Quarterly Report • Aug 13, 2020
Quarterly Report
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DFV Deutsche Familienversicherung AG Half-yearly financial report 2020
| Foreword of the Executive Board | 2 | |
|---|---|---|
| Consolidated management report | ||
| 1 | Economic environment and sector development | 5 |
| 2 | Development of the course of business | 5 |
| 3 | Business development | 8 |
| Consolidated financial statements | ||
| Balance sheet | 12 | |
| Statement of comprehensive income | 14 | |
| Development of consolidated equity | 15 | |
| Statement of cash flow | 16 | |
| Segment reporting | 18 | |
| Consolidated notes | ||
| 1 | General information | 20 |
| 2 | Notes to the consolidated balance sheet and | |
| statement of comprehensive income | 22 | |
| 3 | Other information | 31 |
When the Executive Board prepared its strategy for 2020 which predicted growth of 100,000 contracts this year, it did so with a certain degree of respect for the task. The same target was extremely ambitious in the previous year too – it was no less than double the sales output of 2018 – yet a successful acquisition comparable to CareFlex Henkel which promised a strong start to the year failed to materialise in early 2020.
Therefore, as 2020 began, Deutsche Familienversicherung was forced to rely on its exceptional online marketing skills. And online sales in the first quarters were actually significantly higher than in the previous year. Deutsche Familienversicherung was more than just on track for its stated target for the year in January and February; the entire year was shaping up to be almost spectacular on the basis of the extrapolated results. Then came the coronavirus crisis. Although not a highly profitable one in the first place, the travel warnings issued by the German government caused the foreign health insurance business to collapse, which explains the slump in production. However, online sales in the other segments remained stable at pre-crisis levels and have stayed that way.
Deutsche Familienversicherung as a whole had to continue its business operations without restriction. By installing new technical equipment at every workstation, it was possible for almost all employees to work from home from one day to the next. Productivity remained at pre-coronavirus levels in spite of all concerns, allowing working remotely to establish itself as a viable alternative to stationary work in the office.
As there were not enough staff at Deutsche Familienversicherung to achieve its stated targets or to complete the "CareFlex Chemie" project, a completely novel personnel recruitment concept was set to be implemented in the form of project "COD". In reality, Deutsche Familienversicherung was able to generate far in excess of 3,000 applications in just six weeks. This enabled us to fill all newly created positions. The majority of the recruitment took place in the first half of 2020.
Besides new business and adjusting basic business operations, CareFlex Chemie still had to be implemented. In order to realise this, the first industry solution from an employer-funded supplementary long-term care insurance provider, a consortium was formed with Deutsche Familienversicherung as the co-manager for product and administration. As the supplementary long-term care insurance in question had already been technically finalised in late 2019, the first half of 2020
entailed setting up the necessary processes and negotiations concerning the necessary contracts. The latter were finalised in June 2020. With regard to the former, Deutsche Familienversicherung is on schedule with implementation.
As CareFlex Chemie also has an IT component, the development work on that front is worthy of mention, not least due to the responsibility for the related processes. Back in 2019, we decided to transition the pre-existing IT infrastructure to a domestic service provider to make it significantly more powerful – a necessary change in order to map our planned growth. This twelvemonth project is expected to be complete by the end of 2020 and is currently on schedule.
With the outbreak of the coronavirus crisis, the Executive Board decided to dispose of the shares it held. This resulted in the realisation of losses. In the meantime, all investments have been restructured and the realised losses have been largely negated.
To summarise, Deutsche Familienversicherung has been able to continue with its growth strategy and, by preparing for CareFlex Chemie, has paved the way for the company to double in 2021. The coronavirus crisis had and is having no negative effects on the ambitious new business of the company and the losses from capital investments, a reaction to the losses on the stock exchanges, have been largely negated. Overall, in terms of expected business results, Deutsche Familienversicherung was on schedule at the end of the first half of 2020.
The second half of the year will be a matter of paving the way for new company headquarters and restructuring the company. The separation of non-life and health insurance business will go hand-in-hand with the establishment of new risk carriers and the realisation of our intention to significantly expand our range of products and make preparations to expand outside of Europe. The capital increase which took place using the authorised capital in early July 2020 and generated an additional gross capitalisation of EUR 32 million for the company was carried out for these very purposes.
Warm regards,
Dr Stefan M. Knoll Chief Executive Officer Frankfurt am Main, 13 August 2020
According to the economic forecast of the ifo Institute on 1 July 2020, the prospects for economic development in 2020 are still cautiously optimistic despite the first half of the year having been massively affected by the COVID-19 pandemic. It caused the German economy to enter its most severe recession in its post-war history. Following a 1.8% decline in the first quarter of 2020, the gross domestic product decreased by another 11.7% in the second quarter. As the rate of new infections is slowing significantly, lockdown measures have now been relaxed or lifted entirely in some economic sectors. This has halted the economic downturn and allowed economic activity to start recovering. In light of the slowed production of goods and services, strong growth rates of 6.9% and 3.8% are expected in the third and fourth quarters. Nevertheless, the average rate of economic output in 2020 is expected to be 6.7% lower than in 2019. Further recovery is expected in the coming year and could cause the average gross domestic product for the year to grow by 6.4%.
The European Central Bank (ECB) is keeping the base interest rate at 0.00%. Many experts think it likely that interest rates will remain stable over the course of 2020, although some do consider a slight increase a possibility. However, fluctuations could occur due to the current economic uncertainty resulting from the coronavirus crisis. In the medium to long terms, many experts also expect the interest rates to stagnate. No long-term trend reversal with a strong increase in interest rates is likely at the moment.
The persistently low interest rates are making it increasingly difficult to generate sufficient capital income. Maintaining the long-term ability to meet obligations to policyholders is more dependent than ever on the company's ability to operate profitably in its core business.
Despite the massive disruption caused by COVID-19, the course of business can be considered exceptionally positive overall. All stated targets have been met with regard to growth and planned new business. Irrespective of this, Deutsche Familienversicherung is continuing its development process with great enthusiasm with regard to the further structuring of the product portfolio, the optimisation of internal processes, digitisation, customer service and capital investment.
The performance of the stock price of Deutsche Familienversicherung was extremely positive in the first half of 2020, especially in June 2020, after the stock price was able to stand its ground in spite of the massive turbulence in the capital markets earlier in the year. One of the drivers of the current high price was the recent IPO of the American InsurTech company Lemonade which highlighted that Deutsche Familienversicherung's stock was being undervalued. Other drivers of the upwards trend were the company's strong performance in the current financial year and the now approved care industry solution "CareFlex Chemie" with which Deutsche Familienversicherung will almost double its volume of business in 2021.
In a remarkable turn of events with regard to the economic damage caused by COVID-19, the success story of the previous year will continue seamlessly in 2020. With 46,415 newly concluded contracts, new business has been extremely successful and has almost matched the record set in the first half of 2019. Adjusted for the extraordinary item resulting from the collaboration with Henkel in connection with long-term care in the first half of 2019, the volume of new business has even increased by 16% year-on-year. The company's business model and its sales on digital sales channels have once again demonstrated their resilience here. We are therefore on schedule for new business, both with regard to new policies as well as new premiums.
