W&W Group continues positive trend in the third quarter - Wüstenrot & Württembergische AG W&W Group 9M/19 - Wüstenrot & Württembergische
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Wüstenrot & Württembergische AG W&W Group continues positive trend in the third quarter W&W Group 9M/19
Agenda
1 Snapshot
2 W&W share
3 Financials
4 Strategy
5 Outlook
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 offer an attractive and Our commitment: We aim We seize the opportunities We pursue a sustainable
stable €0,65 dividend, at twice the market growth presented by digitalisation approach to business
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
market # 2 in Bausparen # 12 in life insurance # 9 in P/C
position
New digital approaches
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
~ 3000 ~ 3000 > 10.000
Wüstenrot Württembergische Broker, independent
sales agents sales agents sales agents and
pools
wuestenrot.de
wuerttembergische.de
Partnerships and cooperations W&W sales force Brokers Direct sales
Excellent sales mix offers high cross selling potential to W&W Group.
Page 6
Agenda
1 Snapshot
2 W&W share
3 Financials
4 Strategy
5 Outlook
Page 7
W&W share
Price level with significant upside potential
W&W-Share Analysts' estimates
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 €
110% Montega 15/11/19 buy / targetprice: 23.00 €
100% LBBW 14/11/19 buy / targetprice: 23.00 €
90%
Analysts see a clear upside potential and
80%
recommend the stock as a buy.
70% 31/12/2018:
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
0.50 0.60 0.60 0.65 0.65
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%
WS Holding AG* exchange. W&W AG fulfills prime standard is part of the SDAX since
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
2 W&W share
3 Financials
4 Strategy
5 Outlook
Page 10Financials 9M/2019
Successful new business
+4% +13% +6% +9%
Bausparen (gross) Construction Financing Property & Casualty Life & Health
Insurance Insurance
Page 11Financials 9M/2019
Positive business performance thanks to transformation and digitalisation
1 After tax profit increased by 28%
2 High measurement gains from fixed-income securities in net financial income
3 New digital brand Adam Riese shows a customer base of nearly 80,000
4 New business developed positively in all respects
5 Mid-term guidance of €220mn to 250mn reiterated
6 Pay out of €0.65 for FY2018 translating into a dividend yield of 4.06% vs. MDAX of 2,75 and SDAX of
2.09%
Page 12Financials 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 13Financials 9M/2019
Housing segment
Construction finance Gross new business
in € mn in € mn
+14% +1%
5,517 13,569 13,766
4,839 +15% +4%
4,672 9,679 10,068
4,061
2017 2018 9M 2018 9M 2019 2017 2018 9M 2018 9M 2019
Administrative expenses Core capital ratio
in € mn in %
-6%
360.0 337.9 -4% 24.1 25.7 24.1
251.7 241.9 19.4 18.4 18.9
15.6 17.1
12.7 13.8 14.1 15.3
2017 2018 9M 2018 9M 2019 2014 2015 2016 2017 2018 30.06.2019
Wüstenrot Bausparkasse AG Financial holding group
Page 14Financials 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 15Financials 9M/2019
Life & Health Insurance segment
Additional interest reserve Total premiums for new life insurance business
in € mn in € mn
+11% +2% +10%
3,319 3,395 2,626
2,502 2,377
2,201
2,046 301 828 880
155
446
2,046 2,201 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 € mn in % in %, as of Sep 2019
2.6
+1% 2.4
+3%
260.9 263.3 192.8 198.4 245
186
124 140
2017 2018 9M 2018 9M 2019 2017 2018 WL SII Group
w/o Trans with Trans
Page 16Financials 9M/2019
Life & Health Insurance segment
Yield on capital investments vs. actuarial interest rate
in %
4 Our average current yield on capital investments (local
GAAP) is above the average balance-sheet actuarial
3,5
interest rate (with ZZR*).
3
2,5
Since 2017 even our average current yield on new
capital investments is above the average balance-sheet
2
actuarial interest rate (with ZZR*).
1,5
1
This means that Württembergische Lebensversicherung
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 17Financials 9M/2019
Property & Casualty Insurance segment
Gross premiums written Gross loss ratio business year
in EUR mn in %
6% 73.9
1.900 1.848 1.700 1.645 74 72.7
71.6 72.1 -0.4%
1.800 1.751 72
1.678 1.600 1.556 69.9 70.0
1.700 1.636 70 69.7
70
1.579 1.500
1.600 68 68
1.500 1.400 66 66
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 % in € mn
100 200 150
95.5 95.5 95 167 125
95 91.9 92.1 90.4 90.6 152 106
89.8 90.1 88.9 90.7
88.1 89.5 90 88.0 89.3 150 135
90 100 80
105
85 85 100 89 64
80 74
80 65
80 52 50
50 41
75 75
70 70 0 0
2014 2015 2016 2017 2018 9M 2018 9M 2019 2014 2015 2016 2017 2018 9M 2018 9M 2019
Net Gross Underwriting income Gross natural disaster claims
Page 18Financials 9M/2019
Increased results: strong development
Consolidated net profit (IFRS), in €mn
300
250
250 236
224 strategic target
202
200 220
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 2015” “W&W Besser!”
-100 Restructuring Expansion Programme to
programme programme reinforce our
Annual figures
strengths
Multi-year average
Page 19Agenda
1 Snapshot
2 W&W share
3 Financials
4 Strategy
5 Outlook
Page 20Strategy
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.
