DFV Deutsche Familienversicherung AG

Quarterly Report • Sep 12, 2024

The digital direct insurer

DFV Deutsche Familienversicherung AG
Consolidated Interim Report 2024

TABLE OF CONTENTS

FOREWORD BY THE EXECUTIVE BOARD ..... 3
INTERIM GROUP MANAGEMENT REPORT ..... 3
INTERIM GROUP MANAGEMENT REPORT ..... 4
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS ..... 12
Balance sheet ..... 13
Statement of comprehensive income ..... 14
Consolidated statement of changes in equity ..... 15
Cash flow statement ..... 16
Segment reporting ..... 17
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS ..... 18
General information ..... 19
RESPONSIBILITY STATEMENT OF THE LEGAL REPRESENTATIVES ..... 37

FOREWORD BY THE EXECUTIVE BOARD

Ladies and Gentlemen,
The geopolitical challenges will continue to accompany us in 2024. In addition to the ongoing war in Ukraine, triggered by the Russian invasion on 24 February 2022, the Middle East has been on the brink of conflagration since the unprecedented attack by the Palestinian terrorist organisation Hamas on Israeli territory on 7 October 2023. Even though the indirect effects of these events, which included disrupted supply chains, a sharp rise in inflation, significantly higher interest rates and increased volatility on the capital markets in general, have since subsided somewhat, Deutsche Familienversicherung is continuously analysing geopolitical developments and possible countermeasures. What we have already told you in previous reports remains true: our digital business model has proven to be robust. We also overcame these challenges in the first half of 2024 and, above all, protected the customer assets under management.

Insurance revenues grew by 8 per cent in the first half of the year. In addition to the acquisition of new business via our established online and direct channels, premium adjustments in supplementary Dental and Pet health insurance also contributed to this pleasing development. In supplementary Dental insurance, we won the Stiftung Warentest test for the tenth time; a great success that underpins our innovative strength and our endeavours to create the best products for our customers.

We are continuing to intensively develop our direct sales capabilities. This includes further intensified marketing, which is reflected in new TV adverts, among other things, and which led to a temporary increase in costs in the first half of 2024. Against this backdrop, the operating result of $€ 2.4$ million in the first half of 2024 was significantly lower than in the same period of the previous year. However, we are continuing on our path to profitability, have been able to slightly reduce the administrative expense ratio and, with consolidated earnings before taxes of $€ 4.1$ million in the first half of 2024, are well on track to fulfil the profit guidance for 2024 as a whole.

Innovative strength will continue to determine our course - both in terms of products and processes. We will utilise the potential of artificial intelligence for our business model and thus for our customers. At the same time, we want to continue to be an attractive and sustainable company on the labour market.

None of this would have been possible without the dedicated and professional work of all employees. The Executive Board would like to expressly thank them. Together, we will continue to develop the company consistently. Our customers are always at the centre of our activities, for whom we are constantly developing innovative solutions and business processes that live up to our credo: "Simple. Sensible." The Executive Board and all employees would like to thank you for your trust in Deutsche Familienversicherung. We invite you to continue to accompany us on our journey.

Yours sincerely

Dr Stefan Knoll
Chairman of the Executive Board (CEO)
Frankfurt am Main, 11 September 2024

INTERIM GROUP MANAGEMENT REPORT

INTERIM GROUP MANAGEMENT REPORT

1 ECONOMIC ENVIRONMENT AND SECTOR DEVELOPMENT

While many companies in the German economy continued to assess the situation as poor in the first half of 2024, expectations regarding economic development brightened overall. Nevertheless, at $+0.3 \%$, economic output in the second quarter of 2024 grew only slightly faster than in the previous quarter. Industry and its export business proved to be a pillar of support for the economy, while the situation in the construction industry remained difficult.

In its economic forecast from summer 2024, the ifo Institute expects private consumption to stagnate initially, but that the purchasing power of private households will increase over the course of 2024. The institute estimates that price-adjusted gross domestic product will increase by $0.4 \%$ in 2024 and by $1.5 \%$ in 2025 . Compared to the ifo Institute's economic forecast from spring 2024, this means an increase in the growth rate for 2024 of 0.2 percentage points. The ifo Institute expects the inflation rate to fall significantly from $5.9 \%$ in 2023 to $2.2 \%$ in 2024 as a whole and further to $1.7 \%$ in 2025.

On the labour market, demographic trends in particular will increasingly stand in the way of a substantial acceleration in employment growth. Despite immigration and ongoing efforts to integrate Ukrainian and other refugees into the labour market, the total potential workforce is expected to reach a maximum in the near future due to ageing.

In terms of monetary policy, the European Central Bank (ECB) has recently loosened its monetary reins somewhat. The ECB had previously raised its key interest rates by a total of 4.5 percentage points between July 2022 and September 2023. An initial interest rate cut of 0.25 percentage points has now been decided at the June meeting of the ECB Governing Council. In its economic forecast from summer 2024, the ifo Institute expects the ECB to lower its key interest rates further in light of the improved inflation outlook, although it is likely to proceed cautiously in view of the continued high level of uncertainty surrounding the inflation trend.

In its "2024/01 Insurance Perspectives" forecast, the German Insurance Association (GDV) predicts premium growth of $2.8 \%$ for the German insurance industry in 2024. According to the GDV, the weak development of single premiums will have a particularly negative impact on life insurers' business, while the property and casualty insurance and private health insurance segments can expect premium growth. GDV is forecasting premium growth of $4.5 \%$ for private health insurance in 2024, with the agreed premium adjustments representing a key growth driver. In view of the increased service expenses in the healthcare sector, GDV expects higher premium growth of $6 \%$ to $8 \%$ for 2025. For property and casualty insurance, GDV is forecasting an increase in premium income of $7.8 \%$ for 2024.

2 DEVELOPMENT OF BUSINESS PERFORMANCE

Deutsche Familienversicherung can look back on the first half of 2024 with an overall pleasing business performance despite the continued unstable geopolitical situation. The transition from a purely growth-oriented to a performanceoriented business model, which was already initiated in 2021, was continued.

Numerous individual measures underpin this further development of the company. This relates in particular to the alignment of sales with a stronger focus on direct sales channels, supported by our own TV adverts and targeted marketing initiatives. These marketing measures were even stepped up again in the first half of 2024, resulting in a temporary increase in costs compared to the same period in the previous year.

Finally, cost management measures and stricter cost discipline are helping Deutsche Familienversicherung to consistently pursue its profitability path. In the first half of 2024, these measures made a pleasing contribution to the fulfilment of the annual target set for 2024 of generating positive consolidated earnings before taxes of $€ 5$ to 7 million.

2.1 Development of new business

In the first six months of 2024, Deutsche Familienversicherung was once again able to generate further growth. At $€ 7.1$ million, new business in the first six months of 2024, measured in current premiums for one year (excluding premium adjustments), was nevertheless 14\% lower than the new business in the same period of the previous year ( $€ 8.2$ million). Against the backdrop of the general economic situation, in particular due to the high level of uncertainty caused by the Ukraine crisis, Deutsche Familienversicherung had already decided to reduce absolute sales expenditure in 2022 in order to contribute to profitability. Digital sales channels once again proved to be robust and efficient, flanked by marketing initiatives including product-related TV adverts.

Taking into account the sales activities and product-related initiatives planned for the second half of 2024, after the first six months of the current financial year we are below our annual sales plan, which envisages a volume of new and additional business of around $€ 18$ million. However, initiated premium increases and several cooperation agreements that have been initiated or are currently in development harbour additional potential for future sales success. These may also be reflected in the figures for the full year 2024. In any case, Deutsche Familienversicherung will not abandon the profitability path it has embarked on and will continue to only acquire new business that is appropriately priced.

