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DFV Deutsche Familienversicherung AG
Investor Presentation • Mar 18, 2021
116_ip_2021-03-18_c774811e-0f32-4bae-a898-f761f2280e17.pdf
Investor Presentation
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Annual results press conference 2021
DFV Deutsche Familienversicherung AG FRANKFURT/MAIN | 18 March 2021
Preliminary remark
Agenda
1. Annual results 2020
Dr Stefan M. Knoll & Dr Karsten Paetzmann
2. Current business performance & outlook 2021
Dr Stefan M. Knoll
3. Questions
Dr Stefan M. Knoll & Dr Karsten Paetzmann
We essentially confirm the figures published on 21.01.2021.
We are on target:
| Month | January 2021 |
Februar 2021 |
March (17.03.2021) |
|---|---|---|---|
| New policies | 9,200 | 16,162 | 20,475 |
| Premiums in € million |
3.2 | 5.5 | 6.9 |
Our sales model is proving its worth in the pandemic.
For the 6th time in a row, we have become the test winner in supplementary dental insurance!
We are the original and anyone who copies from us will also be a test winner!
Welcome Dr Karsten Paetzmann!
For the presentation of the 2020 figures in detail, I hand over to the new CFO of Deutsche Familienversicherung.
Dr Karsten Paetzmann
Premium development of selected products in a pandemic year
Well protected:
Our premium income from private liability insurance increased by 37% in 2020.
Development of product mix
Portfolio and new business development
Stable operating result of the digital business model
SCR coverage ratio
The result is in line with the planned development and is characterised by further investments in growth that will have an impact on the result
Consolidated statement of comprehensive income
Consolidated statement of comprehensive income
| €m | 2019 | 2020 | Delta | in % |
|---|---|---|---|---|
| Gross premiums written |
90.9 | 114.7 | +23.8 | +26% |
| Net earned premiums |
54.4 | 61.9 | +7.5 | 14% |
| Investment income | 3.4 | 0.9 | -2.5 | -75% |
| Other income | 0.6 | 0.3 | -0.3 | -48% |
| Claim payments |
-33.0 | -39.5 | -6.6 | 20% |
| Expenses for insurance operations |
-25.4 | -30.2 | -4.8 | 19% |
| Other expenses | -5.3 | -3.9 | +1.3 | -25% |
| Operating income |
-5.2 | -10.6 | -5.4 | 103% |
| Financing expenses for leases |
0.0 | 0.0 | -0.0 | 2% |
| Annual profit before income taxes |
-5.2 | -10.6 | -5.4 | 103% |
| Income taxes | 3.1 | 3.1 | +0.0 | 1% |
| Annual income | -2.1 | -7.4 | -5.3 | 254% |
| Unrealised gains and losses from capital investments |
1.5 | 2.2 | +0.8 | 53% |
| Total other comprehensive income |
-0.6 | -5.2 | -4.6 | 721% |
| Number of contracts at the end of the period | 514,104 | 553,447 | ||
| Change in number of policies compared to previous period | 59,140 | 39,343 | ||
| New business in policies |
100,034 | 90,389 | ||
| Cancellation/attrition in policies |
-40,894 | -51,046 | ||
| Gross written premium per unit in € |
177 | 207 | ||
| Average number of employees |
122 | 150 |
| AG result 2020 before taxes |
HGB €-9.7m |
|---|---|
| Expense capital increase |
€1.2m |
| Elimination HGB investment result |
€-3.3m |
| IFRS fund result before costs | €1.3m |
| Elimination change in |
€-0.1m |
| equalisation reserve |
|
| Other result incl. subsidiaries |
€-0.1m |
| Group result 2020 before taxes |
IFRS €-10.6m |
Capital investments
Underwriting provisions
| Development of underwriting provisions |
provisions for contingent losses of €550,000. |
|||
|---|---|---|---|---|
| €m | 2019 | 2020 | Delta | in % |
| Unearned premiums |
3.0 | 3.3 | +0.4 | +13% |
| Actuarial provisions |
51.1 | 70.7 | +19.6 | +38% |
| Provisions for outstanding claims | 13.0 | 14.8 | +1.8 | +13% |
| Other underwriting provisions |
1.5 | 2.3 | +0.7 | +50% |
| Gross underwriting provisions |
68.6 | 91.1 | +22.5 | +33% |
| Share of reinsurers |
-40.5 | -55.8 | -15.3 | +38% |
Includes new actuarial
Claims ratio by product Acturial reserves within the scope of the ageing provision pursuant to § 341f (3) HGB. 61% 67% 76% 47% 39% 60% 50% 63% 65% 49% 77% 66% 56% 14% Gesamt Zahn andere Kranken nAdS Pflege andere Kranken nAdL Tier Sonst. Sach 2019 2020 Total Dental LTC Other health Animal Other P&C insurance by type of life insurance Other health insurance by type of non-life insurance
Net underwriting provisions 28.1 35.3 +7.2 +26%
Share of reinsurers in % 59% 61%
Effect of the zillmerised gross actuarial reserve in € million
Claims ratio: net claims/benefits in relation to net premiums earned
Consolidated balance sheet
Consolidated balance sheet
| €m | 2019 | 2020 | Delta | in % |
|---|---|---|---|---|
| Intangible assets |
8.7 | 8.8 | +0.2 | +2% |
| Rights of use IFRS 16 | 2.1 | 1.4 | -0.7 | -33% |
| Capital investments | 121.7 | 135.1 | +13.3 | +11% |
| Receivables | 5.3 | 4.1 | -1.1 | -21% |
| Current bank balances | 3.8 | 37.8 | +34.0 | +904% |
| Share of reinsurers in underwriting provisions |
40.5 | 55.9 | +15.4 | +38% |
| Tax receivables |
5.9 | 5.0 | -0.8 | -14% |
