DFV Deutsche Familienversicherung AG · LSX:A41YH3
DFV Deutsche Familienversicherung — Shareholder Meeting (May 2020)
92 slides from DFV Deutsche Familienversicherung's shareholder meeting presentation, May 20, 2020
Slide 1: Annual General Meeting
Annual General Meeting DFV Deutsche Familienversicherung AG FRANKFURT/MAIN | 20th May 2020
Slide 2: Welcome to the virtual Annual General Meeting
Welcome to the virtual Annual General Meeting of DFV Deutsche Familienversicherung AG!
Slide 3: Agenda
Agenda Agenda item 1 | Presentation of the adopted Annual Financial Statements 2019 of DFV Deutsche Familienversicherung AG and the approved Consolidated Financial Statements 2019 as well as the corresponding Management Reports and the Report of the Supervisory Board Agenda item 2 | Resolution o
Slide 4: Agenda item 1: Presentation of the Annual Financial Statements 2019
Agenda item 1 Presentation of the adopted Annual Financial Statements 2019 of DFV Deutsche Familienversicherung AG 4
Slide 5: 1.1 Report of the Supervisory Board on the 2019 financial year
1.1 Report of the Supervisory Board on the 2019 financial year 5
Slide 6: 1.2 Report of the Chairman of the Management Board
1.2. Report of the Chairman of the Management Board on the company results for 2019 Dr. Stefan Knoll 6
Slide 7: A word in advance about the current situation
A word in advance about the current situation 7
Slide 8: The Corona Pandemic: DFV in six areas
The Corona Pandemic DFV Deutsche Familienversicherung AG in six areas: Operations Financial investments Sales Claim settlement Human resources Share price development 8
Slide 9: Corona and operations
Corona and operations In 2019, all employees were equipped with a new generation of devices. This included notebooks and mobile VPN connection options. The entire value chain at Deutsche Familienversicherung can be carried out from the so-called home office without restriction (exception: physic
Slide 10: Corona and financial investments
Corona and financial investments The effects have been limited so far: Financial investments still amounted to € 122.5 million at the end of 2019, but fell to € 109.4 million at the end of Q1 2020. The composition of the financial investment was restructured by selling Italian and Spanish govern
Slide 11: Corona and sales
Corona and sales Compensation for Henkel new business New business (number of contracts) 30,049 27,718 25,000 Increase in online Online sales by + 27% sales compared to Online Q1 2019. sales Q1 / 2019 plan Q1 / 2020 Q1 / 2020 11
Slide 12: Corona and sales
Corona and sales Whether the annual target set for new business can be maintained after the end of Q2 2020 depends on the level of relaxation in the tourism sector and the economic recovery. However, in view of the existing uncertainties, DFV is sticking to its sales targets. The company intends
Slide 13: Corona and claim settlement
Corona and claim settlement Despite the higher premium volume in relation to the 2019 financial The average number of claims year, a decline in claims, particularly in supplementary dental insurance, is declining: can be observed. 2020 Other types of insurance have shown no signs of being impact
Slide 14: Corona and human resources
Corona and human resources The largest recruitment campaign of Deutsche Familienversicherung COD has reached its peak with more than 3,700 applications despite restrictions by the current COVID-19 situation. Deutsche Familienversicherung will fill all the open positions and will close the recrui
Slide 15: Corona and share price development
Corona and share price development So far, the overall negative economic development caused by COVID-19 is only having a marginal impact on DFV AG. Key figures: Market cap: ~ € 235 million Average trading volume 2020: 15,475 shares / day Average share value 2019: € 11,31 Average share value
Slide 16: Presentation of the approved annual financial statements 2019
Agenda item 1 Presentation of the approved annual financial statements 2019 16
Slide 17: Report of the Chairman of the Management Board on the 2019 results
Agenda item 1 | Presentation of the approved annual financial statements 2019 Report of the Chairman of the Management Board on the 2019 results | Dr. Stefan Knoll What happened in 2019 New business and contracts development as well as results 2019 Planning 2020, interim status and outlook 17
Slide 18: What happened in 2019
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Slide 19: What is particularly remarkable from the year 2019
