DFV Deutsche Familienversicherung AG

Investor Presentation • May 18, 2022

2022

DFV Deutsche Familienversicherung AG FRANKFURT/MAIN | 18 May 2022

Agenda & welcome

1. Welcome

Stefan Knoll

2. Financial results Q1 2022

Karsten Paetzmann

3. Outlook 2022

Stefan Knoll

Our goal in 2022

DFV will be profitable again in 2022 for the first time after the IPO

• Growth of 37% in gross written premiums in the first quarter of 2022
• Cost savings and efficiency gains through higher scaled business model
• Further innovations in products and processes initiated
• Significant improvement in group profit before tax to EUR 1.4 million (previous year: EUR -0.1 million)
• We reach the profit zone with significant growth in gross written premiums

Karsten Paetzmann CFO

Q1 2022 snapshot

GWP (gross written premiums) and Opex: Change year-over-year Loss ratio: Insurance benefits (net) as percentage of net earned premiums Opex: IFRS expenses from insurance operations acc. to IFRS

Relentless growth momentum

Statement of comprehensive income

			Q1 2022	Q1 2022	Delta
			Inwards	Primary	Primary
€m	Q1 2021	Q1 2022	reinsurance	insurance	insurance
(GWP) Gross written premiums	33 0	3 45	9 0	36 3	+3 3
(NEP) earned premiums Net	0 17	29 5	9 0	20 5	+3 5
from Income capital investments	0 5	1 9	0 0	1 9	+1 3
Other revenue	0 0	0 2	0 1	0 1	+0 1
benefits Insurance	-10 7	-20 2	-6 6	-13 6	-2 9
from Expenses insurance operations	-6 0	-9 0	-2 4	-6 6	-0 5
Other expenses	-0 9	-1 0	0 0	-1 0	-0 1
Operating income	-0 1	1 5	0 2	1 3	+1 4
for leases Financing expenses	0 0	0 0	0 0	0 0	+0 0
Profit before tax	-0 1	1 4	0 2	1 3	+1 4

GWP in the primary insurance business increased by 10% in Q1 2022 while the respective NEP grew by 21%.

Insurance benefits in primary insurance rose by 27% year-over-year. This increase was stronger than the NEP growth in the same period, resulting in a net claims ratio of 66.4%, compared to 63.2% in Q1 2021.

The total net claims ratio (including the inwards reinsurance business) amounted to 68.3% in Q1 2022.

Investments and cost cutting as a profit driver

Optimising the growth trajectory

CAC spending: Under IFRS 4, the CAC are recorded in the profit and loss account in the period of acquisition (except for products that allow for a deferral of expenses over the duration of the insurance contract acc. to Sec. 25(1) RechVersV).

Growth potential: In addition to acquiring new business and to cross-selling to existing customers, the increase of revenue (GWP) per contract is an important driver of DFV's growth trajectory. It may reflect up-selling initiatives.

CAC: Customer acquisition cost before personnel expenses, expressed as a multiple of the monthly premium of the acquired insurance contracts RechVersV: Versicherungsunternehmens-Rechnungslegungsverordnung (German Regulation on the Accounting of Insurance Undertakings)

Innovation as a driver of growth and profit

DFV repositions its innovation operating model—from developing capabilities that improve core operations to seeking more disruptive opportunities outside the core product offering

Summary and outlook

• Continued strong GWP growth +37% year-over-year due to new inwards reinsurance
• Positive group profit before tax of €1,4 million
• Significantly improved investment income
• Measures to address the loss ratio development are being installed
• Cost cutting initiatives are effective already
• Projects to accelerate process automation and to sharpen DFV's go-to-market are being implemented
• Burdens related to Covid-19 and the Ukraine war are well manageable due to DFV's stable market position and the digital business model
• The planned positive group profit before tax for 2022 of approx. €0-1 million is confirmed

3. Outlook 2022

Stefan Knoll CEO

DFV as a profitable insurance company

Operating result Q1 2022

Figures in millions	Q1 2022
Gross written premiums	€ 45.3	Premiums from
Net earned premiums	€ 29.7	primary insurance and reinsurance
Insurance benefits	€ -18.1	business
Operating result I	€ 11.5
Expenses	€ -8.3	Structural profitability
Operating result II	€ 3.3
Sales expenses	€ -3.8	Growth investments
Operating result III	€ -0.5
Income from capital investments	€ 1.9	Profit before taxes
Operating result IV	€ 1.4

In order to further develop Deutsche Familienversicherung, we have launched Project 22 and have already been implementing it since calendar week 2.

Biggest growth in the industry

The biggest growth in the industry

DFV has been growing far above the market average since the IPO

Focus on:

• Direct sales,
• Online sales and
• DRTV

0%

20%

40%

60%

80%

100%

120%

DFV: Gross written premiums in million EUR Market*: Annual growth rate in %

DFV: Annual growth rate in % Market: Growth rate P&C insurance in %

DFV: Growth rate P&C insurance in % Market: Growth rate supplementary health insurance in %

DFV: Growth rate in supplementary health insurance in %

* Source: GDV preliminary business figures for 2021, 21.01.2022

** Inwards reinsurance

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

180,0

Growth by expanding DFV's strengths

More online, more cost-efficient, more channels

≤ 12 MP

Best customer service in the industry

The best customer service in the industry

Transparency in customer satisfaction through hard-hitting evaluations of our customers and not through soft seals

Good ratings are not good enough for us

Increasing the satisfaction of our customers

3. Implementation of the Net Promoter Score

Net Promoter Score

The goal is to achieve a net promoter score significantly above the market average.

The market average net promoter score in 2021 is 18 points.

Highest automation rate in the industry

The highest automation rate in the industry*

One step ahead of the industry in automation - almost 100 percent automatic policing

Increasing automation rate of claims processing in supplementary health insurance - already at 55% for dental insurance

* In supplementary dental and pet health insurance

** Source: Industry data, GDV IT survey 2021

Leading the way with more technology

Increasing the rate of automation and setting the pace for new technology

Prof Dr Knoll (TU Munich)

Best products in the industry

The best insurance products in the industry

Multiple test wins for excellent product quality and launch of new products in 2022

Even more test wins and new products

Guaranteed benefits Simple. Sensible.

Best online-communication in the industry

The best online communication in the industry

Mobile First for real-time requests and 24/7 accessibility with the best chatbot* without paper and telephone as regular communication

* Study conducted by Aalen University: https://www.hs-aalen.de/de/news/3623

Example: Decrease in telephony incl. claims/benefits

Jan 21	Feb 21	Mrz 21 Mar	Apr 21	Mai 21 May 21	Jun 21	Jul 21	Aug 21	Sep 21	Okt 21 Oct 21	Nov 21	Dez 21 Dec 21	Jan 22	Feb 22	Mrz 22 Mar 21	Apr 22

Summary

We are sticking to our goal of profitability!

Otherwise, the following applies for the year 2022:

• Biggest growth in the industry
• Best customer service in the industry
• Highest automation in the industry
• Best Products in the industry
• Best online communication in the industry

We will be measured against this.

DFV remains exciting – Let's talk about it

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