Executive summary 2018

We strive for a healthier world Executive summary

2018 Integrated corporate report

Much to care for

DKV Group, health experts

Creation of shared value

Transparency

Digital ecosystem

DKV Healthy Living Institute

Page 3

Page 5

Page 6

Page 7

Page 8

Social impact

Environmental 2020 Commitments management system

Recognitions

Page 10

Page 11

Page 15

Page 12

This document is an executive summary of the DKV 2018 Integrated Corporate Report, providing information on the group’s performance in 2018.

The financial data incorporates the whole activity of the DKV Group, formed of DKV Seguros, ERGO Vida, Unión Médica la Fuencisla, ERGO Generales, DKV Services and Marina Salud. The extra-financial information does not take Marina Salud or DKV Servicios into account (unless stated otherwise).

The geographical scope of the information reported is Spain, apart from the details on customers, mediators and the environment, which include activity in Andorra.

The content responds to the areas in which DKV has the capacity to generate value, which are also significant for its stakeholders, according to the materiality analysis.

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Contact telephone numbers

Communications Department: 976 289 106/93 214 00 78 Customer Services: 976 506 000 Business Services: 93 214 00 16

Coordination and drafting

DKV Seguros’ Department of Communication and Responsible Business, with the collaboration of CANVAS Estrategias Sostenibles.

DKV Seguros

Executive summary

3

2018 Integrated corporate report

DKV Group, health experts It is a part of ERGO. ERGO is one of the largest insurance groups in Europe, 100 % owned by Munich Re AG, a leading company in reinsurance on an international level.

DKV is a personal insurance company, specialised in health, and committed to people and sustainable development.

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

€ 788.7m

volume of premiums acquired 3 %

Premium volume by branch Home

€ 12.9m

Funerals

€ 58.5m

1.6 % of the business Life

7.4 % of the business

Health care*

€ 9.9m

€ 673.5m

1.3 % of the business

85.4% of the business

Income protection

Accidents

€ 4.1m

€ 29.7m

0.5 % of the business

3.8 % of the business

€ 51.3m

€ 36.8m

pre-tax profit

net profit

31%

102%

€ 256m net equity 9%

+3%

business growth

+2% health care

+10%

individual health insurance

* Includes Marina Salud.

14 1.7

m customers

new products or developments to existing products

765

employees

27

improvements in existing products

28 912 health professionals, clinics and hospitals

7.5 %

share of the health market (including health care, income and reimbursement)

2406

commercial network of mediators

4

DKV Seguros

Executive summary

2018 Integrated corporate report

Javier Vega de Seoane Chairman of DKV Seguros ‘The purpose of our responsible business strategy is to strive to create a healthier world, materialised through management that is responsible for people’s health and well-being, together with the constant search for innovative solutions’.

Josep Santacreu CEO ‘The key element in a company is to build trust, with customers and stakeholders.

To build trust, there must be a willingness to be open and an effort to be transparent. This relational capital is what makes our business model viable and sustainable over time’.

Our dream

We strive for a healthier world

Vision

Mission

We contribute to improving people’s health and well-being through insurance and excellent solutions, in a responsible way.

We want to be the top option for those who want to look after their health and their families throughout their life

Values

Courage

Honesty

Authenticity

Simplicity

Warmth

Founded in 1999 by DKV Seguros to facilitate social and labour integration for people with disabilities.

It currently employs almost 500 people in seven centres across Spain, and drives international cooperation programmes in other countries.

DKV Seguros

5

Executive summary

2018 Integrated corporate report

Creating shared value Value for customers

8.1

ecommendation in health

99 %

Complaints resolved on time

8

DAYS

20 %

Women in Senior Management

Authorisations avoided thanks to the Plan Libera

Value for employees

60 %

Women on the workforce

+10 000

Average resolution time for complaints and claims

97.12 %

Stability in permanent employment

€ 470 000

Value for the network of collaborators

€ 28.5m

Commissions to mediators

88 %

Investment in training employees

€ 405.8m

Payments to healthcare professionals

Level of commitment of our employees

€ 18.8m

Payment to general insurance providers

€ 38.6m

Payment to general service providers

20.9 DAYS

Average payment time to general service providers

6th edition of the Open Dialogue Forum Participation of 24 representatives of DKV stakeholders 9.9/10 participant satisfaction level

Economic value

€ 13.9m

Tax contribution in Spain

€ 51.3m Benefits

€ 659.7m Investments

€ 103.1m

Salaries and benefits to employees

€ 740 012 payment of capital providers

m: million

6

DKV Seguros

Executive summary

2018 Integrated corporate report

Transparency relationship with public bodies

100 % Taxes paid in Spain.