We were successfully able to continue developing our non-life products. In particular, our reworked personal liability insurance has paid off by being rated as "very good" by the German consumer organisation Stiftung Warentest. We have acted on current market developments by revising our combined insurance products and our motor legal protection cover. We have also expanded our partnership with Pro.Sieben/Sat.1 in the field of pet health insurance. We have also been marketing liability insurance for dog owners under the brand name PETPROTECT
on the TV channels of Mediengruppe RTL since December 2019. Our positive experience with this partnership moved us to launch a new version of our dog insurance cover in early August 2020. For the fifth consecutive time, our supplementary dental insurance was honoured as the test winner by Stiftung Warentest in June 2020. Our supplementary long-term care insurance was also once again named the test winner by Stiftung Warentest. These repeated accolades demonstrate in impressive fashion that we are experts in health and supplementary long-term care insurance.
The process of outsourcing our IT infrastructure which began in the second half of 2019 also involved refitting all workstations and transitioning all communications to Skype for Business. Every workstation was fitted with notebooks, docking stations and large monitors to make mobile work an option, either within the building or remotely from any location.
The decision to provide this equipment proved highly prescient with the announcement of the lockdown due to the COVID-19 pandemic. As such, business operations were able to resume immediately without interruption or restriction. Ever since the restrictions were imposed, around 90% of employees have been working from home with no negative impact on productivity. This is imperceptible to customers and business partners as all communications take place via Skype for Business.
Our outsourcing service provider completed the installation of a dedicated IT infrastructure in the first half of 2020 and migrated other services to the new infrastructure. We expect the outsourcing to be complete this year and our systems to operate entirely on the new infrastructure.
In the field of automation, the introduction of new processes resulted in significant growth in the number of cases processed fully automatically. The total number in 2019 was surpassed in the first half of 2020 alone. This represents growth of 54% year-on-year.
The continuous development of the DFV Versicherung app and the introduction of new features resulted in another significant improvement in the eyes of our customers. The DFV Versicherung app is receiving top marks in the various app stores from more than just insurers. It has achieved 4.8 and 4.9 out of five stars in the Apple App Store and the Google Play Store respectively from a total of 48,000 installations.
In the first half of 2020, gross premiums increased by 28.3% compared to the first half of the previous year – from EUR 41,846,000 to EUR 53,701,000. Once again, this growth was driven by supplementary health insurance (supplementary dental insurance with +29.8% and long-term care insurance with +18.5%) as well as pet health insurance which was launched in May 2019 (contributing EUR 1.2 million in H1 2020 compared to EUR 25,000 in H1 2019).
Compared to the same period in the previous year, ceded reinsurance premiums increased by EUR 9,254,000 from EUR 16,116,000 to EUR 25,370,000. Net earned premiums increased by 10.6% from EUR 25.7 million to EUR 28.4 million.
The earned premiums did not increase as much as the gross premiums because the proportion of relatively highly reinsured supplementary dental insurance and supplementary long-term care insurance increased. This does not only affect the ceded share of the premiums; it also has a positive effect on distribution financing as well as the handling of insurance claims and the creation of reserves for losses. Therefore, compared to the previous year, the net expenses for insurance operations (which also include the net sales expenses) have decreased by EUR 258,000. Nevertheless, the number of new contracts concluded was around 16% higher than in the same period in the previous year, not taking the extraordinary item resulting from the collaboration with Henkel into consideration. The net payments to customers which include the creation of provisions for losses increased by EUR 1,648,000 from EUR 15,544,000 to EUR 17,192,000. Their development was almost completely consistent with the earned net premiums.
As in previous years, the continuation of the strong volume of new business brings with it high sales expenses. These sales expenses had a strong effect on the consolidated income of Deutsche Familienversicherung and caused it to become negative. Factoring them in is justified because it will pave the way for profitable insurance business in future.
In particular, Deutsche Familienversicherung is feeling the effects of the coronavirus pandemic in its consolidated income due to the net investment income of EUR –1.9 million which is described in more detail in the following section.
As expected, the underwriting income (according to the German Commercial Code) was EUR –3,304,000 in the first half of 2020 (compared to EUR –2,961,000 in the first half of 2019). The net loss ratio in the reporting period remained stable at 60.5% year-on-year.
The performance of capital investments in the first half of 2020 was characterised by the turbulence in the capital markets brought about by the coronavirus pandemic.
Deutsche Familienversicherung was quick to sell off its stock portfolios in the crisis. During the acute phase of the market crisis, it increased its proportion of cash as well as government and corporate bonds. This restructuring of its assets resulted in net capital losses of EUR 2,189,000 (compared to profit of EUR 1,176,000 in H1 2019). Current interest income of EUR 423,000 had the opposite effect (EUR 438,000 in H1 2019), while the capital investment administration expenses of EUR 178,000 (compared to EUR 131,000 in H1 2019) lowered the net investment income to EUR –1,944,000 in total (EUR 1,215,000 in H1 2019).
As at the reporting date for the half-yearly financial statements, the capital market had largely recovered and the average market values of the capital investments were already higher than their original purchase prices. Therefore, Deutsche Familienversicherung does not expect these negative market effects to recur in the second half of 2020.
In line with expectations, Deutsche Familienversicherung closes the first half of 2020 with a pre-tax loss. It increased by EUR 2,393,000 from EUR 3,595,000 for the first half of 2019 to EUR 5,988,000. After offsetting taxes, the loss after taxes for the first half of 2020 amounted to EUR 4,083,000 (EUR 2,756,000 in H1 2019).
The net investment income, EUR 3,159,000 lower than in the same period in the previous year due to the coronavirus crisis, was a key driver of the decrease in net income. Adjusted for this one-off effect, the consolidated income for the first half of 2020 was in line with expectations.
The cash flow from operating activities was EUR 3,896,000 in the first half of the year. With consideration for additional claims payments (EUR 2.45 million) through the reversal of reserves and the settlement of a sales invoice from 2019 (EUR 0.95 million), the adjusted operating cash flow amounts to EUR 7.5 million and is therefore equivalent to half of the value of the 2019 financial year.
The operating cash flow was used to further expand the capital investment portfolio, to expand the IT infrastructure and to repay the lease liability in the sense of IFRS 16. Since the start of the year, cash and cash equivalents have decreased by EUR 0.7 million from EUR 3.8 million to EUR 3.1 million.
At no point did Deutsche Familienversicherung experience difficulties in terms of its liquidity.
In its annual report for 2019, Deutsche Familienversicherung reported in detail on its opportunities and risks. The presentation and evaluation of the opportunity and risk situation of Deutsche Familienversicherung remain applicable without change.
The purpose of the company is insurance business, an activity that, by nature, is associated with risk. It is therefore important to take risks in a targeted manner based on the existing ability to bear risks, insofar as the opportunities associated with this allow for the expectation of sufficient added value. Risk management at Deutsche Familienversicherung aims to identify product and contractual risks at an early stage, to monitor them and, ultimately, to manage them in a systematic manner. Active risk management is carried out by the members of the Executive Board and managers. Department heads routinely report to the member of the Executive Board responsible for their department, or the Executive Board as a whole, about the current course of business, including from a risk perspective.
