DFV Deutsche Familienversicherung AG

Quarterly Report • Aug 23, 2018

Veröffentlicht: 07. Mai 2018

Einfach. Vernünftig.

Bericht über die Solvabilität

und Finanzlage (SFCR)

zum 31. Dezember 2017

DFV Deutsche Familienversicherung AG IFRS Unaudited Condensed Consolidated Interim Financial Statements as of and for the six-month period ended June 30, 2018

DFV Deutsche Familienversicherung AG Frankfurt am Main

Unaudited condensed consolidated interim financial statements in accordance with IFRS as of and for the six-month period ended June 30, 2018

Review Report

Note: This pdf copy of the auditor's report for the consolidated financial statements is only a non-binding sample copy. Only the certified copy of the consolidated financial statements prepared and delivered in paper form is authoritative!

List of Annexes

IFRS Unaudited Condensed Consolidated Interim Financial Statements as of and for the six-month period ended June 30, 2018 Review Report General Terms of Engagement for German Public Auditors and Public Audit Firms

DFV Deutsche Familienversicherung AG, Frankfurt am Main

IFRS Unaudited Condensed Consolidated Interim Financial Statements as of and for the six-month period ended June 30, 2018

Consisting of: Balance sheet, Statement of comprehensive income, Statement of changes in equity, Statement of cash flow and Notes

F. Financial Information

The English version of the condensed financial statement below is a translation of the original in German which had been reviewed by the external auditor.

F-3	Unaudited Condensed Consolidated Interim Financial Statements as of and for the six-month
	period ended June 30, 2018 (prepared in accordance with IFRS on interim financial reporting
	(IAS 34)) of DFV Deutsche Familienversicherung AG

• F-4 Consolidated balance sheet
• F-7 Consolidated statement of comprehensive income
• F-9 Consolidated statement of changes in equity
• F-10 Consolidated statement of cash flow
• F-11 Segment Reporting
• F-15 Notes
• F-27 Review Reports

Unaudited Condensed Consolidated Interim Financial Statements as of and for the six-month period ended June 30, 2018 (prepared in accordance with IFRS on interim Financial Reporting (IAS 34)) of DFV Deutsche Familienversicherung AG

Consolidated balance sheet

Deutsche Familienversicherung AG, Frankfurt am Main

Balance sheet as of and for the six-month period ended June 30, 2018

EUR	June 30, 2018	Dec. 31, 2017
A. Intangible assets
I. Goodwill	0	0
II. Other intangible assets	9,321,193	9,319,918
Sum A.	9,321,193	9,319,918
B. Investments
I. Loans	0	0
II. Financial investments available for sale	55,104,861	46,356,558
III. Financial investments at fair value through profit or loss	0	0
IV. Other investments	0	0
Sum B.	55,104,861	46,356,558
C. Receivables
I. Receivables from direct insurance business
1. to policyholders	553,068	517,482
2. to insurance brokers	154,102	604,971
	707,170	1,122.452
3. Other receivables	3,073,739	782,101
Sum C.	3,780,909	1,904,554
D. Current bank accounts	5,022,142	5,510,342

Consolidated balance sheet

Deutsche Familienversicherung AG, Frankfurt am Main Balance sheet as of and for the six-month period ended June 30, 2018

EUR	June 30, 2018	Dec. 31, 2017
E. Share of reinsurers in underwriting provisions
I. Unearned premiums	643,308	2,006,811
II. Actuarial reserves	26,727,252	22,029,558
III. Reserves for outstanding claims	4,509,079	5,374,759
IV. Other underwriting provisions	1,813	1,813
Sum E.	31,881,452	29,412,941
F. Tax receivables
I. from current taxes	0	0
II. from deferred taxes	339,421	402,029
Sum F.	339,421	453,527
G. Other assets	2,911,396	1,376,574
Total assets	108,361,375	94,282,915

