DGAP-News: DFV Deutsche Familienversicherung AG / Key word(s): 9 Month figures/Quarterly / Interim Statement
Deutsche Familienversicherung increases premium volume despite COVID-19 to over EUR 120 million and expects full-year growth to exceed 25%
- 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 EUR 22.3 million in the first nine months of 2020 as planned
- Gross premiums written increased significantly by 27.1%, to reach EUR 83.5 million
- Existing premiums up by 18.9%, to EUR 120.3 million
- Annual operating targets for 2020 affirmed: EUR 30 million in new business; existing premium volume > EUR 125 million, gross premiums +30%
- Preparations for launch of 'CareFlex' on target - growth to > EUR 200 million in existing premium volume expected for end-2021
The volume of new business in the first nine months of 2020, reaching a premium volume of EUR 22.3 million, is in line with our plan. Owing to the sharp decline in foreign health insurance caused by the pandemic, the number of policies acquired by end-September turned out slightly lower than planned, reaching 67,285 policies. Considering, however, that the nine-month period of 2019 had been influenced highly positively by the added 'Henkel contracts' and the shortfall of almost 10,000 foreign health insurance policies year-on-year, the originating performance by DFV was impressively confirmed. Accordingly, DFV sales turned out to be highly robust as regards the cyclical collapse due to COVID-19. In fact, the share accounted for by online direct sales was boosted yet again. This bears testimony to the competitive edge of DFV as a digitalized, online-based insurance company.
As a result of the successful new business, the total underwriting portfolio as at September 30, 2020 was up by 6.6%, to around 548 k policies (December 31, 2019: 514 k policies). This includes about 37,919 policies in the electronic equipment insurance segment that is no longer part of DFV's core business, a portfolio that is undergoing liquidation (run-off). Adjusted for these technical insurance segments, the underwriting portfolio in core business was up by approx. 8.6% in the first nine months of the current fiscal year.
Distribution costs in the first nine months amounted to EUR 24.3 million, nearly equivalent to the previous year (9M 2019: EUR 24.6 million). The combined ratio (of claims to expenses), amounting to 106.0% in the period under review, remained at roughly the same level as the previous year (9M 2019: 105.7%, full year 2019: 102.6%). The claims ratio is stable at 61.2% and remains below average (9M 2019: 61.2%, full year 2019: 60.5%). The company continues to adhere to the target combined ratio of below 100% and, therefore, to the expected profitability.
The solvency II ratio of Deutsche Familienversicherung as at September 30, 2020 amounted to 402%, considerably higher than the end-2019 value of 264%. This increase is chiefly attributable to the 10-per-cent capital increase successfully implemented early in July 2020. At the same time, a number of effects impacted the ratio. These included the capital employed for the significant growth in business, increased investments for the implementation of 'CareFlex' (personnel and IT) and a yield curve of the European Central Bank adjusted in the first half of 2020. Accordingly, the solvency II ratio will return to the long-term target corridor of 180-220%, to which DFV continues to adhere.
As part of the growth strategy of Deutsche Familienversicherung, at present the organization focuses in particular on extending the DFV product range, especially in the property insurance segment. For instance, early in August 2020 a new version of the liability insurance policy for dog owners was marketed, facilitating a sale in combination with pet health insurance - an insurance product that has been successfully marketed under the PETPROTECT brand on the TV channels of the ProSieben/Sat.1 media group since May 2019. In addition, the animal health insurance, under the name DFV-TierkrankenSchutz, is marketed just as successfully via the company's own channels.
DFV's outlook for the year 2020 remains unchanged following the very good business development in the first nine months of the year: in 2020 the company plans to raise the volume of its existing premiums to over EUR 125 million and thus achieve an increase in gross premiums written by at least 25%. Owing to its high growth investments, DFV continues to anticipate its expected operating loss (EBIT) between EUR 9 to 11 million.
"Our growth figures reflect the difference between an insurance company like Deutsche Familienversicherung and a simple distribution outlet. Our volume of existing premiums realized to date, amounting to EUR 120 million, represents recurring premium income that we will also have next year. This is what makes the difference in the stability of an insurer. This will be augmented in 2021 by originating new business as well as the policies under the 'CareFlex' deal. For this reason, we will rise into a new dimension next year and advance to become market leader in the supplementary care insurance sector in Germany. For a business with no more than 166 employees, this is an impressive performance that would not be possible without leading-edge technology," comments Dr. Stefan Knoll, CEO and Founder of Deutsche Familienversicherung.
DFV Deutsche Familienversicherung AG (ISIN DE000A0KPM74) is a fast-growing insurtech company. As a digital insurance company, DFV covers the entire value chain with its own products. The aim of the company is to offer insurance products that people really need and understand immediately ("Simple & Sensible"). DFV offers its customers award-winning supplementary health insurance (dental, health and long-term care insurance) as well as accident and property insurance policies. Based on its ultra-modern and scalable IT system developed in-house, the company is setting new standards in the insurance industry with consistently digital product designs and the option of taking out policies via digital language assistants.
12.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
DFV Deutsche Familienversicherung AG
069 74 30 46 396
069 74 30 46 46
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
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