2.2 Development of the product portfolio

The aim of Deutsche Familienversicherung is to further broaden the product base in primary insurance in order to offer its customers optimum protection, true to the motto "Simple.Sensible." Our growth driver DFV-ZahnSchutz was recognised as the test winner by Stiftung Warentest for the ninth time in 2024. In supplementary Dental insurance, as in DFV Pet health insurance, we made premium adjustments that took effect in the first half of 2024. In Pet health insurance, the adjustment was mainly due to the increased claims requirement resulting from the change in the veterinary fee schedule (GOT) at the end of 2022. We continue to successfully market DFV Accident insurance, including the exclusive product rated "very good" (grade 1.5) by Stiftung Warentest. The DFV Liability insurance was also recently named the test winner (score 0.6) by Stiftung Warentest. In general, Deutsche Familienversicherung is making increased efforts to further stimulate growth in the Property/Casualty insurance products.

Deutsche Familienversicherung assumed liability as reinsurer of the CareFlex Chemie (Group) consortium in mid-2021. This Inwards Reinsurance business continued as planned in the first half of 2024.

2.3 Reporting on changes in the forecasts from the Group management report

With a view to the forecasts from the 2023 Group management report, we do not see any significant changes within the meaning of DRS 16.35, with the exception of the adjustment of the expected earnings framework presented below, nor any deviations from the fundamental development of the Group as presented in the 2023 Group management report. Assuming that the macroeconomic environment is not the cause of any extraordinary negative effects on earnings, Deutsche Familienversicherung planned consolidated earnings before taxes of $€ 5-7$ million for 2024 according to the forecast report. As set out below in the forecast report, Deutsche Familienversicherung is still aiming for consolidated earnings before taxes of $€ 5-7$ million in 2023.

3 BUSINESS DEVELOPMENT

3.1 Reporting and performance indicators

Deutsche Familienversicherung has been reporting its business results in accordance with the new IFRS 17 and IFRS 9 accounting standards since 1 January 2023. When applying the IFRS standards at Group level, Deutsche Familienversicherung nevertheless essentially uses variables in accordance with the HGB accounting regime for internal management purposes.

Key performance indicators
in € million	30.6.2024	30.6.2023	Delta
Total portfolio (current contributions for one year as a business figure)	199.3	192.3	$+3.6 \%$
New business (current premiums for one year as a business figure)	9.0	10.6	$-15.0 \%$
Insurance revenue	69.8	64.9	$+7.6 \%$
Insurance Service Result (operating result)	2.4	5.0	$-52.3 \%$
Combined ratio in \%	$96.5 \%$	$92.0 \%$	4.4 pp
Consolidated earnings before taxes	4.1	4.0	$+2.8 \%$
Overall result	3.4	3.6	$-5.5 \%$
Earnings per share in accordance with IAS 33 (€)	0.20	0.18	$+6.3 \%$

3.2 Insurance revenue

Insurance revenue in accordance with IFRS 17 rose by $7.6 \%$ to $€ 69.8$ million in the first half of 2024 compared to the same period of the previous year. This pleasing growth was driven by the supplementary Health insurance reporting segment, where insurance revenue rose by $8.0 \%$. The Property/Casualty ( $+2.7 \%$ ) and Pet ( $+6.5 \%$ ) reporting segments recorded lower sales growth. The Inwards Reinsurance business newly included in 2021 is not contained in insurance revenue in the amount of premium income in the reporting logic of IFRS 17.

Insurance service expenses increased by 10.2\% from $€ 37.2$ million in the first half of 2023 to $€ 41.1$ million in the reporting period. At $61.0 \%$, the claims ratio was slightly higher than in the first half of 2023 (59.5\%). Deutsche Familienversicherung capitalised insurance acquisition cash flow (IACF) paid in the supplementary Dental insurance and Pet insurance products valued using the Premium Allocation Approach (PAA). The corresponding amounts from the amortisation over the term of the contracts are recognised as an expense in the acquisition costs for a period (IFRS 17.28C). Total acquisition costs increased significantly in the first half of 2024 compared to the same period of the previous year by $33.0 \%$ to $€ 11.6$ million. This was due in particular to a temporary increase in expenses for advertising campaigns (own TV adverts). A significant reduction in these expenses is already planned for the second half of 2024, meaning that the relative expense burden for 2024 as a whole is expected to be lower.

Other expenses as operating expenses increased slightly in absolute terms in the reporting period, but the administrative expense ratio fell pleasingly to $18.2 \%$, compared to $18.5 \%$ in the first half of 2023. This is once again due to the high degree of cost discipline with a focus on operating expenses (opex). Expenses from reinsurance contracts held increased slightly by $€ 0.2$ million.

3.3 Operating result

The significant $€ 2.9$ million increase in acquisition costs resulted in a reduction in the operating result (insurance service result in accordance with IFRS 17) compared to the first half of 2023. The operating result for the reporting period was $€ 2.6$ million lower than the operating result for the first half of 2023. Around half of this decline in operating result relates to the supplementary Health insurance reporting segment ( $€-1.3$ million), as the advertising stimuli (TV adverts) in the first half of 2024 largely related to supplementary dental insurance. Overall, Deutsche Familienversicherung generated a positive operating result in the first six months of the 2024 financial year, which underpins the targets for the year.

The loss ratio in the Property/Casualty reporting segment rose only marginally from $12.3 \%$ in the first half of 2023 to $13.4 \%$ in the reporting period. It therefore remains well below the actuarially calculated risk requirement. In the Pet reporting segment, the loss ratio increased slightly to $64.3 \%$ (first half of 2023: $61.6 \%$, which means that it is also within the actuarially expected ranges here. This reporting segment was the subject of a premium adjustment implemented by Deutsche Familienversicherung with effect from 1 January 2024, which successfully counteracted the effects of the increase in the scale of fees for veterinarians (GOT) at the end of 2022.

The overall combined ratio increased from $92.0 \%$ (first half of 2023) to $96.5 \%$ in the reporting period. This key figure is therefore temporarily above the target of $95.0 \%$ that Deutsche Familienversicherung has set itself for the combined ratio.

3.4 Financial result

The result from the management of investments, which Deutsche Familienversicherung mainly holds in two fully consolidated special funds, developed favourably in the reporting period and amounted to $€ 1.6$ million (first half of 2023: $€ 0.6$ million). The investment result takes into account the fact that the unrealised changes in the market value of certain financial instruments, classified as fair value through profit or loss (FVTPL), are recognised in the income statement as investment income or expenses.

Another component of the financial result is the insurance financial result newly introduced by IFRS 17, which on the one hand consists of a correction of those parts of the investment result that are attributable to policyholders via the excess interest or profit participation. On the other hand, the technical financial result reflects changes in the insurance, in particular interest-related input factors in relation to those portfolios that are measured using the variable fee approach (VFA) when applying IFRS 17. The technical financial result increased by $€ 2.3$ million to $€ 1.7$ million in the reporting period.

After offsetting the investment result against the technical financial result in accordance with IFRS 17, the financial result amounted to $€ 3.3$ million in the first half of 2024, compared to $€ 0.1$ million in the same period of the previous year.

3.5 Consolidated net income

Deutsche Familienversicherung closes the first half of 2024 with a pre-tax profit of $€ 4.1$ million (first half of 2023: $€ 4.0$ million). After offsetting taxes, earnings after taxes totalled $€ 2.8$ million for the first half of 2024 (first half of 2023: $€ 2.7$ million). The total comprehensive income for the first half of 2024 amounts to $€ 3.4$ million (first half of 2023: $€ 3.6$ million).

