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

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Sector Report: Insurance Technology Q4 2018

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GCA INSURANCE TECHNOLOGY TEAM EXECUTIVE SUMMARY

Q4 2018 Insurance Technology wrap-up

  • Insurance technology continues to be a highly active category, with approximately $1.6 billion in financing volume and approximately $600 million in M&A volume during Q4 ’18
    • 61 financings in Q4 ‘18 is approximately 24% higher than the same period in ’17, but 216 total financings in ‘18 is on par with 206 total financings in ’17
    • 17 M&A transactions in Q4 ‘18 is on par with the same period in ’17, but 73 total deals in ‘18 is behind pace with 88 total deals in ’17
    • ‘18 M&A volume of $8.7 billion driven by Carlyle’s $6.7 billion acquisition of Sedgwick in Q3. Even adjusting for that deal, Q4 volume lagged behind Q3 levels: $579 million in Q4 M&A volume vs. $689 million in Q3
  • Increase in larger financings as category leaders begin to differentiate themselves and investors look to back established players
    • Lots of Q4 financing activity in the health insurance space, including Bessemer’s investment in Bright Health, Andreessen’s investment in DevotedHealth and Mitsui’s investment in GOQii (GCA Advisors represented GOQii in connection with this transaction)
    • Corporate venture deals continued in Q4 including SoftBank’s investment in Cambridge Telematics and AIG’s investment in Azur
  • Corporate M&A continues to be active across insurance technology categories
    • Examples include Verisk’s acquisition of Rulebook, Majesco’s acquisition of Exaxe and Corelogic’s acquisition of Symbility
  • Insurance software and online distribution companies lead the public company pack, trading at 26.3x and 16.3x EV/ ‘18 EBITDA, respectively

 

Select Q4 2018 Active Investors:

  • Accel
  • AirTree Ventures
  • AIG
  • Alma Mundi
  • Andreessen Horowitz
  • Bessemer Venture Partners
  • Lennar
  • Mitsui & Co.
  • SoftBank
  • Tribe Capital

Select Q4 2018 Active Buyers

  • Applied
  • Aviva
  • Charles Taylor
  • CoreLogic
  • Duck Creek Technologies
  • ITC
  • LendingTree
  • Majesco
  • Seeman Holtz
  • Verisk

 

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