Executive summary 2017

We strive for a healthier world

Executive summary

Integrated corporate report 2017

Much to care for

DKV Group

Message from the Chairman

Conversation with DKV’s Managing Director

The company at a glance

Value creation model

Responsible business

Page 03

Page 04

Page 04

Page 06

Page 07

Page 08

Value for customers

Value for employees

Value for collaborators

Value for society

Value for the environment

Our accolades

Page 09

Page 10

Page 11

Page 12

Page 13

Page 14

This document is an executive summary of DKV’s Integrated Corporate Report 2017, providing information on the Group’s performance for the 2017 financial year.

The financial data incorporates the whole activity of DKV Group, which include DKV Seguros, Ergo Vida, Unión Médica la Fuencisla, ERGO Generales, DKV Servicios and Marina Salud. Marina Salud and DKV Servicios are not included in the extra financial data (unless otherwise states).

It is limited geographically to Spain, with the exception of accident statistics and social and enviromental action which include activities undertaken in Andorra.

The contents respond to the matters in which DKV has the capacity to generate value and which are, in addition, materials for its stakeholders according to the materiality analysis.

The Report counts with the external revision and verification of its contents made by KPMG. The full version is available at: http://dkvseguros.com/Informe-corporativo/2017

Contact us Company head office

Avda. María Zambrano, 31, 50018 Zaragoza

What do you think of this document?

Evaluate it at:

http://dkvseguros.com/encuesta-informe-corporativo/

Contact telephone numbers

Communications department: 976 289 106/93 214 00 78 Customer service: 976 506 000 Corporate services: 93 214 00 16

Coordination and editing

Department of Communications and Responsible Business at DKV Seguros with collaboration from CANVAS Sustainable Strategies.

DKV Seguros

Executive summary

Integrated corporate report 2017

DKV Group

Part of Munich Re AG, a worldwide leader in reinsurance

DKV is a company that provides personal insurance, specialises in , healthcare, is committed to the people and is aimed at achieving sustainable development

DKV is noted for its innovative products and customer-oriented corporate policy, which guarantees the soundness, security and excellent quality of its services.

Our dream

We strive for a healthier world

Vision

Mission

We contribute to the improvement of health and well-being of people offering excellent insurance and solutions, in a responsible way

We want to be the reference option for everyone that wishes to take c are of their health and their loved ones throughout their lives

Values

Courage

Honesty

Authenticity

Simplicity

Warmth

3

4

DKV Seguros

Executive summary

Integrated corporate report 2017

Message from the Chairman It is always a great opportunity when publishing the Integrated Corporate Report to review the company's management, especially in the changing environment of society and the business world. And, particularly, doing so with transparency, highlighting the achievements and those aspects that require improving.

The year 2017 saw the second year of our current strategic plan -the Goodwill Plan- with which we intend to make the world healthier. And we have done so by also earning a series of accolades which we are very proud of, such as the award we have received from ADECOSE, the association of insurance brokers rating us as the Best healthcare company, or the prize won by the DKV Integralia Foundation in the Vocento Business Awards, among others. In addition, we are proud to be yet another year among the 20 best-ranked companies in the Merco Business Ranking of corporate responsibility and governance.

These awards would not have been achieved if they were not supported by good business management and solid economic results. Both elements allow introducing improvements to the company's day to day, which have an effect on our relationship with all the stakeholders.

Javier Vega de Seoane Chairman of DKV Seguros

In terms of management, this year I would highlight the significant commitment adopted by the company to accelerate the digital transformation process through projects such as digital contracting, by means of which customers will be able to consult all the documentation and start to enjoy their insurance immediately, or the e-health services provided to the public, such as the Quiero cuidarme app.

I would also like to highlight the promotion of open innovation - with initiatives such as DKV Emprende, in which almost 80 employees took part via health-related projects-, customer experience and social responsibility, as well as the DKV Idealia platform, thanks to which our customers, healthcare professionals and sales network can channel their proposals for improvement. We have also innovated in promoting transparency in the insurance sector by publishing the book “Health insurance for dummies�.

As a result of this innovation, which DKV has been encouraging for years, 2017 has launched new products, such as DKV Mundicare, an innovative insurance product developed by the company for certain severe illnesses and which guarantees access to the best specialists and hospitals around the world (except Spain) and the insured person's support during the entire process.

In the financial scope, we have increased the volume of premiums yet another year, representing a growth of 3% with respect to the previous year, reaching 767 million euros.