The risk strategy of Deutsche Familienversicherung also includes the transfer of risk to solvent reinsurance companies with very good credit ratings by means of pro rata risk assumption and flexibly expandable cover for major losses and natural catastrophes, as well as annually adjusted insurance cover for loss of revenue or business interruptions, business liability, cyber risks and commercial buildings and inventory.
The full Executive Board and the Supervisory Board are informed on a rotating basis about the quarterly solvency figures. The solvency ratio of Deutsche Familienversicherung was well above the legal requirements in the first half of 2020.
Deutsche Familienversicherung has an independent risk control unit (IRCU) that is tasked with the continuous, independent and objective implementation and development of the risk management system of the company. The principle of proportionality is applied when designing the IRCU and the risk management system.
The overall risk of Deutsche Familienversicherung can be divided into the following risk categories:
In summary, based on the current information and the described conditions, Deutsche Familienversicherung determines that there are no present developments which would endanger the existence of the company or which would significantly hinder the asset, financial and earnings position of the company or its ability to bear risks.
Deutsche Familienversicherung will continue its growth course in the second half of 2020 and will not deviate from its stated target of 100,000 new policies. On the basis of the present half-yearly figures and the expectations for the remainder of the year, Deutsche Familienversicherung still expects a pre-tax loss of between EUR 9 and 11 million for 2020 as a whole. This does not factor in investments resulting from the capital increase which could potentially affect the net income for 2020. There is inherent uncertainty in this forecast in light of the potential economic impact of a second wave of COVID-19 as well as potential turbulence on the capital market.
Thanks to the significant growth in premiums expected for 2021 primarily driven by the new CareFlex policies, Deutsche Familienversicherung expects the preparation expenses for this product from 2020 to be compensated for. Overall, Deutsche Familienversicherung expects results to be positive from 2021 onwards.
In order to make it possible for Deutsche Familienversicherung to achieve its targets more quickly and consistently, a roughly 10% capital increase was carried out with an issue price of EUR 24.40 on 7 July 2020. For more information, see the report on events after the reporting date.
| ASSETS | ||||
|---|---|---|---|---|
| In EUR | Notes | 30/06/2020 | 30/06/2019 | 31/12/2019 |
| A. Intangible assets | ||||
| I. Goodwill | 0 | 0 | 0 | |
| II. Other intangible assets | 8,826,818 | 8,868,203 | 8,664,778 | |
| Total A. | 2.1.1 | 8,826,818 | 8,868,203 | 8,664,778 |
| B. Rights of use pursuant to IFRS 16 | 2.1.2 | 1,711,092 | 2,395,530 | 2,053,311 |
| C. Investments | ||||
| I. Loans receivable | 0 | 0 | 0 | |
| II. Financial investments held for sale | 120,506,490 | 106,516,897 | 121,742,488 | |
| III. Financial investments measured at fair value through profit or loss | 0 | 0 | 0 | |
| IV. Other capital investments | 0 | 0 | 0 | |
| Total B. | 2.1.3 | 120,506,490 | 106,516,897 | 121,742,488 |
| D. Receivables | ||||
| I. Receivables from direct insurance business | ||||
| 1. From policyholders | 1,241,941 | 741,904 | 1,227,211 | |
| 2. From insurance brokers | 40,739 | 13,244 | 35,386 | |
| 1,282,680 | 755,148 | 1,262,598 | ||
| 3. Other receivables | 5,150,004 | 1,506,608 | 3,987,406 | |
| Total C. | 2.1.4 | 6,432,684 | 2,261,756 | 5,250,004 |
| E. Current bank balances | 3,065,284 | 15,999,911 | 3,763,249 | |
| F. Share of reinsurers in underwriting provisions | ||||
| I. Unearned premiums | 2.1.5.1 | 962,961 | 537,950 | 558,987 |
| II. Actuarial provisions | 2.1.5.2 | 43,349,281 | 35,489,249 | 37,021,379 |
| III. Provisions for outstanding claims | 2.1.5.3 | 2,992,037 | 2,848,058 | 2,904,870 |
| IV. Other underwriting provisions | 11,183 | 9,766 | 14,655 | |
| Total E. | 2.1.5 | 47,315,462 | 38,885,023 | 40,499,892 |
| G. Tax receivables | ||||
| I. From current taxes | 0 | 0 | 0 | |
| II. From deferred taxes | 7,768,305 | 2,563,714 | 5,873,839 | |
| Total F. | 2.1.6 | 7,768,305 | 2,563,714 | 5,873,839 |
| H. Other assets | 2.1.7 | 3,782,837 | 2,478,990 | 2,755,912 |
| Total assets | 199,408,972 | 179,970,024 | 190,603,473 |
| In EUR | Notes | 30/06/2020 | 30/06/2019 | 31/12/2019 |
|---|---|---|---|---|
| A. Equity | ||||
| I. Share capital | 26,523,240 | 26,523,240 | 26,523,240 | |
| II. Capital reserves | 42,248,735 | 42,248,735 | 42,248,735 | |
| III. Loss carried forward/retained earnings | –4,971,264 | –2,870,904 | –2,870,904 | |
| IV. Other reserves | 0 | |||
| 1. Unrealised gains and losses | 2.2.1 | –853,723 | 1,621,106 | 695,670 |
| Total IV. | –853,723 | 1,621,106 | 695,670 | |
| V. Consolidated net income for the year attributable to the shareholders of the parent company |
–4,083,081 | –2,755,693 | –2,100,360 | |
| Total A. | 58,863,907 | 64,766,483 | 64,496,381 | |
| B. Gross underwriting provisions | ||||
| I. Unearned premiums | 2.2.2.1 | 3,299,150 | 2,570,586 | 2,965,818 |
| II. Actuarial provisions | 2.2.2.2 | 60,999,104 | 48,372,736 | 51,078,393 |
| III. Provisions for outstanding claims | 2.2.2.3 | 11,644,718 | 11,875,378 | 13,046,828 |
| IV. Other underwriting provisions | 2.2.2.4–5 | 1,449,562 | 529,680 | 1,507,888 |
| Total B. | 2.2.2 | 77,392,534 | 63,348,379 | 68,598,927 |
| C. Other provisions | 2.2.3 | 3,073,622 | 4,773,333 | 5,433,460 |
| D. Liabilities | ||||
| I. Liabilities from direct insurance business | ||||
| 1. To policyholders | 295,182 | 367,997 | 237,180 | |
| 2. To insurance brokers | 1,202,014 | 993,436 | 891,643 | |
| 1,497,197 | 1,361,434 | 1,128,823 | ||
| 3. Other liabilities | 55,803,126 | 43,926,831 | 47,118,146 | |
| Total D. | 2.2.4 | 57,300,323 | 45,288,265 | 48,246,969 |
| E. Tax liabilities | ||||
