DFV Deutsche Familienversicherung AG

Investor Presentation • Mar 24, 2022

Analyst Conference 2022

2022

DFV Deutsche Familienversicherung AG FRANKFURT/MAIN | 24th March 2022

1. Welcome, highlights 2021 and outlook 2022 Stefan Knoll

2. Group result 2021

Karsten Paetzmann

3. DFV-Strategy 2022

Stefan Knoll

Welcome, highlights 2021 and outlook 2022

• Successful financial year 2021 with 35.3% growth (CAGR* 2018-2021: +33%)
• Market entry Austria, strong property insurance, entry into active reinsurance
• Anticipatory distribution costs continue to characterise the business model

Growth & Business Model Profitability & Professionalism Automation & Strategy

• Important levers of structural profitability identified and realised
• With the group profit before tax of € -0.8 million, the break-even point is within sight

• Increasing professionalism and use of economies of scale

• Transformation projects launched sales, customer service, claims/benefits

• More automation, more innovation, more growth, more customer service
• Five strategic core goals for 2022 defined and operationalised

Karsten Paetzmann CFO

Product mix

GWP, business volume and PBT

Growth drivers in primary insurance

nAdL: nach Art der Lebensversicherung, calculated as life insurance nAdS: nach Art der Schadenversicherung, calculated as non-life insurance CAGR: Compound annual growth rate

Financial performance overview

Statement of comprehensive income

€m	2020	2021	Delta	1 Continued strong growth in 2021 of 35%
				(gross) and 41% (net).
(GWP) Gross written premiums	114 7	155 2	+40 5	2
(NEP) earned Net premiums	61 9	87 4	+25 5	1 Significantly improved income from capital
from capital Income investments	0 9	10 8	+10 0	investments. 2
Other revenue	0 3	1 0	+0 6	3
benefits Insurance	-39 5	-58 3	-18 8	Bridge from 2020 to 2021 : 3
from Expenses insurance operations	-30 2	-37 6	-7 4	4 Insurance benefits (net) 2020 € -39.5m
Other expenses	-3 9	-4 1	-0 2	Growth effect € -16.3m
Operating income	-10 6	-0 8	+9 8	Higher net claims in Dental € -3.9m
				(e.g. Covid -19 hygiene flat rate, increase in fixed allowance, adjusted reserving policy)
for leases Financing expenses	0 0	0 0	+0 0	Other effects €+1,4m
Profit before tax	-10 6	-0 8	+9 8	Insurance benefits (net) 2021 € -58.3m
Income taxes	3 1	-0 9	0 -4
Profit after tax	-7 4	-1 7	+5 7	4 Expenses from insurance operations (net)
				increased by 25% in 2021, significantly
from Unrealised gains and losses capital investments	2 2	-4 1	-6 3	below business volume growth of 41% (net)
Total comprehensive income	-5 2	-5 8	-0 6	in the same period.
				5
(primary only) per policy - annualised GWP in € insurance of staff Average #	207 150	240 178	5	Average GWP per policy grew by 16% in 2021 (2019 for comparison: €177).

Technical result: Property/Casualty, Health nAdS and Inwards Reinsurance

X.X% = Combined ratio gross

Technical result: Health nAdL

X.X% = Combined ratio gross

Claims ratio gross: Without allocation to the actuarial reserve and without allocation to the provision for premium refunds nAdL: nach Art der Lebensversicherung, calculated as life insurance

Income from capital investments

Current revenue from investments in € million

Asset allocation at the end of the period, 2020-2021

Focus on current revenue from investments: The asset allocations implemented in DFV's master funds focus on current revenue. The entry into real estate investments contributes to this.

Security assets Health nAdL (calculated as life insurance): The net interest on capital investments was 2.62% in 2021, compared to 2.50% in 2020.

Net interest on capital investments: Average interest rate acc. to Sec. 19 German Health Insurance Supervision Ordinance (Krankenversicherungsaufsichtsverordnung). Asset allocation: 2020 (inner ring) and 2021 (outer ring; with percentages)

Financial position

Consolidated balance sheet

€m	2020	2021	Delta
Intangible assets	8 8	2 7	-1 7
of for Rights IFRS 16 property pursuant to use	1 4	0 7	-0 6
Investments	135 1	180 8	1 +45 7
Deposits retained assumed reinsurance business on	0 0	9 4	9 +4
Receivables	4 1	8 2	+4 1
bank balances Current	37 8	4 3	2 -33 5
Share of underwriting reinsurers in provisions	55 9	68 1	+12 3
receivables Tax	5 0	8 2	+3 2
Other assets	2 6	1 6	-1 0
Total assets	250 6	284 1	+33 4
underwriting Gross provisions	91 1	123 0	+32 0
Other provisions	3 4	2 1	-1 3
Liabilities	65 3	73 8	+8 5
liabilities Tax	0 0	0 0	+0 0
Total debt	159 8	198 9	+39 2
Equity	90 9	85 1	3 -5 7

The path of the Finance Function in 2021

• Upscaled the Finance Function, incl. Investments, Controlling, Actuarial
• Developed further management information instruments
• Implemented an initial asset liability management (ALM) concept
• Decided on an IFRS 17/IFRS 9 transition plan

Transformation	Regulatory
	• Obtained independent confirmation on DFV's appropriate actuarial approach
	• Aligned the investment strategy with relevant regulatory requirements
	• Refined the process documentation in various areas
	• Implemented an approach anticipating emerging regulatory issues

Regulatory

Shareholder Rights Directive II, transposed at national level (ARUG II)

• Objective: To improve the participation of shareholders.
• Material transactions of a listed company with its related parties (so called Related Party Transactions) require the prior consent of the supervisory board or a committee established for this purpose (Sec. 111b(1) AktG); in force since 2020.