As opposed to the rest of competitors, DKV has experienced a growth of 8% in individual insurance, while the market registered a 3%. According to UNESPA, individual insurance represented 71.3% of the income and 67.4% of the insured persons. In terms of growth, group insurance grew 5.5% in premiums, while individual insurance grew 3%.

All these achievements have been included in the Report you are currently holding. Again, and as we have been doing so for the past 3 years, we have followed the guidelines provided by the International Integrated Reporting Council (IIRC) to prepare this report. Working within this framework require from us a continuous reflection and improvement in order to transmit the comprehensive vision of the business and link the company's financial results, strategy and responsible performance to the report's contents.

DKV Seguros

Executive summary

5

Integrated corporate report 2017

Digital transformation in health: "from patient to healthy person"

Conversation between DKV’s Managing Director and the founder of the Center for Global eHealth Innovation of Toronto (Canada) Extract from the conversation between Dr. Josep Santacreu, DKV's Managing Director, and Dr. Alejandro Jadad, founder of the Center for Global eHealth Innovation of Toronto (Canada), about how information and communications technologies applied to health can help make people healthier.

Up to which point can the new information technologies contribute to the health and well-being of people?

Doctor Josep Santacreu (JS): Technology opens a great opportunity via different apps or the big data to better manage the health of each person.

Doctor Alejandro Jadad (AJ): It is now the point in time to ask ourselves: What is health? Health is the the capacity we have to adapt to the physical, mental and social challenges presented to us by life. The new technologies can contribute to reinforcing, complementing, preventing or facilitating the way in which we manage the challenges we encounter.

JS: An essential aspect is shifting from a passive attitude to a proactive attitude of getting hold of your life, health or physical, mental or social situation. This is an important topic in which technology can also help.

AJ: Yes, it is the key aspect, provided that we have thirdparty support, as there is a high the risk of proactivity being insufficient if we do not involve the responsibility of others.

JS: That is part of our new approach at DKV as a company; we have changed from facilitating access to medical services to providing the assets and offering possibilities.

What must take place for a patient with a severe illness to be considered a healthy person, first by himself and, most difficultly, by the system?

AJ: Health is an ability, and the best person to judge if someone is healthy is oneself. When this happens, there are many possibilities to encourage and create health by supporting our capacity to adapt and manage.

JS: At DKV, we want to work with those who want to be healthy and help them remain in good health and experience well-being [...], we have identified the e-health topic as one of the most relevant ones, because it will change the way we relate with each other and what we can provide to the customer when supporting his self-care, prevention,

Alejandro Jadad Founder of the Center for Global eHealth Innovation of Toronto

Josep Santacreu Managing Director of DKV Seguros

therapeutic diagnosis or chronic management, as well as other aspects.

AJ: There is an opportunity as an insurer to assess, obsessively, the self-perceived health and integrate the risk of not feeling healthy, which is different to the risk of illness, into all its products and services.

How can we incentivise healthy habits among children and adolescents?

JS: Children obesity is a major challenge in which families, the educational system and the entire society needs to collaborate. At DKV, we work on several initiatives that help children see the importance of healthy habits.

AJ: The difficult part is that health has physical, mental and social elements, and the challenge is to increase the ability of children to adapt and manage their health.

6

DKV Seguros

Executive summary

Integrated corporate report 2017

The company at a glance €766,7 M

volume of premiums purchased

Volume of premiums by type Life

Burial

€10.4 M

€52.0 M

1.4% of the business

6.8% of the business

Home

Accident

€13.9 M

€4.5 M

1.8% of the business

0.6% of the business

Income protection

Healthcare assistance

€27.3 M

€658.7 M

3.6% of the business

85.9% of the business

€39.2 M

€234.5 M

net profit

1.7

+3%

net equity

business growth

+3%

healthcare assistance

Volume of insured persons by type

milion customers

53%

Healthcare assistance

19 776

employees

new products or evolution of existing products

24,562

healthcare professionals

25

35%

Burial

4%

Home

3%

Income protection

7%

improvements to existing products

4,336

outpatient centres

230

outpatient centres

3%

1%

Accident

Life

healthcare market share (includes healthcare assistance, income, and reimbursement)

2,805

brokers business network M: million.

http://dkvseguros.com/informacion-corporativa/sala-prensa/presentacion-resultados-2017