| I. From current taxes | 252,050 | 197,670 | 550,510 | |
| II. From deferred taxes | 2,526,536 | 1,595,893 | 3,277,226 | |
| Total E. | 2.1.6 | 2,778,586 | 1,793,563 | 3,827,737 |
| Total liabilities | 199,408,972 | 179,970,024 | 190,603,473 | |
| In EUR | Notes | First half 2020 | First half 2019 | 2019 |
|---|---|---|---|---|
| I. Income statement (with effect on income) | ||||
| 1. Written premiums | ||||
| a) Gross | 53,700,838 | 41,845,687 | 90,919,027 | |
| b) Share of reinsurers | 25,369,917 | 16,115,974 | 36,125,527 | |
| 28,330,921 | 25,729,713 | 54,793,500 | ||
| 2. Change in unearned premiums | ||||
| a) Gross | –333,331 | 33,585 | 428,817 | |
| b) Share of reinsurers | 403,974 | –20,194 | 843 | |
| 70,643 | 53,779 | 427,973 | ||
| 3. Net earned premiums | 28,401,564 | 25,675,934 | 54,365,526 | |
| 4. Income from capital investments | 2.3.2 | –1,944,417 | 1,214,821 | 3,401,055 |
| 5. Other revenue | 2.3.3 | 93,260 | 74,825 | 629,608 |
| Total revenue and net investment income | 26,550,407 | 26,965,580 | 58,396,189 | |
| 6. Claim payments to customers | ||||
| a) Gross | 31,377,614 | 23,631,764 | 48,035,322 | |
| b) Share of reinsurers | 2.3.4 | 14,185,408 | 8,087,605 | 15,084,904 |
| 17,192,206 | 15,544,158 | 32,950,418 | ||
| 7. Expenses for insurance operations | ||||
| a) Gross | 24,654,030 | 22,845,663 | 47,224,132 | |
| b) Share of reinsurers | 2.3.5 | 11,820,009 | 9,753,691 | 21,838,522 |
| 2.3.6 | 12,834,020 | 13,091,972 | 25,385,610 | |
| 8. Other expenses | 2,501,691 | 1,924,405 | 5,263,494 | |
| Total expenses | 32,527,918 | 30,560,535 | 63,599,522 | |
| 9. Operating income | –5,977,511 | –3,594,955 | –5,203,333 | |
| 10. Financing expenses for leases | 10,652 | 0 | 19,098 | |
| 11. Annual profit before taxes | –5,988,163 | –3,594,955 | –5,222,431 | |
| 12. Income taxes | 1,905,082 | –839,262 | –3,122,071 | |
| 13. Annual income | –4,083,081 | –2,755,693 | –2,100,360 | |
| Of which attributable to shareholders in the parent company | –4,083,081 | –2,755,693 | –2,100,360 | |
| Of which attributable to minority interests | 0 | 0 | 0 | |
| Earnings per share | –0.31 | –0.21 | –0.16 | |
| II. Other income (no effect on profit or loss) | ||||
| 14. Unrealised gains and losses from capital investments | –1,549,393 | 2,391,463 | 1,466,027 | |
| Total other comprehensive income | –1,549,393 | 2,391,463 | 1,466,027 | |
| III. Total comprehensive income | –5,632,474 | –364,230 | –634,333 | |
| Of which attributable to shareholders in the parent company | –5,632,474 | –364,230 | –634,333 | |
| Of which attributable to minority interests | 0 | 0 | 0 |
| In EUR thousand | Subscribed capital |
Capital reserves |
Retained earnings |
Reserve for unrealised gains and losses |
Consolidated equity |
|---|---|---|---|---|---|
| As of 31 December 2017 | 34,110 | 3,894 | –17,854 | –699 | 19,451 |
| Change to the scope of consolidation | 0 | 0 | 0 | 0 | 0 |
| Gains and losses recognised directly in equity / IPO costs | 0 | –2,473 | 0 | 0 | –2,473 |
| Consolidated income | 0 | 0 | –3,339 | 0 | –3,339 |
| Other comprehensive income (OCI) | 0 | 0 | 0 | –71 | –71 |
| Dividends paid | 0 | 0 | 0 | 0 | 0 |
| Capital decrease | –16,202 | –2,119 | 18,321 | 0 | 0 |
| Capital increase | 7,600 | 38,000 | 0 | 0 | 45,600 |
| As of 31 December 2018 | 25,508 | 37,302 | –2,872 | –770 | 59,168 |
| Change to the scope of consolidation | 0 | 0 | 0 | 0 | 0 |
| Gains and losses recognised directly in equity / overallotment costs | 0 | –130 | 0 | 0 | –130 |
| Consolidated income | 0 | 0 | –2,100 | 0 | –2,100 |
| Other comprehensive income (OCI) | 0 | 0 | 0 | 1,466 | 1,466 |
| Dividends paid | 0 | 0 | 0 | 0 | 0 |
| Capital increase | 1,015 | 5,077 | 0 | 0 | 6,092 |
| As of 31 December 2019 | 26,523 | 42,249 | –4,972 | 696 | 64,496 |
| Change to the scope of consolidation | 0 | 0 | 0 | 0 | 0 |
| Gains and losses recognised directly in equity | 0 | 0 | 0 | 0 | 0 |
| Consolidated income | 0 | 0 | –4,083 | 0 | –4,083 |
| Other comprehensive income (OCI) | 0 | 0 | 0 | –1,549 | –1,549 |
| Dividends paid | 0 | 0 | 0 | 0 | 0 |
| Capital decrease | 0 | 0 | 0 | 0 | 0 |
| Capital increase | 0 | 0 | 0 | 0 | 0 |
| As of 30 June 2020 | 26,523 | 42,249 | –9,054 | –854 | 58,864 |
| In EUR | First half 2020 | First half 2019 | 2019 |
|---|---|---|---|
| 1. Income for the period before extraordinary items | –4,083,081 | –2,755,693 | –2,100,360 |
| 2. Change in net underwriting provisions | 1,978,037 | 3,237,639 | 6,855,752 |
| 3. Change in deposit receivables and liabilities as well as accounts receivable and payable | 8,393,107 | 8,933,992 | 10,396,029 |
| 4. Change in other receivables and liabilities | –1,394,056 | 1,146,048 | 3,186,788 |
| 5. Gains and losses from the disposal of capital investments | 2,189,313 | 0 | –3,407,687 |
| 6. Change in other balance sheet items | –4,524,154 | 6,361,006 | 1,335,233 |
| 7. Other expenses and revenue recognised through profit or loss | 1,336,800 | 914,535 | –1,934,288 |
| I. Cash flow from operating activities | 3,895,966 | 17,837,527 | 14,331,457 |
| 9. Incoming payments for the sale and maturity of other capital investments | 88,796,933 | 0 | 2,814,805 |
| 10. Outgoing payments for the acquisition of other capital investments | –91,944,059 | –16,463,853 | –26,666,642 |
| 11. Other payments received | 383,514 | –38,201 | 0 |
| 12. Other outgoing payments | –1,478,551 | –461,987 | –1,158,359 |
| II. Cash flow from investing activities | –4,242,163 | –16,924,041 | –25,010,196 |
| 13. Incoming payments from additions to equity | 0 | 6,092,940 | 6,092,940 |
| 14. Repayment of liabilities | –351,767 | 0 | –684,437 |
| III. Cash flow from financing activities | –351,767 | 6,092,940 | 5,408,503 |
| Change in funds for financing purposes | –697,965 | 6,966,426 | –5,270,236 |
| Funds for financing purposes at the beginning of the period | 3,763,249 | 9,033,485 | 9,033,485 |
| Funds for financing purposes at the end of the period | 3,065,284 | 15,999,911 | 3,763,249 |
| Supplementary health | Damage/accident | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|
| In EUR | First half 2020 |
2019 | First half 2019 |
