911
- 180 499
10. Net premiums earned
0
0
1 238 302
1 159 439
591 053
554 204
124 280
115 095
- 13 805
- 13 492
1 939 830
1 815 246
11. Insurance benefits to customers
0
0
1 630 597
1 438 595
1
328 445
282 988
85 528
70 952
- 12 462
- 12 669
2 032 108
1 779 866
12. General administrative expenses
197 135
214 877
1
130 217
138 027
1
161 085
167 006
1
47 927
37 406
1
6 772
5 648
1
543 136
562 964
1
13. Others
7 150
14 472
- 34 203
- 21 723
5 171
18 227
1
13 240
2 608
7 508
5 298
1
- 1 134
18 882
1
14. Earnings before taxes
57 625
- 6 535
1
38 319
21 785
1
50 387
73 108
1
112 088
83 303
1
- 100 653
- 73 084
1
157 766
98 577
1
15. Taxes
16 402
- 6 876
1
11 647
6 029
1
15 222
9 116
1
- 638
15 243
1
- 15 841
- 17 037
1
26 792
6 475
1
16. Net profit after taxes
41 223
341
1
26 672
15 756
1
35 165
63 992
1
112 726
68 060
1
- 84 812
- 56 047
1
130 974
92 102
1
1 Adjustment of previous year account according to IAS 8.
page
12

Balance Sheet








Assets (IFRS)
Liabilities (IFRS)

000
'
s
30 June 2012
31 Dec 2011
31 June 2012
31 Dec 2011
A. Cash reserve
247 426
165 886
A. Financial liabilities at fair value through profit or loss
1 041 563
862 526
B. Non-current assets held for sale and disposal
109 412
2 929
B. Liabilities
37 673 755
37 879 966
1
C. Financial assets at fair value through profit or loss
2 506 625
2 367 610
C. Negative market value of hedges
635 353
574 655
D. Available for sale financial assets
19 913 566
18 733 691
D. Insurance provisions
30 466 239
29 670 522
E. Receivables
49 194 763
49 422 493
E. Other provisions
2 322 763
2 110 246
F. Allowances for credit losses
- 220 807
- 213 141
F. Other liabilities
915 485
853 948
G. Positive market value of hedges
369 161
278 707
G. Subordinated capital
468 329
436 966
H. Investment accounted for using the equity method
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
TOTAL ASSETS
76 662 099
75 351 576
1
TOTAL EQUITY AND LIABILITIES
76 662 099
75 351 576
1
1 Adjustment of previous year account according to IAS 8.
PIIGS
-
Exposure of the W&W Group

page
13

Exposure as of 30 June 2012
Nominal value
Book value/Fair value
Other comprehensive income
€ mn
30 June 2012
31 Dec 2011
30 June 2012
31 Dec 2011
30 June 2012
31 Dec 2011
Portugal
33,0
58,8
23,9
31,4
-12,1
-26,4
Italy
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
Duration Nominal
< 6 mont hs
6-12 mont hs
1-3 mont hs
3-5 mont hs
> 5 mont hs
Tot al
in mn €
30 June 2012
31 Dec 2011
30 June 2012
31 Dec 2011
30 June 2012
31 Dec 2011
30 June 2012
31 Dec 2011
30 June 2012
31 Dec 2011
30 June 2012
31 Dec 2011
Port ugal
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
It aly
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
0,0
0,0
0,0
0,0
0,0
0,0
0,0
5,0
0,0
137,0
0,0
142,0
Tot al
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
Building society

Life/Health

Financials

Main figures of the segments Q2/2012

page
14

P/C

Banking





Q2 2011


Q2 2012

+ 2.4 %



5.68 bn



5.82 bn

New home loan savings, net

+ 5.8 %




7.51 bn



7.95 bn

New home loan savings, gross





Q2 2011


Q2 2012

-

12.6 %



3.12 bn



2.73 bn

Total new mortgages (W&W
group)

-

4.6 %




1.99 bn



1.90 bn

New mortgages




Q2 2011

Q2 2012

New premiums



Gross premiums






Q2 2011

Q2 2012

+ 5.4 %

Gross premiums




1 224.9 m



Total new premiums



Single premiums


Regular premiums




386.2 m




312.1 m



66.0 m



330.9 m




254.0 m



67.7 m


+ 16.7 %



+ 22.9 %


-

2.5 %



1 162.4 m



152.1 m




937.6 m



120.0 m

+ 26.8 %



871.8 m

+ 7.5 %

page
15

Agenda


1.
W&W at a glance


2.
Financials



Q2/2012 results

Yearly comparison

2011/2010




3.
W&W profile









Business segments yearly comparison 2011/2010

Financials


page
16

Segment Income
Statement
Banking products and
Mortgage lending
Life and Health Insurance
Property / Casualty
Insurance
Other Segments
Consolidation /
Reconciliation
Group

