PowerPoint Presentation · 3 EXECUTIVE SUMMARY Q2 2018 InsurTech wrap-up Notes: Source: CB...
Transcript of PowerPoint Presentation · 3 EXECUTIVE SUMMARY Q2 2018 InsurTech wrap-up Notes: Source: CB...
Insurance TechnologySector Summary
Q2 2018
2
Strong sector and product expertise across InsurTech
GCA INSURANCE TECHNOLOGY OVERVIEW
Companies that focus on customer engagement, e.g., customer acquisition, sales and marketing, mobile solutions and other direct-to-consumer insurance channels, or that offer solutions to improve distribution or facilitate contact with the end consumer.
DISTRIBUTION & CUSTOMER ENGAGEMENT
RECENT INSURTECH TRANSACTIONS
REPRESENTATIVE FOCUS AREAS FINTECH TEAM
Companies that improve existing methodologies for pricing or underwriting risk, or actual insurance companies that bring technology to traditionally low-tech areas by using newer or superior core systems and/or online/mobile offerings.
INNOVATIVE PRODUCTS, PRICING & UNDERWRITING
Insurance is behind the curve in enterprise-level core technology, and InsurTech companies help modernize these operating systems - in particular policy, claims, and billing software systems.
POLICY ADMINISTRATION, CLAIMS & BACK OFFICE
Companies that provide analytic capabilities to insurance companies to help them operate more efficiently and/or make better underwriting decisions.
DATA & ANALYTICS
Strategic Investment
We Advised ControlExpert
We Advised AWL
Acquired by
We Advised INS Web
Acquisition of
We Advised Finanzen.de
Acquired by
Sold
To
We Advised RGI Shareholders
Tender Offer for
Asahi Fire & MarineInsurance Co.
We Advised Asahi (close pending)
Acquired by
We Advised INS Web
Preferred Stock Investmentfrom
Financial Advisor
SEAN MINNIHANManaging DirectorHead of [email protected]
PAUL DINARDOManaging DirectorHead of [email protected]
CHRIS GOUGHManaging DirectorReal Estate & Mortgage [email protected]
KEGAN [email protected] 415.318.3686
We Advised BlackFin
Sold
To
We Advised Risk International
Sold majority stake to
3
EXECUTIVE SUMMARYQ2 2018 InsurTech wrap-up
Notes:Source: CB Insights.
Select Q2 Active Investors Select Q2 Active Buyers
• InsurTech continues to be a highly active category, with ~$621MM in financing volume and ~$500MM in M&A volume during Q2 ‘18
- 43 financings in Q2 ‘18 is ~14% less than the same period in ’17, but 100 financings YTD is on pace with 200+ total financings in ’17
- 15 M&A transactions in Q2 ‘18 is ~40% less than the same period in ’17, and 36 deals YTD is behind pace with 80+ total deals in ‘17
• Increase in larger financings as category leaders begin to differentiate themselves and investors look to back established players
- Financing activity across multiple sub-verticals, led by SoftBank’s investment in Policybazaar, Warburg Pincus’ investment in BitSight and Everquote’s IPO
• Private equity M&A continues to be active across InsurTech categories
- Examples include BV’s acquisition of Risk International (GCA represented Risk International), Stone Point’s acquisition of Mitchell and AKKR’s acquisition of ITC
• As the InsurTech landscape is evolving rapidly, insurers prefer to build nimble partnerships and monitor what will happen next vs. committing to technologies via M&A
- Corporate venture deals abound, including Liberty Mutual’s investment in REIN and LeaseLock, XL Innovate’s investment in Cape Analytics and Zurich’s investment in Digital Insurance Group
• Non-insurers like Softbank, Google Ventures, Salesforce and Amazon continue to invest in InsurTech
- Amazon recently invested in Acko, a Mumbai-based start-up focused on auto and bike insurance
- Google Ventures currently has 8 investments across InsurTech, including Collective Health, Gusto, Clover, Oscar, Lemonade and others
4
INNOVATION ACROSS THE
INSURANCE VALUE CHAIN
` ` `
` `
`
DISCLAIMER: This is a representative list and may not include all relevant companies. If your company is not on the list and would like to be added for future publications, kindly shoot us a note at [email protected] and we would be happy to consider.
