Investor Presentation • Nov 15, 2019
Investor Presentation
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Founded 2007 in Frankfurt/Main, Deutsche Familienversicherung is the first digitized insurer and the only functioning Insurtech company on the German market today.
We sell supplementary health insurance:
Dental, outpatient, inpatient and LTC insurance as well as foreign health and daily benefits insurance
We sell property and casualty insurance:
household, legal, liability and legal care insurance
We sell pet health insurance:
dog & cat health insurance
New business (units)
Very good (0.5) Financial test 05/19 Test winner
Good (1.7) Financial test 06/18 Test winner
In addition to the continuation of sales growth, in 2019 Deutsche Familienversicherung once again succeeded in strengthening its exceptional position in product innovation and will continue to do so in 2020.
Very good (0.7) Financial test 12/18 Test winner
The development of "very good" digital products is an expression of the efficiency of the DFV and is not a matter of course with 116 employees.
Very good (1.3) Financial test 05/18 3rd place
Most comprehensive dental care insurance on the german market – awarded four times in the last seven years:
Easiest dental care insurance on the german market:
Virtually 100 % reimbursement at the dentist or orthodontist
Only GOZ and medical necessity are relevant for reimbursement
Simplified coverage for orthodontics – regardless of age and diagnosis
The continuation of digitisation is to take place essentially through the expansion of automation of claims/benefit processing and the replacement of subsystems such as the existing mailbox/file system.
Irrespective of whether a business model can be developed from this, third-party marketing capability is a benchmark for the fact that digitisation can be regarded as completed in accordance with the state of the art.
*Cloud-based neural system analogy
Against this background, Deutsche Familienversicherung has decided to start outsourcing its IT infrastructure gradually before the end of 2019 – a process that should be completed by 2020.
Deutsche Familienversicherung will concentrate its efforts on IT development in the future!
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.
The future lies in the use of digital voice assistants:
Forms and protracted sales discussions for self-evident facts are a thing of the past.
Deutsche Familienversicherung is the first and to date the only InsurTech to cover the entire sales process from providing
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
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 5 : 1 an insurance company may be expected to make a profit.
2:1 3:1 4:1 5:1 Premium volume Sales costs
Premium portfolio to distribution costs (planning)
| Differentiation from our insurtech-competitors** | |||||||
|---|---|---|---|---|---|---|---|
| Company | Premium written |
Combined Ratio |
Claim Ratio | Employees | Established in |
Rating | |
| 280 Mio. US\$ | 126 % | 91 % | 700+ | 2015 | 3 Billion US\$ | ||
| 166 Mio. US\$ | 103 % | 72 % | 288 | 2011 | 1 Billion US\$ | ||
| 90 Mio. US\$ | 119 % | 69 % | 266 | 2015 | 2 Billion US\$ | ||
| 1,069 Mio. US\$ (2018) |
c. 2000 % | 91,5 % (2018) | 105 (2019) | 2017 | 116 Mio. US\$ | ||
| 0,805 Mio. US\$ (2018) |
not available |
25,8 % (2018) | 200+* | 2018 | 1 Billion US\$ | ||
| 98 Mio. US\$ | 110,5 % | 60,5 % | 116 | 2007 | 147 Mio. US\$ |
low claim ratio best premiums/employee » growth gurantee
* One Insurance is part of WeFox company. One Insurance has eight employees. WeFox has more than 200 employees.
** 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.
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.
Portfolio in million of €
Claims Ratio in %
New business (units)
Premiums per employee in t €
«
*9-11 millions of €
long term care insurance inpatient insurance
long term care insurance inpatient insurance
The existing shareholders did not sell any shares as part of the IPO. Shareholders Mr Pesarini and Dr Knoll increased their shares within the scope of the IPO. All existing shareholders are subject to a "lock-up" period of 12 months.
Shareholder structure in number of shares
| Pesarini | 3,038,748 |
|---|---|
| SK Beteiligungen (Dr Knoll) | 2,826,712 |
| Erbengemeinschaft Vogel |
2,788,485 |
| VPV | 2,083,300 |
| Ethenea | 897,496 |
| Freefloat | 1,626,869 |
| Total shares | 13,261,620 |
| Shares before IPO | 8,953,875 |
| Share issue | 4,307,745 |
Of the 165 million possible new contracts, we aim to gain 1%, which means 1.5 m new customers for Deutsche Familienversicherung.
| INSURANCE TYPE | REMAINING PENETRATION POTENTIAL IN GERMANY |
PENETRATION POTENTIAL IN MILLION CONTRACTS |
|---|---|---|
| Long-Term care | 94%* | 42,3 |
| Accident | 70% | 31,5 |
| Nursing Care | 70% | 31,5 |
| Dental | 60% | 27,0 |
| Household | 30% | 13,5 |
| Liability | 20% | 9,0 |
«
*Age range 20 – 60 years
Lutz Kiesewetter Head of IR & PR
+49 (0)69 / 74 30 46 396 [email protected]
| 15/11 | Quarterly figures (Q3) |
|---|---|
| 25/11 | Deutsches Eigenkapitalforum |
| 28/11 | Roadshow London |
| 19/03/20 | Full Year Report 2019 |
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