W&W's cautious 2026 forecast sends share price tumbling 6%
Wüstenrot & Württembergische (W&W) has set modest financial targets for the coming years, disappointing investors. The company's share price fell by nearly 6% to €14.40 after announcing its 2026 outlook. Despite strong growth in some areas, the cautious forecast has raised concerns. W&W reported a net profit of €121 million for 2025, more than triple the €35 million recorded in 2024. This sharp increase partly reflects a recovery from unusually high storm damage losses the previous year. However, the company's dividend remained unchanged at €0.65 per share, leaving income-focused investors without the expected boost.
The insurer's mortgage loan portfolio grew by around 6% to €30.1 billion. In property and casualty insurance, new and renewal business climbed by 8.3% to €472 million, driven by motor and private customer demand. Wüstenrot's building savings division also performed well, with gross new business rising to €11.07 billion and market share nearing 18%.
Looking ahead, W&W expects group net income of between €120 million and €150 million for 2026—a figure close to its 2025 result. The company acknowledged that meeting this target depends on factors beyond its control, such as claims trends and interest rates. By 2030, it aims for net income of between €220 million and €250 million. W&W's conservative 2026 outlook has led to a drop in its share price. While the company has shown growth in key areas, its cautious approach contrasts with analyst expectations. The coming years will test whether its long-term targets can be met amid uncertain market conditions.