`Peer-to-Peer (P2P)
`Innovative & Specialty Insurance
Benefits Administration & Payroll Policy Management Tools & Software Claims Management Tools & Software
Insurance Data & Analytics IoT & Telematics: Auto`IoT & Telematics: Home
IoT & Telematics: Health
`Health Insurance
`Carrier Affiliated
Customer Origination
Mobile
`Online Distribution & Comparison `Sales, Marketing & Engagement
INSURANCE VALUE CHAIN:
Policy Admin,Claims &Back Office
InnovativeProducts, Pricing & Underwriting
Distribution & Customer Engagement
Data &Analytics
5
$942
$472
$339
$731
$534
$1,581
$899
$621
Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18
Ann. Date
CompanySelected
Investor(s)Amt.
Invested
Post-Money
Valuation
Segment / Value Chain
6/28 Public $84.4 $464
6/28 $60.0 $750
6/28 $7.3 NA
6/25 $200.0 $1,000
6/21 $17.0 $77
6/12 $17.6 NA
6/5 $30.0 NA
5/28 $12.0 NA
4/30 $10.0 $30
4/10 $10.0 $125
INSURTECH DEAL DASHBOARD – FINANCING ACTIVITY
Notes:Source: CB Insights, Pitchbook. CapIq. GCA Deal Database.Market data as of 6/30/18.(1) Includes private company equity financings, and Everquote IPO in Q2 2018.
Quarterly Financing Activity ($MM)(1)
57
50
38
42
45
62
49
$24.8 $11.2 $7.5 $14.6 $8.6 $32.3 $15.8
Select Q2 2018 Financing Transactions ($MM)
43
$14.4
P&C Life Health Distribution & CustomerEngagement
Products, Pricing & Underwriting
Data & AnalyticsPolicy Admin, Claims & Back Office
Insurance Segment Insurance Value Chain
LTM financing volume: $3.6Bn across 211 Deals
Average Deal Size
6
SELECTED RECENT INSURTECH FINANCINGS
Aims to redesign and extend the insurance value chain, offering scalable protection at the point of need with an AI risk guardian and simple, transparent and personalized insurance coverage.Raised $30MM in
Series A funding on 6/5/2018
Founded
2016Headquarters
BerlinTotal Funds Raised ($MM)
$40
Provides software that enables employees to more easily personalize their employer health coverage.Raised $28MM in Series A funding on 4/10/2018
Founded
2016Headquarters
ParisTotal Funds Raised ($MM)
$42
Notes:Source: PitchBook.
Sele
cted
Inve
sto
rsSe
lect
edIn
vest
ors
Provides an online platform designed to offer rent payment insurance programs.Raised $10MM in Series A funding on 4/29/2018
Founded
2014Headquarters
Marina del ReyTotal Funds Raised ($MM)
$11
Sele
cted
Inve
sto
rs
7
$603$351
$702
$2,773 $2,694
$3,185
$1,520
2012 2013 2014 2015 2016 2017 YTD 2018
INSURTECH HISTORICAL FINANCING ACTIVITY
Notes:Source: CB Insights, Pitchbook. CapIq. GCA Deal Database.Market data as of 6/30/18.*Oscar raised two rounds in 2014 – one worth $30MM and the other worth $80MM.
Financing activity is on par with ‘17 levels on an annualized basis
4255
88
127
163
206
100
Selected Major InsurTech Financings
= Number of Transactions
= Financing Volume ($USD MM)
$100MM $52MM
$50MM
$60MM
$65MM
$38MM
$110MM
$500MM
$931MM
$38MM
$160MM
$120MM$160MM
$103MM
$400MM
$130MM $110MM
$200MM
$165MM
$50MM
*
200
Annualized
8
INSURTECH LEADERS IN PRIVATE FUNDINGTop 10
Notes:Source: Pitchbook.