Consolidated balance sheet

Deutsche Familienversicherung AG, Frankfurt am Main

Balance sheet as of and for the six-month period ended June 30, 2018

EUR	June 30, 2018	Dec. 31, 2017
A. Equity
I. Share capital	34,110,000	34,110,000
II. Share reserves	3,893,859	3,893,859
III. Retained earnings	-17,853,930	‐19,335,094
IV. Other reserves
1. Unrealized gains and losses	-821,553	‐699,075
2. Reserve from currency conversion	0	0
Sum IV.	-821,553	‐699,075
V. Consolidated net income for the year attributable to the shareholders of the parent company	12,886	1,481,243
Sum A.	19,341,262	19,450,933
B. Gross underwriting provisions
I. Unearned premium reserve	2,646,174	4,338,025
II. Actuarial reserves	37,517,796	30,940,988
III. Reserves for outstanding claims	10,350,284	10,713,586
IV. Other underwriting provisions	833,182	818,921
Sum B.	51,347,436	46,811,520
C. Other reserves	625,929	484,487
D. Liabilities
I. Liabilities from direct insurance business
1. to policyholders	199,451	237,707
2. to insurance brokers	3,123,905	459,800
	3,323,356	697,507
II. Other liabilities	32,535,584	25,319,008
Sum D.	35,858,940	26,016,515
E. Tax liabilities
I. from current taxes	348,414	315,744
II. from deferred taxes	839,393	1,203,716
Sum E.	1,187,807	1,519,460
Total equity and liabilities	108,361,375	94,282,915

Consolidated statement of comprehensive income

EUR	Jan. 1, 2018 – June 30, 2018	Jan. 1, 2017 – June 30, 2017
I. Income statement
1. Gross written premiums
a) Gross	30,190,217	35,860,777
b) Share of reinsurers	13,292,929	20,312,840
	16,897,288	15,547,937
2. Change in unearned premiums
a) Gross	-1,691,852	1,074,006
b) Share of reinsurers	-1,363,503	927,385
	-328,349	146,620
3. Net earned premiums	17,225,637	15,401,317
4. Investment income	-644,563	454,677
thereof: from associated companies	0	0
5. Other income	76,250	392,383
Total income	16,657,324	16,248,377
6. Claim payments to customers
a) Gross	18,974,773	19,463,182
b) Share of reinsurers	8,883,780	10,653,857
	10,090,993	8,809,325
7. Expenses for insurance operations
a) Gross	10,999,758	12,982,757
b) Share of reinsurers	5,755,724	7,465,226
	5,244,034	5,517,531
8. Other expenses	1,158,797	1,405,156
Total expenses	16,493,823	15,732,012
9. Operating result	163,501	516,365
10. Financing expenses	0	0

Consolidated statement of comprehensive income

EUR	Jan. 1, 2018 – June 30, 2018	Jan. 1, 2017 – June 30, 2017
11. Net income before income taxes	163,501	516,365
12. Income taxes	150,615	182,041
13. Net result	12,886	334,324
thereof attributable to shareholders of the parent company	12,886	334,324
thereof attributable to minority interests	0	0
II. Other results (recognized directly in equity)
14. Unrealized gains and losses from investments	-122,478	-158,790
15. Currency conversion	0	0
	-122,478	-158,790
III. Comprehensive income	-109,592	175,534

Consolidated statement of changes in equity

Consolidated statement of changes in equity in TEUR	Subscribed capital	Capital reserves	Retained earnings	Reserve from currency conversion	Reserve unrealized gains and losses	Group equity
As of December 31, 2016	34,110	3,894	-19,335	0	-152	18.517
Change in the scope of consolidation	0	0	0	0	0	0
Gains and losses recognized directly in equity	0	0	0	0	-159	-159
Consolidated net profit/loss	0	0	334	0	0	334
Total group result	0	0	334	0	-159	176
Paid dividends	0	0	0	0	0	0
As of June 30, 2017	34,110	3,894	-19,001	0	-311	18,693
As of December 31, 2017	34,110	3,894	-17,854	0	-699	19,451
Change in the scope of consolidation	0	0	0	0	0	0
Gains and losses recognized directly in equity	0	0	0	0	-122	-122
Consolidated net profit/loss	0	0	13	0	0	13
Total group result	0	0	13	0	-122	-110
Paid dividends	0	0	0	0	0	0
Capital increase	0	0	0	0	0	2.000
As of June 30, 2018	34, 110	3,894	-17,741	0	-821	19,341

Consolidated statement of cash flow

Deutsche Familienversicherung AG, Frankfurt am Main Cash flow statement

	June 30, 2018	June 30, 2017
1. Result for the period before extraordinary items	12,886	334,323
2. Change of gross underwriting provisions	2,067,405	1,356,733
3. Change of deposits retained and accounts payable as well as accounts receivable and accounts payable	2,478,940	6,561,015
4. Change of other receivables and liabilities	5,487,130	-640,701
5. Gains and losses on the disposal of investments	0	0
6. Change of other balance sheet items	-1,494,868	-461,643
7. Other non‐cash expenses and income	707,634	743,102
I. Cash flow from operating activities	9,259,127	7,892,829
9. Proceeds from the sale and maturities of other investments	0	0
10. Payments from the acquisition of other investments	-8,972,237	-8,000,632
11. Other proceeds	-165,777	25,730
12. Other payments	-609,314	-305,549
II. Cash flow from investment activities	-9,747,328	-8,280,452
13. Proceeds from additional equity	0	0
14. Payments to company owners and minority shareholders	0	0
III. Cash flows from financing activities	0	0
Changes of cash funds	-488,201	-387,623
Cash funds at the beginning of the period	5,510,342	4,658,445
Cash funds at the end of the period	5,022,141	4,270,822