First half 2020 |
2019 | First half 2019 |
First half 2020 |
2019 | First half 2019 |
| A. Intangible assets | |||||||||
| I. Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| II. Other intangible assets | 8,228,504 | 7,486,220 | 7,766,352 | 598,314 | 1,178,559 | 1,101,850 | 8,826,818 | 8,664,778 | 8,868,202 |
| Total A. | 8,228,504 | 7,486,220 | 7,766,352 | 598,314 | 1,178,559 | 1,101,850 | 8,826,818 | 8,664,778 | 8,868,202 |
| B. Right of use pursuant to IFRS | 1,595,108 | 1,919,736 | 2,239,285 | 115,984 | 133,575 | 156,245 | 1,711,092 | 2,053,311 | 2,395,530 |
| C. Investments | |||||||||
| I. Loans receivable | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| II. Financial investments held for sale | 112,338,120 | 116,642,136 | 100,885,932 | 8,168,370 | 5,100,352 | 5,630,965 | 120,506,490 | 121,742,488 | 106,516,897 |
| "III. Financial investments measured at fair value through profit or loss" |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| IV. Other capital investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total C. | 112,338,120 | 116,642,136 | 100,885,932 | 8,168,370 | 5,100,352 | 5,630,965 | 120,506,490 | 121,742,488 | 106,516,897 |
| D. Receivables | |||||||||
| I. Receivables from direct insurance business | |||||||||
| 1. From policyholders | 1,157,758 | 632,073 | 562,604 | 84,183 | 595,139 | 179,300 | 1,241,941 | 1,227,211 | 741,904 |
| 2. From insurance brokers | 37,978 | 28,309 | 12,319 | 2,761 | 7,077 | 925 | 40,739 | 35,386 | 13,244 |
| 1,195,736 | 660,382 | 574,923 | 86,945 | 602,216 | 180,225 | 1,282,680 | 1,262,598 | 755,148 | |
| 3. Other receivables | 4,800,918 | 3,728,011 | 1,325,407 | 349,086 | 259,395 | 181,201 | 5,150,004 | 3,987,406 | 1,506,608 |
| Total D. | 5,996,653 | 4,388,393 | 1,900,330 | 436,031 | 861,611 | 361,426 | 6,432,684 | 5,250,004 | 2,261,756 |
| E. Share of reinsurers in underwriting provisions | |||||||||
| I. Unearned premiums | 897,688 | 387,859 | 325,447 | 65,273 | 171,128 | 212,503 | 962,961 | 558,987 | 537,950 |
| II. Actuarial provisions | 43,349,281 | 37,021,379 | 35,489,249 | 0 | 0 | 0 | 43,349,281 | 37,021,379 | 35,489,249 |
| III. Provisions for outstanding claims | 2,789,226 | 1,729,275 | 1,446,450 | 202,811 | 1,175,596 | 1,401,608 | 2,992,037 | 2,904,870 | 2,848,058 |
| IV. Other underwriting provisions | 10,425 | 13,702 | 9,766 | 758 | 953 | 0 | 11,183 | 14,655 | 9,766 |
| Total E. | 47,046,620 | 39,152,214 | 37,270,912 | 268,842 | 1,347,677 | 1,614,111 | 47,315,462 | 40,499,891 | 38,885,023 |
| F. Other segment assets | 13,625,671 | 11,586,792 | 19,205,104 | 990,755 | 806,208 | 1,837,512 | 14,616,426 | 12,393,000 | 21,042,616 |
| Total segment assets | 188,830,676 | 181,175,490 | 169,267,915 | 10,578,296 | 9,427,983 | 10,702,109 | 199,408,973 | 190,603,473 | 179,970,024 |
| Supplementary health | Damage/accident | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|
| In EUR | First half 2020 |
2019 | First half 2019 |
First half 2020 |
2019 | First half 2019 |
First half 2020 |
2019 | First half 2019 |
| A. Gross underwriting provisions | |||||||||
| I. Unearned premiums | 3,075,522 | 1,842,053 | 1,479,660 | 223,628 | 1,123,765 | 1,090,926 | 3,299,150 | 2,965,818 | 2,570,586 |
| II. Actuarial provisions | 60,999,104 | 51,078,393 | 48,372,736 | 0 | 0 | 0 | 60,999,104 | 51,078,393 | 48,372,736 |
| III. Provisions for outstanding claims | 10,855,396 | 7,963,400 | 7,139,650 | 789,322 | 5,083,427 | 4,735,718 | 11,644,718 | 13,046,828 | 11,875,368 |
| IV. Other underwriting provisions | 1,351,305 | 1,497,896 | 515,551 | 98,257 | 9,992 | 14,139 | 1,449,562 | 1,507,888 | 529,690 |
| Total A. | 76,281,327 | 62,381,742 | 57,507,597 | 1,111,207 | 6,217,185 | 5,840,783 | 77,392,534 | 68,598,927 | 63,348,380 |
| B. Other provisions | 2,865,281 | 5,079,994 | 4,543,012 | 208,341 | 353,466 | 230,321 | 3,073,622 | 5,433,460 | 4,773,333 |
| C. Other segment liabilities | 59,266,164 | 51,456,230 | 46,148,489 | 812,745 | 618,476 | 933,339 | 60,078,909 | 52,074,706 | 47,081,828 |
| Total segment liabilities | 138,412,772 | 118,917,966 | 108,199,098 | 2,132,293 | 7,189,126 | 7,004,443 | 140,545,065 | 126,107,092 | 115,203,541 |
| Supplementary health | Damage/accident | Total | ||||
|---|---|---|---|---|---|---|
| In EUR | First half 2020 | 2019 | First half 2020 | 2019 | First half 2020 | 2019 |
| 1. Written premiums from insurance business | 50,060,799 | 39,116,368 | 3,640,039 | 2,729,318 | 53,700,838 | 41,845,686 |
| 2. Net earned premiums | 25,561,147 | 23,185,073 | 2,840,417 | 2,490,862 | 28,401,564 | 25,675,935 |
| 3. Income from capital investments | –1,749,957 | 1,109,114 | –194,460 | 105,707 | –1,944,417 | 1,214,821 |
| 4. Other revenue | 83,933 | 68,561 | 9,327 | 6,264 | 93,260 | 74,825 |
| Total revenue | 23,895,123 | 24,362,748 | 2,655,284 | 2,602,832 | 26,550,407 | 26,965,581 |
| 5. Claim payments to customers | 16,724,990 | 14,503,693 | 467,216 | 1,040,466 | 17,192,206 | 15,544,159 |
| 6. Expenses for insurance operations | 9,377,899 | 12,211,599 | 3,456,122 | 880,372 | 12,834,021 | 13,091,971 |
| 7. Other expenses | 2,251,499 | 1,842,240 | 250,192 | 82,165 | 2,501,691 | 1,924,405 |
| Total expenses | 28,354,388 | 28,557,532 | 4,173,530 | 2,003,003 | 32,527,918 | 30,560,535 |
| 8. Operating income | –4,459,265 | –4,194,785 | –1,518,246 | 599,830 | –5,977,511 | –3,594,955 |
| 9. Financing expenses | 9,587 | 0 | 1,065 | 0 | 10,652 | 0 |
| 10. Annual profit before taxes | –4,468,852 | –4,194,784 | –1,519,311 | 599,830 | –5,988,163 | –3,594,955 |
| 11. Income taxes | –1,421,726 | –981,508 | –483,356 | 142,246 | –1,905,082 | –839,262 |
| 12. Annual income | –3,047,126 | –3,213,276 | –1,035,955 | 457,583 | –4,083,081 | –2,755,693 |
| Supplementary health | Total | ||||
|---|---|---|---|---|---|
| First half 2020 | 2019 | First half 2020 | 2019 | First half 2020 | 2019 |
| 1,225 | 1,680 | 136 | 180 | 1,362 | 1,860 |
| 441,708 | 352,156 | 49,084 | 37,833 | 490,791 | 389,989 |
| 1,194,513 | 824,060 | 132,737 | 88,532 | 1,327,250 | 912,591 |
| 0 | 0 | 0 | 0 | 0 | 0 |
| Damage/accident |
* Excluding scheduled depreciation and amortisation.