Company Headquarters Founded
New York, NY
San Francisco, CA
San Francisco, CA
Haryana, India
San Francisco, CA
Zurich, Switzerland
Minneapolis, MN
London, UK
Plymouth Meeting, PA
San Francisco, CA
Amt. Raised ($MM) Company Description
$904
$598
$425
$355
$259
$254
$242
$230
$220
$207
2012
2012
2012
2008
2013
2014
2015
2016
2007
2011
Provider of an online health insurance network
Operator of PPO using data analysis and preventive care to improve health insurance
Provider of an online life insurance and general insurance comparison portal
Provider of cloud-based self-insurance platform
Provider of a web-based service platform to handle insurance contracts
Partners with health systems and care partners to provide health plans
Tech-based provider of life insurance in the UK
Provider of a personalized health and benefits platform
Provider of pay-per-mile car insurance
Provider of cloud-based SaaS for HR and benefits management
Round of financing in Q2 2018
9
Jul-13 Apr-14 Jan-15 Oct-15 Jul-16 Apr-17 Jan-18
INSURTECH COMPANY PROFILEOscar Health Insurance
Cumulative Funds Raised ($MM)
Post Money Valuation ($MM)
$340m
Series D: $165
Founded Headquarters Total Funds Raised ($MM)
2012 NYC $904Oscar is a health insurance company that employs technology and data to humanize health care.
Seed: $52
$121
$52
$3,200
$904
$340
$82
$800
$162
Series B - II: $33
$1,750
$339
Series C: $400
$2,700
$739
Series B: $145
$1,500
$306
Seed - II: $30
Series A: $80
Notes:Source: PitchBook.
10
Most Active Insurance Technology Investors
Accelerators / Seed
Venture Capital / Private Equity
Corporate Investors
Alternative Investors
Ventures
SELECTED ACTIVE INSURTECH INVESTORS
Notes:Source: CB Insights, Pitchbook.
11
MOST ACTIVE INSURTECH INVESTORS – CORPORATE VENTURE CAPITAL
Notes:Source: CapIq, Pitchbook.
Company Headquarters Number of Investments Investments
Paris, France
Springfield, MA
Munich, Germany
Madison, WI
Munich, Germany
Mountain View, CA
San Francisco, CA
New York, NY
Columbus, OH
8
8
6
6
5
8
5
4
5
Menlo Park, CA 7
San Francisco, CA 6
12
$235
$1,705
$784
$1,381
$426
$2,967
$225
$500
Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18
Buyer Target Transaction ValueSegment / Value
Chain
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
INSURTECH DEAL DASHBOARD – M&A ACTIVITY
Notes:Source: CB Insights, Pitchbook. CapIq. GCA Deal Database.Market data as of 6/30/18.(1) Q4-17 includes Assurant’s $2.5bn acquisition of Warranty Group.
Quarterly M&A Activity ($MM)
21
25
12
29
2420
19
$19.6 $58.8 $32.7 $55.3 $21.3 $156.2 $10.7
Select Q2 2018 M&A Transactions ($MM)
Insurwave
15
$33.3
LTM M&A volume: $4.1Bn across 75 deals
P&C Life Health Distribution & CustomerEngagement
Products, Pricing & Underwriting
Data & AnalyticsPolicy Admin, Claims & Back Office
Insurance Segment Insurance Value Chain
Average Deal Size
13
INSURTECH HISTORICAL M&A ACTIVITY
Notes:Source: CB Insights, Pitchbook. CapIq. GCA Deal Database.Market data as of 6/30/18.
M&A deal activity is behind ‘17 levels (and closer to ‘16 levels) on an annualized basis
Selected Major InsurTech M&A Transactions
$2,851
$5,266$7,444
$18,547
$5,052 $5,559
$725
2012 2013 2014 2015 2016 2017 YTD 2018
71
88
36
48
58
85
67
= Number of Transactions
= M&A Volume ($USD MM)
Acquirer logo on top
$1.3Bn
$155MM
$1.4Bn$8.7Bn$2.4Bn$1.8Bn
$553MM $1.1Bn $400MM $760MM $174MM
$322MM
$414MM
72
Annualized
$2.5Bn
$919MM
$490MM Undisclosed$160MM
Undisclosed
14
INSURTECH PUBLIC COMPANY VALUATIONSelected InsurTech subsectors and key operating stats
Notes:Source: CapIq.Revenue growth and EBITDA margins shown are median values for comp group.Market data as of 6/30/18.