What is particularly remarkable from the year 2019: Leadership Products IT Sales successes Recruitment 19
Slide 20: Leadership
Leadership LULU
Slide 21: Changes in the Management Board
Changes in the Management Board Shareholder Question No. 02: Dr. Stefan Knoll Stephan Schinnenburg Marcus Wollny Founder, CEO & CFO CSO CIO What were the reasons for the Assessor jur. Insurance salesman Health insurance business economist resignation of the Chief PhD in insurance law Financial Offic
Slide 22: Leadership by example
Leadership by example We have adopted the DFV–corporate and the DFV–mangagement principles. 22
Slide 23: Products
Products LULU
Slide 24: Confirmation of our product quality by Stiftung Warentest
Confirmation of our product quality by Stiftung Warentest We achieved the development of ‘very good’ digital products in 2019 with only 122 employees. For the 4th time in a row, we were the test winner in supplementary dental insurance with Stiftung Warentest. We became the winner of the Stiftung Wa
Slide 25: 5th time in a row: test winner in supplementary dental insurance
5th time in a row: test winner in supplementary dental insurance For the 5th time in a row, DFV AG has been awarded the product ‘DFV–DentalCare Exclusive 100’ as test winner by Stiftung Warentest. 2014 2016 2018 2019 2020 25
Slide 26: Successful market entry: pet health insurance
Successful market entry: pet health insurance Product development to market readiness – Successful market entry On 14.12.2019 we introduced pet health insurance. By 31.12.2019, 2,442 policies and a premium volume of approximately € 1.1 million had been added. It covers all risks that dog and cat own
Slide 27: IT
IT 27
Slide 28: The ongoing development of our IT
The ongoing development of our IT In addition to the introduction of Skype for Business for all our communications and a new generation of devices for all our employees, we have: Outsourced our IT infrastructure, which is still underway. Started to implement our idea of cloud-based neural system
Slide 29: DFV-Portal
DFV-Portal About 98% of all new customers actively use the customer portal of Deutsche Familienversicherung. This is the result of continuous ongoing development and focusing on customer benefit. In order to improve customer communication, a messenger was developed and integrated into the portal
Slide 30: DFV customer app: App Insights
DFV customer app: App Insights Our customer communication via app works 22k installations 19k installations 4.8 stars in the App Store 4.8 stars in the Play Store 1191 real customer reviews 512 real customer reviews 68 ‘Unhappy’ feedback messages 55 ‘Unhappy’ feedback messages which we were able to
Slide 31: Dark processing of claims
Dark processing of claims In some types of claims we have succeeded in increasing the dark processing to up to 80%. In 2019, we have integrated new technologies into our dark processing and are now able to successively increase the processing quotas. Input Data Claim Claim extraction evaluation sett
Slide 32: Sales successes
Sales successes 32
Slide 33: The historical momentum of bargaining policy in Germany
The historical momentum of bargaining policy in Germany On 21.11.2019, the IG BCE and the BAVC agreed on the following, among others: In the pharmaceutical and chemical industry, a total of 580,000 people in 1,900 companies with approx. 5,000 individual businesses are given the opportunity to
Slide 34: The history of CareFlex
The history of CareFlex ...an example of strategic business planning... Since 2012 First presentation in Implementation of IPO as InsurTech CareFlex April 2018 Henkel Focus on Digitization of DFV IPO on 04.12.2018 January 2019 November 2019 supplementary long- term care 34
Slide 35: CareFlex Chemie
CareFlex Chemie Benefits of the tariff-based supplementary long-term care Modules CareFlex Chemie basic coverage Benefits for Inpatient care or CareFlex Monthly care family home care or day night care benefit CareFlex care services supplement Care level 1 - - CareFlex employers Care level 2 € 300 €
Slide 36: What does CareFlex mean?
What does CareFlex mean? First industry solution in company health insurance: First consortium to implement a nationwide employer-financed supplementary long-term care DFV AG performs: The consortium offers: « product management 45% « financial stability « contract & customer up to 580,000 « risk as
Slide 37: What does CareFlex mean for us?
