How Does Wuestenrot & Wuerttembergische Company Work?

The Housing segment, spearheaded by Wüstenrot Bausparkasse AG, centers on home savings plans, mortgage loans, and construction financing. This includes providing traditional savings vehicles and competitive mortgage options to facilitate home ownership or construction.

In the initial two months of 2025, the construction financing business experienced a significant 22.6% surge in new business accepted. By the close of 2024, the portfolio of loans under building savings contracts had grown by 6.3% year-over-year to €28.4 billion. Furthermore, by March 31, 2025, the home loan and savings portfolio was 3.6% higher than in the same period of 2024, reaching €28.8 billion.

The Insurance segment, comprising Württembergische Versicherung AG and Württembergische Lebensversicherung AG, offers a wide array of insurance products. These include life, health, property, and casualty insurance, designed to provide financial security and risk management.

In 2024, Württembergische Krankenversicherung saw a 14.9% increase in new annual premiums, largely due to demand for company health insurance. This growth continued into the first two months of 2025 with a 6.1% rise in health insurance. Property and casualty insurance also showed strong performance, with new and replacement business growing by 8.3% in the first two months of 2025. The digital brand Adam Riese within the W&W Group increased its new business by 13.8% during the same period.

The W&W Group's expansion in housing finance has been bolstered by several key acquisitions. These include Vereinsbank Victoria Bauspar AG in 2009, Allianz Dresdner Bauspar AG in 2010, Aachener Bausparkasse AG in 2018, and start:bausparkasse AG in 2024. Notably, 2024 also celebrated the 100th anniversary of Wüstenrot Bausparkasse, underscoring its long-standing presence in the market.

In 2024, the W&W Group encountered significant operational headwinds, including an unusually high volume of claims from severe storms and escalating costs within the motor vehicle insurance sector. These factors led to a substantial decrease in IFRS consolidated earnings, with net profit falling to €36 million from €141 million in the prior year. Despite these challenges, the company reported an improved HGB result for the sixth consecutive year, reaching €135 million, by prioritizing cost efficiency and maintaining high product and advisory standards.

The competitive strength of the W&W Group lies in its robust brand recognition and its integrated bancassurance approach. This model offers customers a holistic 'four building blocks of modern pension provision': financial security, home ownership, protection against risks, and wealth accumulation.

The company utilizes an omni-channel sales strategy, incorporating a dedicated mobile sales force and digital platforms such as Adam Riese. Ongoing digital transformation initiatives, like 'W&W Besser!', are in place to further enhance operational efficiency and profitability, reinforcing its market presence and customer engagement.

As the number two private home loan and savings bank in Germany, the W&W Group benefits from its integrated bancassurance model. This unique combination of housing finance and insurance services allows for a broad customer reach and a diversified product portfolio, solidifying its significant market standing.

The company faces several risks, including potential capital market volatility, economic downturns, and unforeseen large-scale loss events like severe weather. The German economy's 0.2% GDP contraction in Q1 2025 and global trade uncertainties add to these challenges, alongside rising claims costs, particularly in the automotive sector, which led to premium adjustments in 2024.

Despite challenges, the W&W Group anticipates a significant improvement in consolidated net profit for 2025. This optimism is fueled by a strong start to the year, with new business growth exceeding 10% across most segments by the end of February. Strategic priorities include market share gains, enhancing product and advisory quality, fostering innovation, and improving cost efficiency.

The company is focused on leveraging its integrated model and digital transformation to sustain profitability. The appointment of Matthias Bogk as CFO from July 1, 2025, is part of leadership adjustments. W&W aims to increase net income in its separate financial statements and maintain its reliable dividend policy, adapting to market dynamics with customer-centric solutions.