On the evening of December 30th, DFV Deutsche Familienversicherung reported that it was taking on the role of reinsurer in the Careflex project and was no longer acting as a primary insurer. In addition, one is no longer the IT service provider in the Careflex consortium. The stock exchange could no longer trade at this point, it was already on New Year’s Eve. Today there is a clear reaction. The DFV paper loses more than 36 percent to 14.61 euros by noon.
In the morning, DFV boss Stefan Knoll explains the background to the ad-hoc from his point of view. At the same time, he makes it clear that the Careflex consortium has been withdrawn. A termination agreement has been concluded with the other consortium partners (R + V and Barmenia) and the collective bargaining parties. Mutually, all claims are waived. There are therefore no recourse claims against the DFV.
DFV has been a member of the insurance consortium since November 2019. This should offer an employer-financed supplementary care insurance for employees in the chemical industry. In June 2020, an initial exchange with BaFin took place on this topic, and an exchange of correspondence followed. The question was also whether there was sufficient collateral for the DFV discount rate and whether the pandemic had an impact on it.
An expert report from Helaba Invest commissioned by DFV should show BaFin the corresponding security probabilities. But there was a methodological dispute between those involved as to how the calculations should be made. BaFin set a deadline of December 31. From the perspective of the DFV, the necessary proof of security has been provided, but BaFin was no longer able to react within the time window. Since Careflex was due to start a pilot project on January 1st, everyone involved was under time pressure. A certain nervousness within the consortium may also play a role. And so it came to the known developments.
By saying goodbye to the consortium, the DFV must also say goodbye to plans to be in the black in 2021. This goal has been postponed to 2022. Precise details on the plans for 2021 will be available with the preliminary 2020 figures on January 21. According to Knoll, these numbers should be “very nice”.
In the conference call, Knoll describes the lack of customer growth from Careflex as regrettable but acceptable. One can now focus on ordinary new business and the further development of digitization. Internationalization will also receive more attention.
Knoll does not want, he makes it very clear during the conference call, not to walk around in sacks and ashes. You are facing the best years in the company’s history and remain one of the fastest growing insurance companies. In sales one is superior to many others, one has to take advantage of this and attack again.
The planning for 2021 will be adjusted in the coming days, investors will find out more by January 21 at the latest.
Livestream on December 14th, 2020 from 6 p.m .:
With Hans-Werner Sinn, former President of the Ifo Institute: Corona and the miraculous increase in money in Europe
– Here is the stream! –