Inspiring Opening up
Leading core Increasing speed,
new customer
6 millionen businesses into efficiency and
and market
customers the future service quality
segments
through through through through
unconditional bold further innovative digital an efficient
customer orientation development business models infrastructure
Page 21Strategy
Strategy implementation bundled in “W&W Besser!” – Heading for the digital future
W&W Besser!
Focusing Developing Attracting (Strategy implementation)
business a platform high
portfolio on housing potentials
Emphasising Launching Digital transformation in all segments
Digitali-
on commercial a new digital
sation Delighting customers and boosting sales force!
customers brand
Developing new business models!
Expanding profitable growth fields!
Entering Improving Reducing Increasing efficiency and service quality!
into new customer administrative
cooperations experience expenses Inspiring employees! Laying the IT foundation! Meeting regulatory requirements!
Clear objective: W&W as a winner of the upheaval in the financial industry.
page 22Strategy
Brandpool: new digital products and services
Adam Riese NIST
• The digital insurance brand • The digital companion for
of W&W buying real estate
• Offering expanded to personal • First business model tests
liability, legal protection, home successfully completed
contents, dog owner liability, and • Customers can choose between
business liability insurance offers of over 400 partner banks
• Over 80,000 customers, over
49,000 new contracts in 2019
treefin FinanzGuide Keleya
• The independent insu- • The digital financial • The health coach for
rance broker assistant expectant moms
• Targets new and younger • Launched in 2018 for • Application for Android and
customer groups existing customers iOS users
• Over 53,600 registrations; • Over 30,000 registered • Individual yoga- and
over 11,300 new users pilates-workouts, dietary
registrations in 2019 • Generates leads for the plans and tips for general
sales force well-being
Page 23Strategy
Exemplary strategic acivities
W&W-Gruppe Württembergische Wüstenrot
Campus SME businesses Wohnwelt
• New office buildings in • The project “Partner des • The offer is addressed to potential
Ludwigsburg for a higher level of Mittelstands” (partner of the mid- real estate buyers and owners
employer attractiveness sized sector) bundels strategic and • A real estate search engine is
• First construction phase was operational initiatives regarding included
completed in time SME clients • Third party offerings around living
• 1,200 new, modern workspaces • First initiatives show promising are integrated
are in use results
• Phase two is on-going
Page 24Agenda
1 Snapshot
2 W&W share
3 Financials
4 Strategy
5 Outlook
Page 25Outlook
W&W Group to deliver on its targets for 2019
Growth New business expected to rise in all core business segments.
We expect continuing high investments in future development and digitalisation.
Investments
We expect to close the acquisition of Aachener Bausparkasse in first half year of 2020.
IFRS We still expect consolidated net profit at the end of the year to come in at the upper end of the long-
term target range of € 220 to 250 million.
Local GAAP Net profits under local GAAP (HGB) expected to rise from € 80mn (2018) to approx. € 90mn.
Dividend Stable and reliable dividend policy: at least equal to previous year’s level (2018: € 0.65 / share).
Page 26Thank you for your kind attention!
English website available: www.ww-ag.com Fact Sheet German + English IR Newsletter
Report German + English
For further information please contact:
Michael Ellwanger
Head of Investor Relations
ir@ww-ag.com
+49 711 662 725252
www.ww-ag.com
Page 27Disclaimer
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 forward-looking 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 28Appendix
High-level expertise of W&W Group in financial issues
1828 Württembergische 1921 Wüstenrot 1999 Merger of 2005 2010 Acquisition 2017 Introducing 2018 online
Privat-Feuer- (Gemeinschaft der Wüstenrot und Acquisition of of Allianz new digital brand platform
Versicherungsgesellschaft Freunde) was Württembergische Karlsruher Dresdner ”Adam Riese” Wüstenrot
was established, the oldest founded, Germany’s Versicherungs- Bauspar AG Wohnwelt
private property insurance in first home loan and gruppe started
southern Germany savings bank
1833 Allgemeine 1991 Württembergische 2001 2009 Acquisition 2017 Participation 2019 Acquisition
Rentenanstalt, the Feuerversicherung and Acquisition of of Vereinsbank in treefin GmbH; of Aachener
first pension insurance Allgemeine Rentenanstalt Leonberger Victoria Bauspar creating “W&W Bausparkasse
in Germany was merged into Bausparkasse AG FinanzGuide-App” AG
established Württembergische AG
Versicherung AG
Page 29Appendix
W&W Management Board
Jürgen A. Junker, Dr. Michael Gutjahr, CFO Jürgen Steffan, CRO Jens Wieland, COO/CIO
CEO W&W AG W&W AG W&W AG W&W AG
Chairman of the Management Board Member of the W&W Executive Board Member of the W&W Executive Board Member of the W&W Executive Board
and W&W Executive Board
Bernd Hertweck, Thomas Bischof Daniel Welzer
Head of Wüstenrot Division Head of Württembergische Division Head of Brandpool Division
Chief Executive Officer of and Chief Executive Officer of and Chairman of
Bausparkasse AG Württembergische Versicherungen W&W brandpool Board
Page 30Appendix
Financial calendar
30/03/2020 W&W Annual Report 2019
15/05/2020 3M Quarterly Statement
19/05/2020 Annual General Meeting
14/08/2020 6M Quarterly Statement
13/11/2020 9M Quarterly Statement
Further information: www.ww-ag.de/calendar
Page 31You can also read