• Listed companies are obliged to prepare a remuneration report, Sec. 162 AktG; for the first time for 2021.

• Objective: To strengthen confidence in the German financial market.

• Regulates the composition of the supervisory board of so called 'companies of public interest': At least one member of the supervisory board must have expertise in the field of accounting and auditing, respectively; applicable for new appointments as of 1 July 2021.
• Mandatory implementation of an audit committee for 'public interest entities'; effective from 1 January 2022.

Corporate Sustainability Reporting (CSR) Directive

• Objective: To contribute to the implementation of the 2015 Paris Climate Agreement.
• Proposal to amend the CSR Directive of April 2021 with an expanded group of reporting entities; integration into the Management Report (Lagebericht) with an audit requirement; expanded scope of application for the first time for 2023.
• The relevant Taxonomy Regulation, specified by delegated act in 2021, must also be taken into account.

Corporate sustainability reporting

• DFV conducted a materiality analysis for the first time in 2021:
• Requirements of the future amended Corporate Social Responsibility (CSR) Directive
• Based on the Global Reporting Initiative (GRI) standard
• Personal interviews and online survey of the stakeholder groups insureds, business partners and employees.
• Materiality of fields of action with regard to DFV's business model.
• Produced the first DFV Sustainability Report, integrated into the 2021 Group Annual Report.

Inflation & interest rates

• Significantly increased inflation rates:
• In operational business, potential impact on growth and policy cancellations as well as on claims/benefits level
• Premium adjustments, prudent reserve policy
• Stronger: Effect on investments, especially bonds
• Mitigating measures in the investment portfolio with respect to inflation and interest rate increases, incl.:
• Investment in inflation-indexed bonds ('linkers')
• Partial hedging of interest rate risk and equity risks via a tactical overlay
• In new capital investments, the initial yields increase – chances of an attractive portfolio return.

Euro Stoxx 50 Volatility Index (European equities) ; Chicago Board Options Exchange Volatility Index (US equities); 50:50 mix of Historic Implied Call und Put 1 month delta 50 Volatility (Bund Future, bonds)

Ukraine war

Source: Bloomberg

• So far moderate impact on DFV's financial position.
• No direct exposure to Russia/Ukraine.
• Volatility in the capital market increased significantly, especially for bonds.
• Sovereign bonds: Moderate, unrealised market value declines due to interest rate rise, partially hedged
• Corporate bonds: Slight spread widening, focus on investment grade
• Equities: Value development due to hedging and tactical quota management with moderate declines
• Real estate: So far no negative impacts, stabilising effect
• Solvency position is currently not critical, due to DFV's robust SCR coverage.

17

Forecast 2022 and summary

• Various challenges mastered 2021 was a successful financial year with 35% growth.
• Important foundations laid for a transformation towards profitability, acknowledging the high degree of regulation in DFV's relevant market.
• DFV's competitive position benefits from the strong growth in Property/Casualty lines and the new Inwards Reinsurance, not giving up the high degree of specialisation.
• 2022 will be marked by further automation initiatives and a repositioning of product distribution.
• Significant further growth potential underpinned by the 2022 forecast with a planned group profit before taxes of €0-1 million.
• The Ukraine war represents a factor of increased uncertainty.

3. DFV-Strategy 2022

Stefan Knoll CEO Even if our share price does not express what we hoped for, we are the only listed InsurTech in Europe and as such the most successful one

Over the past 15 years, we have achieved the following:

• 155.2 million EUR gross written premiums
• 573,981 contracts
• Offer the best health, long-term care and property insurances
• Grow fast and above average
• Are structurally profitable

Strong growth requires permanent stabilisation of the foundation.

DFV as a profitable insurance company

Operating result according to IFRS

Figures in millions	FY 2021
Gross written premiums	€ 155.2	Premiums from
Net earned premiums	€ 88.3	primary insurance and reinsurance
Insurance benefits	€ -51.7	business
Operating result I	€ 36.6
Expenses	€ -17.3	Structural profitability
Operating result II	€ 19.3
Sales expenses	€ -30.9	Growth investments
Operating result III	€ -11.6
Income from capital investments	€ 10.8	Profit before taxes
Operating result IV	€ -0.8

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

The biggest growth in the industry

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

2018 2019 2020 2021

Focus on:

• Online sales,
• DRTV and
• Direct sales

with cross- and up-selling potential

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

66.5

DFV: Growth rate in supplementary health insurance 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 %

* Source: GDV preliminary business figures for 2021, 21.01.2022

The best customer service in the industry

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

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

100,0% % 100.0%	90.0%	95.0%	95.0%
90.0% 90,0% %
80,0% % 80.0%
70,0% % 70.0%
60,0% % 60.0%
50,0% % 50.0%	40.0%	42.0%	44.0%
40,0% % 40.0%
30,0% % 30.0%	18.5%	20.1%
20,0% % 20.0%
10,0% % 10.0%
0.0% % 0,0%
	2019	2020	2021
	DFV: Automation rate supplementary health insurance DFV: Automation rate policy insurance Market**: Automation rate health insurance

Prof. Dr. Knoll (TU Munich)

** Source: Industry data, GDV IT survey 2021

* In supplementary dental and animal health insurance

The best insurance products in the industry

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

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

We are sticking to our goal of profitability!

Otherwise, the following applies for the year 2022:

• Biggest growth
• Best customer service
• Highest automation
• Best Products
• Best online communication

We will be measured against this.

DFV remains exciting – Let's talk about it

	Our next IR events
10	Conference
May 2022	KBW InsurTech Day
18	Webcast
May 2022	Publication quarterly financial report (Q1)
19	Conference
May 2022	Stifel German SMID Cap Forum
25	Virtual event
May 2022	Annual General Meeting