The earnings performance in the reporting period is essentially characterised by the fact that a temporary significant increase in acquisition costs, mainly driven by advertising campaigns and accompanied by otherwise continued strict cost management, was slightly more than offset by a significant increase in the financial result.

3.6 Financial position

The financial position of Deutsche Familienversicherung is essentially characterised by the growth in ageing provisions typical of the business model (especially for supplementary Long-term care insurance), which must be backed by investments in separate "security assets". Specific regulatory provisions apply to these customer funds to which policyholders are entitled. The IFRS 17 accounting regime reflects this logic, which includes a legally standardised minimum participation of policyholders in surpluses, within the VFA valuation model.

In the first half of 2024, Deutsche Familienversicherung also transferred contributions from the supplementary Health insurance business operated in the form of life insurance to the "security assets" as planned and in accordance with the contract for the purpose of financing the ageing provisions, namely in the amount of $€ 11.4$ million. However, total investments only increased by $1.1 \%$ to $€ 218.8$ million in the reporting period, as Deutsche Familienversicherung also decided in the first half of 2024 to slightly reduce the investments of "free assets" in favour of cash and cash equivalents. The latter are not recognised as "Investments" under IFRS, but under the item "Cash and cash equivalents", which increased significantly by $€ 10.0$ million in the reporting period.

Group equity increased by $€ 3.4$ million or $3.3 \%$ to $€ 107.6$ million compared to 31 December 2023.

Key figures on the net assets and financial position

In $€$ million	30.6 .2024	31.12 .2023
Balance sheet total	304.3	300.5
Equity	107.6	104.1
Investments	218.8	216.5
Liabilities from insurance contracts issued	160.6	156.4
- therein: Contractual service margin (CSM)	98.0	102.9

The solvency position of Deutsche Familienversicherung remained adequate in the first half of 2024 with an SCR coverage ratio well above the statutory requirements. Deutsche Familienversicherung was able to meet its payment obligations at all times during the reporting period. There are no recognisable indications of a future risk.

3.7 Opportunity and risk report

3.7.1 Description of the risk structure

Deutsche Familienversicherung reported in detail on the opportunities and risks in its 2023 Annual Report. The descriptions and assessments of the opportunity and risk situation of Deutsche Familienversicherung remain unchanged.

The object of the company is the insurance business. This activity is naturally associated with risks. It is therefore important to take risks in a targeted manner within the scope of the existing risk-bearing capacity, provided that the associated opportunities can be expected to generate adequate added value. Deutsche Familienversicherung's risk management aims to identify, control and ultimately manage risks at an early stage. Active risk management is carried out by the Executive Board and managers. The heads of department routinely report to the departmental or full Executive Board on the current course of business, including potentially risky aspects.

Deutsche Familienversicherung's risk strategy also includes passing on risks to solvent reinsurance companies with very good credit ratings via proportional risk assumption and flexibly expandable major loss and natural catastrophe cover as well as annually adjusted insurance cover for loss of earnings/business interruption, public liability, cyber risks and business buildings and inventory.

The Executive Board and Supervisory Board are regularly informed about the solvency ratios. At over 300\%, the SCR coverage ratio of Deutsche Familienversicherung remained well above the statutory requirements in the first half of 2024.

The opportunities and risks of Deutsche Familienversicherung can be divided into the following categories:

• Insurance opportunities and risks;
• Risks from bad debts;
• Opportunities and risks from investments;
• Operational risks;
• Liquidity risks;
• Reputational risks;
• Strategic opportunities and risks (including emerging risks).

In addition to risks, the opportunity and risk profile of Deutsche Familienversicherung also includes opportunities that must be utilised in a balanced opportunity/risk management. These include, for example, Insurance effects resulting from a favourable claims experience, as well as opportunities in investments that can be exploited through strategic and tactical investment management decisions and capital market developments. Above all, strategic opportunities can arise, for example, through early entry into future markets, rapid market introduction and sales successes, for example with cooperation partners.

To manage market price risks in the area of investments, a hedging process based on derivative financial instruments was implemented, which provides for the use of standardised derivatives in defined hedging cases. No such hedging was in place as at the reporting date of 30 June 2024, meaning that Deutsche Familienversicherung did not recognise any derivative financial instruments as at 30 June 2024.

In the uncertain geopolitical situation with its inherent uncertainties, we are monitoring our environment very closely in order to be able to counter both emerging opportunities and risks at short notice.

3.7.2 Summary of the risk situation

In summary, Deutsche Familienversicherung states that, based on the current knowledge and circumstances described, there are no recognisable current developments that could pose a threat to the Group's continued existence as a going concern or significantly impair its net assets, financial position and results of operations or its risk-bearing capacity.

3.8 Outlook

Deutsche Familienversicherung will continue its profitability course in the second half of 2024 with consistent cost management. The forecast report as part of the 2023 Group management report states that the aim is to continue to grow the portfolio in all areas of primary insurance in 2024 and to realise a new and additional business volume in primary insurance of around $€ 18$ million. Deutsche Familienversicherung remains committed to this in principle, but will consider prioritising the fulfilment of the profitability target over the achievement of the volume target depending on the business development in the further course of the year. Based on the available half-year figures and expectations for the rest of the year, Deutsche Familienversicherung continues to expect positive earnings before taxes in the range of $€ 5-7$ million for the full year 2024.

Thanks to the continued increase in premiums and the ongoing positive effects of the cost management programme, Deutsche Familienversicherung believes it is well positioned for the future and expects a further improvement in earnings. This forecast is subject to uncertainty, particularly against the backdrop of possible distortions on the capital market as a consequence of the crises in Ukraine and the Levant.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

BALANCE SHEET

ASSETS

in £ thousand	30.06.2024	31.12.2023
A. Cash and cash equivalents	18,261	8,230
B. Investments	218,819	216,508
C. Assets from insurance contracts issued	33,454	38,770
D. Assets from reinsurance contracts held	12,077	14,466
E. Other assets	6,179	6,316
F. Intangible assets	5,770	6,000
G. Right-of-use assets in accordance with IFRS 16	6,739	9,191
H. Own property, plant and equipment	988	1,050
I. Deferred tax assets	0	0
Total assets	304,287	300,531

PASSIVA

in £thousand	30.06.2024	31.12.2023
A. Income tax liabilities	763	768
B. Other liabilities	3,598	4,512
C. Liabilities from insurance contracts issued	160,613	156,353
D. Liabilities from reinsurance contracts held	17,928	21,695
E. Provisions	2,793	2,697
F. Leasing liabilities	8,807	9,227
G. Deferred tax liabilities	2,222	1,134
H. Equity	107,563	104,144
I. Minorities	0	0
Total liabilities	304,287	300,531

STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Subscribed capital	Capital reserve	Retained earnings	Unrealised result from investments	Unrealised result from insurance contracts	Group equity before noncontrolling interests	Non- controlling interests	Group equity
in € thousand
Status as at 31 December 2022	29,176	72,754	$-2,483$	$-20,195$	19,396	98,648	88	98,736
Profit for the period	0	0	2,689	0	0	2,689	$-3$	2,686
Other comprehensive income for the period	0	0	0	1,775	$-833$	943	0	943
Capital contributions from noncontrolling interests	0	0	0	0	0	0	0	0
Status as at 30 June 2023	29,176	72,754	206	$-18,420$	18,563	102,280	85	102,365
Status as at 31 December 2023	29,176	72,754	1,674	$-13,165$	13,706	104,145	0	104,144
Profit for the period	0	0	2,848	0	0	2,848	0	2,848
Other comprehensive income for the period	0	0	0	$-725$	1,296	571	0	571
Capital contributions from noncontrolling interests	0	0	0	0	0	0	0	0
Status as at 30 June 2024	29,176	72,754	4,522	$-13,890$	15,002	107,564	0	107,563

