DGAP-Adhoc

CareFlex: New consortium distribution with reinsurance role for Deutsche Familienversicherung

DGAP-Ad-hoc: DFV Deutsche Familienversicherung AG / Key word(s): Alliance CareFlex: New consortium distribution with reinsurance role for Deutsche Familienversicherung 30-Dec-2020 / 20:22 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. CareFlex: New consortium distribution with reinsurance role for Deutsche Familienversicherung - DFV assumes role of reinsurer and is no longer primary insurer and IT service provider in the CareFlex consortium

- Outlook 2021: No profitability yet, but additional organic growth planned in 2021

Frankfurt am Main, 30 December 2020 - DFV Deutsche Familienversicherung AG ("DFV" or "Deutsche Familienversicherung"), a fast-growing and leading InsurTech company in Europe, came up with the idea for the first employer-financed supplementary long-term care insurance CareFlex. This has been implemented by the collective bargaining parties in the collective agreement for the chemical industry at the end of 2019 as CareFlex Chemie. A consortium of Barmenia Krankenversicherung AG, DFV and R+V Krankenversicherung AG was formed for this purpose. DFV had a 35% share in this consortium.

Based on intensive communication with the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) to prove sufficient security in the calculation of the actuarial interest rate for CareFlex Chemie, the Management Board of DFV reviewed the overall project again. Against the background of an expected additional investment capital of € 50 million per year at DFV, the Management Board decided that the risk of generating the calculated actuarial interest rate clearly outweighs the advantages of remaining a primary insurer in the CareFlex consortium. At DFV's request, the tariff parties and the members of the consortium have therefore agreed today that DFV will withdraw from the CareFlex Chemie project as primary insurer. DFV will conclude a reinsurance contract with Barmenia. DFV will thus no longer be responsible for the IT implementation of CareFlex Chemie. The necessary agreements have been signed today. The CareFlex tariff was calculated and launched at the end of 2019 in a phase of economic prosperity. Triggered by the global Corona pandemic, Germany experienced two waves of infection and two lock-downs of the economy. An end to the current lock-down is not in sight. Experts predict a third wave of infection and a "herd immunity" cannot be expected before 2022. Against this background, the Management Board considers the disproportionate increase of the investment capital by €50 million annually to be too risky and no longer justifiable for the size of Deutsche Familienversicherung.