What does CareFlex mean for us? + € 70 million + 500,000 + € 41 million increase of premiums customers increase in financial investments After a successful planned premium volume growth of From almost 514,000 customers in 2019 and about Financial investments will continue to rise. Starting from anot
Slide 38: CareFlex means:
CareFlex means: The greatest sales success in our company history. Increasing of business by 100% in 2021. Deutsche Familienversicherung becomes the leading long-term care insurer. 38
Slide 39: Recruitment
Recruitment LULU
Slide 40: CareFlex requires an increase in human resources
In order to be able to handle CareFlex at all, it also requires an increase in human resources € 200 million 200 € 101 million number of employees € 70 million 70 Premiums (€ million) Start Henkel CareFlex Chemie IPO CareFlex 2007 2008 2012 2014 2016 2018 2019 2020 2021 2022 DFV is Focus on DFV earn
Slide 41: COD – Recruiting campaign 2020
COD – Recruiting campaign 2020 We have identified 55 positions that we intend to fill in 2019 and 2020. A separate recruitment programme has been set up for this purpose under the designation COD. Situation in Our target Our strategy Our actions Germany Out-of-home The doubling of our Nationwide rec
Slide 42: Widespread presence in the Rhine-Main region
We had a widespread presence in the Rhine-Main region Premium Partner Exchange Premium Test Winner 42
Slide 43: COD – Recruiting campaign 2020
COD – Recruiting campaign 2020 The costly advertising measures are worthwhile: 55 advertised positions, 29 set Over 3,700 applications 200 interviews conducted so far Almost all management positions filled 43
Slide 44: New business and contracts development as well as results 2019
New business and contracts development as well as results 2019 We present you the best results in the company's history 44
Slide 45: The 2019 financial year at a glance
The 2019 financial year at a glance DFV Deutsche Familienversicherung AG (DFV) can look back on a very successful 2019 business year. With 100,034 new contracts (2018: 55,227), DFV generated 81.1% 36.7% additional new business. This is accounted for by the additionally increase in generated premiu
Slide 46: Notable sales successes & new business 2019
Notable sales successes & new business 2019 We remember: With the IPO, we promised to increase the number of new customers from 55,000 in 2018 to 100,000. New business development (number of contracts) 100,034 This target was achieved with 100,034 new contracts. With the IPO, we have promised an i
Slide 47: Our multi-channel sales mix
Our multi-channel sales mix provides a solid foundation for our growth ambitions Google Bing DRTV Direct 70-80% Cooperations 2019: 77,298 new contracts 10-15% Broker 2019: 11,824 new contracts 10-15% 2019: 10,912 new contracts But: In online sales (70-80%) we are superior to all of them: We do not
Slide 48: Online presence of DFV: Visibility
Online presence of DFV: Visibility Since 15.01.2020, Google has rolled out a new Core Update with focus on the page quality [E-A-T (Expertise, Authoritativeness, Trustworthiness)] of YMYL pages (Your Money or Your Life). As part of the update, our visibility (Sistrix OVI) has improved by a further 3
Slide 49: Increase in sales – additional sales investment
Increase in sales – additional sales investment The providers of supplementary health insurance on the German market DFV AG in the top group for customer growth in 2019(1) Company Customer growth Employees Customer Foundation 95,000(2) 14,600 1,163,000 1922 With our sales investment of 71,400 15,771
Slide 50: Development of existing business 2019
Development of existing business 2019 Contracts development (number of contracts) The reasons for the excellent growth of the existing 514,104 502,721 business are: +11.51% In the year 2018, approx. 37,000 customers from the residential -7.63% 464,356 building insurance contracts and the electroni
Slide 51: Profit development in € million 2015–2019
Profit development in € million 2015–2019 The reasons for this business result include: 9 The costs of human resources of € 9.5 million were € 1.5 million 5 below the planned expenditure of € 2.1 0.9 1.2 11 million. 1 Good investment result of € 3.4 million (previous year's loss of -3 -3.3 € 2.3