000
'
s
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
7. Net financial result
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
9. Net fee and commission result
- 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
13. Others
12 608
126 918
- 2 298
- 6 070
13 143
11 805
24 710
27 386
2 149
8 059
75 463
195 431
14. Earnings before taxes
- 1 637
109 519
52 502
54 487
130 867
50 556
123 985
133 372
- 113 526
- 133 299
192 191
214 635
15. Taxes
- 22 460
- 19
12 322
13 918
23 371
24 169
26 652
19 844
- 39 289
- 23 026
596
34 886
16. Net profit after taxes
20 823
109 538
40 180
40 569
107 496
26 387
97 333
113 528
- 74 237
- 110 273
191 595
179 749
191,6
179,7
222,1
67,1
209,5
0
50
100
150
200
250
2007
2008
2009
2010
2011
Financials

Key figures of the W&W Group (1)

2011/2010, German market


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)

Group net profit in


m

Comments


Home loan savings contracts (B)


104.3 (vs.103.4)

bn


Savings (B)




17.6 (vs.17.7) bn


Gross premiums (L/H)




2.4 (vs. 2.5) bn



Gross premiums (P/C)




1.38 (vs.1.32) bn


Assets u. Management (Group)





27.9

(vs. 27.7)

bn


page
17

Czech companies


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


Financials

Key figures of W&W Group (2)



Improvement of mortgage loan processing



Transformation of life business



Cost efficiency improvements



Value based management of new business



5 years‘ view

page
18

Management priorities

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
Exceeded



2012: tba



250 m net profit


2011:


191.6 m



180 m net profit


Exceeded due to „W&W
2009 „ efficiency
programme

2010:


179.7 m



140 m net profit


2008: ROE 2.8 %

ROE 9 %

Evaluation

Net profit

Target on previous year basis

Achieved

Targets

ROE 6,7 %


2009: ROE 9.1 %

Not achieved due

to financial crisis

1 Adjustment of previous year according to IAS 8

109,5
112,6
29
20,8
0
20
40
60
80
100
120
2008
2009*
2010
2011
Financials

Key figures banking products and mortgage lending (1)


New business growth based on enhanced multi channel
distribution



Increasing new business for the fifth year in a row



New business in mortgages slightly declined due to
intensified focus on profitability



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




New business 2011/2010

Net profit in


m

Comments


New home loan savings, gross

+ 4.4 % to


15.3 bn



and net + 3.4 % to


11.8 bn



New mortgages (B)


3.9 bn (
-

6.2 %)


page
19


* Since 2009, building society and retail banking form one segment „banking products and mortgage lending“. Previous years ar
e
not comparable.

Financials

Key figures banking products and mortgage lending (2)


Improvement of mortgage loan processing



Technical integration Allianz Dresdner
Bauspar



Cost efficiency improvements



Value based management of new business


5 years‘ view

Management priorities

page
20

Targets

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
2012: tba

Net profit 2012 with


80
-
100 m significantly above
level of 2011

In line with forecast
due to impairments
on Greek bonds

2011:


20.8 m


Net profit clearly below previous year

In line with
forecast

2010:


109.5 m

Less net profit due to investments in W&W 2012

Achieved

2009:


112.6 m

Net profit will rise

Achieved

2008:


29 m

Net profit in home loan saving will clearly increase

Stabilisation of net profit in banking expected *

Evaluation

Net profit

Target on previous year basis


* Since 2009, building society and retail banking form one segment „banking products and mortgage lending“. Previous years ar
e
not comparable.

40,6
16,7
13,4
18,8
40,2
0
5
10
15
20
25
30
35
40
45
2007
2008
2009
2010
2011
Financials

Key figures life and health insurance (1)


Premium development impacted by significantly reduced
single premiums business



Product mix changed in line with value targets
(significantly higher unit
-
linked new business)



Net profit clearly above target and almost on previous
year‘s level

despite critical market environment



Greek bond impairments impact business segment with


5,7 m after tax



New business 2011/2010

Net profit in


m

Comments



Total new premiums (L/H)


734.9 m (
-

12.8 %)


Single premiums



549.9 m (
-

18.1 %)


Regular premiums


167.5 m (+ 8.3 %)



New business (Health only)


17.5 m (+ 6.1 %)




APE (L/H)





240 m (+ 0.8 %)





page
21

Financials

Key figures life and health insurance (2)


Transformation strategy for life business



Value based management of new business



Cost efficiency improvements



5 years‘ view

page
22

Management priorities

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

2012: tba


Net profit 2012 at 2011
-
level:


30 m to


40 m

2011:


40.2 m


Net profit 2011:


29 m

Achieved

2010:


40.6 m

Net profit above level of 2009

Achieved

2009:


16.7 m

Higher net profit vs. previous year

2008:


13.4 m

Clear improvement of revenues as to

2007:


18.8 m

Evaluation

Net profit

Target on previous year basis

Not achieved due

to decline in
financial result

Exceeded

26,4
81,1
16,1
53,9
107,5
0
20
40
60
80
100
120
2007
2008
2009
2010
2011
Financials

Key figures property and casualty insurance (1)


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 %)



No Greek bonds in portfolio of P&C segment

Selected data 2011/2010

Net profit in


m

Comments


New premiums




206.7 m (+ 5.7 %)



Total gross premiums




1.4 bn (+ 4.2 %)



Gross premiums

motor segment




568.2 m (+ 7.2 %)


Corporate clients





293.7 m (+ 5.2 %)

page
23

Financials

Key figures property and casualty insurance (2)


Underwriting disciplin to be continued


Multi
-
channel distribution offers growth
opportunities


Cost management


page
24

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


5 years‘ view

Achieved


Achieved

Achieved

Evaluation

2012: Net profit


will be


80 to 90 m


2011:


107.5 m

Net profit above level of 2010

2010:


26.4 m

Less net profit due to investments in „W&W 2012“
efficiency programme

2009:


81.8 m

Higher net profit vs. previous year


2008:


16.1 m

Higher net profit vs. previous year

Net profit

Target on previous year basis

Achieved


2012: tba

Balance sheet 2011/2010

Financials

page
25

Assets (IFRS)
Liabilities (IFRS)

000
'
s
31 Dec 2011
31 Dec 2010
31 Dec 2011
31 Dec 2010
A. Cash reserve
165 886
171 737
A. Financial liabilities at fair value through profit or loss
862 526
533 918
B. Non-current assets held for sale and disposal
2 929
95 220
B. Liabilities
37 881 462
39 127 743
C. Financial assets at fair value through profit or loss
2 367 610
2 148 108
C. Negative market value of hedges
574 655
397 337
D. Available for sale financial assets
18 733 691
19 489 246
D. Insurance provisions
29 670 522
29 785 764
E. Receivables
49 422 493
49 305 152
E. Other provisions
2 110 246
2 011 254
F. Allowances for credit losses
- 213 141
- 230 372
F. Other liabilities
853 948
853 126
G. Positive market value of hedges
278 707
264 464
G. Subordinated capital
436 966
448 631
H. Investment accounted for using the equity method
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
TOTAL ASSETS
75 359 329
75 989 863
TOTAL EQUITY AND LIABILITIES
75 359 329
75 989 863
Balance sheet details (W&W Group)

58%
36%
6%
Investments
Retail mortgages
Others
Assets

4%
1%
38%
36%
1%
20%
Equity
Hybrid capital
Insurance liabilities
Liabilities to customers (savings)
Provison for premium refunds (RfB)
Others
Equity and
Liabilities

page
26

Financials



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.

Solvency ratios

page
27

Financials



Sound capitalization of W&W Group

Available funds according to
VAG/KWG
Requirements according to
VAG/KWG
Percentage
2012
2011
2012
2011
2012
2011
€mn
€mn
€mn
€mn
in %
in %
Wüstenrot
&
Württembergische AG
1)
1 763,2
1 732,6
38,4
40,3
4 593,0
4 304,1
Wüstenrot Bausparkasse AG
2)
806,8
773,5
8 183,0
7 030,1
9,9
11,0
Wüstenrot Bank AG Pfandbriefbank
2)
563,0
543,5
5 563,7
5 700,4
10,1
9,5
Württembergische Versicherung AG
1)
325,7
325,6
195,3
190,3
166,8
171,1
Württembergische Lebensversicherung AG
1)
1 621,5
1 711,4
1 037,3
998,6
156,3
171,4
Württembergische Krankenversicherung AG
1)
17,8
15,8
9,3
8,6
192,7
183,7
1 Requirement of 100,0 %
2 Requirement of 8,0 %
Investments

Investments of the W&W Group as of 31 December 2011 amount to


43.5 (vs 44.3) bn


page
28

Financials



As a matter of principle, the Group monitors all exposures

continuously

5%
44%
33%
3%
14%
1%
<1%
<1%
Derivatives, fund-based life
insurances
Fixed income securities, shares and
investments
Other loans
At equity investments
Real estate
Non-current assets held for sale and
discontinued operations
Municipal loans
Financial Assets reclassified out of
available-for-sale-category to the
loans and receivables category
page
29