DKV Seguros

7

Executive summary

Integrated corporate report 2017

Value creation model

Capital

Financial Capital

Intellectual Capital

Industrial Capital

Natural Capital

Munich Re

Human, relational and structural

Corporate headquarters

Efficient use of natural

Premiums purchased

Human Resources

Marina Salud

resources

Profit

Relationship with stakeholders

Branches

Equity and investment

Processes, Systems, Policies

Health Spaces

and corporate culture

Business model Insurance activity in personal insurance with a focus on benefits and healthcare and well-being solutions

A benchmark in health

Employees

Strategy 2020

“The best option to take care of your health”

“The key aspect of transformation”

Organisation Unique customer experience “The best customer experi-

“Simple, swift and responsive”

What

Customers

ence”

Value creation in 2017

Responsible Business “The preferred company for its responsible actions”

Economic

€39.2 M (48.9 in 2016) Net profit

€19.8 M (14.5 in 2016)

Social

€487.7 M (402.2 in 2016) Payments to collaborators*

* Providers of general services and general insurance, healthcare professionals and brokers.

“Digital transformation as a pillar of added value”

Innovation “Seeking differentiation, focused on the customers”

Environmental

10th consecutive year

97.3% (96.4 in 2016)

Reduction of emissions since 2004

60% (61 in 2016)

Sustainable offices (Ekosucursales)

Stability in permanent employment

Salaries and benefits

Digitalisation

€7 M (Same as in 2016)

consultations avoided to public healthcare

Tax contribution in Spain

€97.7 M (94.8 in 2016)

How

Women on the workforce

€642,473 (607,866 in 2016) Investment in donations

Carbon neutral company

72%

39% (35 in 2016)

99.3% (99.4 in 2016)

Green energy consumption

Sustainable and profitable growth

8

DKV Seguros

Executive summary

Integrated corporate report 2017

Responsible business

At DKV, Responsible Business is the way of incorporating the role and participation of all the parties that interact with the company into its strategy and day to day.

Responsible Business Plan 2020

Value proposal

To be the preferred company thanks to its responsible activities

Responsible Management

Stakeholder involvement

Responsible innovation

Promote integrity and the perception of responsible management among internal and external stakeholders

Increase stakeholder involvement in DKV's responsibility

Develop sustainable products and promote open innovation

Main Initiatives for 2017 Unfolding of values and identification of incoherences

Intrapreneurship with social impact on employees

Therapeutic environmental actions for customers

Clear and transparent language

Relationship plan with doctors

Acceleration of start-ups in the e-health sector (Tech4Health)

Responsible selling decalogue

Awareness on children obesity at schools

The first ecological insurance policy for the household

Health insurance for dummies

Customer involvement in social projects

The first burial insurance that leaves a responsible footprint on the planet.

1st

37,822

Insurer in the healthcare sectorial ranking of Merco Corporate Responsibility and Governance

Stakeholder involvement

19,329

customers using services in innovative products of responsible business

The Sustainable Development Goals (SDG) consist of 17 global challenges established in the 2030 Sustainable Development Agenda and agreed in 2015 by the United Nations

Due to its activity and relevance to its stakeholders, these are the 3 priority objectives for DKV

DKV Seguros

9

Executive summary

Integrated corporate report 2017

Value for customers

Approach to the relationship with customers DKV offers a unique and distinctive experience to its customers, forging links with them throughout their lives based on excellence and responsibility.

Customer experience levers in DKV Seeking excellence in terms of personalisation, simplicity and transparency

Offer an excellent service t hat guarantees a unique and distinctive experience

Meeting customers’ needs before they appear

Main initiatives towards customer experience and digital health for 2107

“Quiero cuidarme” app

“Digital Doctor” app

Free self-care tool that calculates the Healthy living index (HLI) for users.

It allows checking information and contacting a doctor confidentially.

Insurance arrangements “wherever and whenever you want” Through the customer area or different applications

Value created for customers

8.4

Healthcare recommendation index 8.2 in 2016

40.4%

Net Promoter Score (NPS) for healthcare 37,9% en 2016

4,566

Outpatient and medical centres 4,549 in 2016

24,562

healthcare professionals in the medical directory 28,720 in 2016

81.6

99%

83.7 in 2016

Same as in 2016

Reputation among customers (RepTrak)

Complaints and claims resolved in time

500+ Seal of Excellence

6.7 points over the sector according to ICEA

Priorities for 2018 Implement a new CRM and consolidate the measurement modelfor customer experience Advance indigitalisation focusing on the customer, with the aim of achieving simple and agile processes Implement a Lean Office methodology in processes and areas * The NPS is an indicator calculated on the basis of questions about recommendations.

