DFV Deutsche Familienversicherung AG

Earnings Release • May 17, 2023

DFV Deutsche Familienversicherung AG

17 Mai 2023

Welcome

New group reporting from 2023

Group reporting with a new look

DFV has adopted the new standards IFRS 17 'Insurance contracts' and IFRS 9 'Financial instruments' in January 2023.

New measurement models, new presentation and extended disclosure requirements.

For conceptual guidance also refer to the information supporting DFV's 2022 group result during the conference on 30 March 2023.

DFV continues to apply HGB accounting for internal purposes, especially directed towards the aspired ability to pay dividends.

+5 % +39 % 95 %

Insurance revenue growth

Insurance service result

Combined ratio

Insurance service result as a new performance indicator

Statement of comprehensive income

€m	Q1 2022	Q1 2023	Delta	in %
Insurance revenue	46.4	49.0	+2.5	1 +5%
Insurance service expenses	-30.6	-31.4	-0.8	+3%
Acquisition cost	-4.3	-5.1	-0.8	2 +19%
Other insurance expenses	-8.3	-7.2	+1.1	-13%
Insurance service expenses	-43.1	-43.7	-0.6	+1%
Net expenses from reinsurance contracts held	-1.6	-2.9	-1.3	3 +81%
Insurance service result	1.7	2.4	+0.7	4 +39%
Claims ratio (net) Acquisition expense ratio (net) Admin expense ratio (net) Combined ratio (net)	68% 10% 18% 96%	68% 11% 16% 95%		5

CSM: Contractual service margin, an item representing the unearned profit of a group of insurance contracts to be recognised as services are provided to policyholders

GMM: General measurement model, the default measurement model under IFRS 17 for long-term non-participating business PAA: Premium allocation approach, the optional, simplified measurement model under IFRS 17 for short-term business VFA: Variable fee approach, the compulsory measurement model under IFRS 17 for long-term participating business Adoption of IFRS 17/9 in both reporting periods; simplified

= 1 –

Insurance revenue – Net expenses from reinsurance contracts held

Insurance service result

New line item insurance revenue, also containing the unlocking of the contractual service margin (CSM) which contains future profits of the contracts (GMM and VFA). 1

• Increased volume of amortisation acquisition cost, reflecting acquisition cost from new business in previous periods (PAA). 2
• Lower inflow from reinsurers, due to enhanced profitability of the gross business in Q1 2023 (GMM). 3
• IFRS 17 insurance service result, reflecting the increased operating profit compared to Q1 2022. 4
• Favourable development of operating ratios compared to Q1 2022 (net): 5
• Stable claims ratio;
• Increased acquisition expense ratio due to a high volume of new business inflow in previous periods;
• Optimised admin expense ratio;
• Slightly reduced combined ratio.

Volatile IFRS 9 net financial result – 2023 profit guidance is confirmed

Statement of comprehensive income

€m	Q1 2022	Q1 2023	Delta	in %
Insurance service result	1.7	2.4	+0.7	+39%
Net investment income	5.0	0.6	-4.3
Net insurance finance expenses	-3.5	-0.4	+3.1
Net financial result	1.5	0.3	-1.2	-82%	1
Net insurance and investment result	3.2	2.7	-0.5	-17%
Other result	-0.8	-0.8	+0.0
Profit before tax	2.3	1.8	-0.5	-22%	2

Volatility of the net financial result: Unrealised fair value reductions in the investment portfolio which, under IFRS 9, are recognised in profit or loss. 1

• The decrease of the net financial result compared to Q1 2022 results entirely from unrealised fair value changes.
• Such amounts recognised refer to the 'Freies Vermögen' portfolio (not: customer funds allocated to the 'Sicherungsvermögen' portfolio).
• Current revenue remains stable.
• Despite the volatile net financial result, DFV records a positive profit before tax – the 2023 profit guidance of 3 to 5 million € is confirmed. 2

Impacts from the IFRS transition

Reporting segments – operational indicators based on HGB

RfB: Reserve for policyholder participation ('Rückstellung für Beitragsrückerstattung')

Key messages

Excellent Q1 2023 with operating performance up 39 % – continued discipline on pricing 2

Volatile IFRS 9 net financial result – the 3 to 5 million € profit guidance for 2023 is confirmed 3

DFV remains exciting

Our next IR appointments

24 Mai Annual General Meeting

14 June Berenberg Insurance Speed Dating

04 September Equity Forum Autumn conference

14 September Publication financial results H1 2023 & CMD 2023