Insights

InsurTech continues to be a highly active category, with ~$2.0Bn in financing volume and ~$1.1Bn in M&A volume during Q4 2019

Previous Next

Sector Report: Insurance Technology Q4 2019

EXECUTIVE SUMMARY
InsurTech continues to be a highly active category, with ~$2.0Bn in financing volume and ~$1.1Bn in M&A volume during Q4 2019
  • Financings in Q4 2019 (62) were roughly flat with the same period in 2018, but 2019 total financing volume was up ~70% YoY
  • M&A activity was somewhat tempered with 23 transactions during Q4 2019 as compared to 33 transactions during the same period in 2018
Large financing rounds took place in Q4 as renowned investors looked to back established players in the InsurTech space
  • The largest financing rounds of Q4 include Bright Health’s $635M raise, Next Insurance’s $250M raise, and Wefox’s $235M raise
  • Corporate VCs’ investments in the InsurTech space continued in Q4 as Munich Re invested in Next Insurance and AXA invested in Thimble
Q4 M&A activity included some attention-grabbing strategic deals, including iA Financial Group’s acquisition of Innovative Aftermarket Systems, Verisk Analytics’ acquisition of FAST, and MasterCard’s acquisition of RiskRecon
Data & analytics companies are trading at 6.2x EV/ ’20E Revenue and at 18.4x EV/ ’20E EBITDA, leading public company valuations
Previous Next
Back to Insights