The 2019 period has been adjusted for comparative purposes. The sections entitled "Other" and "Consolidation effects" have been merged and moved to the core segments.
The condensed consolidated interim financial statements of the DFV Group are presented in accordance with IAS 34 and were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union.
For existing and unchanged IFRS, the accounting, valuation, consolidation and disclosure principles applied to prepare the condensed consolidated interim financial statements are consistent with those applied to prepare the consolidated financial statements for the 2019 financial year. The condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements of the DFV Group for the 2019 financial year.
Uniform accounting and valuation methods were applied to the reporting and comparative periods, unless prospective method changes were expressly permitted for the year under review. The consolidated financial statements were prepared under the assumption of a going concern. The reporting currency is the euro. The consolidated financial statements are presented in whole euros, which could result in rounding differences.
IFRS 4 (Insurance Contracts), which is currently still applicable for insurance companies, permits the accounting and valuation of underwriting items during a transitional phase, phase I, in accordance with IFRS 4.13, in principle in accordance with the accounting rules applied prior to the introduction of IFRS.
Accordingly, Deutsche Familienversicherung, in accordance with IFRS 4.25, has applied the national accounting standards applicable to insurance contracts under the German Commercial Code (HGB) and other additional national accounting standards for insurance companies.
These condensed consolidated interim financial statements of the DFV Group were approved by resolution of the Executive Board on 3 August 2020.
The standards presented in the table below were applicable from 1 January 2020 onwards. Where they concerned the DFV Group, they have been incorporated into these interim financial statements.
| INITIAL APPLICATION | NEW OR AMENDED STANDARDS AND INTERPRETATIONS |
|---|---|
| 1 January 2020 | Definition of a Business (Amendments to IFRS 3 "Business Combinations") |
| Definition of Material (Amendments to IAS 1 "Presentation of Financial Statements" and IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors") |
|
| Interest Rate Benchmark Reform (Amendments to IFRS 9 "Financial Instruments", IAS 39 "Financial Instruments: Recognition and Measurement" and IFRS 7 "Financial Instruments: Disclosures") |
|
| Amendments to the general concept of accounting |
Adopting these standards had no or no significant effect on the net assets, financial position and earnings situation of the DFV Group.
There were no changes to the valuation methods in the first half of the 2020 financial year.
| DEVELOPMENT OF OTHER INTANGIBLE ASSETS | Purchased | Other | Total | Purchased | Other | Total |
|---|---|---|---|---|---|---|
| software | intangible assets |
software | intangible assets |
|||
| In EUR thousand | 30/06/2020 | 31/12/2019 | ||||
| Gross carrying amount as at 1 January | 12,625 | 3,248 | 15,873 | 12,449 | 2,330 | 14,779 |
| Cumulative deprecation as at 1 January | 5,523 | 1,685 | 7,208 | 4,602 | 972 | 5,574 |
| Balance sheet value as at 1 January | 7,102 | 1,563 | 8,665 | 7,847 | 1,358 | 9,205 |
| Additions | 283 | 763 | 1,046 | 176 | 918 | 1,094 |
| Disposals of gross carrying amounts | 147 | 220 | 367 | 0 | 0 | 0 |
| Depreciation and amortisation | 400 | 484 | 884 | 921 | 713 | 1,634 |
| Disposals of depreciation and amortisation | 147 | 220 | 367 | 0 | 0 | 0 |
| Balance sheet value as at reporting date | 6,985 | 1,842 | 8,827 | 7,102 | 1,563 | 8,665 |
| Cumulative deprecation as at reporting date | 5,776 | 1,949 | 7,725 | 5,523 | 1,685 | 7,208 |
| Gross carrying amount as at reporting date | 12,761 | 3,791 | 16,552 | 12,625 | 3,248 | 15,873 |
| In EUR thousand | 30/06/2020 | 31/12/2019 |
|---|---|---|
| Gross carrying amount as at 1 January | 2,738 | 0 |
| Cumulative deprecation as at 1 January | 685 | 0 |
| Balance sheet value as at 1 January | 2,053 | 0 |
| Additions | 0 | 2,738 |
| Disposals of gross carrying amounts | 0 | 0 |
| Depreciation and amortisation | 342 | 685 |
| Disposals of depreciation and amortisation | 0 | 0 |
| Balance sheet value as at reporting date | 1,711 | 2,053 |
| Cumulative deprecation as at reporting date | 1,027 | 685 |
| Gross carrying amount as at reporting date | 2,738 | 2,738 |
| 30/06/2020 | 31/12/2019 |
|---|---|
| 2,250 | 2,250 |
| 2,654 | 9,767 |
| 115,202 | 109,325 |
| 400 | 400 |
| 120,506 | 121,742 |
No securities were lent as of the reporting date.