The 2023 annual report was published in April 2024 and contained the final changes in equity due to the first-time application of IFRS 17 and IFRS 9. At the time of publication of the 2023 half-year report, some technical issues (including certain reinsurance contracts) had not yet been finalised in the accounting insurance industry and among the auditors. We therefore had to retrospectively adjust the equity values as at 30 June 2023, which is why the equity values for the previous year contained in this report differ from those in the 2023 half-year report. In 2023, we also made an adjustment to the estimate in the liability for incurred claims (LIC) in the supplementary dental insurance portfolio. We have also changed this adjustment retrospectively in the 2023 half-year figures so that the figures are comparable with those for the first half of 2024.

CASH FLOW STATEMENT

in € thousand	H1 2024	H1 2023
Cash and cash equivalents 1.1.	8,230	11,494
of which cash reserves and cash and cash equivalents	4,680	11,493
of which short-term investments	3,550	1
I. Cash flow from operating activities	13,175	8,875
1.1 Result for the period	4,058	3,955
1.2 Depreciation, amortisation and write-ups of non-current assets	1,029	618
1.3 Income tax payments	424	$-148$
1.4 Net changes in insurance contracts issued and reinsurance contracts held (excl. changes in OCI)	10,338	10,336
1.5 Other non-cash changes	$-2,67445$	$-5,886$
II. Cash flow from investing activities	$-2,724$	$-10,521$
2.1 Payments for investments in intangible assets	$-384$	$-221$
2.2 Payments for investments in property, plant and equipment	-	$-571$
2.3 Net disbursements for investments	$-2,340$	$-9,729$
III. Cash flow from financing activities	$-420$	-
3.1 Equity increases	-	-
3.2 Borrowing / repayment	-	-
3.3 Net changes from lease liabilities	$-420$	-
3.4 Dividends	-	-
Total changes in cash flow	10,031	$-1,646$
Cash and cash equivalents 30.6.	18,261	9,848
of which cash reserves and cash and cash equivalents	10,211	3,835
of which short-term investments	8,050	6,013

SEGMENT REPORTING

SEGMENT INCIDME STATEMENT	Supplementary health insurance				Pet insurance		Other \& consolidation		Group
in $\mathbf{C}$ thousand	30.6.2024	30.6.2023	30.6.2024	30.6.2023	30.6.2024	30.6.2023	30.6.2024	30.6.2023	30.6.2024	30.6.2023
1. Insurance revenues	60,324	55,872	3,047	2,968	6,021	5,651	375	375	69,766	64,866
2. Insurance expenses	$-54,302$	$-48,472$	$-3,598$	$-1,761$	$-6,986$	$-7,348$	-	-	$-64,886$	$-57,581$
2.1 Insurance service expenses	$-36,920$	$-33,745$	$-297$	$-358$	$-3,838$	$-3,144$	-	-	$-41,055$	$-37,247$
2.2 Acquisition costs	$-7,343$	$-5,886$	$-2,230$	$-748$	$-2,038$	$-2,097$	-	-	$-11,611$	$-8,730$
2.3 Other expenses	$-10,039$	$-8,842$	$-1,070$	$-655$	$-1,111$	$-2,107$	-	-	$-12,220$	$-11,604$
3. Net insurance expenses for reinsurance contracts held	$-1,616$	$-1,683$	$-825$	$-60$	$-55$	$-547$	-	-	$-2,495$	$-2,291$
4. Insurance result	4,405	5,717	$-1,376$	1,146	$-1,020$	$-2,244$	375	375	2,385	4,994
4.1 Interest from investments (not PVTPL)	1,932	1,391	64	79	127	150	378	$-221$	2,502	1,398
4.2 Result from investments (PVTPL)	$-125$	$-228$	1	$-18$	1	$-35$	3	1,629	$-121$	1,348
4.3 Net expenses for risk provisioning	$-206$	$-650$	$-27$	1	$-54$	1	$-146$	5	$-433$	$-644$
4.4 Gains/losses on disposal	$-93$	$-576$	52	$-51$	102	$-97$	273	$-470$	333	$-1,193$
Other investment expenses and foreign currency result	594	244	$-19$	32	$-38$	60	$-65$	$-630$	$-716$	$-294$
5. Investment result	914	181	70	42	137	79	444	314	1,565	616
5.1 Insurance financial expenses - net	1,339	$-713$	7	$-0$	4	$-1$	-	-	1,349	$-714$
5.2 Reinsurance-related financial income - net	441	175	-	-	-	-	-	-	441	175
6. Insurance financial result	1,780	$-538$	7	$-0$	4	$-1$	-	-	1,790	$-539$
Financing costs and other expenses Financial assets							-	$-72$	-	$-72$
8. Financial result	2,694	$-358$	77	$-41$	141	79	372	314	3,283	76
9. Other result	-	-	-	-	-	-	$-1,610$	$-1,115$	$-1,610$	$-1,115$
10. Segment result before taxes	7,099	5,359	$-1,299$	1,188	$-879$	$-2,165$	$-863$	$-427$	4,058	3,955

SEGMENT BALANCE SHEET - ASSETS	Supplementary health insurance				Pet insurance		Other \& consolidation		Group
in $\mathbf{C}$ thousand	30.6.2024	31.12.2023	30.6.2024	31.12.2023	30.6.2024	31.12.2023	30.6.2024	31.12.2023	30.6.2024	31.12.2023
A. Investments	165,219	151,229	6,416	4,123	12,619	7,612	34,565	53,544	218,819	216,508
B. Insurance assets	31,199	35,307	-	-	2,255	3,463	-	-	33,454	38,770
C. Technical assets Reinsurance	11,883	13,394	193	1,072	-	-	-	-	12,077	14,466
D. Other assets	34,254	26,130	1,734	1,568	3,428	2,774	522	315	39,938	30,787
Total segment assets/assets	242,555	226,060	8,343	6,763	18,302	13,849	35,087	53,859	304,287	300,531

SEGMENT BALANCE SHEET - LIABILITIES	Supplementary health insurance				Pet insurance		Other \& consolidation		Group
in $\mathbf{C}$ thousand	31.12.2024	31.12.2023	31.12.2024	31.12.2023	31.12.2024	31.12.2023	31.12.2024	31.12.2023	31.12.2024	31.12.2023
A. Insurance liabilities	155,810	151,218	4,804	5,135	-	-	-	-	160,613	156,353
B. Technical liabilities Reinsurance	15,196	18,619	2,732	-	-	3,076	-	-	17,928	21,695
C. Other liabilities	15,597	15,565	788	935	1,557	1,725	241	114	18,183	18,339
Total segment liabilities / Group liabilities and provisions	186,603	185,401	8,323	6,070	1,557	4,801	241	114	196,724	196,386

We have restructured the segments compared to the 2023 half-year report. The segment allocation presented here corresponds to that in the 2023 Annual Report. We have also applied the changed structure to the previous year's comparative periods for the sake of comparability.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

General information

4 REPORTING BASIS

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

The IFRS accounting, valuation, consolidation and reporting principles applied in the preparation of the condensed interim consolidated financial statements are the same as those applied in the preparation of the consolidated financial statements for the 2023 financial year.

