DFV Deutsche Familienversicherung AG

FRANKFURT/MAIN | 12 November 2020

The leading InsurTech in Europe

I would like to start my presentation of the 9M results with a question: What do you think about a company with these figures?

Growth rate

Share price

+ 100%

FY 2017FY 2018FY 2019plan FY 2020IPOActual

Profitability

Revenue / Number of employees

Premium volume in € million

Employees

FY 2018

FY 2019

plan FY 2020

plan FY 2021

FY 2017

FY 2018

FY 2019

plan FY 2020

plan FY 2021

plan FY 2022

2

If you answer is that a company like this worth to invest,

please do it, it's Deutsche Familienversicherung!

Premium volume in € million

Share price in €

€ 26.00

+ 100%

€ 19.00

€ 20.00

125.0

101.2

€ 17.00

72.9

76.0

€ 12.30

€ 9.90

FY 2017

FY 2018

FY 2019

plan FY 2020

IPO,

Actual,

Dec 2018

Nov 2020

EBIT in € million

Revenue / Number of employees

Premium volume in € million

Employees

200

125

101

70

116

175

180

111

FY 2017

FY 2018

FY 2019

plan FY 2020 plan FY 2021

plan FY 2022

FY 2018

FY 2019

plan FY 2020

plan FY 2021

3

What we have achieved in the first 9 months 2020

Our highlights at a glance

+ 67,285

+ 227%

+ 27.1%

+ €22.3m

new contracts

increase in P&C

increase in gross

new premium

business line

premiums written

volume

€120.3m

61.2%

€134.6m

402%

premium volume

claims ratio

financial

Solvency II ratio

investments

4

And …

  • Realisation of CareFlex
  • Realisation of IT outsourcing
  • Recruitment of 60 new employees
  • New structure of financial department & capital investment
  • Successful capital increase

5

Insurtech peer group

strong in comparison

6

Leading by existing business

Leading almost all categories

DFV AG Neodigital Element

wefox group**

Ottonova

Lemonade

Root

Contracts per employee**

4,099

4,048

4,301

2,500

2,290

332

160

620

312

28

n.a.

6

n.a.

48

FY 2018

FY 2019

Germany

USA

Germany

USA

  • The figures based on publicly available sources believed to be reliable. DFV AG has checked the information for plausibility but not for accuracy or completeness.
  • OneInsurance belongs to the wefox Group and has just 13 employees. The rates contracts per employee and gross written premium per employee take the numberof employees from wefox into account, because OneInsurance belongs to wefox group. Gross written premium and number of contracts refers to OneInsurance.

Gross premiums written in €m**

379.4

66.5

89.5

90.9

103.6

41.1

1.9

4.25

6.6

3.6

0.06

0.03

0.7

1.0

FY 2018

FY 2019

Germany

USA

Germany

USA

Gross premiums written per employee in €** 745,163

599,297

421,555

350,918

371,225

13,472

127,857

38,288

33,809

59,000

13,280

2,503 612 1,951

FY 2018

FY 2019

Germany

USA

Germany

USA

7

The first real comparison with a listed InsurTech peer

9M 2020

Premium volume

in €m

Customer/contract base

first 9 months 2020

Net income

in €m

€

Valuation

in €m

120.3

161.4*

x 1.3

548.284

941.313

x 1.7

-4.7

-75.5

x 16

~300

~3,160

x 10

* The "In-force premium" of Lemonade is used to compare the premium volume of DFV.

8

The reported figures are the 9M 2020 results. Lemonade published its figures on 11th of November. They are available on: https://s24.q4cdn.com/139015699/files/doc_downloads/2020/11/Q3-2020-Shareholder-Letter.pdf

Highlights 9M 2020

Strong performance in a challenging environment

9

Growth between 19 and 27 percent

  • Hardly any COVID-19 impacts thanks to strong online sales and substantially more business in the property insurance segment
  • New business achieves premium volume of € 22.3m in the first nine months of 2020 as planned
  • Gross premiums written increased significantly by 27.1%, to reach € 83.5m
  • Premium volume up by 18.9%, to € 120.3m