LTM Share Price Performance
Public InsurTech Ecosystem
(25%)
(15%)
(5%)
5%
15%
25%
35%
45%
55%
65%
Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18
Benefits Admin. / Payroll Brokerage Online DistributionData & Analytics IT & BPO ServicesInsurance Software
LTM Share Price
Performance
30%
Benefits Admin. / Payroll
2%
Brokerage
16%
Data & Analytics
43%
IT & BPO Services
35%
Insurance Software
30%
2%
40%
16%
43%
35%
40%
Online Distribution
15
INSURTECH PUBLIC COMPANY VALUATIONSelected InsurTech subsectors and key operating stats
Notes:Source: CapIq.Revenue growth and EBITDA margins shown are median values for comp group.Market data as of 6/30/18.
Enterprise Value / 2018E Revenue
Public InsurTech Ecosystem
Enterprise Value / 2018E EBITDA
2019E Rev. / 2019E
EBITDA Multiple
4.0x / 17.1x
Benefits Admin. / Payroll
3.0x / 12.0x
Brokerage
4.7x / 13.5x
Data & Analytics
2.1x / 11.3x
IT & BPO Services
2.0x / 22.3x
Insurance Software
5.0x
4.5x
3.1x
2.6x2.3x 2.1x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
Data & Analytics BenefitsAdmin./Payroll
Brokerage OnlineDistribution
InsuranceSoftware
IT & BPOServices
30.8x
17.2x14.8x
13.1x 12.9x 12.6x
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
InsuranceSoftware
BenefitsAdmin./Payroll
Data &Analytics
Brokerage OnlineDistribution
IT & BPOServices
2.3x / 12.1x
Online Distribution
16
SELECTED PUBLIC COMPANY DETAIL
Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >100 considered NM.
($MM, except per share data)Stock Operating Metrics Trading Metrics
Price Equity Enterprise Revenue Growth EBITDA Margin EV / Revenue EV / EBITDA
Company 6/30/18 Value Value 18E/17A 19E/18E 18E 18E 19E 18E 19E
Benefits Administration/Payroll
Automatic Data Processing, Inc. $134.14 $59,092 $58,800 8% 7% 22% 4.3x 4.0x 19.3x 17.1x
Paychex, Inc. $68.35 $24,538 $24,113 7% 7% 41% 7.0x 6.5x 17.1x 15.6x
HealthEquity, Inc. $75.10 $4,660 $4,390 24% 23% 39% 15.5x 12.7x 40.1x 31.3x
TriNet Group, Inc. $55.94 $3,932 $4,015 6% 12% 36% 4.7x 4.2x 13.0x 11.6x
Insperity, Inc. $95.25 $4,001 $3,749 14% 10% 6% 1.0x 0.9x 17.2x 15.2x
Paylocity Holding Corporation $58.86 $3,099 $2,970 25% 22% 21% 7.9x 6.5x 37.1x 29.0x
WageWorks, Inc. $50.00 $1,982 $1,334 6% 6% 32% 2.6x 2.5x 8.2x 7.5x
Benefitfocus, Inc. $33.60 $1,067 $1,135 (1%) 12% 3% 4.5x 4.0x NM 56.8x
Castlight Health, Inc. $4.25 $578 $509 17% 19% (7%) 3.3x 2.8x NM 38.6x
Median 8% 12% 22% 4.5x 4.0x 17.2x 17.1x
Brokerage
Marsh & McLennan Companies, Inc. $81.97 $41,590 $46,749 8% 5% 24% 3.1x 3.0x 13.0x 11.9x
Aon plc $137.17 $33,540 $39,183 9% 5% 26% 3.6x 3.4x 13.7x 12.7x
Willis Towers Watson Public Limited Company $151.60 $19,987 $23,625 5% 4% 25% 2.8x 2.7x 11.1x 10.5x