412 Requirements of the Tax Agency, 50 %

Social Security, Police and the Courts

Public-private collaboration

20

3892

* 210 % Registrations of rights of access, rectification, cancellation and opposition of personal data

92

41 % Queries and complaints from the DGS*.

Main reasons:

38 % Tenders submitted

• Pre-existing conditions • Claim rejected according to the policy conditions

10 % MUFACE insured € 88 254 Savings on bills in public 18 %

hospitals through administrative and judicial resolutions

• Medical certificates received late • Premium increases

4443

1 % complaints and claims managed by the department of Customer Protection.

Reasons:

• Processing of a claim

Payment arrears

76 %

customer experience

• Problems with doctor/centre

10 pts. Success in claiming defaulted

premiums

• Medical directory and authorisations • Others

€ 1 039 505 orecovered utstanding payments Health expenditure

Mediator debt

158

Premiums

1 % Documents reviewed with

criteria of clarity and transparency

2

60 % Cases managed by the Ethics Committee (derived from employees)

Transparency builds trust in society, and therefore creates values in companies

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Josep Santacreu

Highest

We adhere to

We comply with

Every two years,

We follow the

With the

supported and

transparency

the Unespa

the Responsible

the content of

Insurance

book ‘Health

adhered to the

score among

Guidelines of

Investment

our Corporate

Sustainability

insurance for

principles of

insurers.

Good Practices.

Principles of

Report is

Principles of the

dummies’, we

the UN Global

the UN through

evaluated by the

UN, through

promote clear

Compact since

our asset

Transparency

Munich Re.

language in

management

International

company, MEAG.

organisation.

We have

2002.

pillars of transparency in DKV * Increase of registrations primarily due to the May 2018 campaign, informing on our new privacy policy.

Variation with respect to the previous year.

insurance.

DKV Seguros

Executive summary

2018 Integrated corporate report

Digital ecosystem General public

CUSTOMERS

PROFESSIONALS

DKV Directo

Corporate website E-commerce DKV Health Club DKV Integralia Foundation A million smiles

Private customer area DKV Health Club Quiero cuidarme Más DKV Salud&Company

7 328 281 page views 97 038 users

Private area for healthcare professionals

Medical Directory App

Quiero Cuidarme Blog

Reembolso App

360 blog

5733 downloads.

25 553 page views

Digital Doctor App

Quiero Cuidarme App

38 664 downloads.

261 062 downloads.

Quiero Cuidarme Más app

R4H App

6000

Drive towards digital contracting

Medical directory medicos. dkvseguros.com

45 176 downloads.

2880 downloads.

followers

55 683 566 page views 497 230 users

3 594 192 page views

161 030 downloads.

50 412

followers

7995

followers

Digitalisation of policy life-cycle processes

3 750 543 page views 627 964 users

106 501

fans

Information management.

Transformation of processes, big data and advanced analytics

51 %

Policies through DKV Direct | ON

23 141

digital welcome packs

Development of digital skills in teams

Cybersecurity policy based on ISO 27001:2013

10 614

followers

7

8

DKV Seguros

Executive summary

2018 Integrated corporate report

Healthy Living Institute on how to improve daily habits in terms of nutrition, rest, physical activity and emotional health.

The brand’s activity to build awareness in areas of health and well-being is developed under the umbrella of the DKV Healthy Living Institute. In collaboration with universities, medical professionals, experts and healthcare organisations, the institute publishes reports, studies and surveys with a view to provide tools and useful information

Our company also shares the concerns of international bodies, such as the WHO, on the need to improve nutrition and put a stop to physical inactivity, in order to achieve a healthier society.