Segment reporting

Deutsche Familienversicherung AG, Frankfurt am Main

Balance sheet

	Supplementary health insurance		Property and Casualty insurance
	Q2 2018 EUR	Q4 2017 EUR	Q2 2018 EUR	Q4 2017 EUR
A. Intangible assets
I. Goodwill
II. Other intangible assets	7,891,459.53	7,890,379.97	1,429,733.12	1,429,537.53
Sum A.	7,891,459.53	7,890,379.97	1,429,733.12	1,429,537.53
B. Investments
I. Loans
II. Financial investments available for sale	53,685,159.96	43,018,465.42	1,629,701.43	3,548,092.48
III. Financial investments at fair value through profit or loss
IV. Other investments
Sum B.	53,685,159.96	43,018,465.42	1,629,701.43	3,548,092.48
C. Receivables
I. Receivables from direct insurance business
1. to policyholders	332,546.81	87,953.32	220,521.36	429,528.41
2. to insurance brokers	108,223.42	347,889.01	42,462.10	257,081.74
	440,770.23	435,842.32	262,983.46	686,610.16
3. Other receivables	1,016,871.10	708,263.51	2,057,734.18	20,294.24
Sum C.	1,457,641.32	1,144,105.84	2,320,717.65	706,904.39
D. Share of reinsurers in underwriting provisions
I. Unearned premiums	340,643.75	402,144.28	302,664.56	1,604,666.55
II. Actuarial reserves	26,727,252.24	22,029,557.69	–	–
III. Reserves for outstanding claims	1,979,096.99	1,748,070.37	2,529,981.76	3,626,689.01
IV. Other underwriting provisions	960.02	1,812.41	852.98	––
Sum D.	29,047,953.00	24,181,584.75	2,833,499.30	5,231,355.56
E. Other segment assets	6,447,440.85	5,245,346.87	649,914.47	1,627,196.74
Sum segment assets	98,529,654.66	81,479,882.85	8,863,565.97	12,543,086.70

Segment reporting

	Other		Consolidation		Total
	Q2 2018 EUR	Q4 2017 EUR	Q2 2018 EUR	Q4 2017 EUR	Q2 2018 EUR	Q4 2017 EUR
A. Intangible assets
I. Goodwill
II. Other intangible assets	–	–	–	–	9,321,192.65	9,319,917.50
Sum A.	–	–	–	–	9,321,192.65	9,319,917.50
B. Investments
I. Loans
II. Financial investments available for sale	–	–	-210.000,00	-210.000,00	55,104,861.39	46.356.557,90
III. Financial investments at fair value through profit or loss					–	–
IV. Other investments					–	–
Sum B.			-210.000,00	-210.000,00	55,104,861.39	46.356.557,90
I. Receivables from direct insurance business
1. to policyholders	–	–	–	–	553,068.17	517,481.73
2. to insurance brokers	3,416.80	–	–	–	154,102.32	604,970.75
	3,416.80	–	–	–	3,073,738.78	782,100.79
3. Other receivables	609,957.61	388,992.00	-610,824.11	‐335.448,96	3,073,738.78	782.100,79
Sum C.	613,374.41	388,992.00	-610,824.11	‐335.448,96	3,780,909.27	1.904.553,27
D. Share of reinsurers in underwriting provisions
I. Unearned premiums	–	–	–	–	643,308.31	2.006.810,82
II. Actuarial reserves	–	–	–	–	26,727,252.24	22.029.557,69
III. Reserves for outstanding claims	–	–	–	–	4,509,078.75	5.374.759,38
IV. Other underwriting provisions	–	–	–	–	1,813.00	1.812,41
Sum D.	–	–	–	–	31,881,452.30	29.412.940,31
E. Other segment assets	1,175,604.45	416,400.97	–	–	8,272,959.77	7.288.944,58
Sum segment assets	1,788,978.86	805,392.97	-820,824.11		-545,448.96 108,361,375.38	94,282,913.56