| Other assets | 2.8 | 2.6 | -0.2 | -7% |
| Total assets | 190.6 | 250.6 | +60.0 | +31% |
| Gross underwriting provisions |
68.6 | 91.1 | +22.5 | +33% |
| Other provisions | 3.4 | 3.4 | +0.1 | +2% |
| Liabilities | 50.3 | 65.3 | +14.9 | +30% |
| Tax liabilities |
3.8 | 0.0 | -3.8 | -100% |
| Total liabilities | 126.1 | 159.8 | +33.7 | +27% |
| Equity capital | 64.5 | 90.9 | +26.4 | +41% |
Equity 2018 retroactively adjusted in accordance with FREP findings (redistribution within equity). Reconciliation 2019-2020 :
| Equity capital 2019 |
€64.5m |
|---|---|
| Capital increase | €32.4m |
| Capital increase costs |
€-0.8m |
| Consolidated P&L result |
€-7.4m |
| Other comprehensive income |
(OCI) €2.2m |
| Equity capital 2020 |
€90.9m |
FREP findings
The FREP has determined that the 2018 consolidated financial statements and management report are incorrect. Regarding the costs of the IPO, the BaFin's order for disclosure reads :
"In the consolidated income statement for the financial year 2018, the consolidated profit before tax is overstated because costs related to the IPO in December 2018 were deducted directly from equity as transaction costs (IAS 39.9 - Transaction Costs) rather than as expenses. [...]
In addition, the other comprehensive income of around € 2.5 million is too low because the costs of the IPO of € 3.6 million less tax effects of € 1.1 million, which were offset in equity, were included in it. This violates IAS 1.109 .
The statement of changes in equity of the transaction costs deducted directly from equity as a separate component of equity also contravenes IAS 1.106 (d) (iii) in conjunction with IAS 1.109."
The correction is made in the current account by adjusting the previous year's figures see chapter 2 of the notes to the consolidated financial statements 2020.
In the HGB financial statements 2018, the expenses were already recognised in profit or loss
2. Current business performance & outlook 2021
Dr Stefan M. Knoll
For the 6th time in a row, we have become the test winner in supplementary dental insurance!
We are the original and anyone who copies from us will also be a test winner!
We have repeatedly been recognised as an innovative company!
In a large-scale survey, the broadcaster "Welt" and the analysis and consulting company "Service Value" investigated which companies stand out for their particularly high innovative strength. Deutsche Familienversicherung was awarded the title "Highest Innovative Strength" as the No. 1 direct insurer in the industry.
The year has started well
On average approx. 1,800 new contracts per week
New business development since 01.01.2021 until 17.03.2021
The 1st quarter of 2021 has been developing satisfactorily so far against the backdrop of the Corona pandemic.
Since the beginning of the year, we have generated an average of 1,800 new contracts per week and with an average premium of € 606 thousand.
We are on track
First-class sales: Fully digital. Fully simple.
| Target | Actual | ||||
|---|---|---|---|---|---|
| Year | 2018 | 2019 | 2020 | 2021 (02/21) | 2021 (02/21) |
| Number of policies |
55,227 | 100,034 | 90,389 | 16,666 | 16,162 |
| Premiums in €m |
17.6 | 29.9 | 29.3 | 5.0 | 5.5 |
We are on schedule
With regard to internationalisation:
We will enter the Austrian market at the end of the second quarter.
With regard to the global product:
- Work on a combined insurance product is progressing well.
- The design of the savings product has started with Ethenea.
- The new combined insurance product will be available for sale in the second quarter.
- The savings component will follow.
Despite the the successful start to 2021, the economic and political development in Germany may cause concern:
We assume the following development of the Coronavirus pandemic:
- Increase in Coronavirus incidence to 300 by Easter.
- No substantial mitigation of the lock-down through vaccination.
Based on this, there is a risk that the economic framework conditions will develop as follows:
- Continuation of the ECB's zero interest rate policy
- Rise in unemployment
- Increase in corporate bankruptcies
- Reduction in economic output
- Increase in debt at all levels of government
- Further burden on society and state budget due to demographic development
In this context, the development of the situation must be closely monitored and we should be open to the question of whether ambitious growth should be replaced by only dynamic growth.
It may be that keeping corporate assets together becomes the order of the day.
Mind you, we are discussing this from the position of a successful sales organisation.
3. Questions
Thank you for your attention!
Dr Stefan M. Knoll CEO
Your contact:
Lutz Kiesewetter Head of IR & PR +49 (0)69 / 74 30 46 396 [email protected]
Dr Karsten Paetzmann CFO
Our next IR dates:
| 24/03 | Metzler Micro Cap Days |
|---|---|
| 12/05 | Q1 results 2020 |
| 19/05 | Annual General Meeting |
| 21/05 | German SMID Cap One-on-One Forum |