Unless otherwise stated, all amounts are rounded to the nearest thousand euros (€).

5 EXTRACTS FROM THE ACCOUNTING PRINCIPLES AND ACCOUNTING PRINCIPLES

5.1 Discounting

The following table shows the interest rates used to discount the cash flows:
Insurance business: Discount rates in \%

	30.6.2024	31.12.2023	30.6.2023
1 year	4.16	4.22	4.93
5 years	3.28	3.08	4.08
10 years	3.58	3.49	3.82
20 years	3.11	3.19	3.60
30 years	3.18	3.33	3.48

6 INSURANCE BUSINESS

6.1 Insurance income

Insurance income is broken down by business area in the segment reporting. According to the IFRS 17 valuation models, the breakdown is as follows:

Revenue according to IFRS 17 models
in € thousand	$\mathbf{2 0 2 4}$	$\mathbf{2 0 2 3}$
Premium allocation approach (PAA)	58,349	55,439
Variable fee approach (VFA)	11,042	9,052
Premium allocation approach (PAA) - issued reinsurance	375	375
Turnover	$\mathbf{6 9 , 7 6 6}$	$\mathbf{6 4 , 8 6 6}$

6.2 Insurance expenses

Insurance expenses are broken down by business division and by other expense items in the segment reporting. The following breakdown is based on the IFRS 17 valuation models:

Insurance service expenses
in € thousand	$\mathbf{2 0 2 4}$	$\mathbf{2 0 2 3}$
Insurance service expenses (claims)	-41,055	-37,247
Acquisition costs	-11,611	-6,730
Expenses for insurance operations	-12,220	-11,604
Insurance service expenses	$\mathbf{- 6 4 , 8 8 6}$	$\mathbf{- 5 7 , 5 8 1}$

6.3 Reinsurance result

The reinsurance results are broken down by business segment in the segment reporting. These are broken down as follows in accordance with IFRS 17 valuation models:

Reinsurance result

in € thousand	$\mathbf{2 0 2 4}$	$\mathbf{2 0 2 3}$
Income from reinsurance contracts	5,703	12,361
Expenses from reinsurance contracts	-8,198	-14,652
Net result reinsurance	$\mathbf{- 2 , 4 9 5}$	$\mathbf{- 2 , 2 9 1}$

6.4 Total financial result

The following table analyses the components of the total financial result recognised in the consolidated income statement and in equity:

Financial result - investment result
in € thousand	2024	2023
Interest from investments (not FVTPL)	2,502	1,398
Distributions from investments (FVTPL)	450	878
Net expenses for risk provisioning	433	$-644$
Valuation of investments (FVTPL)	$-571$	470
Gains losses on disposal	333	$-959$
Other investment expenses and foreign currency result	$-716$	$-528$
Total	1,565	616

Financial result - Insurance financial result
in € thousand	2024	2023
Insurance financial expenses - net	1,349	-714
Reinsurance-related financial expenses - net	441	175
Total	1,790	-539

Financing costs and other expenses Financial position
in € thousand	2024	2023
Financing expenses from financing	-72	-
Other expenses Financial position	-	-
Total	-72	-

Net change in revaluation reserves
in € thousand	2024	2023
Fixed-interest securities measured at fair value through other comprehensive income	2,287	2,129
Reallisation result from fixed-interest securities measured at fair value through other comprehensive income	440	479
Changes in insurance financial reserves recognised directly in equity	2,139	-1,223
Deferred taxes on changes in the revaluation reserve	279	442
Total	571	943

6.5 Valuation approach for insurance and reinsurance contracts

The various insurance and reinsurance contracts were valued using the following methods:
a) Fully retrospective approach: PAA (primary insurance and reinsurance)
b) Recognition on the basis of fair value: VFA (primary insurance)
c) Modified retrospective approach: GMM (reinsurance)

The following tables analyse the changes in net assets (" + " positive presentation) and liabilities ("-" negative presentation) from primary insurance and reinsurance contracts for each IFRS 17 measurement model. Firstly, the changes in the insurance provision and liabilities are analysed. The changes in the measurement components of the contracts that are not measured using the PAA are then analysed.

6.5.1 Analysis by remaining coverage period and outstanding claims - contracts valued with PAA

in $€$ thousand	LRC without loss component	LIC claims provisions	Total	LRC without loss component	LIC claims provisions	Total
		30.6.2024			31.12.2023
Assets	1,827	-	1,827	1,522	-	1,522
Capitalised acquisition costs	44,463	-	44,463	49,175	-	49,175
Liabilities	-	$-16,002$	$-16,002$	-	$-16,318$	$-16,318$
Net carrying amount as at 1 January	46,290	$-16,002$	30,287	50,697	$-16,318$	34,379
Insurance income	58,349	-	58,349	112,600	-	112,600
Insurance expense	$-7,984$	38,214	30,230	$-16,910$	3,084	$-13,826$
Insurance service expenses	-	38,214	38,214	-	3,084	3,084
Capitalised acquisition costs	$-7,984$	-	$-7,984$	$-16,910$	-	$-16,910$
Other acquisition costs	-	-	-	-	-	-
Other result	-	$-38,299$	$-38,299$	-	$-2,768$	$-2,768$
Change in loss reserves	-	$-39,700$	$-39,700$	-	$-2,152$	$-2,152$
Experience variance claims / expenses	-	1,486	1,486	-	$-472$	$-472$
Unwinding	-	85	85	-	$-145$	$-145$
Total change recognised in profit or loss	50,365	38,214	88,579	95,690	3,084	98,774
Cash flows	$-51,871$	-	$-51,871$	$-100,097$	-	$-100,097$
Premium income	$-58,366$	-	$-58,366$	$-112,570$	-	$-112,570$
Expenses for capitalised acquisition costs	6,495	-	6,495	12,473	-	12,473
Expenses for other acquisition costs	-	-	-	-	-	-
Net carrying amount at the end of the period	44,783	$-16,087$	28,696	46,290	$-16,002$	30,287
Assets	1,975	-	1,975	1,827	-	1,827
Capitalised acquisition costs	42,808	-	42,808	44,463	-	44,463
Liabilities	-	$-16,087$	$-16,087$	-	$-16,002$	$-16,002$