Slide 52: Key financial figures 2019
Key financial figures 2019 Claims ratio in % Solvency ratio in % 469 264 66.5 214 190 Corridor of 61.5 60.5 141 180% – 220% 57.3 56.0 Corridor of 45% – 65% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Combined ratio in % Financial investments in € million 122.5 90.1 102.6 98.1 95.1 98.0 Corrido
Slide 53: Key financial figures 2019
Key financial figures 2019 Development of employee numbers Premium volume in € million 177 125 133 101 119 122 111 72.9 75.7 66.7 2016 2017 2018 2019 plan 2020 2016 2017 2018 2019 plan 2020 Premium volume per employee in € thousand Contracts per employee 827.8 4,213 800 4,100 681.6 4,099 612.7 501.7
Slide 54: Summary results 2019
Summary results 2019 A far above-average new business with a plus of 69.9% contrasts losses of € -5.25 million Despite the loss, this is once again the best business year in the company's history. 54
Slide 55: Planning 2020, interim status and outlook
Planning 2020, interim status and outlook 55
Slide 56: Measures set out for review in 2019
We set out the following measures for review in 2019: Foreign Investment Expansion of IT Adjustment of the scope of reinsurance (from 2020) Increase in sales 56
Slide 57: Review: CareFlex
Review Within the commitment as co-leader in the CareFlex consortium, the first company of supplementary long- term care, we have taken a look on the possibilities. CareFlex means: Between 400,000 and 580,000 new customers by 1,900 companies with about 01.07.2021. 5,000 individual businesses An
Slide 58: An example for complexity
An example for complexity An individually calculated tariff Nevertheless: standard premium per employee Various interruption modalities: Parental leave Sabbatical Prolonged incapacity to work Monthly notification by the employer Monthly contribution collection and distribution accord
Slide 59: It pushed us to:
It pushed us to: To postpone a foreign investment, ongoing development of IT at an even faster pace, to leave the scope of reinsurance as it is, and nevertheless, we will continue sales at the level of 2019. 59
Slide 60: Our targets until 2021
Our targets until 2021 « Customer base: 1,000,000 customers Premium volume: € 200 million 60
Slide 61: Q1 results 2020
Q1 results 2020 61
Slide 62: Targets 2020 – new business development on track
Targets 2020 – new business development on track We have also set ourselves the target of acquiring 100,000 new customers in 2020. DFV is on track. As at 31.03.2020, 27.72% of the annual target were achieved (time target: 25%). DFV is On average, we sell 305 new policies per day. on track – 27.72% o
Slide 63: Financial figures Q1 2020
Financial figures Q1 2020 Premium volume in € million New business (number of contracts) 100,034 108.2 101 83.3 75.6 55,227 30,049 27,718 2018 Q1/2019 2019 Q1/2020 2018 Q1/2019 2019 Q1/2020 Claims ratio in % Combined ratio in % 122.9 98 102.6 Corridor of 60.5 62.4 95 56 95%–110% 50.1 Corridor of 45%
Slide 64: Financial figures Q1 2020
Financial figures Q1 2020 Solvency ratio in % Financial investments in € million 469 378 122.5 106.7 109.4 90.1 264 206 Corridor of 180%–220% 2018 Q1/2019 2019 Q1/2020 2018 Q1/2019 2019 Q1/2020 Number of employees Salaries in € thousand 9,081 9,382 133 122 109 112 2,647 2,062 2018 Q1/2019 2019 Q1/20
Slide 65: Q1 results 2020
Q1 results 2020 Profit development 2017 – Q1 2020 EBIT before taxes DFV closed Q1 2020 with a loss of € -5.6 million (IFRS before taxes). The planned profit and loss account loss 9 according to IFRS before taxes was € -2.5 million. 5 The deterioration is mainly due to a realised loss of 1.2 € 2.8 mi
Slide 66: Growth, Quality, Innovative Technology, Reliability
Possibly one could have doubts, because we are still a small insurance company, but we convince through: Growth Our sales success and sales expenditure have paid off: with our growth course we have managed to catch up with the top 3 insurance companies in the field of supplementary health insuranc
Slide 67: Thanks to team and shareholders
…and: Furthermore, I would like to thank my team, my employees and my colleagues on the Management Board for their far above-average commitment to the company and you, for your outstanding loyalty!
