DFV Deutsche Familienversicherung AG

Earnings Release • Mar 14, 2024

DFV Deutsche Familienversicherung AG

1. March 2024

Preliminary and unaudited

Insurance revenue

Combined ratio

Profit before tax

Insurance revenue: change year-over-year

Insurance result – growth and robust operating profitability

Preliminary and unaudited

• Continued top line growth and operating profitability:
  • Insurance revenue in accordance to IFRS 17 increases by 7 % to €117.6 million.
  • Stable insurance service result.

Investment result – entering the volatile world of IFRS 17/9

Preliminary and unaudited

• In times of a significant increase in interest rates, DFV successfully protected the insureds' investments which are ring-fenced in the Sicherungsvermögen portfolio.
• A volatile net financial result under IFRS 17/9:
  • The IFRS 9 net investment income doubled in 2023 compared to 2022.
  • Such positive trend was eliminated in 2023 by higher net insurance finance expenses, due to an again substantial increase of short-term interest rates.

Strong results and a sufficient capital position – we are 'on track' for our shareholders Preliminary and unaudited

IFRS	IFRS profit before tax €5m (€6m)	• FY 2023 profit guidance (€3‒5 million) was fulfilled • Pleasing operating performance in DFV's reporting segments with stable claims ratios • Strengthened investment result despite consciously realising losses on fixed income, however dampened by interest rate demands from outwards reinsurance (incl experience variances)
Capital position	Solvency ratio 320 % (320 %)	• The solvency ratio remains well above internal thresholds, monitored by DFV's risk and capital management instruments • Progressing adjustments to DVF's reinsurance policy, especially with respect to QS • Comfortable capital position, sufficient to fuel further growth
HGB	HGB profit before tax €7m (€2m)	• Substantially strengthened profit before tax in 2023, partly accompanied by one-off effects • Despite substantial investments in DFV's brand and despite extraordinary restructuring cost the cost ratio remains fairly stable • A strong aspiration to build DFV's capacity to distribute dividends to our shareholders

Key messages

Preliminary and unaudited

Despite a not satisfying investment result: DFV has again fulfilled the overall profit guidance 3

DFV: Business development since the IPO

We have achieved all targets (HGB key figures)

The results of business operations as at the balance sheet date of 31 December 2018 and therefore immediately after the IPO developed as follows up to the balance sheet date of 31 December 2023:

		31.12.2018	31.12.2023 (preliminary)	Change in %
1	Primary insurance portfolio	€72.3m	€160.6m	+122%
2	Reinsurance portfolio	-	€35.3m
3	Contracts (number)	430,904	576,340	+33%
4	Free assets Market value	€50.3m	€66.9m	+33%
5	Security assets Market value	€45.6m	€158.6m	+243%
6	Investments Market value	€98.4m	€226.3m	+130%
7	Equity HGB	€59.6m	€88.0m	+48%
8	Solvency ratio	469%	320%	-32%
9	Net income before taxes HGB	€-7.4m	€7.4m	+200%
10	Accumulated loss HGB (loss carried forward plus net income after taxes)	€-5.7m	€-15.7m	+258%
11	Market-Cap	€155.0m	€97.2m	-37%

DFV: A highly promising investment

Key messages

2

Since the IPO, the company has developed as follows:

Since the IPO, the security assets have grown by 243%

3 Since the IPO, the capital investment has grown by a total of 130%

Portfolio (primary insurance) more than doubled from €75 million to €159 million 4

Capital investment increased approx. fivefold from ~€50 million to just under €206.5 million 5

Group result increased from €-4.1 million in 2018 to €1.7 million in 2022 and to €5 million in 2023 6

Always available for you

IR/PR dates in 2024

14 March Preliminary figures 2023

23 April METZLER Small Cap Days

25 April Annual press Conference

14 May German Equity Forum Spring Conference

23 May Publication Q1 24

26 June Annual General Meeting

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