	Supplementary health insurance		Property and Casualty insurance
	Q2 2018 EUR	Q4 2017 EUR	Q2 2018 EUR	Q4 2017 EUR
A. Gross underwriting provisions
I. Unearned premium reserves	1,219,251.34	1.187.577,95	1,426,922.20	3.150.447,20
II. Actuarial reserves	37,517,796.17	30.940.987,90	–	–
III. Reserves for outstanding claims	4,776,173.72	4.090.693,39	5,574,110.65	6.622.892,36
IV. Other underwriting provisions	821,561.65	815.017,21	11,620.69	3.904,11
Sum A.	44,334,782.88	37.034.276,45	7,012,653.54	9.777.243,67
B. Other reserves	507,659.47	291.633,25	51,173.05	103.312,74
C. Other segment liabilities	33,439,183.11	26.134.926,79	2,792,586.33	1.221.724,26
Sum segment liabilities	78,281,625.45	63.460.836,49	9,856,412.92	11.102.280,67

Income statement

		Supplementary health insurance		Property and Casualty insurance
		Q2 2018 EUR	Q2 2017 EUR	Q2 2018 EUR	Q4 2017 EUR
1.	Gross written premiums from insurance business	28,994,257.65	25,383,306.28	1,195,959.33	10,477,470.40
2.	Earned net premiums	14,458,756.29	11,690,148.23	2,766,881.00	3,711,168.38
3.	Result Investment income	-439,065.34	-167,780.52	-84,021.16	-53,263.81
4.	Other income	32,174.15	282,807.65	6,156.65	89,780.45
	Total income	14,051,865.11	11,805,175.35	2,689,016.80	3,747,685.03
5.	Claim payments paid to customers	8,797,524.24	7,009.983.72	1,293,468.62	1,799,341.1
6.	Expenses for insurance operations	4,656,700.74	4,598,650.16	587,332.77	918,880.71
7.	Other expenses	1,151,322.62	556,522.79	220,321.35	176,674.39
	Total expenses	14,605,547.60	12,165,156.67	2,101,122.74	2,894,896.27
8.	Operating result	-553,682.49	-359,981.32	587,894.06	852,788.76
9.	Financing expenses	–	–	–	–
	10. Net income before income taxes	-553,682.49	-359,981.32	587,894.06	852,788.76
	11. Income tax	97,711.42	133,315.67	18,698.42	42,322.55
	12. Net result	-651,393.91	-493,296.99	569,195.64	810,466.21

Interest income	2,911.42	1,030.39	293.48	302.71
Interest expense	246,466.67	326,534.82	24,844.32	95,928.62
Depreciation and amortization	634,495.26	1,217,111.98	63,958.35	357,560.25
Significant non‐cash income (+) and expenses (–) *	–	-126,936.82	–	-37,291.19

* with the exception of depreciation and amortization

	Other		Consolidation		Total
	Q2 2018 EUR	Q4 2017 EUR	Q2 2018 EUR	Q4 2017 EUR	Q2 2018 EUR	Q4 2017 EUR
A. Gross underwriting provisions
I. Unearned premium reserves	–	–	–	–	2,646,173.54	4.338.025,15
II. Actuarial reserves	–	–	–	–	37,517,796.17	30.940.987,90
III. Reserves for outstanding claims	–	–	–	–	10,350,284.37	10.713.585,75
IV. Other underwriting provisions	–	–	–	–	833,182.34	818.921,32
Sum A.	–	–	–		– 51,347,436.42 46.811.520,12
B. Other reserves	67,096.23	89,541.00	–	–	625,928.75	484.486,99
C. Other segment liabilities	1,425,802.26	514,771.52	-610,824.11		-335,448.97 37,046,747.58	27.535.973,60
Sum segment liabilities	1,492,898.49	604,312.52	-610,824.11		-335,448.97 89,020,112.75	74.831.980,71