6 days

average time to resolve complaints and claims Same as in 2016

10

DKV Seguros

Executive summary

Integrated corporate report 2017

Employees, culture based on values

Approach to the relationship with employees

DKV encourages the integration of corporate values towards achieving personal and professional development of employees, well-being in the work place and the commitment of building a healthier world.

Pillars of people management at DKV Take care of employees and increase their level of commitment

Identify, develop and reward individual contribution

Have the most competent team in the market

Priorities for 2018 Share the culture of the organisation and invest in values training Continue to work towards personal and professional development.

Develop an own leadership style in line with the strategy Encourage corporate volunteering and foster diversity.

Be a healthy company andfamily responsible

Reach service quality according to the strategy

Value created for employees in 2017

86% (Same as in 2016)

92% (Same as in 2016)

36% (34 in 2016)

909 (1,024 in 2016)

Satisfaction index

Employees with disabilities (including DKV Integralia Foundation)

Commitment index

Employees taking part in volunteer projects

â‚Ź747,000 (707,063 in

2016)

Investment in training

97.3% (96.4 in 2016)

Permanent employment contracts

Healthy Company Prize

7Th (3rd in 2016)

Best company to work for, according to G reat Place to Work

DKV has launched DKV Emprende, which promotes intrapreneurship, innovation and training of employees in project management.

DKV Seguros

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Executive summary

Integrated corporate report 2017

Collaborators, excellence and trust in our network Approach to the relationship with collaborators

DKV establishes a relationship of mutual trust with medical professionals, brokers and providers based on shared goals and values.

Healthcare Professionals Pillars of the relationship with healthcare professionals Sincerity and transparency

Priorities for 2018

Continue with the digital transformation and new work method

Value created for professionals in 2017

360 M€

78.6

Reputation score according to RepTrak

Turnover

349.9 in 2016

63 in 2014

Knowledge and information Dialogue and respectful treatment

Brokers

Pillars of the relationship with brokers Daily work and mutual support Professional development Profitability and optimum s ales goals

Providers

Pillars of the relationship with providers Transparency

Mutual Collaboration Adhesion to DKV's ethical principals

Libera Plan: further independence and agility for doctors and less administrative formalities for customers.

15.5 days

Average period for payment of e-billing

40,000 M€ Medicine and Solidarity Awards

Advance in the new Healthcare Professionals' CRM

14 in 2016

Priorities for 2018

Value created for brokers in 2017

Continue developing the digital environment o f Brokerage

71,722

Consultations attended at the broker support service

Best Healthcare c ompany according to Brokers and Agencies (ADECOSE rating)

Integrate in the Group's international sales team Progress in digitalisation projects

28.7 M€

Commissions paid to brokers

64,416 in 2016

Contribute with new value proposals and systematise communication

Priorities for 2018

Same as in 2016

26.7 in 2016

1,447

Participants in the Medialia Programme

1,211 in 2016

Value created for providers in 2017

78% providers

Subscribed to DKV principals (about billing) Same as in 2016

€35.6M

payments providers of general services 34.8 in 2016

Define a Facility Management model (Property)

88.7

Reputation score according to RepTrak New in 2017

€16.1 M

payments to providers of general services 15.4 in 2016

12

DKV Seguros

Executive summary

Integrated corporate report 2017

Value for society

Approach to the relationship with society In 2017 we have worked on aligning the social action initiatives with the business and with what society expects from a responsible health insurance company.

Lines of action with society Prevention of children obesity

Social and labour inclusion for people withdisabilities

Active and healthy ageing

Relationship between environmental determinants and their effects on health

Projects and initiatives for 2017 #DKVapptívate

Public call f or help i n social projects

Observatorio salud y medio ambiente EDICIÓN ESPECIAL 2017

Baños de bosque, una propuesta de salud

Runners4Health, Universidad de Padres, Escuelas de la Milla

Active ageing category Mucho que cuidar

Observatorio bosques.indd 1

1/3/18 13:03

Value created for society in 2017

11,200

Students participating in Escuelas de la Milla

1,241

Beneficiaries of the DKV Integralia Foundation from the beginning

4

Start-ups supported by our collaboration with Ship2B

Donations by scope €642,473

139,146

14% 8%

Direct beneficiaries of our social action

1%

68% 9%

Priorities for 2018 Increase the number of projects linked to Children Obesity.

Focus the social investment on projects linked to the lines of action.

Increase the participation of society in DKV's solidarity initiatives.

