INSURTECH - DIGITAL TRANSFORMATION BECOMES "THE NORM" - MARLIN & ASSOCIATES
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August 2020
InsurTech – Digital Transformation Becomes “The Norm”
Dear Clients and Friends,
Marlin & Associates (M&A) is pleased to share our latest market update on the Insurance Technology (InsurTech) sector.
As we all continue to navigate through the ongoing COVID-19 pandemic, the need to adopt digital transformation technologies by the insurance industry has
become a ‘must have’ from ‘nice to have’ to both meet customer expectations as well as stay competitive in an evolving marketplace.
The investors and acquirers have caught on and the markets’ appetite for InsurTechs have shown significant resilience in the face of the unknown. In the
second quarter of 2020, capital raising volume was $1.6bn, nearly double the levels achieved in the first quarter, and was more than the amount of capital
raised in the second quarter of 2019.
This trend appears to continue into the current quarter with IPOs of several InsurTechs and increasing m&a activity. The IPO of digital-first InsurTech
Lemonade raised $319m, recent IPO of P&C software provider Duck Creek raised $300m, and health insurance focused distribution platform, GoHealth,
raised more than $900m in its IPO.
As you will see in the report, the momentum towards use of technology has inevitably led to m&a transactions in the field. We expect this momentum to
continue. On the m&a front, several notable deals have been announced over the last few months. Thoma Bravo improved its initial offer for Majesco – core
software provider that competes with Duck Creek – to $729m. Recently, Fineos (an Australian listed company) announced the acquisition of Limelight Health
(US based company) for $75m. We expect many such cross-border deals to be completed in the coming months.
While the length and consequences of the pandemic are impossible to predict, there is definitely light at the end of the tunnel. As you also will see in this
report, market values for publicly traded firms have continued to remain robust and both financing and M&A activity continues to gain steam though for select
assets.
Please feel free to reach out to me (aagarwal@marlinllc.com) with any questions or to discuss this in further detail. We are keen to hear from you and happy
to share what we are witnessing in the markets and how that could relate to your company.
Marlin & Associates is one of the most active investment banking and strategic advisory firms, providing trusted counsel to middle-market companies
worldwide that offer enterprise and vertical application software, services, data and analytics – including firms across FinTech ecosystem (InsurTech,
BankTech, Payments, WealthTech, LegalTech, GRC), Digital Tech, Business Intelligence, and Market Intelligence. Over the course of 18+ years we have
advised more than 200 companies in 27 countries. Over the past 18 months we have advised on 18 successful m&a transactions.
Anup Agarwal | Senior Managing Director | Marlin & Associates
570 Lexington Ave | 48th Floor | New York, NY 10022
o: +1 (212) 257-6043 | m: + 1 (917) 256-9880
aagarwal@marlinllc.com | Linkedin | www.marlinllc.com
© Copyright Marlin & Associates Holding LLC 2020InsurTech – Market Update
Summer 2020
© 2020 Marlin & Associates All Rights Reserved – Proprietary & Confidential
Marlin & Associates Securities LLC, a wholly owned subsidiary of Marlin & Associates Holding LLC, is a broker-dealer
registered with the Securities and Exchange Commission and is a FINRA/SIPC member firm (www.finra.org). Investment
banking and/or securities are offered through Marlin & Associates Securities LLC. Marlin & Associates Holding LLC 2020
© CopyrightDigital Transformation of the Insurance Industry Gains Momentum
Digital
Transformation
Accelerates
Significantly
Numerous Players
Focused on Helping
Insurers Make
Better Use of Data
Cyber Insurance
Focused InsurTechs
in Demand
InsurTechs Serving
the Agent / Broker
Channel Are Here to
Stay
Trend Toward
Investing More in
Commercial and
Life Insurance
Markets
3
© Copyright Marlin & Associates Holding LLC 2020Expect Continued Investment in Digital Technology Solutions
Illustrative Companies
▪ The ongoing pandemic has exposed
technology gaps with insurers, MGAs, and
Hippo is a digital-first provider of
agents/brokers’ legacy technology processes, home insurance options
leaving them unable to effectively underwrite
Digital and sell a policy, process a claim, and to
Transformation make use of the plethora of untapped data Insurity provides policy
Accelerates and remain competitive administration, claims, billing,
Significantly and analytics software solutions
▪ There are an estimated 760 InsurTechs for P&C insurers
globally(1) that have raised equity funding and
offer solutions for all functional areas in the PolicyGenius is an online
insurance industry insurance comparison platform
primarily for rent and home
▪ Improved customer / channel experience a
top reason for insurers to digitize their Guidewire provides web-based
operations core software solutions to the
P&C industry.