Income statement

		Other		Consolidation		Total
		Q2 2018 EUR	Q2 2017 EUR	Q2 2018 EUR	Q4 2017 EUR	Q2 2018 EUR	Q4 2017 EUR
1.	Gross written premiums from insurance business	–	–	–	–	30,190,216.98	35,860,776.68
2.	Earned net premiums	–	–	–	–	17,225,637.29	15,401,316.61
3.	Result from investments	-121,476.90	675,721.59	–	–	-644,563.40	454,677.26
4.	Other income	5,901,131.09	4,422,359.04	-5,863,211.83	-4,402,564.67	76,250.38	392,382.47
	Total income	5,779,654.19	5,098,080.63	-5,863,211.83		-4,402,564.67 16,657,324.27 16,248,376.34
5.	Claim payments paid to customers	–	–	–	–	10,090,992.86	8,809,324.89
6.	Expenses for insurance operations	–	–	–	–	5,244,033.51	5,517,530.87
7.	Other expenses	5,650,364.53	5,074,523.50	-5,863,211.83	-4,402,564.67	1,158,796.67	1,405,156.01
	Total expenses	5,650,364.53	5,074,523.50	-5,863,211.83		-4,402,564.67 16,493,823.04 15,732,011.77
8.	Operating result	129,289.66	23,557.13	–	–	163,501.23	516,364.57
9.	Financing expenses	–	–	–	–	–	–
	10. Net income before income taxes	129,289.66	23,557.13	–	–	163,501.23	516,364.57
	11. Income tax	34,205.25	6,402.96	–	–	150,615.09	182,041.18
12. Net result		95,084.41	17,154.17	–	–	12,886.14	334,323.39
	Interest income	–	–	–	–	3,204.90	1.333,10
	Interest expense	–	–	–	–	271,310.99	422.463,44
	Depreciation and amortization	–	–	–	–	698,453.61	1.574.672,23
	Significant non‐cash income (+) and expenses (–) *	–	–	–	–		– ‐ 164.228,01
	* with the exception of depreciation and amortization

Notes

A.1. General information

A.1.1. Bases of the report

The abbreviated interim consolidated financial statements of DFV Group are presented in accordance with IAS 34 and have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

For existing and unchanged IFRS, the accounting, measurement, 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 fiscal years 2017. The condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements of DFV Group for the 2017 fiscal year.

Pursuant to IFRS 4.13, IFRS 4 "Insurance Contracts", which is currently still relevant for insurance companies, permits during a transitional phase, Phase I, to account and value underwriting items in principle according to the accounting provisions applied prior to the introduction of IFRS. Accordingly, in compliance with IFRS 4.25, DFV Familienversicherung AG applied the national accounting standards applicable to the accounting of insurance contracts under the German Commercial Code (HGB) and other additional accounting standards applicable to insurance companies. Pursuant to IFRS 4 an insurance company has to classify its contracts concluded with policyholders in regard to the assumption of underwriting risks and thus with respect to the applicability of IFRS 4.

The present condensed consolidated interim financial statements of DFV Group were released by resolution of the Executive Board on August 15, 2018.

A.1.2. Recently adopted accounting provisions (first effective as of January 1, 2018)

IFRS 15, Revenue from contracts with customers

The regulations and definitions of IFRS 15 replace both the content of IAS 18 "Revenue" and also of IAS 11 "Construction Contracts" as well as the associated interpretations.

It is the core principle of IFRS 15 that an entity should recognize revenue in the amount at which consideration is expected for the transfer of goods or the rendering of services to customers. This core principle is implemented with a five-level framework model:

• Identification of the contract/contracts with a customer,
• Identification of the independent service obligations in the respective contract,
• Determination of the transaction price,
• Distribution of the transaction price among the service obligations of the contract,
• Revenue recognition upon fulfilment of the service obligations by the company.

DFV applied the new standard as of the defined effective date according to the rules of the modified retrospective approach.

Compared to other industries, DFV is not material affected by the new regulations, since the main sales revenues of an insurance company, the insurance premiums, has to be accounted in line with IFRS 4 and, from 2021, onwards in line with IFRS 17. As a non-manufacturing company, DFV is generally not affected by changes in accounting for production orders. Other income such as interest and rent have to be accounted for in accordance with standards such as IFRS 9 and IAS 17. Remaining adopted accounting provisions

The following amended and revised standards were adopted by the DFV Group as of January 1, 2018:

• IFRS 2, Classification and measurement of share-based payment agreement
• IAS 40, Transfers of Investment Property
• IFRIC 22 Foreign Currency Transactions and Advance Consideration.

The adoption had no significant effect on the asset, financial and earnings situation of the DFV Group.

A.1.3. Changes in measurement

DFV Familienversicherung AG has partially changed the measurement method for the gross provision for outstanding claims as of June 30, 2018. The reserve for claims incurred but not reported (IBNR) was previously determined using the so-called BAV method. INBR is determined using actuarial methods to provide a better and more realistic insight into the net assets and earnings situation of the DFV Group.