Arthur J. Gallagher & Co. $65.28 $11,899 $14,474 6% 8% 17% 2.3x 2.1x 13.3x 12.0x
Brown & Brown, Inc. $27.73 $7,660 $8,053 6% 6% 31% 4.1x 3.9x 13.1x 12.3x
Jardine Lloyd Thompson Group plc $16.89 $3,572 $4,100 5% 7% 21% 2.1x 2.0x 10.1x 8.7x
Goosehead Insurance, Inc $24.96 $338 $380 43% 44% 27% 6.3x 4.4x 23.3x 15.8x
Median 6% 6% 25% 3.1x 3.0x 13.1x 12.0x
Data & Analytics
RELX PLC $21.41 $42,231 $48,685 (2%) 4% 35% 4.9x 4.7x 14.1x 13.4x
Experian plc $24.73 $22,397 $25,872 13% 4% 35% 5.3x 5.1x 15.4x 14.9x
Verisk Analytics, Inc. $107.64 $17,789 $20,417 12% 7% 47% 8.6x 8.0x 18.1x 16.7x
Equifax Inc. $125.11 $15,049 $17,428 5% 6% 34% 5.0x 4.7x 14.8x 13.5x
TransUnion $71.64 $13,182 $15,426 15% 9% 39% 7.0x 6.4x 18.0x 16.2x
Fair Isaac Corporation $193.32 $5,769 $6,365 11% 8% 25% 6.1x 5.6x 24.1x 20.2x
CoreLogic, Inc. $51.90 $4,237 $5,823 1% 2% 26% 3.1x 3.1x 11.9x 11.1x
The Dun & Bradstreet Corporation $122.65 $4,548 $5,689 1% 2% 30% 3.2x 3.1x 10.8x 10.4x
Acxiom Corporation $29.95 $2,309 $2,396 5% 7% 20% 2.5x 2.4x 12.9x 12.3x
Median 5% 6% 34% 5.0x 4.7x 14.8x 13.5x
17
SELECTED PUBLIC COMPANY DETAIL
Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >100 considered NM.
Insurance Software
Guidewire Software, Inc. $88.78 $7,126 $6,434 27% 20% 22% 9.9x 8.2x 44.7x 37.6x
Ebix, Inc. $76.25 $2,399 $2,702 27% 7% 37% 6.0x 5.6x 16.0x 14.4x
Sapiens International Corporation N.V. $9.77 $486 $503 5% 6% 14% 1.8x 1.7x 12.4x 10.7x
Majesco $6.15 $225 $230 (7%) 14% 4% 2.1x 1.8x 48.2x 23.0x
Symbility Solutions Inc. $0.38 $92 $83 10% 13% 7% 2.3x 2.0x 30.8x 22.3x
Median 10% 13% 14% 2.3x 2.0x 30.8x 22.3x
IT & BPO Services
Accenture plc $163.59 $104,820 $100,917 13% 7% 17% 2.5x 2.4x 14.7x 13.7x
Tata Consultancy Services Limited $26.98 $103,304 $97,781 4% 12% 27% 5.0x 4.4x 18.7x 17.0x
Cognizant Technology Solutions Corporation $78.99 $46,280 $42,223 10% 9% 21% 2.6x 2.4x 12.2x 10.7x
Infosys Limited $19.09 $41,486 $38,071 2% 9% 26% 3.4x 3.2x 13.0x 12.0x
DXC Technology Company $80.61 $22,889 $28,620 12% (2%) 22% 1.3x 1.3x 5.9x 5.7x
CGI Group Inc. $63.34 $17,652 $18,866 1% 3% 18% 2.1x 2.1x 11.7x 11.2x
HCL Technologies Limited $13.53 $18,833 $17,401 3% 10% 23% 2.1x 1.9x 9.1x 8.5x
Wipro Limited $3.82 $17,181 $14,794 (4%) 6% 19% 1.8x 1.7x 9.4x 8.8x
Genpact Limited $28.93 $5,508 $6,392 9% 8% 17% 2.1x 2.0x 12.9x 11.8x
Capita plc $2.11 $3,491 $5,143 (7%) (6%) 11% 1.0x 1.0x 9.1x 9.2x
Syntel, Inc. $32.09 $2,662 $2,862 2% 2% 25% 3.0x 3.0x 12.0x 11.9x
Mphasis Limited $15.85 $3,063 $2,789 6% 14% 17% 2.7x 2.3x 15.6x 13.5x
WNS (Holdings) Limited $52.18 $2,632 $2,500 17% 11% 22% 3.1x 2.8x 14.3x 12.2x
Mindtree Limited $14.41 $2,364 $2,249 9% 14% 15% 2.5x 2.2x 16.4x 13.6x
Hexaware Technologies Limited $6.69 $1,986 $1,895 7% 14% 17% 2.9x 2.5x 17.2x 15.0x
