DFV Deutsche Familienversicherung AG

Investor Presentation • Sep 25, 2020

The leading InsurTech in Europe

DFV Deutsche Familienversicherung AG FRANKFURT/MAIN | 25 September 2020 Baader Investment Conference

I would like to start my short speech with a question: What do you think about a company with these figures?

If you answer is that a company like this worth to invest, please do it, it's Deutsche Familienversicherung!

The first digitalised insurer on the German market

• A worldwide leading InsurTech
• Mixed property and health insurance company
• Listed on Frankfurt stock exchange (Prime Standard)

DFV growth history

We started as a P&C insurer and developed to a fully digitalised InsurTech with

Management team with 90 years insurance experience

Dr. Stefan Knoll Founder, CEO & CFO

Assessor jur. PhD in insurance law

Career

• 2007 | Deutsche Familienversicherung AG
• 2000 2005 | SNT Deutschland AG
• 1994 2000 | DIATEL DIREKT

Responsible for:

Finance, Corporate Communications, Investor Relations, Legal, Human Resources

Stephan Schinnenburg CSO

Insurance salesman

Career

• 2014 2018 | Member of Board ERGO & ERGO Life
• 2010 2014 | Managing Director, Morgen & Morgen
• 2008 2009 | CEO & Principal Authorised Representative, Hartford Life Ltd.

Responsible for:

Sales, Product Development, Marketing, Customer Service, Operations

Marcus Wollny CIO

Health insurance business economist

Career

• 2015 2018 | Principal Authorised Representative, Deutsche Familienversicherung
• 2013 2015 | Chief of staff, Deutsche Familienversicherung
• 2013 2015 | Head of Department, KKH Kaufmännische Krankenkasse

Responsible for:

IT-Infrastructure, IT-Applications, Claims and Benefits, Auditing

Leading InsurTech

Playing in the champions league for new business

in 2019(1) DFV AG in the top group for customer growth
Company	Customer growth	Employees	Customers	Foundation
	95,000(2)	14,600	1,163,000	1922
	71,400	15,771	2,100,000	1890
	67,528(3)	122	514,000(4)	2007
	52,300	./.	1,656,582	1984
	43,000	1,914	1,292,000	1904
	35,000	493	488,000	1820
	21,000	4,315	618,013	1935
	20,000	15,610	2,530,000	1905
	14,191(5)	1,441(5)	1,238,369(5)	1875
	10,800	./.	3,521,000	1927
	- 5,200	9,038	928,000	1839
	-9,500	7,329(5)	1,907,000	1907

One of the top 3 German insurance companies regarding new business in the supplementary health insurance market.

1: The figures are based on publicly available sources and reflect the lines of business of supplementary health insurance benefits. DFV AG has checked the sources for plausibility, but does not accept any responsibility for their accuracy and completeness.

2: These figures include an increase of 1.9% in the number of insured persons in full health insurance.

3: According to DFV Annual Financial Report 2019 (IFRS), p. 19

4: Including the property insurance contracts.

5: Figures refer to the year 2018.

Leading by existing business

Leading almost all categories

Gross premiums written in €m**

* 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.

Contracts per employee** Gross premiums written per employee in €**

9

The first real comparison with a listed InsurTech peer

Premium volume in €m	114.3	137.5	x 1.2
Customers growth FY 19 – HY 20	46,415*	171,042*	x 3.7
Net income in €m	-4.1	-51.1	x 12.5
Valuation € in €m	~330	~3,154	x 9.6

* Growth in existing customers at Lemonade and new customers at DFV.

The reported figures are the HY 2020 results. Lemonade published its figures on 12th of August. They are available on: https://s24.q4cdn.com/139015699/files/doc_downloads/2020/08/Lemonade_Quarterly_Investor_Metrics_Q2_20.pdf

Highly scalable multi-channel sales mix

Our scalable sales channels enables planning ambitious growth

Increase in online sales by + 21.4% compared to HY 2019

New business (contracts) by product category HY 2020 New business (contracts) by product category HY 2020

Why is our sales so unique and what is the key for digitalisation? Digitalisation is first of all a product issue

Digitalised products in policies

Example 1: DFV-DentalCare in our 16x–matrix Example 2: DFV-AccidentInsurance

We use them in product messages!