Recent Transactions
Date Target Acquirer/Investor(s) Description
Vertafore provides a cloud-based software featuring agency management, compliance, workflow, and
8/13/20
data solutions that simplify and automate the property and casualty (“P&C”) insurance lifecycle.
7/23/20 (IPO) Duck Creek is a SaaS provider of core systems for the property and casualty insurance industry.
Majesco provides technology, expertise, and leadership that helps insurers modernize, innovate and
7/20/20
connect to build the future of their business – and the future of insurance – at speed and scale.
7/2/20 (IPO) Lemonade is a full-stack insurer that offers homeowners and renters insurance.
Sources: Pitchbook; Public News
1) Willis Towers Watson, Quarterly InsurTech Briefing Q1 2020. 4
© Copyright Marlin & Associates Holding LLC 2020Data & Analytics Solutions Continue to Play an Important Part Across All Channels
of the Value Chain
Illustrative Companies
▪ Market need for data and analytics solutions to
help an insurer better price a policy, detect fraud, Convr provides an AI-based
and eliminate the manual steps taken today to decision automation platform for
issue a policy or process a claim commercial P&C insurers.
Numerous Players
Focused on Helping ▪ Increased adoption of AI and ML technologies
Insurers Make have allowed insurers to reduce lose ratios by Insurdata captures, enhances,
Better Use of Data scores, and transfers peril-
better predicting blind spots and analyzing more specific exposure and risk data.
complicated claims
▪ Behavior-based data models gathered through
Root provides a usage-based
IoT, wearables, or sensors to improve auto insurance platform for
underwriting decisions are being used to further individuals.
personalize the solutions
Quantemplate offers software for
managing insurance data,
analyzing risk and ensure
compliance.
Recent Transactions
Date Target Acquirer/Investor(s) Description
7/7/20 Concirrus provides insurance underwriting tools leveraging IoT.
6/10/20 Planck provides AI-led solutions for a better underwriting process.
Tractable provides a platform designed to automate image recognition and text understanding for auto
3/4/20
accidents.
1/8/20 SpatialKey is a data enrichment and geospatial analytics solution provider.
Sources: Pitchbook; Public News
5
© Copyright Marlin & Associates Holding LLC 2020Increasingly Connected Digital Economy Drives Demand for Cyber Insurance
Illustrative Companies
▪ As remote working becomes more of a norm,
employees as well as consumers are at increased Arceo makes companies cyber
resilient by combining smarter
risk for cyber attacks and companies are more at insurance products with dynamic
risk for data breaches security solutions
Cyber Insurance ▪ Historically companies have been reluctant to
Focused InsurTechs Zeguro provides risk
purchase cyber insurance, but given the number management to organizations
in Demand
of publicized cyber attacks (Equifax, Canva, through its cybersecurity and
Zynga), cyber is one of the top business risks for cyber insurance solutions
companies of all sizes and industries today
Envelop Risk is a global
Companies cannot just invest in cybersecurity specialty cyber and emerging
technologies to prevent attacks but also risk insurance analytics and
underwriting firm
purchase cyber insurance policies to protect
themselves in case of an attack Evolve MGA underwrites and
distributes cyber insurance policy
▪ A significant amount of capital has been raised for
in the marketplace to retail
tech-enabled intermediaries providing cyber insurance agencies.
coverage
Recent Transactions
Date Target Acquirer/Investor(s) Description
5/20/20 Coalition provides insurance coverage and risk management tools managing and mitigating cyber risk.
3/9/20 CyberCube delivers the world’s leading cyber risk analytics for the insurance industry.
