DFV Deutsche Familienversicherung AG

Earnings Release • Feb 16, 2023

Deutsche Familienversicherung Preliminary

financial results 2022

16 Februar 2023 Frankfurt am Main

Welcome

Preliminary and unaudited

Revenue growth net

Opex (Cost cutting) net

Over-delivered on profitability target

Revenue (net earned premiums) and Opex: change year-over-year Opex: IFRS expenses from insurance operations

First financial year with positive operating profit since IPO

Preliminary and unaudited

• DFV continues its growth path while reaching a positive operating profit:
  • GWP increased by 18 % in 2022; net earned premiums grew by 34 %.
  • First financial year since the 2018 IPO with a positive profit before tax.

1.7

• In a challenging capital market with high volatility, DFV managed to stabilise the investments and to protect the insureds' funds.

Focus on cost management

Cost ratio (Opex and other expenses as % of net earned premiums) 60% 55% 48% 31%

2020 2021 2022 prelim.

0%

20%

40%

• A significant profitability driver: substantial cost reduction despite revenue increase
  • Opex decreased by 12 % despite a 34 % revenue growth (net).
  • Enhanced commitment to cost discipline.
  • Initiatives to further automate processes add further momentum.
  • Strengthening of the revenue per policy results in an increase in efficiency.

Investments

• Stabilised investment portfolio
  • DFV's predominantly fixed income portfolio experienced unrealised fair value losses in 2022.
  • High volatility in the equity portfolio.
  • De-risking strategy has been implemented.

IFRS 17/9

Transition to new accounting regime – IFRS 17

• DFV adopts all three measurement models of IFRS 17:
  • GMM (General Measurement Model), the IFRS 17 default approach, applied only for three LTC outwards reinsurance contracts with long contract boundary.
  • PAA (Premium Allocation Approach), the simplified model that will be adopted for most of DFV's portfolios (77% of total GWP); also applied to most of DFV's outwards reinsurance contracts, partly based on an eligibility assessment.
  • VFA (Variable Fee Approach) which is to be adopted if underlying contracts contain elements of policyholder participation, i.e. DFV's LTC and other Health products calculated as life insurance (23% of total GWP).

Transition to new accounting regime – IFRS 9

• some additional volatility expected
  • Unrealised gains and losses for debt securities continue to be recorded through OCI.
  • Currently no debt securities that fail the Solely Payment of Principle and Interest (SPPI) test.
  • Expected Credit Loss (ECL) allowance expected to be not material in the Group context, as the portfolio is predominantly investment grade.
  • Equity ETFs and real estate funds measured at FVTPL – this will induce additional P&L volatility, compared to IAS 39.

Our IFRS 17/9 roadmap

2023: Focus on profitable growth

DFV remains exciting - We look forward to your questions!

Our next IR events

02 – 03 March 2023	Investor conference Metzler Small- and MicroCap Days
30 March 2023	Publication Publication annual financial report
15 – 17 May 2023	Analyst conference Equity Forum Frühjahrskonferenz
17 May 2023	Publication Publication quarterly financial report (call-date Q1)
24 May 2023	Annual General Meeting Annual General Meeting 2023