Overview Key strengths Key risks Membership of the Wuestenrot&Wuerttembergische AG (W&W) bancassurance group provides stability. High dependence on Germany?s residential real estate sector. Strong stand-alone capitalization and good asset quality. The behavior of bauspar customers is very sensitive to interest rate expectations. Very granular and stable retail funding base with stable liquidity buffers. Comparatively low profitability and cost efficiency. The stable outlook reflects our view that W&W?s historically strong performance in property/casualty (P/C) insurance will recover, and the group will cope with potential pressure on earnings from volatility in investment income and claims development. We could lower the ratings over the next two years if, over a prolonged period and contrary to our expectations, W&W cannot: Further improve