At-Bay builds active risk management products and services that keep clients safe and enable brokers
2/20/20
to provide more insightful coverage analysis and eliminate the need for manual processing.
Corvus offers Smart Commercial Insurance policies paired with easy-to-use tools to reduce risk,
1/3/20
prevent claims, and improve the commercial insurance experience.
Sources: Pitchbook; Public News
6
© Copyright Marlin & Associates Holding LLC 2020InsurTechs Focused on Digitizing the Agent / Broker Workflows Are Experiencing
Faster Product Adoption
Illustrative Companies
▪ While the direct-to-consumer (DTC) model
adopted by insurers continues its push forward, ClarionDoor is a SaaS platform
that provides rating and quoting
InsurTechs offering digital tech solutions to
solutions for brokers/agents
automate processes like application intake,
InsurTechs Serving
quote delivery, rate adjustments, sales tracking,
the Agent / Broker renewals and other workflows for agents/brokers +Simple is an operator of an
Channel Are Here to are here to stay for the foreseeable future insurance brokerage platform
designed to offer tailor-made and
Stay
▪ Strong use case for a collaborative environment competitive insurance services
rather than a disruptive one
Bindable is a CRM solution built
The human interaction remains a vital to support brokers in offering a
component for the binding process full retail e-commerce
experience
▪ Assurance IQ (Acquired by Prudential for $3.4bn
in 2019) combines both a DTC channel with live Riskgenius applies AI and NLP
agents for consultation and sales completion to insurance policy review,
helping brokers create more
efficient underwriting workflows
Recent Transactions
Date Target Acquirer/Investor(s) Description
7/7/20 Virtual MGA is a provider of a cloud-based binding authority underwriting and distribution solution.
xagent delivers on the promise of a truly independent single-entry multi-quote exchange for standard
1/2/20
and surplus lines business insurance.
Indio is an engagement platform for independent agents that eliminates redundancies in data gathering
12/5/19
and provides their insureds a superior customer experience.
Assurance IQ is an insurance comparison platform that lets users to compare insurance quotes from
10/10/19
multiple carriers.
Sources: Pitchbook; Public News
7
© Copyright Marlin & Associates Holding LLC 2020Digital Transformation Is Expanding to Historically Under-Invested Commercial
and Life Insurance Markets
▪ Since the inception of the moniker “InsurTech” Illustrative Companies
back in 2010, most investment in the space has
been made in the P&C space in personal lines of ClaimVantage offers industry-
leading life, health, and absence
insurance management software solutions
Trend Toward ▪ Today though, there is an increased focus on
Investing More in other segments of insurance including commercial Proformex is a policy
Commercial and management platform offering
Life Insurance
and life insurance markets
data aggregation, analytics, and
Markets ▪ Cyber focused InsurTechs help to insure portfolio monitoring services
businesses against cyberattacks and Data &
Analytics firms that apply AI/ML to improve the Origami Risk is a leading
provider of integrated SaaS
underwriting decisions on a commercial insurance solutions for workers
policy for a business continue to raise capital compensation market
▪ Life insurance continue to remain ripe for
Sureify helps carriers acquire,
digitization as more innovative technology is service, and engage their
geared to cut down the complexity of blind spots customers with its enterprise
and infrequent nature of claims focused life insurance platform
Recent Transactions
Date Target Acquirer/Investor(s) Description
Limelight Health is an US-based provider of quoting, rating, and underwriting solutions for group and
8/10/20
voluntary employee benefits.
Pie Insurance provides workers' compensation insurance directly to small businesses and also partners
5/28/20
with local, regional, and national insurance agencies to provide coverage to their clients.
LeapLife is a digital life insurance agency that utilizes data science to enable consumers to apply for
4/22/20
instant-decision life insurance policies with real-time quotes.
Bestow delivers new consumer life insurance products that are affordable and available instantly with
4/23/20
no medical exam.