6.5.2 Analysis by remaining coverage period and outstanding claims - contracts not valued with PAA

6.5.3 Analysis by valuation component - contracts not valued using PAA

	Present value of future cash flows	Risk adjustment	CSM	Total	Present value of future cash flows	Risk adjustment	CSM	Total
in € thousand		30.6.2024				31.12.2023
Assets				-				-
Liabilities	$-36,056$	$-10,908$	$-102,859$	$-149,823$	$-48,978$	$-2,285$	$-67,895$	$-119,158$
Net carrying amount as at 1 January	$-36,056$	$-10,908$	$-102,859$	$-149,823$	$-48,978$	$-2,285$	$-67,895$	$-119,158$
Changes relating to the current performance period	12,267	215	$-8,834$	3,648	36,389	89	$-30,754$	5,724
CSM recognised in profit or loss due to service provision	-	-	2,855	2,855	-	-	4,776	4,776
Change in risk adjustment	-	215	-	215	-	89	-	89
Experience Adjustments	12,267	-	$-11,689$	579	36,389	-	$-35,530$	859
Changes relating to future performance periods	$-12,981$	$-640$	13,621	$-0$	12,993	$-6,712$	$-4,281$	-
Changes in estimates that lead to an adjustment of the CSM	$-13,559$	$-503$	14,062	-	11,573	$-8,654$	$-2,919$	-
New business	578	$-137$	$-441$	-	1,420	$-58$	$-1,362$	-
Changes relating to past performance periods	$-63$	-	63	-	$-71$	-	71	-
Change in the claims provision	$-63$	-	63	-	$-71$	-	71	-
Technical result	$-778$	$-425$	$-4,650$	3,648	$-49,311$	$-8,623$	$-34,964$	5,724
Technical financial result	529	-	-	529	$-7,685$	-	-	$-7,685$
Total change recognised in profit or loss or not recognised in profit or loss	$-248$	$-425$	4,850	4,177	41,625	$-8,623$	$-34,964$	$-1,961$
Cash flows	$-12,796$	-	-	$-12,796$	$-28,703$	-	-	$-28,703$
Premium income	$-23,513$	-	-	$-23,513$	$-45,886$	-	-	$-45,886$
Acquisition and administrative costs	4,613	-	-	4,613	6,825	-	-	6,825
Other income and expenses	396	-	-	396	676	-	-	676
Paid insurance service expenses and expenses	5,708	-	-	5,708	9,681	-	-	9,681
Net carrying amount at the end of the period	$-49,099$	$-11,334$	$-98,009$	$-158,442$	$-36,056$	$-10,908$	$-102,859$	$-149,823$
Assets
Liabilities	$-49,099$	$-11,334$	$-98,009$	$-158,442$	$-36,056$	$-10,908$	$-102,859$	$-149,823$

6.6 Reconciliation of reinsurance contracts

6.6.1 Analysis by remaining coverage period and outstanding claims - Reinsurance contracts valued according to PAA

Reinsurance contracts issued

in $\boldsymbol{\ell}$ thousand	LRC without loss component	LIC claims provisions	Total	LRC without loss component	LIC claims provisions	Total
	30.6.2024			31.12.2023
Liabilities from reinsurance contracts as at 1 January	-	$-50$	$-50$	-	$-16$	$-16$
Reinsurance income	375	-	375	750	-	750
Reinsurance expenses	-	-	-	-	-	-
Reinsurance service expenses paid and profit participation	-	-	-	-	-	-
Change in the provision for outstanding claims	-	-	-	-	-	-
Total change recognised in profit or loss	375	-	375	750	-	750
Investment component	9,100	$-9,100$	-	7,118	$-7,118$	-
Cash flows for the period	$-9,475$	9,100	$-375$	$-7,868$	7,084	$-784$
Reinsurance premiums received	$-9,475$	-	$-9,475$	$-7,868$	-	$-7,868$
Reinsurance service expenses paid and profit participation	-	9,100	9,100	-	7,084	7,084
Liabilities from reinsurance contracts at the end of the period	-	$-50$	$-50$	-	$-50$	$-50$

Reinsurance contracts held

in $\ell$ thousand	LRC without loss component	LIC claims provisions	Total	LRC without loss component	LIC claims provisions	Total
	30.6.2024				31.12.2023
Balance of liabilities over assets as at 1 January	$-26,152$	5,529	$-20,623$	$-29,410$	7,753	$-21,658$
(Re-) Insuranceinsurance result from reinsurance contracts held	$-4,826$	2,542	$-2,284$	$-12,995$	6,032	$-6,962$
Reinsurance premiums paid	$-8,242$	-	$-8,242$	$-16,253$	-	$-16,253$
Recognition of income from reinsurance commissions for acquisition costs as a liability	44	-	44	$-3,544$	-	$-3,544$
Amortisation of deferred income from reinsurance commissions for acquisition costs	$-3,372$	-	$-3,372$	6,802	-	6,802
Reinsurance payments received and profit participations	-	3,070	3,070	-	8,256	8,256
Change in the provision for outstanding claims	-	$-528$	$-528$	-	$-2,224$	$-2,224$
Financial income and expenses from reinsurance contracts held	-	-	-	-	-	-
Interim result	$-4,826$	2,542	$-2,284$	$-12,995$	6,032	$-6,962$
Investment component	$-10,846$	10,846	-	$-17,592$	17,592	-
Cash flows for the period	19,088	$-13,916$	5,173	33,845	$-25,848$	7,997
Reinsurance premiums paid	19,088	-	19,088	33,845	-	33,845
Reinsurance payments received and profit participations	-	$-13,916$	$-13,916$	-	$-25,848$	$-25,848$
Balance of liabilities over assets at the end of the period	$-22,736$	5,001	$-17,735$	$-26,152$	5,529	$-20,623$

6.6.2 Analysis by remaining coverage period and outstanding claims - Reinsurance contracts not valued with PAA

in € thousand	LRC without loss component	LRC loss component	LIC loss reserves	Total	LRC without loss component	LRC loss component	LIC loss reserves	Total
		30.6.2024				31.12.2023
Assets	13,258	-	126	13,384	10,392	-	82	10,473
Liabilities	-	-	-	-	-	-	-	-
Assets/liabilities from reinsurance contracts as at 1 January	13,258	-	126	13,384	10,392	-	82	10,473
Reinsurance premiums	$-385$	-	-	$-385$	$-549$	-	-	$-549$
Changes in estimates that lead to an adjustment of the CSM	931	-	-	931	$-52$	-	-	$-52$
Changes relating to past performance periods	-	-	36	36	-	-	44	44
Experience adjustments due to premiums paid in the period that relate to future benefit periods (incl. change in deposits)	99	-	-	99	3,958	-	-	3,958
Net income (expense) from reinsurance contracts held	645	-	36	680	3,357	-	44	3,401
Financial income from reinsurance contracts held	$-13$	-	-	$-13$	$-289$	-	-	$-289$
Total change recognised in profit or loss	632	-	36	668	3,067	-	44	3,111
Total change recognised directly in equity	$-276$	-	-	$-276$	$-1,485$	-	-	$-1,485$
Investment component	$-1,467$	-	-	$-1,467$	$-4,912$	-	-	$-4,912$
Cash flows	2,570	-	-	2,570	6,197	-	-	6,197
Premiums paid	3,503	-	-	3,503	4,994	-	-	4,994
Amounts received	$-932$	-	-	$-932$	1,203	-	-	1,203
Assets/liabilities from reinsurance contracts at the end of the period	14,718	-	161	14,879	13,258	-	126	13,384
Assets	14,718	-	161	14,879	13,258	-	126	13,384
Liabilities	-	-	-	-	-	-	-	-