Easy product selection via our website

Only reloading the website takes longer

1. Enter your age 2. Select your product and tariff

Our customer portal – Simple.Reasonable.

Customer centricity at its best

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Best app – and also the most popular

Simply the best for our customers

Rated with 4.9 stars in Google Play Store!

The ratings are comments from real users. They were translated into English for this presentation.

Easier than taking a selfie – our claim reporting via App

Increasing customer satisfaction by digitalisation

Digitalisation is also an process issue

Leading by digitalisation

Java- and event-based Insurance Core System

We have developed a powerful IT Insurance Core System and the "Product Module Editor". With over 1.500 input options we can configure products so that the entire user interface, correspondence and contract processing are controlled centrally.

Configuration instead of programming

Cost-efficient and scalable growth thanks to our IT system

Declining IT costs and rising customer numbers

• On average, our IT costs per insured risk are lower than in the insurance industry. In the category Health, DFV is 50 % cheaper.
• We plan to spend about € 8.5m on our IT. If we calculated our IT costs with the average values for the insurance industry in Germany, expenditure in 2020 would be around € 12.5m.
• While our customer numbers will increase up to 2,000,000 in the mid term target, our IT costs will decrease to about € 4.48 per insured risk (health) and € 3.93 (P&C).

*Data for the FY 2019. GDV is the General Association of the German Insurance Industry with about 460 private insurer as their members.

On average, our IT costs per insured risk are 50%

Financials

Leading by growth – Financial figures HY 2020

We are on track despite COVID-19

Investing in our growth, profitable in our core business

Underwriting result according to HGB

Premiums	HY 2020
Gross written premium	€ 53,620,661
Claim payments to customers	€ -32,119,093
Underwriting result I	€ 21,501,568
Costs (total, without claims settlement)	€ -10,621,410
Underwriting result II	€ 10,880,158
Sales expenditures – DFVV	€ -17,444,497
Underwriting result III	€ -6,564,338
Financial investments	€ 814,122
Underwriting result IV	€ -5,726,486

Premium volume to sales costs (planning)

We are reaching the profit zone

With a ratio of 4 : 1 or higher an insurance company may be expected to make a profit.

Gross premiums written increased by 28.8% in HY 2020

Fullfilling our promises

Gross premiums written in €m New business in contracts, premiums in €m

Full recovery of financial investments after COVID-19 shock

Successful restructuring leads to increasing of financial investments

Solvency ratio in % Financial investments in €m

Number of employees Personnel costs in €m

Outlook Entering a new dimension

Solid and guaranteed growth – Our strategy to profitability

CareFlex: Germany's first mover

Unique in Germany and Europe

Normally we invest € 70,680,000 (12MP) to acquire 500,000 customers with a monthly premium of € 11.78 per customer. In total CareFlex amounts a monthly premium of € 33.65 per customer.

But CareFlex for us

€ 11.78 monthly premium per customer =

€ 0.0 acquisition costs =

100% company's growth =

CareFlex is

the first industry solution for employerfinanced supplementary long-term care insurance. Up to 580,000 employees working for 1,900 companies in the chemical industry benefit and have access to full cover for their families.

CareFlex results in:

• 1. 500,000 new customers +
• 2. € 70m premiums +
• 3. € 41m financial investments +

Founding new risk carriers

Our milestones to broaden product range and to enter European markets

Our timeline

*Depends on BaFin approval

Outlook – Accelerated and profitable growth

Looking forward to your questions!

Dr Stefan M. Knoll CEO & CFO

Our next IR dates:

12/11	Quarterly statement on the 3rd quarter 2020
16/11	Deutsches Eigenkapitalforum

Your contact:

Lutz Kiesewetter Head of IR & PR +49 (0)69 / 74 30 46 396 lutz.kiesewetter@deutsche-familienversicherung.de