ExlService Holdings, Inc. $56.61 $1,947 $1,776 12% 9% 18% 2.1x 1.9x 11.8x 10.6x
Virtusa Corporation $48.68 $1,445 $1,504 25% 14% 9% 1.2x 1.1x 14.5x 11.3x
CorVel Corporation $54.00 $1,023 $967 8% NA 12% 1.6x NM 13.6x NM
Crawford & Company $8.65 $476 $679 (1%) 3% 11% 0.6x 0.6x 5.3x 4.9x
Firstsource Solutions Limited $1.03 $708 $782 (0%) 11% 13% 1.4x 1.3x 11.3x 10.2x
Median 6% 9% 17% 2.1x 2.1x 12.6x 11.3x
Online Distribution
Moneysupermarket.com Group PLC $4.16 $2,228 $2,180 1% 6% 37% 4.8x 4.5x 12.9x 12.1x
GoCompare.com Group plc $1.73 $723 $776 13% 6% 27% 3.4x 3.2x 12.5x 11.3x
QuinStreet, Inc. $12.70 $599 $552 33% 16% 9% 1.4x 1.2x 16.1x 12.4x
EverQuote, Inc. $18.12 $449 $453 5% 10% (3%) 3.4x 3.1x NM NM
eHealth, Inc. $22.10 $420 $385 31% 13% 5% 1.7x 1.5x 36.7x 15.3x
iSelect Limited $0.60 $129 $103 (0%) 5% 8% 0.6x 0.5x 7.3x 5.6x
Median 9% 8% 8% 2.6x 2.3x 12.9x 12.1x
($MM, except per share data)Stock Operating Metrics Trading Metrics
Price Equity Enterprise Revenue Growth EBITDA Margin EV / Revenue EV / EBITDA
Company 6/30/18 Value Value 18E/17A 19E/18E 18E 18E 19E 18E 19E
Global investment bank that provides strategic M&A and capital markets advisory services to growth companies and market leaders
GCA: A LEADING INDEPENDENT GLOBAL INVESTMENT BANK
GCA operates as GCA in America and Asia, and GCA Altium in Europe.
NEW YORK
ZURICH
MILAN
FRANKFURT
MUNICH
TEL AVIVSAN FRANCISCO
LONDON
MANCHESTER
MUMBAI
OSAKA
SHANGHAI
SINGAPORE
TOKYO
NEW DELHI
NAGOYA
HO CHI MINH CITY
TAIPEI
Globally integrated platform with 18
offices across
America, Asia and
Europe
Geographically balanced,
synergistic and
complementary
sector focus areas
across the firm
Strong in key
growth sectors
such as Technology
and Industrials
Strong cross-border capabilities and
deal flow: ~35% of
all transactions are
cross-border
400+
professionals
350+ deals closed
in the last 3 years
18
19
Selected FinTech experience
GCA OVERVIEW
We Advised TSYS
Acquisition of
Payments
Sale of
Financial Advisor
to
Banking & Lending Tech
Financial Advisor
Growth Investment
Payments
We Advised Blucora
Acquisition of
Investment Technology
We Advised AWL
Acquired by
Insurance Technology
We Advised Capsilon
Growth Investmentfrom
Real Estate Tech
We Advised Finanzen.de
Acquired by
Insurance Technology
We Advised INS Web
Acquisition of
Insurance Technology
We Advised Radius
Financing from
Payments
Payments
Acquisition of
We Advised TSYS
Payments
We Advised GP Net
Acquired by
Information Services
Growth Investment
For Blockchain Technology
Financial Advisor
Acquired by
We Advised WorkMarket
Financial SaaS
Sold
To
We Advised RGI Shareholders
Insurance Technology
Tender Offer for
Asahi Fire & MarineInsurance Co.