A.2. Notes to the Consolidated Balance Sheet – Assets

Development of sundry intangible assets in TEUR	Purchased software	Other intangible assets	Total	Purchased software	Other intangible assets	Total
	June 30, 2018	June 30, 2018	June 30, 2018	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2017
Gross book value December 31, previous year	12,151	1,222	13,373	12,126	816	12,942
Accumulated amortization December 31, previous year	3,417	636	4,053	2,771	561	3,332
Balance sheet value December 31 previous year / January 1 fiscal year	8,734	586	9,320	9,355	255	9,610
Additions	70	473	543	25	406	431
Disposals gross book values	0	-218	-218	0	0
Depreciations	-427	-114	-542	-646	-75	-721
Disposals depreciations	0	218	218	0	0
Balance sheet value June 30, fiscal year/ December 31, previous year	8,376	945	9,321	8,734	586	9,320

A.2.1. Development of sundry intangible assets

A.2.2. Financial instruments – available for sale

Financial instruments – available for sale	June 30, 2018 TEUR	Dec. 31, 2017 TEUR
Not fixed interest
‐ shares	10,514	7,675
‐ investment fund units	5	5
‐ other (incl, accounts)	42,286	36,376
	52,805	44,057
Fixed interest+call monies	2,300	2,300
Total	55,105	46,357

Securities lending

At the time of reporting, no securities were lent.

A.2.3. Share of reinsurers in underwriting provisions

Share of reinsurers in underwriting provisions in TEUR	June 30, 2018	Dec. 31, 2017
Unearned premiums	643	2,007
Actuarial reserve	26,727	22,030
Provisions for outstanding claims	4,509	5,375
Other underwriting provisions	2	2
Total	31,881	29,413

A.2.3.1 Reinsurers' share of the development of unearned premiums

Reinsurers' share of the development of unearned premiums in TEUR	June 30, 2018	Dec. 31, 2017
As of December 31, previous year / January 1, fiscal year	2,007	1,996
Additions	643	2,007
Reversed/ claimed	2,007	1,996
As of December 31, previous year / June 30, fiscal year	643	2,007

A.2.3.2 Reinsurers' share of the development of actuarial reserve

Reinsurers' Share of the Development of actuarial reserve in TEUR	June 30, 2018	Dec. 31, 2017
Actuarial reserve as of December 31, previous year	22,030	14,141
Addition	4,890	8,328
Reversal	193	439
Actuarial reserve as of June 30, fiscal year	26,727	22,030

A.2.3.3 Reinsurers' shares in the development of the reserve for outstanding claims

Reinsurers' shares in the development of the reserve for outstanding claims in TEUR	June 30, 2018	Dec. 31, 2017
As of December 31, previous year / January 1, fiscal year	5,375	4,517
Claims expenses
for the fiscal year	4,329	13,232
for previous years	-142	‐182
Total	4,186	13,050
Minus payments
for the fiscal year	2,361	8,921
for previous years	2,691	3,271
Total	5,052	12,192
As of December 31, previous year / June 30, fiscal year	4,509	5,375

A.2.4. Receivables

Receivables in TEUR	June 30, 2018	Dec. 31, 2017
Receivables from direct insurance business	707	1,122
Of which to policyholders	553	517
Of which to insurance brokers	15	605
Accounts receivable from reinsurance business	2,726	89
Receivables from insurance business	3,433	1,212
Fringe benefits on long-term care	313	587
Other receivables	35	106
Total	3,781	1,905

A.2.5. Tax deferral

Deferred tax assets in TEUR	June 30, 2018			Dec. 31, 2017
	Total deferred tax assets	Thereof directly in equity	Thereof through profit or loss	Total deferred tax assets	Thereof directly in equity	Thereof through profit or loss
Intangible assets	0			0		0
Investments
Financial instruments	243	243	0	141	141
Derivative financial instruments	46	0	46	0
Underwriting provisions	50	0	50	7		7
Sundries	0	0	0	254		254
	339	243	96	402	141	261

Deferred tax liabilities in TEUR	June 30, 2018			Dec. 31, 2017
	Total deferred tax liabilities	Thereof directly in equity	Thereof through profit or loss	Total deferred tax liabilities	Thereof directly in equity	Thereof through profit or loss
Intangible assets	839		839	878		878
Investments
Financial instruments	0	0	0	0
Derivative financial instruments	0	0	0	0
Underwriting provisions	0	0	0	0
Sundries	0	0	0	326		326
	839	0	839	1,204	0	1,204

