DGAP-News

JDC Group AG: JDC Group acquires insurance portfolio of up to 195,000 customers and thus boosts EBITDA by up to Euro 4 million a year

DGAP-News: JDC Group AG / Key word(s): Miscellaneous
JDC Group AG: JDC Group acquires insurance portfolio of up to 195,000
customers and thus boosts EBITDA by up to Euro 4 million a year

25.05.2016 / 07:00
The issuer is solely responsible for the content of this announcement.

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JDC Group acquires insurance portfolio of up to 195,000 customers and thus
boosts EBITDA by up to Euro 4 million a year

- Jung, DMS & Cie. AG, a subsidiary of JDC Group AG, invests in an asset
deal with a medium-sized broker a small double-digit million euro
amount

- Commission income set to rise by up to Euro 5 million a year

- EBITDA growth of up to 4 million Euro a year following portfolio
transfer

- Great cross-selling potential mainly due to the new digital finance
assistant "allesmeins" within the customer portfolio acquired

Jung, DMS & Cie. AG, a subsidiary of JDC Group and one of Europe's largest
broker pools, has agreed an asset deal to acquire a private customer
insurance portfolio of up to 195,000 customers, a net annual premium of
almost Euro 27 million, annual commission income of up to Euro 5 million
and an expected EBITDA contribution after handling and customer support
costs of up to Euro 4 million.

The customer contracts are mainly in the field of legal protection
insurance, personal liability insurance, household and household contents
insurance. The asset deal agreement is subject to various conditions
precedent. It should be completed by the middle of the year. As a result,
the impact on revenues and EBITDA outlined above will take effect on a pro-
rated basis in the current year.

The transaction will be financed with the Euro 15 million bond placed
successfully in June 2015 and issued in order to acquire broker portfolios.
Upon implementation of the latest transaction, this capital will be fully
invested. Over and above the immediate positive impact on revenues and
EBITDA, the management of JDC Group also expects to generate substantial
additional revenues by deploying its newly introduced "allesmeins"
insurance wallet in the newly acquired customer portfolio. As the average
contract density in the acquired portfolio currently amounts to just over
one contract per customer, compared with a German average of around eight
contracts per customer, this innovative smartphone application should
enable the contract density per customer to be significantly raised in the
new portfolio. This in turn could lead to even more positive earnings