Health Social action Research, social innovation and awareness Mitigate the effects of climate change Arts and patronage

DKV Seguros

13

Executive summary

Integrated corporate report 2017

Value for the environment

Approach to the management of the enviroment

DKV is constantly concerned about sustainable growth by integrating environmental, savings and energy efficiency criteria.

Principles of DKV's Energy and Environmental Policy Abide by the law and other voluntary requirements subscribed by the Company

Minimise the environmental impact arising from the consumption of natural resources

Establish energy and environmental management programmes in line with the Policy's goals

Disseminate the Energy and Environmental Policy among all stakeholders

Commit to sustainable products and services to prevent contamination

Collaborate in energy and environmental improvement projects through voluntary initiatives

Raise awareness among employees in environmental matters as part of the culture

Encourage research on the impact of the environment on the public's health

Value created for society in 2017

39% (35 in 2016)

sustainable offices in the network (Ekosucursales)

100% (Same as in 2016)

100%

1st

99.3% (Same as in 2016)

2,564 (2,305 in 2016)

Cero CO2 products. Calculation and compensation of the carbon footprint of all its products

Green electric energy

> 3,000

Trees planted since 2014

Recycling paper consumption

Insurer in Europe to work in measuring and verifying the environmental cost of a policy

Video conferences

Avoiding

1,324,488 km

15.45

Tn of CO2

Priorities for 2018 Reduce our CO2emissions and the use of natural resources Renew or obtain new environmental certificates for DKV buildings and branches Involve all DKV stakeholders in this type of initiatives Remodelling of the work centre in Barcelona, following the coefficient standards of the headquarters in Zaragoza.

Our accolades A benchmark in health Best Healthcare company according to ADECOSE (Spanish Association for Insurance Brokers).

Award for the best research work, won by infirmary of the ICU of Dénia Hospital

TOP 20 award for the best "Global Hospital Management", won by Dénia Hospital

Ranked 33 out of 100 companies with the best corporate reputation in Spain according to the Merco Business Ranking

Unique customer experience 500+ European Seal of Excellence (Recognised for Excellence 5 stars)

Insurance Innovation Award for DKV's website, within the framework of the Fujitsu World Tour

Most valued company by its customers according to the RepTrak Ranking

ISO 9001 Certification for Home, Burial, Life, Health, Accident, Income Protection and DKV Servicios

ISO 9001

Winner of the 2017 Best Ideas awards given by Diario Médico for the “Quiero cuidarme” app

Responsible business Employees

Gestión ética

First Prize in the 4th Edition of the Healthy Company Prize.

Observatorio RH

Great Place to Work®

Healthy company

We endorse Unespa’s Best Practice Guidelines

7th best company to work for in the category for organisations with between 500 and 1,000 employees.

Premio a las prácticas de auditoría de seguridad de la información al Área de Sistemas de DKV

.

Certification as a Familyfriendly Company

Clear language certificate An initiative to help users understand the language and terminology employed by the sector.

Medio ambiente Top 50 companies that best attract and retain personal

ISO 14001 Certification (Environmental Management Systems)

,

talent according to the Merco Talento ranking

ISO 50001 Certification (Energy Management Systems)

Social action Employees

CeroCO2 sealfrom ECODES Finalist at the Fundacom Awards for “Yo elijo trabajar” and #DKVapptívate

ASAPME Award for the significant role of the DKV Integralia Foundation in favour of mental health

Sustainable company

EMAS Certification

Registration in the carbon footprint record of the Ministry of Agriculture and Fisheries, Food and Environment Finalist at the “Aragón, empresa y futuro” awards for the work involving the integration of people with disabilities.

Media presence

1,504

Press impact [DKV and DKV Integralia Foundation]

16% vs 2016

Recognition for the transfer to the new corporate headquarters

Participation in symposiums, talks, and events

70

Participations [DKV and DKV Integralia Foundation]

56% vs 2016

Integration is giving a voice to people with disabilities.

Why not give them ours?

At the DKV Integralia Foundation, all your calls are answered by people with disabilities.

The DKV Integralia Foundation was created over fifteen years ago, and has a workforce of over 400 people, all with disabilities. Day in

and day out, they are the first voice our customers hear when they call us. The voice of DKV. This is just one example of our commitment to achieve a healthier world. We also carry out a wide range of projects in other areas, such as

WE CARE FOR THE HEALTH OF THE PEOPLE, AND THE HEALTH OF THE PLANET. dkvseguros.com/empresa-responsable

preventing childhood obesity, promoting active ageing, and ensuring the sustainability of the planet. At DKV we care about lots of causes, and we care very much. Because we have so much to care for.