A.2.6. Other assets

Other assets in TEUR	June 30, 2018	Dec. 31, 2017
Operating and office equipment	632	565
Prepaid expenses and accrued income	532	300
Accrued interest from investments	1,082	349
Tax prepayments	440	95
Sundry assets	225	68
Total	2,911	1,377

A.3. Notes to the Consolidated Balance Sheet – liabilities –

A.3.1. Underwriting provisions (gross)

Underwriting provisions (gross) in TEUR	June 30, 2018	Dec. 31, 2017
Unearned premium reserve	2,646	4,338
Actuarial reserve	37,518	30,941
Reserve for outstanding claims	10,350	10,714
Reserve for premium refunds	812	812
Other underwriting provisions	22	7
Total	51,347	46,812

A.3.1.1. Development of Unearned premium reserve

in TEUR	June 30, 2018	Dec. 31, 2017
As of December 31, previous year / January 1, fiscal year	4,338	4,887
Additions	2,646	4,338
Reversed/ claimed	4,338	4,887
As of December 31, previous year / June 30, fiscal year	2,646	4,338

A.3.1.2. Development of actuarial reserve

in TEUR	June 30, 2018	Dec. 31, 2017
Actuarial reserve previous year	30,941	20,201
Addition	6,083	10,806
Reversal	275	627
Interest share	769	562
Actuarial reserve fiscal year	37,518	30,941

The interest portion is determined from the respective actuarial interest from the fiscal year in relation to the mean value of the balance‐sheet actuarial reserve of the previous year and the fiscal year.

A.3.1.3. Development of the reserve for outstanding claims

in TEUR	June 30, 2018	Dec. 31, 2017
As of December 31, previous year / January 1, fiscal year	10,714	9,480
Claim expenses
for the fiscal year	11,930	27,601
for previous years	453	193
Total	12,384	27,794
Minus payments
for the fiscal year	6,564	19,778
for previous years	6,183	6,783
Total	12,747	26,561
As of December 31, previous year / June 30, fiscal year	10,350	10,714

A.3.1.4 Development of the reserve for premium refunds

in TEUR	June 30, 2018	Dec. 31, 2017
As of December 31, previous year / January 1, fiscal year	812	647
Additions	0	472
Claim	0	308
As of December 31, previous year / June 30, fiscal year	812	812

A.3.1.5 Other underwriting provisions

in TEUR	June 30, 2018	Dec. 31, 2017
Cancellation reserve	7	7
Provision for impending losses	0	0
Other underwriting provisions	14	0
Total	22	7

A.3.2. Liabilities

in TEUR	June 30, 2018	Dec. 31, 2017
Receivables from direct insurance business	3,323	698
Thereof from policyholders	199	238
Thereof from insurance brokers	3,124	460
Accounts receivable from reinsurance business	68	299
Deposit liabilities for reinsured insurance business	28,523	23,176
Receivables from insurance business	31,914	24,173
Other Receivables	3,945	1,844
Total	35,859	26,017

A.4. Notes on the Consolidated Income Statement

A.4.1. Earned premiums

We refer to the income statement in regard to the written premiums, changes in unearned premiums and earned premiums (gross, reinsured and net).

A.4.2. Result from investments

in TEUR	June 30, 2018	June 30, 2017
Income from investments
Current income from investments	-543	468
Income from additions	0	0
Profits from changes in fair value	0	0
Profits from the disposal of investments	0	0
Total	-543	468
Expenses for investments
Expenses for management of investments, other expenses	101	13
Depreciation and impairments on investments		0
Losses from changes in fair value	0	0
Losses from the disposal of investments	0	0
Total	101	13
Result from investments	-644	455

A.4.3. Other income

in TEUR	June 30, 2018	June 30, 2017
Other technical income	10	334
Other non technical income	67	59
Total	76	392

A.4.4. Insurance benefits

in TEUR	June 30, 2018	June 30, 2017
Payments for insurance claims
Gross amount	12,747	13,395
Reinsurers' share	5,052	6,106
Net amount	7,695	7,288
Change in reserve for outstanding claims
Gross amount	-363	68
Reinsurers' share	-866	6
Net amount	502	62
Change in actuarial reserve
Gross amount	6,577	6,001
Reinsurers' share	4,698	4,542
Net amount	1,879	1,459
Change in other underwriting provisions
Gross amount	14	0
Reinsurers' share	0	0
Net amount	14	0
Expenses for premium refunds
Gross amount	0	0
Reinsurers' share	0	0
Net amount	0	0
Total	10,091	8,809

