KORNWESTHEIM (dpa-AFX) - High insurance claims have caused a slump in profits for the financial group Wüstenrot & Württembergische (W&W) in the past year. Consolidated net income plummeted by around 41 percent to 140.5 million euros, as the SDax-listed company announced in Kornwestheim on Wednesday. The Management Board had already lowered its profit forecast in the fall. The outlook for the current year is also bleak: although the Management Board expects a higher profit than in 2023, the result is likely to be below the medium to long-term target range of 220 to 250 million euros, according to the annual report.

Last year, W&W's profit fell in all three segments. The residential segment, which includes home loan and savings contracts and construction financing, generated eleven percent less than in 2022; in personal insurance, the decline amounted to 35 percent. In the property and casualty business, the severe storms from the summer and an increase in motor vehicle claims left a clear mark: the profit for the segment slumped from around 130 million to just 8 million euros.

Since 2023, large insurers have been calculating their business figures in accordance with the new IFRS 17 and IFRS 9 rules. The previous year's figures have been adjusted accordingly.

Shareholders should not suffer despite the decline in profits: W&W intends to pay an unchanged dividend of 65 cents per share for 2023./stw/jha/