We Advised Asahi
Insurance Technology
Acquired by
We Advised INS Web
Insurance Technology
Preferred Stock Investmentfrom
Financial Advisor
Insurance Technology
We Advised Skyslope
Majority sale to
Real Estate Tech
We Advised BlackFin
Sold
Insurance Technology
To
Payments
Acquired by
Fairness Opinion to Clearent
Strategic Investment
We Advised ControlExpert
Insurance Technology
We Advised Edo
Acquired by
Payments
We Advised Vindicia
Acquired by
Payments
Financial Advisor
Growth Investment
Payments
We Advised Commissions Inc
Acquired by
Real Estate Tech
Notes:The above transactions represent a compilation of deals that GCA entities, including GCA Advisors, LLC, GCA Corporation and GCA Altium, have advised on.
We Advised Principal
Acquired
Investment Technology
We Advised Risk International
Sold majority stake to
Insurance Technology
We Advised CHX
Acquired by
Liquidity Venues
We Advised CHX
Acquired by
20
CASE STUDY: RISK INTERNATIONAL SALE OF MAJORITY STAKE TO BV
GCA acted as exclusive financial advisor to Risk International
GCA Value-Add
• GCA acted as exclusive financial advisor to RIH in connection with the transaction
• Provided execution support to RIH throughout the process, including:
› Identifying and engaging potential investors
› Preparing marketing materials
› Coordinating due diligence
› Evaluating a variety of transaction structures
› Negotiating valuation and other key terms
› Advising on complex definitive agreement matters
› Support through documentation and signing
Background
• An independent, outsourced risk management, benefits advisory, actuarial consulting, and claims services provider, Risk International (RIH) has helped clients save or reduce their cost of risk by more than $1 billion collectively since opening its doors in 1986. Risk International is headquartered in Fairlawn, OH, with offices in Charleston, SC and Charlotte, NC
• BV Investment Partners is one of the oldest and most experienced sector-focused private equity firms in North America. Since its founding in 1983, the firm has invested over $3 billion in more than 92 companies in IT and business services
Transaction Rationale / Details
• RIH will leverage BV’s strategic expertise to scale the business, while also exploring its network of other private equity firms and portcos who may have use for outsourced risk management and benefits services
• RIH will deploy newly available capital to invest in a structured sales & marketing effort
• The transaction creates a platform for bolt-on acquisitions of firms in related fields
Insurance Segment
Insurance Value Chain
Sold majority stake to
GCA Advised Risk International
P&C Life Health
Data & Analytics
Policy Admin, Claims & Back Office
21
CASE STUDY: SALE OF FINANZEN GROUP TO ELI GLOBAL
GCA advised the shareholders of Finanzen Group on its sale to Eli Global
GCA Value-Add
• GCA acted as exclusive financial adviser to BlackFin Capital Partners and the founders on the sale of Finanzen to Eli Global
• GCA advised on all aspects of the transaction, coordinating multiple highly interested strategic and financial investors and maintaining a competitive dynamic throughout the process
• Eli Global evolved as the most attractive partner due to a global footprint in the insurance sector
• Eli Global is a federation of over 100 independent technology, insurance, financial services and healthcare portfolio companies across 18 countries
Background
• Headquartered in Berlin, Germany, Finanzen Group (“Finanzen” or the “Company”) connects lead generators, such as online price comparison sites, with lead buyers, such as independent financial advisors and insurance agents
• Finanzen’s online marketplace allows leads to be traded in real-time, bridging the gap between online insurance consumers and the offline sales organizations of European carriers and brokers
• Additionally, the Company acts as an online broker for certain insurance products
Transaction Rationale / Details
• Finanzen and its majority shareholder, BlackFin Capital Partners, sought a strategic partner with an international footprint and relevant InsurTech experience to accelerate the Company’s growth
• Company shareholders aimed to realize a valuation reflecting Finanzen‘s strong growth, significant market potential and unique competitive positioning
To
Sold
GCA Advised BlackFin and the
founders
Insurance Segment
Insurance Value Chain
P&C
Products, Pricing & Underwriting
Distribution & CustomerEngagement
22
CASE STUDY: RAKUTEN MAKES TENDER OFFER FOR ASAHI FIRE & MARINE I NSURANCE
GCA acted as exclusive financial advisor to Asahi
GCA Value-Add
• GCA was retained as Asahi’s sell-side advisor in the execution of the transaction
› Positioned Asahi as the right opportunity with which Rakuten could deepen its ecosystem
› Managed a tight transaction timeline while maintaining confidentiality throughout the process
› Supported Asahi throughout deal structuring and negotiations
Background
• Founded in 1951, Asahi is a nonlife insurance company operating in Japan. Asahi Fire also operates a nonlife insurance agency business through its wholly owned subsidiary, Mirai no Hoken Co
• Founded in Tokyo in 1997 as an online marketplace, Rakuten has expanded its unique ecosystem to offer services in e-commerce, fintech, digital content, and communications to more than 1 billion members around the world
Transaction Rationale
• Asahi can build on its solid customer base by incorporating the members of Rakuten and its affiliated stores as new contractors
• Asahi can efficiently and effectively sell insurance products through multiple channels by leveraging Rakuten’s internet sales capabilities
• The acquisition offers tie-ups with companies of the Rakuten Group and enables innovations in Asahi’s traditional insurance products with its internet-based technology
• Since Asahi has many injury insurance practitioners familiar with the target audience, both companies realize synergy through exchange between its human resources and insurance-related businesses, providing a unique and attractive nonlife insurance product lineup
Insurance Segment
Insurance Value Chain
P&C
Products, Pricing & Underwriting
Distribution & CustomerEngagement
Asahi Fire & Marine
Insurance Co.