A.4.5. (Net) expenses for insurance operations

Expenses for insurance operations in TEUR	June 30, 2018	June 30, 2017
Acquisition costs	7,614	9,123
Administration expenses	3,385	3,860
Thereof minus: reinsurers' shares	5,756	7,465
Total	5,244	5,518

A.4.6. Other expenses

in TEUR	June 30, 2018	June 30, 2017
Other underwriting expenses	235	428
Deposit interest reinsurance	271	206
Fire protection tax	-46	156
Sundries underwriting expenses	10	66
Other non‐underwriting expenses	924	977
Thereof supervisory board compensations	85	58
Total	1,159	1,405

A.5. Other disclosures

A.5.1. Financial instruments and determination of fair value (fair value hierarchy)

Disclosure of assets and liabilities according to levels (June 30, 2018) in TEUR	Level 1	Level 2	Level 3	Total
Shares in subsidiaries, joint ventures and associated companies	0.0	0.0	0	0
Financial instruments available for sale	55,105	0.0	0.0	55,105
Non‐current assets held for sale	0.0	0.0	0.0	0.0
Total of positive market values	55,105	0.0	25.0	55,105
Shares in subsidiaries, joint ventures and associated companies	0.0	0.0	0.0	0.0
Financial instruments available for sale	0.0	0.0	0.0	0.0
Non‐current assets held for sale	0.0	0.0	0.0	0.0
Total of negative market values	0.0	0.0	0.0	0.0

Disclosure of assets and liabilities according to levels (Dec. 31, 2017) in TEUR	Level 1	Level 2	Level 3	Total
Shares in subsidiaries, joint ventures and associated companies	0.0	0.0	0.0	0.0
Financial instruments available for sale	46,357	0.0	0.0	46,357
Non‐current assets held for sale	0.0	0.0	0.0	0.0
Total of positive market values	46,357	0.0	25.0	46,357
Shares in subsidiaries, joint ventures and associated companies	0.0	0.0	0.0	0.0
Financial instruments available for sale	0.0	0.0	0.0	0.0
Non‐current assets held for sale	0.0	0.0	0.0	0.0
Total of negative market values	0.0	0.0	0.0	0.0

A.5.2. Disclosures to contingent liabilities

Purchase commitments exist from currency hedging transactions in the amount of TEUR 8,179.

No contingent liabilities exist as of the balance sheet date (June 30, 2018) in addition to the provisions recognized in the consolidated balance sheet that would have to be reported.

A.5.3 Co-insurance contract for residential property insurance

With effect as of December 31, 2017, DFV Familienversicherung AG terminated a co-insurance contract for residential property insurance. This affects several items in the balance sheet and income statement. Gross written premiums as a result of the portfolio withdrawal in the first half of 2018 are negative (TEUR - 2,019) and result in a corresponding liability to insurance brokers. However, the proportional quota share reinsurance of 95% results in the net premium written in this class of insurance of only TEUR - 98 as well as a claim on the reinsurer in the amount of the written reinsurance premiums. A net earned premium of TEUR 125 in total obtained after the unearned premiums are reversed for gross (TEUR 1,520) and reinsurance (TEUR 1,297).

A.5.4. Supplementary report

Significant events after the balance sheet date and neither reported in the consolidated income statement or balance sheet, haven't occured.

Frankfurt am Main, August 15, 2018

DFV Deutsche Familienversicherung AG

Executive Board

Dr. Stefan M. Knoll Michael Morgenstern Stephan Schinnenburg Marcus Wollny

Review Report

To DFV Deutsche Familienversicherung AG

We have reviewed the condensed consolidated interim financial statements – comprising consolidated balance sheet, consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated cash flow statement, segment reporting and selected notes – of DFV Deutsche Familienversicherung AG for the period from 1 January 2018 to 30 June 2018. The preparation of the condensed consolidated financial statements in accordance with IFRS for interim financial reporting as applicable in the EU is the responsibility of the Company's legal representatives. Our responsibility is to express an opinion on the condensed consolidated financial statements based on our review.

We have conducted our review of the condensed consolidated financial statements in accordance with the generally accepted German review standards of Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review such that we can exclude through critical evaluation, with reasonable certainty 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 applicable in the EU. A review is limited primarily to inquiries with company employees and analytical assessments and therefore does not provide the assurance that can be attained in an audit of financial statements. In accordance with our engagement we have not performed an audit, and therefore 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 applicable in the EU.

Frankfurt am Main, 24 August 2018

WEDDING & Cie. GmbH Auditing Company

Johannes Wedding Auditor