DFV Deutsche Familienversicherung AG

Investor Presentation • Aug 19, 2020

The leading InsurTech in Europe

DFV Deutsche Familienversicherung AG FRANKFURT/MAIN | 18 – 19 August 2020 Metzler MicroCap Days

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 an ambitious growth strategy

Execution focused management team with 90 years industry 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

Leading by growth – Financial figures HY 2020

We are on track despite COVID-19

Playing in the German premier 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 €**

8

The first real comparison with a listed InsurTech peer

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

* 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

Leading by product quality

Our leading products regularly best in class

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).

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

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

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

Leading by profitability

Lean cost structure despite growth investments

Net income HY 2020 in €m

Intentional losses to finance our growth.

We will be profitable again in 2021.

* Non listed, figures based on SFCR reports 2019.

** The reported figures refers to the results from OneInsurance. OneInsurance is part of wefox group.

On track to reach profitability of business by 2021

Losses to enable strong growth

Net income in €m DFV AG

We are the only InsurTech that will reach break-even in the short term.

Investing in our growth, profitable in our core business

Underwriting result according to HGB

Premiums	HY 2020
Gross written premium	€ 53,620,661
Share of reinsurers	€ -24,965,943
Net earned premiums	€ 28,654,718
Claim payments to customers
Gross	€ -32,119,093
Share of reinsurers	€ 14,185,408
Net claims	€ -17,933,685
Underwriting result I
Gross	€ 21,501,568
Net	€ 10,721,033
Costs
Costs (total, without claims settlement)	€ -10,621,410
Human Ressources	€ -5,414,861
IT	€ -3,627,826
Others	€ -1,578,722
Share of reinsurers	€ 5,847,477
Underwriting result II
Gross	€ 10,880,158
Net	€ 5,947,101
Sales expenditures – DFVV
Gross sales (total)	€ -17,444,497
Human Ressources	€ -1,104,891
Marketing	€ -365,035
Sales costs	€ -15,974,571
Share of reinsurers	€ 6,585,032
Net sales	€ -10,859,465
Underwriting result III
Gross	€ -6,564,338
Net	€ -4,912,364
Financial investments
Financial investments (after costs)	€ -398,085
Others	€ -416,037
Underwriting result IV
Before taxes	€ -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.

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.

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

DFV plans European market entry

New risk carriers for faster european expansion

Operation in EU countries without additional administrative efforts

• We plan to step in:
  • Benelux countries
  • France
  • Spain
  • Italy

Outlook – Accelerated and profitable growth

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:

20/08	Investor's Day, Hamburg (HIT)
02/09	H&A Stock Picker Summit
21/09	Goldman Sachs/Berenberg Corporate Conference Germany
25/09	Baader Investment Conference
12/11	Quarterly statement on the 3rd quarter 2020

Appendix

Successful capital increase

Despite COVID-19 crisis

Group figures HY 2020 (IFRS)