6.6.3 Analysis by valuation components - contracts not valued using PAA

in € thousand	Present value of future cash flows	Risk adjustment	CSM	Total	Present value of future cash flows	Risk adjustment	CSM	Total
		30.6.2024				31.12.2023
Assets		4,994	48,499	53,493	-	755	40,062	40,817
Liabilities	$-40,109$	-	-	$-40,109$	$-30,344$	-	-	$-30,344$
Assets/liabilities from reinsurance contracts as at 1 January	$-40,109$	4,994	48,499	13,384	$-30,344$	755	40,062	10,473
Changes relating to current performance periods	-	$-97$	$-288$	$-385$	-	$-29$	$-520$	$-549$
CSM recognised in profit or loss due to service provision	-	-	$-288$	$-288$	-	-	$-520$	$-520$
Change in risk adjustment	-	$-97$	-	$-97$	-	$-29$	-	$-29$
Changes that relate to future performance periods	931	228	$-129$	1,030	$-8,447$	4,268	8,087	3,908
Changes in estimates that lead to an adjustment of the CSM	931	228	$-228$	931	$-8,448$	4,255	4,142	$-52$
New business	-	-	-	-	1	14	$-13$	2
Experience adjustments due to premiums paid in the period that relate to future benefit periods (incl. change in deposits)	-	-	99	99	-	-	3,958	3,958
Changes relating to past performance periods	36	-	-	36	44	-	-	44
Changes relating to past benefit periods Changes to the FCF in relation to the insurance cover granted	36	-	-	36	44	-	-	44
Net income (expense) from reinsurance contracts held	966	131	$-416$	680	$-8,403$	4,239	7,567	3,403
Financial income from reinsurance contracts held	$-478$	-	465	$-13$	$-1,159$	-	870	$-289$
Total change recognised in profit or loss	489	131	49	668	$-9,563$	4,239	8,437	3,113
Total change recognised directly in equity	$-276$	-	-	$-276$	1,485	-	-	1,485
Cash flows	1,103	-	-	1,103	1,284	-	-	1,284
Premiums paid	3,503	-	-	3,503	4,994	-	-	4,994
Amounts received	$-2,400$	-	-	$-2,400$	$-3,709$	-	-	$-3,709$
Assets/liabilities from reinsurance contracts at the end of the period	$-38,794$	5,124	48,548	14,879	$-40,109$	4,994	48,499	13,384
Assets		5,124	48,548	53,672		4,994	48,499	53,493
Liabilities	$-36,794$	-	-	$-38,794$	$-40,109$	-	-	$-40,109$

6.7 Reconciliation of insurance contracts to the balance sheet

In the following tables, the insurance contracts are valued according to GMM, VFA and PAA and the receivables and liabilities from the insurance business and from the reinsurance business are reconciled to the balance sheet and the segment balance sheet. The individual insurance contract portfolios (insurance products) are recognised either as assets (positive values (+)) or as liabilities (negative values (-)).

Assets ( + ) and liabilities (-)	Insurance contracts issued	Reinsurance contracts held	Insurance contracts issued	Reinsurance contracts held
in €	30.6.2024	30.6.2024	31.12.2023	31.12.2023
PAA (insurance contracts issued)	28,696	-	30,287	-
VFA (insurance contracts issued)	$-158,442$	-	$-149,823$	-
PAA (reinsurance contracts issued)	$-50$	-	$-50$	-
PAA (reinsurance contracts held)	-	$-17,735$	-	$-20,623$
GMM (reinsurance contracts held)	-	14,879	-	13,384
Insurance receivables / liabilities	2,637	$-2,996$	2,003	11
Total	$-127,160$	$-5,852$	$-117,583$	$-7,229$
of which: insurance contracts - assets	33,454	12,077	38,770	14,466
of which: insurance contracts - liabilities	$-160,613$	$-17,928$	$-156,353$	$-21,695$

6.8 Acquisition costs recognised as assets

Acquisition costs are capitalised at Deutsche Familienversicherung for Pet insurance and supplementary Dental insurance. They are amortised on a declining balance basis over four years for Pet and over eight years for supplementary Dental insurance.

ACQUISITION COSTS RECOGNSED AS ASSETS

in € thousand			30.6.2024	31.12.2023
Pet insurance			4,194	5,422
Supplementary Dental insurance			32,636	44,598
Total			36,830	50,020

The following table shows the term in which Deutsche Familienversicherung expects the derecognition of the acquisition costs recognised as an asset (existing business) and their recognition in the valuation of the associated group of insurance contracts. The reversals for the current year and the following year are also shown.

ACQUISITION COSTS - TERM

in $€$ thousand	Resolution via	31.12 .2024	31.12.2025	Resolution up to
Pet insurance	4 years (degressive)	3,294	1,566	2028
Supplementary Dental insurance	9 years (degressive)	11,466	10,025	2031

6.9 Fair values of the underlying reference values

Underlying reference values (underlying items) can comprise any items. In the case of Deutsche Familienversicherung, this is a reference portfolio of assets attributable to insurance contracts with direct profit participation (variable fee approach).

The composition of the underlying reference values and their fair values is shown in the following table.

Fair values of the underlying reference values	Supplementary Health insurance	Supplementary Health insurance
in € thousand	30.6 .2024	31.12 .2023
Equity funds		1,063
Real estate funds	35,921	33,826
Bond funds
Debt securities	129,298	116,340
Total	165,219	151,229

7 FINANCING BUSINESS

7.1 Fair values and carrying amounts of financial instruments

7.1.1 Fair values and carrying amounts

The following table shows the carrying amounts and fair values of the financial instruments held by the DFV Group:

Carrying amounts and fair values of financial instruments	Book value	Time value	Book value	Book value
in € thousand	30.6.2024		31.12.2023
Financial assets - amortised cost	19,061	19,047	9,030	9,010
Cash (funds and own portfolio)	18,261	18,261	8,230	8,230
Loan to members of management bodies	800	786	800	780
Financial assets - OCI (FVTOCI)	182,040	182,040	173,036	173,036
Debt securities	182,040	182,040	173,036	173,036
Financial assets - income statement (FVTPL)	35,979	35,979	42,672	42,672
Equity funds	58	58	8,846	8,846
Real estate funds	35,921	35,921	33,826	33,826
Bond funds
Total	237,081	237,067	224,738	224,718

7.1.2 Regular measurement at fair value

The following financial instruments are regularly measured at fair value:

• $\quad$ Securities at fair value through profit or loss (FVTPL)
• $\quad$ Securities recognised at fair value through other comprehensive income (FVOCI)

The following table illustrates the fair value hierarchy of financial instruments recognised at fair value:

Fair value hierarchy	30.6.2024			31.12.2023
in € thousand	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Financial assets - OCI	182,040	-	-	173,036	-	-
Debt securities	182,040	-	-	173,036	-	-
Financial assets - income statement	35,979	-	-	42,672	-	-
Equity funds	58	-	-	8,846	-	-
Bond funds	35,921	-	-	33,826	-	-
Real estate funds	-	-	-	-	-	-
Total	218,019	-	-	215,708	-	-

7.1.3 Reconciliation of financial instruments in Level 3

The following table shows the reconciliation of the financial instruments measured at fair value and classified in Level 3:

Reconciliation of financial assets classified in Level 3	Securities recognised at fair value through other comprehensive income - Bonds
in € thousand
Status as at 31 December 2023	0
Reclassifications (net) to (+) / from (	Level 3
Status as at 30 June 2024	0

Impairments are recognised in profit or loss in the DFV Group and reduce the premium income and the carrying amount of the receivables. If fair values of receivables are to be determined for the required disclosures in the notes, it is assumed in accordance with IFRS 7.29 (a) that the carrying amount represents the best approximate value. In accordance with the provisions of IFRS 13, this results in the allocation of these fair values to hierarchy level 3.