10

Premium volume increased by € 24.5m since 9M 2019

Excellent new business despite COVID-19

Premium volume in €m

New business in contracts

+ € 24.5m (20.4%)

100,034

120,3

101

95.8

70,539

67,285

75.7

55,227

FY 2018

9M 2019

FY 2019

9M 2020

FY 2018

9M 2019

FY 2019

9M 2020

11

Despite COVID-19 strong online sales

Outstanding performance because of our proven scalable sales channels

New business (contracts) by product category 9M 2020

1,134

778 589

456

2,295

183

New business (contracts) by sales channel 9M 2020

3,333

3,674

159

1,026

+ 13.7%

1.5%

5,005

67,285

new 34,170

7,777

67,285

new

increase in

11.6%

5,653contracts

9,856

dental care

pet health insurance

inpatient care

liability insurance

sick-pay care

travel care

long-term care

accident insurance

animal holder liability

household insurance

Combi P&C

outpatient care

legal insurance

contracts

online sales

58,482

compared to

86.9%

9M 2019

Google, Bing, DRTV, Direct

Broker

Cooperations

12

Gross premiums written increased by 27.1 percent in 9M 2020

Fullfilling our promises

Gross premiums written in €m

New business in contracts, premiums in €m

Total

Supplementary health

P&C

Contracts

Premiums

90.9

85.0

100,034

83.5

77.4

66.5

65.7

70,539

67,285

62.0

61.3

29.9

55,227

22.8

22.3

17.6

4.5

5.9

4.4

6.1

FY 2018

FY 2019

9M 2019

9M 2020

FY 2018

FY 2019

9M 2019

9M 2020

Claims ratio in %

Combined ratio in %

60.5

61.2

61.2

DFV target

102.6

105.7

106

DFV target

56

corridor of

98

corridor of

60%-70%

90%-110%

FY 2018

FY 2019

9M 2019

9M 2020

FY 2018

FY 2019

9M 2019

9M 2020

13

Further key financial figures

Solvency ratio in %

Financial investments in €m

469

119.6

122.5

134.6

402

90.1

248

264

DFV Target

Corridor of

180%-220%

FY 2018

9M 2019

FY 2019

9M 2020

FY 2018

9M 2019

FY 2019

9M 2020

Number of employees

Personnel costs in €m

166

9.1

9.4

8.25

122

111

116

6.6

FY 2018

9M 2019

FY 2019

9M 2020

FY 2018

9M 2019

FY 2019

9M 2020

14

Investing in our growth, profitable in our core business

Underwriting result according to HGB

Premiums

9M 2020

Gross premiums written

€ 83,280,517

Claim payments to customers

€ -45,995,132

(inlcs. claims settlement costs)

Underwriting result I

€ 37,285,384

Costs

(without claims settlement,

€ -17,299,457

without sales costs)

Underwriting result II

€ 19,985,928

Sales expenditures

€ -26,827,030

Underwriting result III

€ -6,841,102

Financial investments (costs)

€ -49,036*

Underwriting result IV

€ -6,890,138

Premium volume to sales costs (planning)

2 : 1

3 : 1

5 : 1

CareFlex

125

101

75

30

30

30

FY 2019

FY 2020

plan FY 2021

Premium volume in €m

Sales costs in €m

We are reaching the profit zone

With a ratio of 4 : 1 or higher an insurance company should be profitable.

15

*without realisation of investment income

Financial investments

in a challenging environment

16

A word about financial investments

  • Deutsche Familienversicherung manages assets of around € 140m. These are divided into free assets and guarantee assets.
  • While the free assets are fed by the equity capital of the company and its economic surpluses, the guarantee assets are formed by provisions from health insurance premiums, which are calculated like for type of life insurance.

Equity capital and surpluses

Free assets:

€ 60,720,076 Guarantee assets: € 73,908,674

Premium reserves like for type of life insurance

17

Guarantee assets are more aggressively geared to generating returns

Example: CareFlex

  • All products alike of life insurance include a calculated actuarial interest rate. For Deutsche Familienversicherung, this averages 1.85%. Overall, Deutsche Familienversicherung must generate an actuarial corporate interest rate (ACR) of 2% in its guarantee assets.
  • Various investment options are available for this purpose, which the company is basically free to choose, but must back the investment-specificrisk with solvency capital.
  • Due to the required earning of an ACR of 2 %, the guarantee assets are more aggressively geared to generating returns.

