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(October 12, 2018)
DGAP-News: DFV Deutsche Familienversicherung AG / Key word(s): IPO/Capital Increase
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DFV Deutsche Familienversicherung AG Plans Going Public
- DFV Deutsche Familienversicherung AG plans an initial public offering on the regulated market (Prime Standard) of the Frankfurt Stock Exchange in Q4 2018.
- With a scalable, in-house programmed digital IT platform, DFV Deutsche Familienversicherung AG is an insurtech firm specialised in the sales and portfolio management of supplementary health and property insurance policies.
- The use of Amazon Echo, modern payment methods and the implementation of artificial intelligence facilitate rapid and highly-efficient processes
- To implement the growth strategy, DFV intends to issue new no-par value bearer from a capital increase against cash contribution to be resolved by the general shareholders' meeting.
- The intended gross issue proceeds of around 100 million euro are planned to be used primarily for investments in further growth, the market entry in other European countries and new products.
Frankfurt, 12/10/2018 - DFV Deutsche Familienversicherung AG ("DFV" or the "Company", www.deutsche-familienversicherung.de) - a rapidly growing, digital insurtech company with registered office in Frankfurt/Main - is preparing an initial public offering on the regulated market (Prime Standard) of the Frankfurt Stock Exchange in Q4 2018.
Dr Stefan M. Knoll, founder and CEO: "Deutsche Familienversicherung is an insurtech firm and an insurance company where digital transformation and digital value creation work. The complete digitalisation of our processes, covering everything from concluding policies to claims settlement, was and is a central prerequisite for succeeding in a distributed market. This and the fact that we, according to the consumer testing institute Stiftung Warentest, have the best products is the basis for our tremendous growth."
Company-own IT platform & highly scalable processes
Since 2014 DFV uses its proprietary IT platform which is a highly modern event & java-based portfolio management system. This platform permits the insurtech firm today already to manage the complete operational business for a portfolio of more than 420,000 active policies with just 109 employees.
Marcus Wollny, Chief Operating Officer: "We have developed a digital insurance platform that enables us to process business transactions in real time. For this purpose, we use artificial intelligence coupled with an event-based process machine and flexible interfaces. This enables us to optimally integrate our insurance app and our customer portal. This allows our customers, for example, to make changes to contracts very easily or submit claims and then receive a response directly afterwards. New products can be launched on the market within just a few weeks and it takes only hours to implement product changes."
Dr Stefan M. Knoll: "With our IT and the digital processes based on it, we are the German answer from Frankfurt in the state of Hesse to the international insurtech development."
Amazon Echo & DFV chat bot
The insurtech firm facilitates product consulting for its customers via digital voice assistants. As the first insurer in Germany, DFV offers not only consulting but also the conclusion of insurance policies through its own Alexa Skills. For more product consulting, an AI-based chat bot is also available at the DFV website.
Dr Stefan M. Knoll comments on this: "Insurance policies in the future will be concluded by means of digital voice assistants to a large extent. We are aware of the increasingly digital lifestyle habits of our customers and thus we adjust our digital services accordingly."
State-of-the-art payment methods - Paypal & AmazonPay
Customers want to execute their contract closings in the most simple and fastest way possible. For this reason, DFV has radically simplified its closing procedure.
Dr Stefan M. Knoll: "Thanks to the Amazon login, the data input is substantially shortened, which saves valuable time. In addition, besides conventional payment methods, we also offer using AmazonPay or PayPal. This goes without saying for us. This way, we offer the shortest possible closing procedure and we are the first insurance company to offer AmazonPay and monthly payments using PayPal.
Digital customer service - DFV app and DFV customer portal
The entire process for the issuance of policies runs completely automatically and takes six minutes on average. Afterwards, the customer receives access to the DFV customer portal, the DFV customer app and the DFV customer wallet. Through these digital customer services, the customer can manage his/her policies and initiate applications for benefits and notifications of claims.
Artificial intelligence & claims settlement
Artificial intelligence identifies from submitted medical bills what their contents are and attributes the invoices to policies. It checks if the medical service is covered by the concluded policy. Thanks to artificial intelligence and digital value creation, the payment to the customer will then be made quickly in an uncomplicated and fully automated manner.
Dr Stefan M. Knoll: "Thanks to this AI-based, digital capacity, our record for settling a dentist invoice is 45 seconds."
Great growth potential & highly scalable distribution
DFV believes the German market has a great growth potential. In the segment of supplementary health insurance, the insurtech firm aspires to become the market leader in Germany. With the expected proceeds from the initial public offering, DFV plans to invest more in branding and traditional marketing and, in particular, to enormously increase the growth of the recent years of around 10-15% in the core business.
Dr Stefan M. Knoll, founder and CEO: "DFV is a new kind of insurer: Excellent products plus direct digital value creation facilitate the greatest possible customer benefit with unlimited scalability. DFV is a German insurtech firm which has revolutionised the market for many. The stock exchange listing is therefore a very good match for the growth potential of our digital platform."
Stephan Schinnenburg, Chief Sales Officers: "We felt that there is an enormous demand for digital services. We are the ones that can credibly satisfy this demand whilst providing high quality in terms of technology. The possibility through the going public of being able to invest more in branding and traditional marketing, besides transaction-specific advertising, will lead to a tremendous increase of the new customer business in our view."