| RECEIVABLES | ||
|---|---|---|
| In EUR thousand | 30/06/2020 | 31/12/2019 |
| Receivables from direct insurance business | 1,283 | 1,262 |
| Of which from policyholders | 1,242 | 1,227 |
| Of which from insurance brokers | 41 | 35 |
| Accounts receivable from reinsurance business | 4,495 | 3,297 |
| Receivables from insurance business | 5,778 | 4,559 |
| Receivables from long-term care insurance allowance | 408 | 476 |
| Other receivables | 247 | 215 |
| Total | 6,433 | 5,250 |
| In EUR thousand | 30/06/2020 | 31/12/2019 |
|---|---|---|
| Unearned premiums | 963 | 559 |
| Actuarial provisions | 43,349 | 37,021 |
| Provision for outstanding claims | 2,992 | 2,905 |
| Other underwriting provisions | 11 | 15 |
| Total | 47,315 | 40,500 |
SHARES OF REINSURERS IN THE DEVELOPMENT OF UNEARNED PREMIUMS
| In EUR thousand | 30/06/2020 | 31/12/2019 |
|---|---|---|
| As at 1 January | 559 | 558 |
| Additions | 963 | 559 |
| Reversal/utilisation | 559 | 558 |
| As at reporting date | 963 | 559 |
SHARES OF REINSURERS IN THE DEVELOPMENT OF ACTUARIAL PROVISIONS
| In EUR thousand | 30/06/2020 | 31/12/2019 |
|---|---|---|
| Actuarial provisions as at 1 January | 37,021 | 30,488 |
| Addition | 8,616 | 8,522 |
| Reversal | 2,288 | 1,989 |
| Actuarial provisions as at reporting date | 43,349 | 37,021 |
| In EUR thousand | 30/06/2020 | 31/12/2019 |
|---|---|---|
| As at 1 January | 2,905 | 3,971 |
| Claims expenses | ||
| For the financial year | 7,496 | 9,619 |
| For previous years | 365 | –1,080 |
| Total | 7,861 | 8,539 |
| Less payments | ||
| For the financial year | 5,629 | 7,804 |
| For previous years | 2,145 | 1,801 |
| Total | 7,774 | 9,605 |
| As at reporting date | 2,992 | 2,905 |
| Total deferred tax assets |
Of which directly in equity |
Of which through profit or loss |
Total deferred tax assets |
Of which directly in equity |
Of which through profit or loss |
|
|---|---|---|---|---|---|---|
| In EUR thousand | 30/06/2020 | 31/12/2019 | ||||
| Intangible assets | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | ||||||
| Financial instruments | 0 | 0 | 0 | 0 | 0 | 0 |
| Derivative financial instruments | 0 | 0 | 0 | 0 | 0 | 0 |
| Underwriting provisions | 599 | 0 | 599 | 127 | 0 | 127 |
| Other | 1,687 | 0 | 1,687 | 1,658 | 0 | 1,658 |
| Income tax loss carried forward | 5,482 | 0 | 5,482 | 4,089 | 0 | 4,089 |
| 7,768 | 0 | 7,768 | 5,874 | 0 | 5,874 | |
| Total deferred tax liabilities |
Of which directly in equity |
Of which through profit or loss |
Total deferred tax liabilities |
Of which directly in equity |
Of which through profit or loss |
|
|---|---|---|---|---|---|---|
| In EUR thousand | 30/06/2020 | 31/12/2019 | ||||
| Intangible assets | 732 | 0 | 732 | 734 | 0 | 734 |
| Investments | ||||||
| Financial instruments | 1,224 | 1,224 | 0 | 1,953 | 1,953 | 0 |
| Derivative financial instruments | 0 | 0 | 0 | 0 | 0 | 0 |
| Underwriting provisions | 0 | 0 | 0 | 0 | 0 | 0 |
| Other | 571 | 0 | 571 | 590 | 0 | 590 |
| 2,527 | 1,224 | 1,303 | 3,277 | 1,953 | 1,324 |
| OTHER ASSETS | ||
|---|---|---|
| In EUR thousand | 30/06/2020 | 31/12/2019 |
| Operating and office equipment | 781 | 530 |
| Accruals and deferrals | 612 | 409 |
| Tax prepayments | 1,695 | 356 |
| Other assets | 695 | 1,461 |
| Total | 3,783 | 2,756 |
The development of equity is presented in the consolidated statement of changes in equity.
| UNDERWRITING PROVISIONS (GROSS) | ||
|---|---|---|
| In EUR thousand | 30/06/2020 | 31/12/2019 |
| Unearned premiums | 3,299 | 2,966 |
| Actuarial provisions | 60,999 | 51,078 |
| Provision for outstanding claims | 11,645 | 13,047 |
| Provision for premium refunds | 1,391 | 1,430 |
| Other underwriting provisions | 59 | 78 |
| Total | 77,393 | 68,599 |
| DEVELOPMENT OF UNEARNED PREMIUMS | |||
|---|---|---|---|
| In EUR thousand | 30/06/2020 | 31/12/2019 | |
| As at 1 January | 2,966 | 2,537 | |
| Additions | 3,299 | 2,966 | |
| Reversal/utilisation | 2,966 | 2,537 | |
| As at reporting date | 3,299 | 2,966 |
| DEVELOPMENT OF ACTUARIAL PROVISIONS | |||
|---|---|---|---|
| In EUR thousand | 30/06/2020 | 31/12/2019 | |
| Actuarial provisions as at 1 January | 51,078 | 42,570 | |
| Addition | 12,566 | 10,201 | |
| Reversal | 3,157 | 2,777 | |
| Interest portion | 512 | 1,084 | |
| Actuarial provisions as at reporting date | 60,999 | 51,078 |
The interest portion is calculated using the discount rate from the financial year in relation to the mean value of the actuarial balance sheet provision for the previous year and the financial year.
| DEVELOPMENT OF THE PROVISION FOR OUTSTANDING CLAIMS | ||
|---|---|---|
| In EUR thousand | 30/06/2020 | 31/12/2019 |
| As at 1 January | 13,047 | 10,269 |
| Claims expenses | ||
| For the financial year | 21,662 | 37,973 |
| For previous years | –147 | 388 |
| Total | 21,515 | 38,361 |
| Less payments | ||
| For the financial year | 13,985 | 28,064 |
| For previous years | 8,932 | 7,519 |
| Total | 22,917 | 35,583 |
| As at reporting date | 11,645 | 13,047 |
| DEVELOPMENT OF THE PROVISION FOR PREMIUM REFUNDS | |||
|---|---|---|---|
| In EUR thousand | 30/06/2020 | 31/12/2019 | |
| As at 1 January | 1,430 | 836 | |
| Additions | 214 | 1,120 | |
| Utilisation | 253 | 526 | |
| As at reporting date | 1,391 | 1,430 |
| OTHER UNDERWRITING PROVISIONS | |||
|---|---|---|---|
| In EUR thousand | 30/06/2020 | 31/12/2019 | |
| Cancellation provision | 34 | 53 | |
| Other underwriting provisions | 25 | 25 | |
| Total | 59 | 78 |
| In EUR thousand | 30/06/2020 | 31/12/2019 |
|---|---|---|
| As at 1 January | 5,434 | 872 |
| Utilisation | 3,586 | 835 |
| Reversal | 24 | 37 |
| Addition | 1,250 | 5,434 |
| As at reporting date | 3,074 | 5,434 |
The remaining term of other provisions is at most twelve months. This does not include the lease liability under IFRS 16 of EUR 1,720,000 which shall be settled in instalments until 31 December 2022 and is recognised in other provisions.
| LIABILITIES | ||
|---|---|---|
| In EUR thousand | 30/06/2020 | 31/12/2019 |
| Liabilities from direct insurance business | 1,497 | 1,129 |
| Of which to policyholders | 295 | 237 |
| Of which to insurance brokers | 1,202 | 892 |
| Accounts payable from reinsurance business | 3,948 | 127 |
| Deposits retained on ceded reinsurance business | 47,487 | 42,568 |
| Liabilities from insurance business | 52,932 | 43,824 |
| Other liabilities | 4,368 | 4,423 |
| Total | 57,300 | 48,247 |
With regard to premiums written, changes in unearned premiums and earned premiums (each gross, re- and net), we refer you to the consolidated statement of comprehensive income.
