Investor Presentation • May 12, 2020
Investor Presentation
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DFV Deutsche Familienversicherung AG FRANKFURT/ MAIN | 12th of May 2020
| DFV-DentalCare | DFV-OutpatientCare | DFV-InpatientCare | DFV-LTC | |
|---|---|---|---|---|
| Basis | 50 % Refund on all dental treatment |
Precautionary consultations Refund of vaccinations and social co-payment |
Diseases due to external influences (eg. accident) |
25% of the governments monthly care allowance |
| Komfort | 70 % Refund on all dental treatment |
Precautionary consultations Refund of up to € 3.000 for particular illnesses |
Diseases due to external influences and serious illnesses |
50% of the governments monthly care allowance |
| Premium | 90 % Refund on all dental treatment |
Precautionary consultations Refund of up to € 6.000 for particular illnesses |
Health issues regardless of the cause |
75% of the governments monthly care allowance |
| Exklusiv | 100 % Refund on all dental treatment |
Precautionary consultations Refund of up to € 12.000 for particular illnesses |
+ exclusive assistance services |
100% of the governments monthly care allowance |
Our 16x-matrix p & c
| DFV-household protection |
DFV-liability protection |
DFV-accident protection |
DFV-traffic law protection |
|
|---|---|---|---|---|
| Basis | 32.500 € sum insured 50m² |
20 mio. € sum insured single, 300 € excesses |
50.000 € in case of total disability 5.000 € immediate benefits |
2 mio. € sum insured single, 300 € excesses |
| Komfort | 48.750 € sum insured 75m² |
20 mio. € sum insured family, 300 € excesses |
162.500 € in case of total disability 10.000 € immediate benefits |
2 mio. € sum insured family, 300 € excesses |
| Premium | 65.000 € sum insured 100m² |
20 mio. € sum insured single, without excesses |
337.500 € in case of total disability 15.000 € immediate benefits |
2 mio. € sum insured single, without excesses |
| Exklusiv | 97.500 € sum insured 150m² |
20 mio. € sum insured family, without excesses |
600.000 € in case of total disability 20.000 € immediate benefits |
2 mio. € sum insured family, without excesses |
We have also succeeded in maintaining our product quality in 2019 & 2020
Very good (0,5) Financial Test 05/19 Winner
Good (1,7) Financial Test 06/18 Winner
DFV-KlinikSchutz Very good(0,7) Financial Test 12/18 Winner
Winner In addition to continuing our sales growth, we also succeeded in 2019 in maintaining our exceptional position in product innovation, which we will continue in 2020.
The development of "very good" digital products is an expression of our efficiency and, with a workforce of 122 employees, not a matter of course.
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Easy, understandable products and smart processes need a powerful IT-system. Therefore we developed the "product module editor".
All our insurance products cover more than 1,500 input options so that the entire user interface, correspondence and policies handling is controlled centrally.
The core system was developed in-house and the source code belongs to DFV.
Through the increasing use of direct sales, Deutsche Familienversicherung is able to attract new customers at low, stable costs. We spend up to 12 monthly premiums to win a new customer.
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Claims Ratio in %
Combined Ratio in %
Number of employees
Stability even without Henkel new business
New business (contracts)
Despite the higher premium volume in relation to the 2019 financial year, a decline in claims, particularly in supplementary dental insurance, can be observed.
Other types of insurance are unremarkable.
The largest recruitment campaign of Deutsche Familienversicherung COD has reached its peak with more than 3,600 applications despite the Corona Pandemic.
Deutsche Familienversicherung will recruit all the necessary positions and, incidentally, will close the recruitment via COD for 2020.
The overall negative economic development caused by COVID-19 is so far only having a marginal effect on DFV AG
Care in Germany is a private matter
50% men and 75% women are in need of care.
2.000 € is the pension gap that everyone has to cover for their own inpatient contribution.
Women: 75% Men ca. 2.25 mio. people* : 50% 2.000 € from private funds
*Range of 20-60 years old people in Germany.
In the pharmaceutical and chemical industries, a total of 580,000 people are given the opportunity to take out employer-financed supplementary long-term-care insurance. Of these, 400,000 employees are directly covered by the collective agreement. In the case of 180,000 nonpay-scale employees, the individual employer decides.
A total of 1,900 companies are covered by the collective agreement.
... an example of strategic corporate planning ...
First industry solution in company health insurance: First consortium to implement a nationwide employer-financed supplementary long-term-care
financial stability risk assumption excellent service « « «
Responsibilities of Deutsche Familienversicherung
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After a successful planned premium volume growth of another € 25 million in 2020, CareFlex Chemie is expected to increase the premium volume by another € 70 million. This will result in a total premium volume of €200 million in 2021.
From almost 514,000 customers in 2019 and about 600,000 customers in 2020, CareFlex Chemie is expected to attract up to 500,000 new customers in 2021. In total, over 1 million customers will be insured with DFV.
Financial investments will continue to rise. Starting from € 122.5 million in 2019, investments are estimated to increase by € 41 million to a total of € 163.5 million in 2021.
For this we have to invest in 2020, which explains the increased planned loss in 2020.
Any questions?
| 14/05 | Q1 Report 2020 |
|---|---|
| 20/05 | Annual General Meeting |
| 18/06 | Quirin Champions Conference |
| 13/08 | Q2 Report 2020 |
Loss due to unfavourable ratio of premium volume to new business investment
The ratio of existing premiums to new business investment in the case of the Deutsche Familienversicherung is just 2 : 1. This is in comparison to established competitors, some of whom have insurance portfolios of many hundreds of millions.
The new business planning of Deutsche Familienversicherung will lead to a gradual improvement of the ratio with a linear sales target.
From a ratio of 4 : 1 an insurance company may be expected to make a profit.
Premium volume to distribution costs (planning)
With the successful IPO, Deutsche Familienversicherung now has sufficient financial resources at its disposal to gradually dispense with this form of co-financing sales. Deutsche Familienversicherung will therefore review its reinsurance portfolio as of 31 December 2019 in order to terminate the reinsurance portion for the purpose of pre-financing new business if necessary.
Ø Average customer retention: 8.5 years
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