DFV Deutsche Familienversicherung AG: Release according to § 109 Paragraph 2 Sentence 1 WpHG

DGAP-News: DFV Deutsche Familienversicherung AG / Key word(s): Miscellaneous DFV Deutsche Familienversicherung AG: Release according to § 109 Paragraph 2 Sentence 1 WpHG 01.02.2021 / 18:10 The issuer is solely responsible for the content of this announcement. DFV Deutsche Familienversicherung AG Frankfurt / Main Release according to § 109 Paragraph 2 Sentence 1 WpHG The German Financial Reporting Enforcement Panel (FREP) has determined that the consolidated financial statements of Deutsche Familienversicherung AG, Frankfurt am Main, as at 31 December 2018 and the group management report for the 2018 financial year are incorrect: I. Costs of the IPO In the consolidated income statement for the 2018 financial year, the consolidated income before tax is overstated, as costs in connection with the IPO in December 2018 were not deducted as expenses, but directly deducted from equity as transaction costs (IAS 39.9 - transaction costs). Approximately EUR 0.8 million of these costs were costs that did not meet the requirements of IAS 32.35 and IAS 32.37 for recognition directly in equity, of which EUR 0.6 million related to the issue of employee shares. Of the other costs of EUR 2.8 million, approximately EUR 2.2 million relate to both the issuance of 3.8 million new shares and the initial listing of 9.0 million existing shares. These costs of EUR 2.2 million are attributable to both the equity raising and the IPO as a whole as two transactions that are independent of each other in terms of cost allocation. As these costs were not allocated to the two transactions on the basis of an appropriate distribution and were therefore not recognised proportionately as expenses, there is a violation of IAS 32.35 and IAS 32.38. In addition, the other income of approximately EUR 2.5 million is too low, because the costs of the IPO of EUR 3.6 million less tax effects of EUR 1.1 million, which were recognised in equity, were included. This violates IAS 1.109. The presentation in the statement of changes in equity of the transaction costs deducted directly from equity as a separate equity component also contravenes IAS 1.106 (d) (iii) in conjunction with IAS 1.109. II. Tax Reconciliation The tax reconciliation reported in the notes to the consolidated financial statements for the 2018 financial year does not explain the difference between the expected tax income of EUR 1.3 million and the tax income of EUR 0.8 million reported in the income statement, as the only significant reconciling items ("Capitalisation of loss carryforward" of EUR 1.8 million and "offsetting effect from the treatment of IPO costs not recognised in profit or loss" of EUR 1.2 million) cannot lead to such a difference and instead the difference of EUR 0.6 million essentially results from tax expenses unrelated to the accounting period. A correct determination of the tax income shown in the profit and loss statement according to IAS 12.58 could therefore not be proven on the basis of the tax reconciliation. This violates IAS 12.81 (c) in conjunction with IAS 1.17 (b). III. Disclosures on changes in estimates in the notes to the consolidated financial statements and the group management report In the notes to the consolidated financial statements for the 2018 financial year, the effects on income before tax of the model change made to estimate the provisions for unknown losses incurred but not reported in the amount of approximately EUR 0.8 million, which corresponds to approximately 20% of income before tax, were not quantified. In the 2018 group management report, the analysis of business performance and position also does not address how the model change had a material impact on the business result. This violates § 315 para. 1 sentence 1 of the German Commercial Code (HGB). Contact: Lutz Kiesewetter Head of Investor Relaations & Corporate Communications Telefon: [phone] Telefax: 069 74 30 46 46 E-Mail: [e-mail] 01.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language:	English
Company:	DFV Deutsche Familienversicherung AG
	Reuterweg 47
	60323 Frankfurt/Main
	Germany
Phone:	069 74 30 46 396
Fax:	069 74 30 46 46
E-mail:	[e-mail]
Internet:	www.deutsche-familienversicherung.de
ISIN:	DE000A2NBVD5
WKN:	A2NBVD
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	1164959

End of News	DGAP News Service

1164959  01.02.2021