DFV Deutsche Familienversicherung AG

Earnings Release • Nov 12, 2020

Financial results 9M 2020

DFV Deutsche Familienversicherung AG FRANKFURT/MAIN | 12 November 2020 The leading InsurTech in Europe

What do you think about a company with this track record?

If you consider investing in such a company, then Deutsche Familienversicherung is a good option!

What we have achieved in the first 9 months 2020

Our highlights at a glance

• Realisation of CareFlex
• Realisation of IT outsourcing
• Recruitment of 60 new employees
• New structure of financial department & capital investment
• Successful capital increase

Insurtech peer group strong in comparison

Leading by existing business

Almost always one step ahead

* The figures based on publicly available sources believed to be reliable. DFV AG has checked the information for plausibility but not for accuracy or completeness. ** OneInsurance belongs to the wefox Group and has just 13 employees. The rates contracts per employee and gross written premium per employee take the numberof employees from wefox into account, because OneInsurance belongs to wefox group. Gross written premium and number of contracts refers to OneInsurance.

Contracts per employee** Gross premiums written per employee in €**

9M 2020 The first real comparison with a listed InsurTech peer

Premium volume in €m	120.3	161.4*	x 1.3
Customer/contract base first 9 months 2020	548.284	941.313	x 1.7
Net income in €m	-4.7	-75.5	x 16
Market cap € in €m	~300	~3,160	x 10

* The "In-force premium" of Lemonade is used to compare the premium volume of DFV.

The reported figures are the 9M 2020 results. Lemonade published its figures on 11th of November. They are available on: https://s24.q4cdn.com/139015699/files/doc_downloads/2020/11/Q3-2020-Shareholder-Letter.pdf

Highlights 9M 2020 Strong performance in a challenging environment

Growth between 19 and 27 percent

• Hardly any COVID-19 impacts thanks to strong online sales and substantially more business in the property insurance segment
• New business achieves premium volume of € 22.3m in the first nine months of 2020 as planned
• Gross premiums written increased significantly by 27.1%, to reach € 83.5m
• Premium volume up by 18.9%, to € 120.3m

Premium volume increased by € 24.5m since 9M 2019

Excellent new business despite COVID-19

Premium volume in €m New business in contracts

Despite COVID-19 strong online sales

Outstanding performance because of our proven scalable sales channels

New business (contracts) by product category 9M 2020 New business (contracts) by sales channel 9M 2020

Gross premiums written increased by 27.1 percent in 9M 2020

Fullfilling our promises

Claims ratio in %

New business in contracts, premiums in €m

Further key financial figures

Fullfilling our promises

Number of employees

Personnel costs in €m

Investing in our growth, profitable in our core business

Underwriting result according to HGB

Premiums	9M 2020
Gross premiums written	€ 83,280,517
Claim payments to customers (inlcs. claims settlement costs)	€ -45,995,132
Underwriting result I	€ 37,285,384
Costs (without claims settlement, without sales costs)	€ -17,299,457
Underwriting result II	€ 19,985,928
Sales expenditures	€ -26,827,030
Underwriting result III	€ -6,841,102
Financial investments (costs)	€ -49,036*
Underwriting result IV	€ -6,890,138

Premium volume to sales costs (planning)

We are reaching the profit zone

With a ratio of 4 : 1 or higher an insurance company should be profitable.

Financial investments in a challenging environment

A word about financial investments

• Deutsche Familienversicherung manages assets of around € 140m. These are divided into free assets and guarantee assets.
• While the free assets are fed by the equity capital of the company and its economic surpluses, the guarantee assets are formed by provisions from health insurance premiums, which are calculated like for type of life insurance.

Guarantee assets are more strongly geared to generating returns

All products alike of life insurance include a calculated actuarial interest rate. For Deutsche Familienversicherung, this averages 1.85%. Overall, Deutsche Familienversicherung must generate an actuarial corporate interest rate (ACR) of 2% in its guarantee assets.

Various investment options are available for this purpose, which the company is basically free to choose, but must back the investment-specific risk with solvency capital.

Due to the required earning of an ACR of 2 %, the guarantee assets are more aggressively geared to generating returns.

Example: CareFlex

Asset class	Solvency II-stress
Government bonds	0%
Equities	39%
Real estate	31%
Corporate bonds
A	11%
BBB	15%
BB	12%
B	16%
CCC	20%
NR	32%

New structure of the finance department

As of January 1, 2020, Dr Knoll additionally became CFO of the company

• Implementation of new reporting system
• Restructuring of the financial investments
• Recruitment of open key positions:
• CFO
• IRCF
• Head of Financial Investments
• Head of Financial Technology
• Realisation of capital increase

Successful capital increase and IR-activities

Despite COVID-19 crisis

No correction of guidance despite COVID-19 crisis Increasing of Freefloat to 26.09%

Gross proceeds of around € 32m

Outlook Entering a new dimension

Growth, growth, growth

Founding new risk carriers

Our milestones to broaden product range and to enter European markets

Founding health insurer* Founding P&C insurer* Founding Introducing life insurer* All-In-Finance-Solution Entering European markets 2020 2021

*Application to be submitted in 2020.

Outlook – Continuing profitable growth

Summary

We promise and we deliver - Fully on track

• Annual operating targets for 2020 affirmed
• CareFlex implementation on track
• Founding new risk carriers on track
• European market entry on track

Looking forward to your questions!

Dr Stefan M. Knoll CEO & CFO

Your contact:

Lutz Kiesewetter Head of IR & PR +49 (0)69 / 74 30 46 396 lutz.kiesewetter@deutsche-familienversicherung.de

Our next IR dates:

16/11	Deutsches Eigenkapitalforum
24/11	Virtual Roadshow with Berenberg

2021

21/01 "One more step" – Capital markets day