in € thousand	HY 2020	Q1 2020	FY 2019	Q3 2019	HY 2019	Q1 2019	FY 2018
New business
Policies (number)	46,415	27,718	100,034	70,539	49,105	30,049	55,227
- Supplementary health insurance (number)	34,000	20,687	90,381	65,045	46,214	29,045	53,272
- Property insurance (number)	12,415	7,031	9,653	5,494	2,891	1,004	1,955
Premium volume	15,412	8,634	29,863	22,831	16,359	10,268	17,628
- Supplementary health insurance	11,740	6,849	27,513	21,267	15,601	10,100	17,329
- Property insurance	3,672	1,785	2,350	1,564	758	200	299
Gross premiums written
Total	53,701	26,422	90,919	65,693	41,846	20,144	66,522
Gross premiums written supplementary health insurance	50,061	24,644	85,004	61,288	39,117	18,811	61,952
Gross premiums written property & casualty insurance	3,640	1,778	5,915	4,406	2,729	1,333	4,571
Combined ratio	108.1%	122.9%	102.6%	105.7%	110.5%	95%	98%
Claims ratio	60.5%	62.4%	60.5%	61.2%	60.5%	50.1%	56.0%
EBIT	-5,978	-5,607	-5,203	-3,294	- 3,595	-1,026	-4,104
Net result	-4,083	-3,819	-2,100	-2,869	- 2,756	-239	-3,338
Underwriting result	-3,304	-1,816	-3,851	-2,308	- 2,961	555	-760
in € thousand	30.06.2020	31.03.2020	31.12.2019	30.09.2019	30.06.2019	31.03.2019	31.12.2018
Total portfolio (number)
Policies	535,830	528,830	514,104	495,972	484,995	474,432	454,964
- Supplementary health insurance	431,035	425,220	412,001	393,943	381,498	368,251	344,473
- Property & casuality insurance	104,795	103,610	102,103	102,029	103,497	106,181	110,491
Total existing premiums
Premium volume	114,314	108,299	101,168	95,790	89,048	83,328	75,657
- Existing premiums supplementary health insurance	105,669	100,836	94,786	89,434	83,258	78,124	69,058
- Existing premiums property insurance	8,645	7,463	6,382	6,356	5,790	5,699	6,599
Equity capital	58,864	55,011	64,496	66,040	64,766	66,991	59,169
Solvency ratio	218%	206%	264%	248%	314%	378%	469%
Employees (on average)	152	133	122	116	116	112	111

Premium volume increased by € 24.4m since HY 2019

Excellent new business despite COVID-19

Premium volume in €m New business in contracts

Direct sales accounted for 87.3% of new business

Outstanding performance because of our proven scalable sales channels

23,087 6,931 3,942 3,530 2,570 2,502 1,765 679 495 350 320 134 110 dental care pet health insurance inpatient care liability insurance sick-pay care travel care long-term care accident insurance household insurance animal holder liability Combi P&C outpatient care legal insurance 46,415 new contracts

New business (contracts) by product category HY 2020

New business (contracts) by sales channel HY 2020

32

Gross premiums written increased by 28.8% in HY 2020

Fullfilling our promises

Total Supplementary health P&C

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

Well-balanced investment portfolio worth € 119.4m

Full recovery within three months – Financial investments of DFV-Multi-Asset-Fonds in €

Asset classes	31.03.2020, in €	In %	30.06.2020, in €	In %	11.08.2020, in €	In %	Plan 2020, in €	In %
Guranteed assets	61,447,453	56 %	69,766,229	58 %	71,833,709	54 %	99,829,892	64 %
Government bonds	6,044,235	10 %	16,155,749	23 %	0	0 %	0	0 %
Corporate bonds	48,027,208	78 %	49,875,023	71 %	53,506,906	74 %	53,506,906	54 %
Equity	0	0 %	0	0 %	15,659,340	22 %	15,659,340	16 %
Real estate	2,063,943	3 %	2,654,436	4 %	2,663,646	4 %	30,663,646	31 %
Cash	5,312,067	9 %	1,081,021	2 %	3,817	0 %	0	0 %

Free assets	47,947,412	44 %	49,596,018	42 %	60,615,655	46 %	55,953,203	36 %
Government bonds	20,180,195	42 %	16,098,745	32 %	14,070,995	23 %	14,070,995	25 %
Corporate bonds	30,521,623	64 %	33,072,426	67 %	41,882,208	69 %	41,882,208	75 %
Equity	0	0 %	0	0 %	0	0 %	0	0 %
Real estate	0	0 %	0	0 %	0	0 %	0	0 %
Cash	-2,754,406	-6 %	424,847	1 %	4,662,452	8 %	0	0 %

Total assets	109,394,865	100 %	119,362,247	100 %	132,449,365	100 %	155,783,095	100 %
									35
Bank balance	839,195		3,464,064		31,625,753		7,625,753