Thus, DKV thinks it is essential to inform families, schools, the media and other players of the negative effects that excessive consumption of sugar, saturated fats and salt have on health, starting in 2017 with the development of initiatives to build awareness around the responsible and moderate consumption of sugar.

Examples of awareness activities on sugar consumption

+ 400 000

Views of all workshops organised by DKV in TedX events

+ 3500

Attendees at TedX events sponsored by DKV, in Madrid, Tarragona, Málaga, Vitoria and Cádiz

Collaboration with the photographic project to build awareness around the excessive amount of sugar in certain foods

@boticariagarcia

Advertising collaboration with PlayGround, with content to build awareness around responsible sugar consumption.

@midietacojea

+ 740 000

Views on Facebook and Instagram Feed with more than

2500

positive reactions (100 %)

Quiero Cuidarme Blog specialised in health and well-being content

3 594 192 2 573 692 page views

Collaboration with influencers specialised in nutrition

Health coach* and nutritional medical line Free services for DKV health customers

DKV Coach: Because you want to take care of yourself

users

*Launched in 2019.

DKV Seguros

Executive summary

2018 Integrated corporate report

Commitment against childhood obesity The DKV Groups is committed to preventing and reducing excessive weight and obesity in children. Through the DKVapptĂ­vate initiative, the company is promoting a series

Impact groups

of actions to build awareness around and improve healthy habits, with the collaboration of all agents involved, from parents and children to teachers and administrations.

DKV childhood obesity prevention initiatives Runners4health

Children and young people

DKV course on education for health

#DKVAPPTIVATE

Parents

School workshops on healthy habits

45 176 downloads

231

families enrolled

562 pupils

70

parents and teachers

Learning and Service Awards

Schools

I Health and well-being study in childhood

Doctors

Childhood obesity prevention plan PREVENTION COVERAGE

Customers

Health line childhood obesity Childhood obesity service pack

3 awards in the

category of healthy habits and childhood obesity prevention

1932

pupils

52

schools

9

10

DKV Seguros

Executive summary

2018 Integrated corporate report

Social impact* Contributions by country

Contributions by area

Health

Education

74,8 %

Spain

92,3%

1,1 %

Environment

13,6 %

Other countries

Money 87.2 %

Social well-being

Time 8.9 %

0,5 %

Others

10 %

€ 597 760 Total value

Employee volunteers

869

Employee participations

527

Outside of working hours

342

Within working hours

% employee payroll

2215

€ 31 610

Multiplier effect

27.6 %

Other employee donations

3.0 %

hours

Customer donations

69.4 %

65

Entities benefitted

Beneficiaries

DKV volunteers

Impact More than 9 million

General public Women and men (18-65)

49 %

9845

Direct beneficiaries

Women and men (+65)

14 %

29 %

Boys and girls (0-16)

4 %

Young people (16-18) 4 %

people informed

40 %

improved

30 %

acquired new skills

62 %

positive behavioural change

Christmas dinner of the Amics de la Gent Gran Foundation

* Measurement of social action projects according to LBG. LBG is an international methodology recognised by the DJSI, which facilitates capturing, classifying, managing and measuring social activities.

DKV Seguros

Executive summary

11

2018 Integrated corporate report

Environmental management system LED lighting

Objective

Reduce emissions of

High-efficiency air conditioning

Environmental management system 52 % Toner waste

40 % EKO Branches Hybrid vehicles for the commercial fleet

Idealia

Challenge t o incorporate circular economy models in the company

25 % Km travelled on journeys

97 % Recycled paper

99 % Green energy

Sustainable materials

Taps with sensors

Heat recovery ventilation

indirect contribution to the environment

Winning initiative Create a database that allows for more responsible purchasing decisions

Building awareness among stakeholders

0.15 kg Waste generated per employee

Ekoamigos Group: ambassadors of sustainability in DKV

0.78 Tn CO2 eq per employee

Company

0

emisiones

PAS2020 Calculation of CO2 emissions per policy Emissions offset

Variable remuneration of the CEO linked to environmental results

18 %

Reduction of CO2 emissions

78 %

Reduction since 2004

80 %

of the company’s expenditure with approved providers

2020 commitments for a healthier world

With these objectives for 2020, we want to show how we strive to create a healthier world, committed to...