Agenda


1.
W&W at a glance


2.
Financials



Q2/2012 results

Year on year

2011/2010




3.
W&W profile









A short history of W&W

Profile


page
30

1828


1991

2012

1921


Established in 1828, Württembergische Privat
-

Feuer
-
Versicherungsgesellschaft is the
first

private property insurance in southern
Germany

Established in 1921, Wüstenrot is
Germany‘s
first

home loan and savings bank

1999

Merger of Wüstenrot and Württembergische into „W&W AG“

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

2010

Acquisition of Allianz Dresdner Bauspar AG

2009

Acquisition of Vereinsbank Victoria Bauspar AG

2005

Acquisition of Karlsruher Versicherungsgruppe

2001

Merger of Wüstenrot and Leonberger Bausparkasse AG

In 1833 Allgemeine Rentenanstalt, the
first

pension
insurance in Germany, was established

1991

Cooperation of Allgemeine Rentenanstalt and WürttFeuer;

names change to Württembergische Versicherung AG and

Württembergische Lebensversicherung AG

Multi
-
channel distribution

1) Direct sales, supporting the mobile sales force through mailshots, call centres, online transactions

Profile

MobSF

Württ

MobSF

Würo

Brokers

Banks / coop.
partners


Direct
1

Other

~ 3,000

~ 3,000

@



Potential access to

40 million customers

Partnerships and cooperations

Banks

Insurance

companies

Financial sales

networks

Brokers

5,000 brokers

Cooperations

page
31

Cross Selling potential of W&W

Seite
32

2009

2012

20%

10%

Status quo 2010: More than 17% are customers of both segments

(acquired by own salesforce)

Banking products
and home financing

Insurance

Division

Target: 20% are customers of both segments

(acquired by own salesforce)

Insurance

Division



Target: One in five customers owns at least one product of the other
business segment

17.7%

Profile

Banking products
and home financing

page
33

Market shares

Profile

Banking Products and Home Financing

1.

Schwäbisch Hall


28.3 %

2.

Wüstenrot


13.7 %

3.

BHW



11.6 %

Wüstenrot

Bausparkasse AG
(BSW)

Insurance Division

New home loan savings
business (gross)
2011

(private sector)



Wüstenrot Bank


2.9 %




Wüstenrot Bank AG
Pfandbriefbank
(WBP)

New home financing
business 2011

1.
Allianz



15.0 %

2.
AXA





5.3 %

---


9.

Württembergische Versicherung


2.3 %

Württembergische

Versicherung AG

Gross premiums 2010 *

1.
Allianz Leben


17.4 %

2.
R&V





5.4 %

...

12.

Württembergische Lebensvers.


2.5 %

Württembergische
Lebens
-

versicherung AG

Gross premiums 2011

Market share

Market share

* 2011 data will be published by Juli 2012

Ratings

Profile

page
34



In addition, Wüstenrot Bausparkasse AG is rated
"
A
"
, outlook: stable

by GBB
-
Rating Gesellschaft für Bonitätsbeurteilung mbH

Württembergische Lebensversicherung AG

Württembergische Krankenversicherung AG

Wüstenrot Bausparkasse AG

Wüstenrot & Württembergische AG

Württembergische Versicherung AG

Wüstenrot Bank AG Pfandbriefbank

Covered Bonds / Pfandbriefe (B)

Hybrid capital bond (P/C)


Hybrid capital bond (L)

Standard & Poor‘s


FitchRatings


BBB+

outlook positive

BBB+


outlook positive

BBB+


outlook negative

BBB+


outlook positive

Issuer Default
Rating

BBB+

outlook positive

BBB+

outlook negative

AAA


A
-


outlook positive

BBB+


outlook stable

BBB+

outlook stable

A
-


outlook positive

BBB+

outlook stable

BBB

outlook stable

BBB

outlook stable

Financial Strength
Rating

Issuer Credit Rating

Financial Strength
Rating

BBB+

outlook stable

A
-


outlook positive

BBB+

outlook stable

BBB+


outlook stable


Hybrid capital bond :
BBB
-



Hybrid capital bond:
BBB
-



Hybrid capital bond:
BBB
-


* Ratings as of 26 July 2012.

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.

Profile

page
35

4,67%
8.79%
7.54%
4.99%
7.91%
66.10%
Wüstenrot Holding
LBBW
Unicredit
Landeskreditbank
Free float
SwissRe
National
International
% of issued capital

Shareholders national/international

6%

94%

97%

3%

Private

Institutional

Investor Relations





Wüstenrot & Württembergische AG


Gutenbergstraße 30


70176 Stuttgart


Investor Relations, Ute Jenschur


ir@ww
-
ag.com


internet: ww
-
ag.com/go/investor
-
relations (in German)


phone: +49 711 662 724034





page
36

Profile