Slide 68: Questions answered submitted in advance
Questions answered submitted in advance 68
Slide 69: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 1 | Does DFV plan to include women on the Management and Supervisory Boards in future? Answer: DFV currently has a 52% female quota across the company. Of 14 heads of department, 5 are female (35%). An equal share of women is also aimed for
Slide 70: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 2 | What were the reasons for the departure of CFO Mr. Morgenstern? How long was the remaining term of his contract? Was a severance payment or similar paid? If so, in what amount? Answer: The reasons are personal, for reasons of respect for M
Slide 71: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 3 | Please describe how offers in the area of property insurance are developing, in particular: a) what types of property insurance? b) what gross premiums are expected in each case? Answer: Product Q1 2020 FY 2019 FY 2018 Number of Premium volu
Slide 72: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 4 | How is the marketing of the company's own IT system to third parties affected? Answer: The implementation of CareFlex represents the first step towards marketing of our own IT for third parties. Although agreement has been reached on the
Slide 73: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 5 | How is the long-term care sector for employees in the chemical and pharmaceutical industry developing (number of contracts)? Answer: Answered on page 57. 73
Slide 74: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 6 | What are the costs of the cooperation with ProSiebenSat.1? Answer: Basically, we calculate the acquisition of new policies at 12 monthly premiums. This calculation applies to all distribution channels, i.e. and thus also to DRTV (Direct
Slide 75: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 7 | What is the total cost of IT? Answer: Answered on page 28. 75
Slide 76: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 8 | Are there any legal disputes within the company? Answer: In 2019, DFV processed a total of 140,000 claims and benefits. Of the cases completely or partly rejected, 12 lawsuits were filed in 2019. The current status of legal disputes is 3
Slide 77: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 9 | Which capital investment strategy is currently being pursued in the context of the Corona crisis? Answer: Answered on page 10. 77
Slide 78: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 10 | Who are the members of the Investment Committee? Answer: The members of the Investment Committee are: The Management Board, a representative of MainFirst AG, a representative of Monega, the actuary in charge, the head of the finan
Slide 79: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 11 | What is the current status of the electronic insurance run off? Answer: Electronic insurance (number of contracts) Electronic insurance (premium volume in € thousand) 56,187 2,481 44,182 41,000 1,889 36,000 1,500 1,300 2018 2019 2020 (plan)
Slide 80: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 12 | On page 41 of the annual report, what does the matter of expenses for raising equity capital in the amount of € 2.6 million mean? Answer: The IPO (4.12.2018) resulted in total costs of € 2.6 million Of this amount, € 2.47 million were i
Slide 81: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 13 | On page 70 of the annual report, the term ‘other assets’ is mentioned (miscellaneous assets). What is meant by this? Answer: ‘Other assets’ are composed as follows: € 850,000 in receivables from interest coupons on bonds and dividends on
Slide 82: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 14 | What are the reasons for the significant increase in insurance benefits (from € 27 million to € 35 million)? Answer: Answered on page 52. 82
Slide 83: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 15 | What is meant by deposit interest in the area of other expenses (Annual Report page 81)? Answer: Insurance products that are calculated according to the type of life insurance are reinsured as well. Reinsurance typically does not includ
Slide 84: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 16 | The first quarter of 2020 has brought a pre-tax loss of € 5.6 million, € 2.5 million was expected. What are the causes? Answer: Answered on page 65. 84
Slide 85: Answers to questions submitted in advance
Answers to questions submitted in advance Question No. 17 | What is the forecast for 2020 regarding the current difficult situation? (new business, annual result) ANSWER: Whether it will be possible to further maintain the annual target set for new business after the close of the second quarter wi
Slide 86: Thank you for your kind attention!
Thank you for your kind attention!
Slide 87: Further items on the agenda
Further items on the agenda Agenda item 2 | Resolution on the formal approval of the Management Board members' actions Agenda item 3 | Resolution on the formal approval of the actions of the members of the Supervisory Board Agenda item 4 | Resolution on the remuneration of Supervisory Board me
Slide 88: Agenda item 3: Discharge of the Supervisory Board members
Agenda item 3 Resolution on the discharge of the members of the Supervisory Board 88
Slide 89: Agenda item 4: Remuneration of Supervisory Board members
Agenda item 4 Resolution on the remuneration of Supervisory Board members for the 2020 financial year 89
Slide 90: Agenda item 5: Amendment of Articles of Association
Agenda item 5 Resolution on the amendment of § 3 para. 2 (Announcements and transmission of information) and § 18 para. 3 sentence 1 (Participation and exercise of voting rights) of the Company's Articles of Association 90
Slide 91: Thank you for your kind attention!
Thank you for your kind attention!
Slide 92: Deutsche Familienversicherung
DEUTSCHE €> Familienversicherung
DFV Deutsche Familienversicherung — Shareholder Meeting (May 2020) on 6ix