DFV Deutsche Familienversicherung AG

Earnings Release • Nov 17, 2022

Deutsche Familienversicherung Financial results 9M 2022

17 November 2022 Frankfurt am Main

Agenda & welcome

1. Welcome

Stefan M. Knoll

2. Financial results 9M 2022

Karsten Paetzmann

3. Outlook 2022/2023

Stefan M. Knoll

Welcome

Welcome to the publication of the financial results 9M 2022

• Undiminished sales power and profitability
• Successful reorganisation of our sales department
• Increased visibility in Social Media such as TikTok

The reorganisation of sales has determined the year 2022

The reorganisation of sales has determined the year 2022

• Establishment of an in-house marketing agency, instead of using an expensive external advertising agency
• Branding and product sales, instead of transactional DRTV presence
• Website comprehensibility, before SEO optimisation
• Product profitability, before solo revenue
• Eintracht Frankfurt as a sales channel, instead of reduction to perimeter advertising and club box use

Karsten Paetzmann CFO

Revenue growth (GWP)

Opex (Cost cutting) Primary insurance

Profit before tax

GWP (gross written premiums) and Opex: change year-over-year Opex: IFRS expenses from insurance operations

Positive operating profit in Q1 2022, Q2 2022 and Q3 2022

Statement of comprehensive income

			9M 2022 Inwards	9M 2022	Delta		GWP in primary insurance increased by 8%
€m	9M 2021	9M 2022	reinsurance	Primary insurance	Primary insurance		y-o-y in 9M 2022, while the respective NEP grew by 17% in the same period.
(GWP) Gross written premiums	101 7	137 1	26 9	110 3	1 +8 6
(NEP) earned premiums Net	52 1	88 0	26 9	61 1	1 +8 9
from capital Income investments	8 5	4 0	0 0	4 0	-4 4
Other revenue	0 8	0 4	0 4	0 1	-0 7
benefits Insurance	-37 4	-62 4	-19 4	-43 0	2 -5 6		Insurance benefits in primary insurance increased by 15% y-o-y, compared to a 17% growth in NEP.
from Expenses insurance operations	-19 8	-25 7	-7 3	-18 4	+1 4
Other expenses	-4 1	-2 4	0 0	-2 4	+1 8
Operating income	0 1	2 0	0 6	1 5	+1 4		The net claims ratio in the primary insurance business, after allocation to the actuarial reserve and to the reserve for premium refunds (Rückstellung für Beitragsrück erstattung), decreased to 70.4% in 9M 2022
for leases Financing expenses	0 0	0 0	0 0	0 0	+0 0
Profit before tax	0 1	2 0	0 6	1 5	+1 4

8

(9M 2021: 71.8%).

Focus on cost management

• Disciplined cost management accompanies DFV's growth path
  • Opex in primary insurance decreased by 7% y-o-y, compared to a 17% growth in NEP.
  • 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.

Opex: IFRS expenses from insurance operations

CAC: Customer acquisition cost before personnel expenses, expressed as a multiple of the monthly premium of the acquired insurance contracts

Income from capital investments

Current revenue from investments (in €m) 4.7

-1.2

• Stabilised income from investments

• Given the unprecedented, turbulent market environment in 9M 2022, the income from capital investments decreased substantially y-o-y; however being on track to achieving the FY target.
• Unrealised fair value losses, recorded directly in the IFRS consolidated equity (OCI).

• Focus on current revenue

• The asset allocations implemented in DFV's master funds focus on current revenue.
• DFV's entry into real estate investments contributes to stable current revenue.

Summary and outlook

• Continued strong growth—primary insurance revenues up +17% (net) plus inwards reinsurance
• Positive operating profit also in Q3 2022
• First 9M period since the IPO with stable operating profit—Group profit before tax of €2.0 million
• Stabilised investment income, accompanied by unrealised losses
• Cost cutting initiatives are effective—Opex down -7% y-o-y
• Projects to accelerate process automation and to sharpen DFV's sales approach continue
• Limited Covid-19 and Ukraine war impacts due to market position and the digital business model
• Continued robust solvency position
• The planned positive group profit before tax for 2022 of €0‒1 million is confirmed

Outlook 2022/2023

Stefan Knoll CEO

Where do we want to go in sales

• With the IPO in 2018, we promised to double sales – and delivered.

• The multi-dimensional economic crisis consisting of the Corona pandemic, the Ukraine war and inflation has prompted DFV to change its paradigm.

• Cost-intensive sales were justifiable before the crisis, but must now give way to intelligent and targeted sales.

Where do we want to go in sales

• More social networks
• New TV advertising
• More Eintracht Frankfurt

Understandable messages Less data

Digital payment methods

Sales is attention

Generating attention is multi-layered

• We have the fastest growing TikTok channel in the insurance industry
• The user groups are expanding and are no longer just focused on young people 56,800

Presence in the social networks

#SeiKeinMiesepeter* 1 Over 1.2 million users reached

* German #-tags 1 in ENG: Don't be a sourpuss# 2 in ENG: Adventure at the push of a button 3 in ENG: Make prevention a women's issue

Abenteuer auf Knopfdruck* 2

Quadrupling of sales (compared to the previous quarter)

#MachVorsorgeZurFrauensache* 3

Presence via TV advertising

• As of Jan. 1, 2023, we will be visible with a significant media presence on Pro7/Sat1.

• What is new is that the TV advertising will run exclusively under our brand.

Eintracht Frankfurt

With 115,000 members, Eintracht Frankfurt is increasingly even becoming a sales channel:

• Expansion of Eintracht insurance shop
• Direct sales to members
• Integration of DFV Snap into the Eintracht MainAqila app

DFV Snap: First accident on demand insurance in Germany

No paperwork, no waiting, no subscription!

Simply download DFV Snap, activate insurance cover and you and your whole family are insured for 24 hours. You can keep track of how long you are still protected in the app at any time and after 24 hours, the insurance cover ends automatically. Cancellation is not necessary.

You activate your insurance according to your personal needs and only pay when you really need it. This is how insurance cover works with the snap of a finger!

Outlook 2022/2023

We have achieved a lot and have many plans

• Profitability in 2022 for the first time since the IPO and again after 2017
• Strong new business growth again
• Entry into DRTV under own brand as of 01.01.2023

The DFV remains exciting - We look forward to your questions!

Our next IR dates

22 November 2022	Roadshow Global Digital Roadshow mit Berenberg
23 November 2022	Capital Market Conference Wiener Kapitalmarktkonferenz
28-30 November 2022	Capital Market Conference Deutsches Eigenkapitalforum