A Look at Deutsche Familienversicherung’s 2018 in Numbers

  • Record new business with 55,263 contracts and a volume of EUR 17.6 million - equivalent to growth of 29% and 90%, respectively
  • Gross premiums written, adjusted for the effects of portfolio optimisation, up by 10.1% to EUR 68.5 million; portfolio premiums increase to EUR 75.7 million
  • Underwriting result of EUR 0.71 million
  • Solid solvency ratio of 469% following successful IPO in December 2018

DFV Deutsche Familienversicherung AG, a fast-growing insurtech company in leading position in Europe, has achieved very good operating results in the 2018 financial year. New business reached a record level: The number of new contracts rose by 29% to 55,263 and the corresponding premium volume by 90%, to reach EUR 17.6 million. Overall, gross premiums written, adjusted for the effects of portfolio optimisation, increased by 10.1% to EUR 68.5 million.

The successful IPO in December 2018 laid the foundations for significantly strengthening portfolio growth in 2019 and subsequent years. Its success story is based on the product innovations awarded top marks by Stiftung Warentest, especially in the field of health and supplementary nursing insurance, as well as the fully digital processes implemented. In the current financial year, DFV intends to exploit the high market potential in the field of digital insurance in Germany and conclude around 100,000 new contracts.

"We can look back on a highly successful financial year. Our sales success clearly shows the potential we have as a fully integrated insurtech company in Germany. We will continue to drive this growth forward in 2019 by means of targeted sales investments. In reaching the target of 100,000 new contracts in 2019, Deutsche Familienversicherung is catching up with the 5 largest German insurance companies in new business in health insurance," says Dr Stefan Knoll, CEO and founder of DFV.
Increase in portfolio premiums by 19.6% in core business

In fiscal 2018, portfolio premiums in line with IFRS were up by 3.8% to EUR 75.7 million (previous year: EUR 72.9 million). Considering the effect of the termination of co-insurance in a building insurance portfolio as at 31 December 2017 and the significant reduction of the claim-intensive electronics insurance portfolio, the growth in portfolio premiums in the core business amounted to 19.6%. Adjusted for the effects of portfolio optimisation, gross premiums written rose by 10.1%, to EUR 68.5 million. The substantial increase in portfolio premiums is the result of strong new customer business, mainly driven by contracts concluded in the area of supplementary health insurance. Growth here was 41% in terms of the number of new contracts and 104% in terms of new premium volume. The portfolio in this product segment thus likewise increased significantly by 10% (number of policies) and 24% (premium volume), respectively.

The successful new business was accompanied by a significant increase in sales investments, which amounted to around EUR 15 million. EBIT declined accordingly, from EUR 2.1 million to -EUR 4.1 million. This figure also includes a negative one-off effect due to a write-down in the investment area as a result of the global slump in the investment market. Moreover, the results were impacted by the expenses incurred by the IPO. Taking these one-off effects totalling EUR 4.1 million into consideration, underwriting result amounted to EUR 0.71 million. DFV thus achieved an underwriting profit despite the growth and associated significant increase in selling expenses. The IFRS net loss for the 2018 financial year amounted to EUR 3.3 million.

The combined (claim-to-cost) ratio increased to approx. 98% in 2018 (previous year: 95.1%). The reason for this was the significant increase in selling expenses. The claims ratio remained at a very good level of around 39.5 per cent (previous year: 39 per cent).

As of 31 December 2018, the total insurance portfolio amounted to around 455 thousand contracts compared with around 464 thousand contracts in the previous year. The decline is due to the strategic optimisation of the portfolio in terms of risk and earnings aspects. The complete reduction of the building insurance portfolio and the significant decrease of the technical insurance (electronics) portfolio in the 2018 financial year comprised a total of around EUR 37 thousand contracts. Adjusted for this portfolio optimisation, the portfolio in the core business grew by around 7%. DFV's solvency ratio rose to 496% at the end of the 2018 financial year (31/12/2017: 214%).