Tender Offer for
~$412 MM
GCA Advised Asahi (close pending)
23
CASE STUDY: SALE OF RGI TO CORSAIR CAPITAL
GCA acted as exclusive financial advisor to the shareholders of RGI
GCA Value-Add
• GCA was selected as exclusive sell-side financial advisor due to our extensive experience in advising growing and profitable software companies, our expertise within the insurance space, and our broad network of contacts among global tech-focused private equity firms
Background
• RGI is the European market leader in the insurance software vertical, with 200+ installations serving 100+ clients
• RGI offers a state-of-the-art policy administration software suite with multi-country capabilities, suitable for all-tier insurers across verticals
Transaction Details
• Shareholders decided to sell RGI after having successfully completed the acquisition of France-based Kapia Solutions (September 2016), which provided RGI an integrated platform to cover life insurance clients
• RGI shareholders retained GCA to lead a structured sale process
• GCA ran a highly competitive process, approaching a targeted group of tech-focused global financial investors and a limited number of strategic buyers
• GCA supported RGI throughout all transaction phases, setting up all marketing documentation, coordinating business plan and VDD reports preparation, managing an in-depth due diligence process, helping with legal / financing documents, and handling SPA and management incentive plan negotiations
• Corsair Capital emerged as the fastest and most committed bidder
Sold
P&C
Data & Analytics
Policy Admin, Claims & Back Office
Insurance Segment
Insurance Value Chain
To
GCA Advised RGI Shareholders
Life Health
24
CASE STUDY: SALE OF CONTROLEXPERT TO GENERAL ATLANTIC
GCA acted as exclusive financial advisor to the shareholders of ControlExpert
GCA Value-Add
• GCA was retained as sell-side advisor to provide support in the preparation and execution of the transaction to the Company and its shareholders:
› Channeled strong inbound interest from numerous strategic buyers and financial sponsors
› Managed a tight transaction timeline while maintaining confidentiality throughout the process
› Coordinated due diligence work streams
Background
• ControlExpert is a disruptive technology service provider to the auto insurance industry and Europe’s largest InsurTech company
• The Company serves a broad blue-chip customer base of more than 100 enterprise accounts, including ~90% of all German auto insurances, as well as major leasing/fleet management companies and automotive OEMs
• ControlExpert’s cutting-edge technology allows more efficient organization of a traditionally very lengthy, costly and prone-to-fraud claims handling process
Transaction Details
• ControlExpert sought a strategic partner with an international footprint and relevant industry experience to accelerate its future growth in existing and new markets
• The shareholders were aiming to realize a valuation which reflects ControlExpert‘s strong growth, significant market potential and competitive positioning
• General Atlantic emerged as the preferred potential partner and was able to move swiftly during the due diligence phase
• The transaction was signed in May 2017 and closed June 2017
Strategic Investment
GCA Advised ControlExpert
Insurance Segment
Insurance Value Chain
P&C
Data & Analytics
Policy Admin, Claims & Back Office