7.1.4 Fair value measurement of financial assets not measured at fair value

Fair value hierarchy (items not recognised at fair value)

30.6.2023
in € thousand	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Financial assets - amortised cost	0	0	793	0	0	783
Loan to members of management bodies	0	0	793	0	0	783

7.1.5 Gross carrying amounts and recognised risk provisions (ECL) for FVOCI instruments

The gross carrying amount reflects the maximum default risk. The following table shows the default risk by investment grade and category:

Maximum default risk by investment grade	12 months expected over the term, but without impairing the credit rating		with impairment of creditworthiness	already impaired in creditworthiness at the time of acquisition or lending		Total
in € thousand
DFV0 IG	11,269	0	0	0		11,269
DFV1 IG	15,771	0	0	0		15,771
DFV2 IG	23,180	0	0	0		23,180
DFV3 IG	111,187	0	0	0		111,187
DFV4 HY	31,992	0	0	0		31,992
DFVS HY	0	0	0	0		0
DFVS HY	0	0	0	0		0
DFVOHNE	1,638	0	780	0		2,419
Total	195,038	0	780	0		195,818

Maximum default risk according to investment grade

12 months	expected over the term, but without impairing the credit rating		with impairment of creditworthiness	already impaired in creditworthiness at the time of acquisition or lending		Total
30.06 .2024
in € thousand
DFV0 IG	30,524	0	0	0		30,524
DFV1 IG	22,328	0	0	0		22,328
DFV2 IG	19,659	0	0	0		19,659
DFV3 IG	132,620	0	0	0		132,620
DFV4 HY	0	0	0	0		0
DFVS HY	0	0	0	0		0
DFVS HY	0	0	0	0		0
DFVOHNE	594	0	1,778	0		2,372
Total	205,725	0	1,778	0		207,503

Explanation of the DFV rating levels:

DFV0 IG	Highest quality, almost no / minimal credit default risk	Investment grade
DFV1 IG	High quality, low credit default risk	Investment grade
DFV2 IG	Medium to high quality, adequate coverage of interest and amortisation	Investment grade
DFV3 IG	Medium quality, moderate credit default risk; contains certain speculative elements	Investment grade
DFV4 HY	Significant credit default risk; contains certain speculative elements	Speculative grade
DFV5 HY	Speculative liabilities with high credit default risk; low coverage of interest and amortisation	Speculative grade
DFV6 HY	Low quality, very high credit default risk	Speculative grade
DFVOHNE	No rating	Speculative grade

Current development of recognised risk provisions (ECL) under IFRS 9:

Reconciliation of the gross carrying amount and the expected credit loss per category as at 30 June 2024 / 31 December 2023		12 months	expected over the term, but without impairing the credit rating			with impairment of creditworthiness		already impaired in creditworthiness at the time of acquisition or lending			Total
in € thousand	Gross book value	expected. Credit loss	Gross book value	expected. Credit loss	Gross book value	expected. Credit loss	Gross book value	expected. Credit loss	Gross book value	expected. Credit loss
Status as at 31 December 2022	147,911	216	0	0	0	0	0	0	147,911		216
Changes in inventories (purchase/sale)	47,907	2	0	0	0	0	0	0	0	47,907		2
Changes in models and risk parameters as well as through modifications	0	0	0	0	0	0	0	0	0	0	0	0
Reclassification to the category "with impairment of creditworthiness" and changes in creditworthiness	-780	$-9$	0	0	780	601	0	0	0	0	593
Status as at 31 December 2023	195,038	205	0	0	780	601	0	0	195,818		807
Status as at 31 December 2023	195,038	0	0	0	780	601	0	0	195,818		807
Changes in inventories (purchase/sale)	10,905	51	0	0	0	0	0	0	10,905		51
Changes in models and risk parameters as well as through modifications	0	0	0	0	0	0	0	0	0	0	0	0
Reclassification to the category "with impairment of creditworthiness" and changes in creditworthiness	-998	0	0	0	998	400	0	0	0	0	400
Status as at 30 June 2024	204,945	256	0	0	1,778	1,001	0	0	206,723		1,257

8 OTHER INFORMATION

8.1 Income taxes

In the following table, the deferred income taxes are allocated to the valuation differences. At Deutsche Familienversicherung, these are essentially valuation differences in the investments from the valuation in accordance with IFRS 9 and in the insurance business from the valuation in accordance with IFRS 17.

The combined income tax rate applicable to Deutsche Familienversicherung and the domestic tax group is $31.9 \%$. The following reconciliation shows the relationship between the profit for the period before income taxes in accordance with IFRS and the income taxes for the period. The Group tax rate selected as the basis for the reconciliation is made up of the corporation tax rate applicable in Germany of 15.0\% plus the solidarity surcharge of $5.5 \%$ and an average trade tax rate of $16.1 \%$. This results in an income tax rate of $31.9 \%$ (previous year: $31.9 \%$ ).

Income taxes
in € thousand					3024	3023
Actual income taxes					157	19
Deferred income taxes					$-1,367$	$-1,250$
Total					$-1,210$	$-1,268$

8.2 Intangible assets, right-of-use assets in accordance with IFRS 16 and property, plant and

There have been no significant changes to intangible assets, right-of-use assets in accordance with IFRS 16 (leases) and own property, plant and equipment since the last annual report. The recognised values have been updated or mapped as described in the last annual report. The associated right-of-use liabilities are recognised as lease liabilities in the balance sheet.

8.3 Other assets

Other assets
in € thousand	$\mathbf{3 0 . 6 . 2 0 2 4}$	$\mathbf{3 1 . 1 2 . 2 0 2 3}$
Interest receivables	3,042	2,983
Advance payments	0	704
Claims for care allowances	188	383
Insurance tax receivables	168	164
Tax receivables	1,230	1,503
Rental deposit	30	35
Other receivables and accruals	1,521	543
Total	$\mathbf{6 , 1 7 9}$	$\mathbf{6 , 3 1 6}$

8.4 Other liabilities

Other liabilities
in € thousand	$\mathbf{3 0 . 6 . 2 0 2 4}$	$\mathbf{3 1 . 1 2 . 2 0 2 3}$
Liabilities from investments (fees, capital gains tax, etc)	185	871
Liabilities from key account contracts	1,398	1,249
Personnel liabilities	262	221
Liabilities Insurance tax and VAT	469	306
Other liabilities and accruals	1,283	1,865
Total	$\mathbf{3 , 5 9 8}$	$\mathbf{4 , 5 1 2}$

8.5 Other provisions

Other provisions
in € thousand	$\mathbf{3 0 . 6 . 2 0 2 4}$	$\mathbf{3 1 . 1 2 . 2 0 2 3}$
Personnel provisions	331	331
Provisions for year-end closing costs	491	274
Other provisions	1,971	2,092
Total	$\mathbf{2 , 7 9 3}$	$\mathbf{2 , 6 9 7}$

8.6 Other result

Deutsche Familienversicherung recognises expenses and income that are not attributable to the insurance business or to investment management in other comprehensive income. These expenses and income are allocated to the Other \& Consolidation segment.

8.7 Relationships with related companies and persons

Business transactions between Deutsche Familienversicherung and its Group companies, which are to be regarded as related parties, were eliminated through consolidation and are not explained in the notes.

8.8 Events after the balance sheet date

On 12 July 2024, DFV Deutsche Familienversicherung AG received a request for information from the German Federal Financial Supervisory Authority (BaFin) to audit the accounting of the consolidated financial statements as at 31 December 2023 and the associated combined management report. The scope of the audit includes the first-time application of the IFRS 17 accounting standard (so-called random sample audit by BaFin).

8.9 Disclosures on contingent liabilities

As at the balance sheet date (30 June 2024), there are no contingent liabilities in addition to the provisions recognised in the balance sheet that would need to be reported.

Frankfurt am Main, 11 September 2024
DFV Deutsche Familienversicherung AG
Executive Board

RESPONSIBILITY STATEMENT OF THE LEGAL REPRESENTATIVES

"To the best of our knowledge, and in accordance with the applicable reporting principles for half-year annual financial reporting, the interim consolidated financial statements as at 30 June 2024 give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim Group management report 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, 11 September 2024
DFV Deutsche Familienversicherung AG
Executive Board

DFV Deutsche Familienversicherung AG

Reuterweg 47
60323 Frankfurt
Germany