Responsible management

SDG

Goals 3.8 Achieve universal health coverage, particularly in terms of protection against financial risks, access to high-quality essential health services, and access to safe, efficient, affordable and high-quality medication and vaccines for everyone.

Commitment to clear language Incentivise the sales force, valuing their transparency through the use of clear language.

Guaranteed price commitment We guarantee all customers with individual contracts that we will not apply individualised price increases in their policies no matter how much they use them, although they may experience other increases related to increased coverage, new services or the CPI of the sector.

3.d Strengthen the capacity of all countries, particularly developing countries, in terms of early warnings, risk reduction and risk management for both national and worldwide health.

13.2 Incorporate measures related to climate change into national policies, strategies and plans.

13.3 Improve education, awareness and human and institutional capacity in terms of mitigating climate change, adapting to it, reducing its effects and early warnings.

17.17 Encourage and promote efficient alliances in public and public-private spheres, and in civil society, drawing on the experience and strategies for acquiring resources from alliances.

Commitment to the planet We will achieve a 80 % CO2 reduction and a 71 % paper reduction, compared with 2004.

DKV Seguros

Executive summary

2018 Integrated corporate report

People’s health and well-being

Innovative solutions in a responsible way

Lifetime policy commitment We guarantee that we will not cancel any individual health policy that has been held for more than three years.

Commitment to healthy habits We will drive healthy living habits for at least 130 000 people thanks to the free ‘Quiero cuidarme’ app; a behavioural improvement tool aimed at the general public.

Commitment to prevention We will promote early diagnosis activities aimed at least a third of insured people with health insurance.

Commitment against childhood obesity We impact more than a million people per year, promoting childhood obesity prevention in Spain.

Commitment to simplicity We will remove at least 30 % of authorisations for medical tests.

Commitment to respect, right to the end We offer services with a social component, such as Ecofuneral, with which customers can plan their funeral in 100 cities, to facilitate decision-making for loved one.

13

Recognitions Pacesetters in health Best Health company according tot he ADECOSE Barometer (Spanish Association of Insurance Brokers)

No. 60 of the 100 companies with the best corporate reputation in Spain, and no.2 in the sectorial ranking of health care

unique customer experience

ISO 9001

ISO 9001 certification in Home, Funeral, Life, Health, Accident, Income and DKV Servicios provisions

3rd place for DKV’s website

Blue Award ’My health up to date’

Finalist in the Efficiency awards for the Quiero cuidarme Campaign

RESPONSIBLE BUSINESS Engagement with stakeholders and responsible management

Award: ‘Solidarity in Infrequent Diseases’: for DKV’s CSR

Award for Good Practices to combat climate change

Equipo Magazine, best internal communication publication in the country

Sol Award. DKV Best insurer in 2018

Award for their active participation and support to association members in Almería

Employee emotional well-being

™

Healthy Company, best initiative for promoting work-life balance

Finalists in Good Citizen Practices through Corporate Volunteering

Transparency and clear language

‘Health insurance for Dummies’ finalist in the IX Awards

‘Health Insurance for Dummies’ best transparency initiative and good governance

7th best company to work for within the category of organisations with 500 to 1000 employees, according to the Great Place to Work® ranking

DKV CSR news in the media

87

Press releases disseminated

Healthy company

Promotion of health and sports habits

Labour integration of people with disabilities

‘City of Jerez’ Award: DKV’s involvement in base sport

2018 Aragón Solidarity Award in the company category to the DKV Integralia Foundation

media presence

753

Certification as a Family-Friendly Company

29

DKV employee presentations

Awards for the DKV Integralia Foundation for their project in Pachacútec, together with Konecta and the Pachacútec Foundation

Integration means 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 preventing childhood

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

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.