| In EUR thousand | First half 2020 | First half 2019 |
|---|---|---|
| Revenue from capital investments | ||
| Current revenue from capital investments | 423 | 438 |
| Gains from changes in fair value | 0 | 0 |
| Gains from the disposal of capital investments | 817 | 1,176 |
| Total | 1,240 | 1,614 |
| Expenses for capital investments | ||
| Expenses for the management of capital investments, other expenses | 178 | 131 |
| Depreciation and impairments of capital investments | 0 | 15 |
| Losses from changes in fair value (recognised in profit or loss) | 0 | 253 |
| Losses from the disposal of capital investments | 3,006 | 0 |
| Total | 3,184 | 399 |
| Income from capital investments | –1,944 | 1,215 |
| OTHER REVENUE | |||
|---|---|---|---|
| In EUR thousand | First half 2020 | First half 2019 | |
| Other underwriting revenue | 0 | 0 | |
| Other non-underwriting revenue | 93 | 75 | |
| Total | 93 | 75 |
| INSURANCE BENEFITS | ||||
|---|---|---|---|---|
| In EUR thousand | First half 2020 | First half 2019 | ||
| Payments for insurance claims | ||||
| Gross amount | 22,917 | 16,561 | ||
| Share of reinsurers | 7,774 | 4,201 | ||
| Net amount | 15,143 | 12,360 | ||
| Change in the provision for outstanding claims | ||||
| Gross amount | –1,402 | 1,606 | ||
| Share of reinsurers | –87 | 1,123 | ||
| Net amount | –1,489 | 2,729 | ||
| Change in actuarial provisions | ||||
| Gross amount | 9,921 | 5,802 | ||
| Share of reinsurers | 6,328 | 5,002 | ||
| Net amount | 3,593 | 800 | ||
| Change in other underwriting provisions | ||||
| Gross amount | –19 | 188 | ||
| Share of reinsurers | –3 | 8 | ||
| Net amount | –16 | 180 | ||
| Expenses for premium refunds | ||||
| Gross amount | –39 | –526 | ||
| Share of reinsurers | 0 | 0 | ||
| Net amount | –39 | –526 | ||
| Total | 17,192 | 15,544 |
EXPENSES FOR INSURANCE OPERATIONS
| In EUR thousand | First half 2020 | First half 2019 |
|---|---|---|
| Acquisition expenses | 20,083 | 18,946 |
| Administrative expenses | 4,571 | 3,900 |
| Of which: Share of reinsurers | 11,820 | 9,754 |
| Total | 12,834 | 13,092 |
| OTHER EXPENSES | ||
|---|---|---|
| In EUR thousand | First half 2020 | First half 2019 |
| Other underwriting expenses | ||
| Deposit interest for reinsurance | 480 | 388 |
| Fire protection tax | 0 | 8 |
| Other underwriting expenses | 0 | 0 |
| 480 | 396 | |
| Other non-underwriting expenses | 2,022 | 1,528 |
| Of which Supervisory Board remuneration | 104 | 164 |
| Total | 2,502 | 1,924 |
| In EUR thousand | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Shares in subsidiaries, joint ventures and associates | 0 | 0 | 0 | 0 |
| Financial instruments available for sale | 117,856 | 2,650 | 0 | 120,506 |
| Non-current assets held for sale | 0 | 0 | 0 | 0 |
| Total positive market values | 117,856 | 2,650 | 0 | 120,506 |
| Shares in subsidiaries, joint ventures and associates | 0 | 0 | 0 | 0 |
| Financial instruments available for sale | 0 | 0 | 0 | 0 |
| Non-current assets held for sale | 0 | 0 | 0 | 0 |
| Total negative market values | 0 | 0 | 0 | 0 |
| In EUR thousand | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Shares in subsidiaries, joint ventures and associates | 0 | 0 | 0 | 0 |
| Financial instruments available for sale | 115,329 | 6,413 | 0 | 121,742 |
| Non-current assets held for sale | 0 | 0 | 0 | 0 |
| Total positive market values | 115,329 | 6,413 | 0 | 121,742 |
| Shares in subsidiaries, joint ventures and associates | 0 | 0 | 0 | 0 |
| Financial instruments available for sale | 0 | 0 | 0 | 0 |
| Non-current assets held for sale | 0 | 0 | 0 | 0 |
| Total negative market values | 0 | 0 | 0 | 0 |
As of the reporting date (30 June 2020), there were no contingent liabilities in addition to the provisions recognised in the consolidated balance sheet that would have to be reported.
On 7 July 2020, as part of a capital increase in exchange for cash contributions, making partial use of the authorised capital and excluding the subscription rights of shareholders, Deutsche Familienversicherung AG issued 1,326,160 new no-par bearer shares at a price of EUR 24.40 per share by means of a private placement to institutional investors. The capital increase was significantly oversubscribed. The share capital of the company increased by EUR 2,652,320 or almost 10% from EUR 26,523,240 to EUR 29,175,560. The company received gross proceeds of around EUR 32.35 million from the capital increase. The net proceeds from the capital increase are to be used by the company to continue its current growth strategy, including the establishment of new risk carriers, the establishment of a health insurer and a non-life insurer and the development of new products.
There have been no other events of particular significance since the end of the group's financial year that have not been included in either the consolidated income statement or the consolidated balance sheet.
'We assure to the best of our knowledge that – in accordance with the applicable reporting principles for interim financial reporting – the interim consolidated financial statements give a true and fair view of the asset, financial and earnings position of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.'
Frankfurt am Main, 13 August 2020
DFV Deutsche Familienversicherung AG
The Executive Board
Dr Stefan M. Knoll Stephan Schinnenburg Marcus Wollny
We have reviewed the condensed consolidated interim financial statements – comprising the balance sheet, statement of comprehensive income, statement of cash flow, statement of changes in equity and selected explanatory notes – and the interim management report of DFV Deutsche Familienversicherung AG for the period from 1 January 2020 to 30 June 2020, which are part of the semi-annual financial report pursuant to Section 115 WpHG (Wertpapierhandelsgesetz – German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the European Union and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports is the responsibility of the parent company's management. Our task is to issue a review certificate for the condensed consolidated interim financial statements and on the interim group management report based on our review.
We conducted our review of the condensed consolidated interim financial statements and the interim group management report in accordance with the generally accepted standards for the audit of financial statements promulgated by the Institute of Public Auditors in Germany (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the European Union and that the interim group management report has not been prepared, in all material respects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and analytical procedures and therefore does not provide the assurance attainable in an audit of financial statements. Since, in accordance with our task, we have not performed an audit of the financial statements, we cannot issue an audit opinion.
Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the European Union, or that the interim group management report has not been prepared, in all material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.
Cologne, 13 August 2020
Mazars GmbH & Co. KG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft
Dr Thomas Varain Martin Lächele Auditor Auditor
DFV Deutsche Familienversicherung AG Reuterweg 47 60323 Frankfurt Deutschland
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