Asset class

Solvency II-stress

Government bonds

0%

Equities

39%

Real estate

31%

Corporate bonds

A

11%

BBB

15%

BB

12%

B

16%

CCC

20%

NR

32%

18

New structure of the finance department

As of January 1, 2020, Dr Knoll additionally became CFO of the company

  • Implementation of new reporting system

Restructuring of the financial investments

CFO

Recruitment of open key positions:

IRCF

Financial

planning

  • CFO
    • IRCF
    • Head of Financial Investments
    • Head of Financial Technology
  • Realisation of capital increase

Financial

investmentsAccounting

Financial

Technology

19

Successful capital increase and IR-activities

Despite COVID-19 crisis

Shareholder structure pre capital increase

Shareholder structure post capital increase

Current Research

6.77%

14.28%

11.95%

23.16%

26.09%

Research

Analyst

Date

Recommendation

Target

9.56%

Berenberg

Gerhard Orgonas

6 Nov 2020

Buy

€ 30,00

Pesarini

Freefloat

Buy

SK Beteiligungen (Dr. Knoll)

Hauck & Aufhäuser

Christian Salis

2 Nov 2020

€ 30,00

Pesarini

A. Vogel

SK Beteiligungen (Dr. Knoll)

15.71%

E. + N. Vogel

MainFirst

René Locher

15 Oct 2020

Buy

€ 30,00

A. Vogel

VPV

Freefloat

9.56%

E. + N. Vogel

Buy

Ethenea

VPV

FMR

Enid Omerovic

13 Aug 2020

€ 30,00

21.39%

21.06%

Bankhaus Metzler

Jochen Schmitt

12 Oct 2020

Buy

€ 24,20

10.51%

19.45%

10.51%

Capital increase within one day

Gross proceeds of around € 32m

No correction of guidance despite COVID-19 crisis

Increasing of Freefloat to 26.09%

20

Outlook

Entering a new dimension

21

Growth, growth, growth

CareFlex

New risk carriers

Europe

P&C

Health

Life

22

DFV and CareFlex

Unique in Germany and Europe

approx.1,900

approx. 5,000

holdings

companies

€ 33.65

435,000

145,000

tariff-payed employees

non-tariff employees

We expect 500,000 contracts

* For the services & IT service provider role in the consortium, DFV AG receives additional fees.

Consortium

  • 11.78
    35%

Service

  • IT-provider*

23

Founding new risk carriers

Our milestones to broaden product range and to enter European markets

Plan 2021

Insurance Holding

Staff Unit

Claim settlement

Service

DFV

IT

Sales

Health

P&C

Life

P&C Health

Our timeline

Entering

Founding

Introducing

Founding European markets

Founding

life insurer*

P&C insurer*

All-In-Finance-

health insurer*

Solution

20202021

Life

*Application to be submitted in 2020.

24

Outlook - Accelerated and profitable growth

2019

Guidance

Targets

2020

2021

Customers/

514,104

570,000

1,100,000

Contracts

Premium volume

€ 101m

>€ 125m

>€ 200m

EBIT

€ -5.2m

€ -9m to € -11m

profitable

Mid-Term

Targets

2,000,000

€ 500m

EBIT margin

> 10%

25

Summary

26

We promise and we deliver - Fully on track

  • Annual operating targets for 2020 affirmed
  • CareFlex - implementation on track
  • Founding new risk carriers - on track
  • European market entry - on track

27

Looking forward to your questions!

Dr Stefan M. Knoll

CEO & CFO

Your contact:

Lutz Kiesewetter

Head of IR & PR

+49 (0)69 / 74 30 46 396 lutz.kiesewetter@deutsche-familienversicherung.de

Our next IR dates:

16/11 Deutsches Eigenkapitalforum

24/11 Virtual Roadshow with Berenberg

2021

21/01 "One more step" - Capital

markets day

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Disclaimer

DFV Deutsche Familienversicherung AG published this content on 12 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2020 10:06:02 UTC