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InsurTech continues to be a highly active category, with ~$1.5Bn in financing volume and ~$1.9Bn in M&A volume during Q1 ’19

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Sector Report: Insurance Technology Q1 2019

Contact: Chris Gough

GCA INSURTECH TEAM EXECUTIVE SUMMARY

Q1 2019 InsurTech wrap-up

InsurTech continues to be a highly active category, with approximately $1.5 billion in financing volume and approximately $1.9 billion in M&A volume during Q1 ’19

  • 90 financings in Q1 ‘19 is 58% higher than the same period in ’18, and annualized financing volume is significantly outpacing ‘18 levels
  • 19 M&A transactions in Q1 ‘19 is on par with 21 deals consummated during the same period in ’18
  • Q1 M&A volume was bolstered by Willis Towers Watson’s $1.4 billion acquisition of Tranzact. Adjusting for that deal, Q1 ‘19 volume is still way ahead of year ago levels: $476 million in Q1 ‘19 M&A volume vs. $225 million in Q1 ‘18

Increase in larger financings as category leaders begin to differentiate themselves and investors look to back established players

  • Lots of Q1 financing activity for companies utilizing data and analytics to maximize the consumer experience obtaining home, renters and auto insurance (including Acko, The Guarantors and Jetty) as well as health and life insurance (including Clover, Limelight Health and WeFox)
  • Corporate venture deals continued in Q1 including Amazon’s investment in Acko, Hiscox’s investment in Coverhound and Principal’s
    investment in Limelight Health

Data & analytics and benefits administration / payroll companies lead the public company pack, trading at 5.9x and 4.8x EV/ ’19E Revenue, respectively

Select Q1 2019 Active Investors:

  • Amazon
  • Bessemer Venture Partners
  • Cox Enterprises
  • Fifth Wall
  • Greenoaks Capital Partners
  • Hiscox
  • Index Ventures
  • Khosla Ventures
  • Principal Financial Group
  • Silicon Valley Bank Financial Group

Select Q1 2019 Active Buyers:

  • AmWINS Group, Inc.
  • Aquiline Capital Partners
  • Ebix
  • I.D. Systems
  • Kingsbridge
  • Solera Holdings
  • Synchrony
  • Willis Towers Watson
  • Worley Claims Services
  • Zurich Insurance Group
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