Initial public offering to support further growth
In connection with the IPO, the Company expects issue proceeds from the placement of new shares in the amount of around 100 million euro. The Company plans to use these proceeds primarily for the expansion of its sales and the implementation of marketing measures. In addition, the Company wants to invest in its IT and further digitalisation. The Company also wants to broaden its product portfolio and launch new insurance products on the market. Furthermore, DFV plans to enter at least one further European market within the next 12 months.
Michael Morgenstern, Chief Financial Officer: "DFV has a very solid structure and fulfils all requirements of supervisory authorities at national and European level. The going public therefore provides a very good basis for the planned sustainable and profitable growth."
To allow for sufficient free float, it is also planned to offer secondary shares of two shareholders in addition to issuing new shares. The proceeds from the over-allotment option are to be received to the full extent by the Company, as the Greenshoe Option would be satisfied by an additional capital increase from authorised capital of the Company. For the Company and its existing shareholders, a lock-up period of 12 months applies. The major shareholders intend to hold the majority of the Company's shares on a long-term perspective.
Hauck & Aufhäuser Privatbankiers AG acts as the Sole Global Coordinator and Joint Bookrunner, MAINFIRST BANK AG acts as Joint Bookrunner.
More details on the planned initial public offering will be announced with publication of the securities prospectus.
The German insurtech firm - a special success story
DFV is a success story and it has established itself in the market with more than 420,000 active policies. Based on the approach of selling only insurance policies to customers that are easy to understand and that can be concluded without complications and within the shortest possible time, the insurtech offers a new kind of digital insurance. DFV has been consistently profitable since 2015. The Company ended the year 2017 with an EBIT of 1.4 million euro. The Company's solvency II ratio in the year 2017 was at 214%. The product portfolio of the Frankfurt insurtech firm includes supplemental health insurance policies such as supplementary outpatient, inpatient, dental and long-term care insurance, and property insurance such as household contents, liability, legal defence and accident insurance policies. Sales take place primarily digitally and online respectively. The Company generates 80% of its customers via the direct online distribution channels (Google, Bing, Affiliate) and DRTV advertising (direct response television). The Company reaches 20% of new customers via the distribution channels of "Collaborations" (e.g. with statutory health insurers) and "Brokers".
About DFV Deutsche Familienversicherung AG
DFV Deutsche Familienversicherung AG was founded in 2007 as an insurance start-up with the aim of offering insurance products that people really need and understand immediately ("Simple. Reasonable"). Today DFV is an insurtech firm and known for its supplemental health insurance policies that have won many awards (supplementary dental, health, nursing insurance as well as accident and property insurance). The Company sets new standards in the industry with the entirely digital product design.
Press & Investor Relations contact:
Head of Corporate Communications & Investor Relations
tel.: 0049 69 74 30 46 396
mobil: 0049 170 7130114
mail: [email protected]
"These materials are for informational purposes only and are not intended to constitute, and should not be construed as, an offer to sell or subscribe for, or the announcement of a forthcoming offer to sell or subscribe for, or a solicitation of any offer to buy or subscribe for, or the announcement of a forthcoming solicitation of any offer to buy or subscribe for, ordinary shares in the share capital of DFV Deutsche Familienversicherung AG (the "Company", and such shares, the "Shares") in the United States or in any other jurisdiction.
The Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold within the United States absent registration or an exemption from the registration requirements under the Securities Act. The Company does not intend to register any portion of the offering in the United States or to conduct a public offering of Shares in the United States.
The Company has not authorised any offer to the public of Shares in any Member State of the European Economic Area, except in the Federal Republic of Germany and Luxembourg. With respect to any Member State of the European Economic Area which has implemented the Prospectus Directive other than Germany and Luxembourg (each a "Relevant Member State"), no action has been undertaken or will be undertaken to make an offer to the public of Shares requiring publication of a prospectus in any Relevant Member State. As a result, the Shares may only be offered in Relevant Member States:
(i) to any legal entity which is a "qualified investor" as defined in the Prospectus Directive; or
(ii) in any other circumstances falling within Article 3(2) of the Prospectus Directive.
For the purpose of this paragraph, the expression "offer of securities to the public" means the communication in any form and by any means of sufficient information on the terms of the offer and the Shares to be offered so as to enable the investor to decide to exercise, purchase or subscribe for the Shares, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State and the expression "Prospectus Directive" means Directive 2003/71/EC (as amended, including by Directive 2010/73/EU), and includes any relevant implementing measure in the Relevant Member State.
Any such investor will also be deemed to have represented and agreed that any Shares acquired by it in the contemplated offering of Shares have not been acquired on behalf of persons other than such investor. This announcement is not an advertisement within the meaning of the Prospectus Directive and does not constitute a prospectus.
In the United Kingdom, this document and any other materials in relation to the Shares is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, "qualified investors" (as defined in section 86(7) of the Financial Services and Markets Act 2000) and who are (i) persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 ("Financial Promotion") Order 2005 (the "Order"); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). This communication is directed only at relevant persons. Persons who are not relevant persons should not take any action on the basis of this document and should not act or rely on it. Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. No action has been taken by the Company that would permit an offer of Shares or the possession or distribution of these materials or any other offering or publicity material relating to[ServletException in:/common/layout/us_view_template.jsp] null'