Sources: Pitchbook; Public News
8
© Copyright Marlin & Associates Holding LLC 2020InsurTech Landscape Is Still Fragmented with Companies Primarily Competing
Across Three Segments of the Value Chain
Data & Analytics / IoT for Pricing,
Policy, Claims and Payment Underwriting, Marketing, Distribution Distribution / Marketing Solutions
Automation and Claims Processing
Funding: $2mm Funding: $36mm ASX:FCL Funding: $151mm NYSE: LMND Funding: $68mm
Funding: $60mm Funding: $4mm Funding: $28mm
Funding: $360mm Funding: $26mm
Funding: $64mm Funding: $386mm
(Acquired by CVC Capital) NYSE:GWRE NASDAQ:EBIX Funding: $628mm Funding: $43mm
Funding: $13mm Funding: $99mm
Funding: $7mm
(Acquired by Vista Equity) Funding: $69mm Funding: $6mm Funding: $96mm Funding: $285mm
Funding: $1bn
Funding: Undisclosed
(Acquired by Seeman Funding: $140mm
(Acquired by Insurity) Funding: $37mm NASDAQ:VRSK Holtz P&C) (Acquired by Motive Partners)
(Acquired by GI Partners) NYSE:DXC
Funding: $443mm Funding: $82mm
Funding: $46mm Funding: $7mm Funding: $54mm Funding: $52mm
NASDAQ:SPNS (Acquired by Apax Partners)
(Acquired by Roper Tech)
Funding: $114mm
Funding: $18mm Funding: $0.25mm Funding: $113mm NYSE:SLQT
Funding: $77mm NASDAQ:MJCO
(Acquired by Great Hill Partners) Funding: $6mm
Funding: Undisclosed Funding: $105mm
Funding: $56mm Funding: $3mm Funding: $55mm
NASDAQ:EVER
Funding: Undisclosed Funding: $40mm Funding: $21mm
Unfunded
Funding: Undisclosed
Funding: $41mm Funding: $12mm
Funding: $25mm Funding: $37mm
Funding: $129mm
Funding: $31mm Funding: $17mm
Unfunded Funding: Undisclosed
Unfunded
Funding: $26mm Funding: $44mm
Unfunded Funding: $10mm Funding: $6mm Funding: $20mm Funding: $50mm
Note: This is only a select list of companies. Some InsurTechs might serve multiple functions across the value chains.
9
© Copyright Marlin & Associates Holding LLC 2020InsurTech Valuations Remain Robust and Deal Activity
Continues to Pick Up though Investors’ Focus Primarily on
Selective Companies
10
© Copyright Marlin & Associates Holding LLC 2020Financing Volume Nearly Doubled in Q2 2020 vs. Q1 2020…However the Number
of Transactions Decreased
Total Capital Invested (in $mm)
Deal Count
$3,014
$2,919
178
178
163
148
138 139 138 $1,801
132 127
$1,825 121
$1,594 $1,541 116 115
115 $1,684
108 106
106
$1,140 $1,417 $1,326 $1,359
90 88 90
90 90
$1,133
75
68 $868 $893 $899
57
57 54 53
$412 $423 $370 $343
$247 $454 $293
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017 2018 2019 2020
Selected Transactions
2015 2016 2017 2018 2019 2020
$80mm $400mm $97mm $650mm $635mm $225mm
$931mm $153mm $120mm $200mm $500mm $319mm
$513mm $50mm $63mm $500mm $360mm $300mm
$81mm $33mm $62mm $400mm $300mm $913mm
Source: PitchBook
11
© Copyright Marlin & Associates Holding LLC 2020Financing Activity Continues to Pick Up after Significant Drop in March and
April…With Several IPOs and Capital Raises Getting Completed in July (1 / 3)
Funding Amount
Date Lead Investor(s) Target Target Location Target Company Description
($mm)
7/23/20 (IPO) Boston, MA P&C insurance software and services provider $300
7/22/20 Iselin, NJ AI-based claims management platform $6
7/22/20 Palo Alto, CA Home insurance application automation provider $150
7/15/20 (IPO) Chicago, IL Healthcare insurance solutions for insurers, agents, and consumers $913
7/7/20 London, UK Insurance underwriting tools leveraging IoT $6
7/7/20 Gurugram, India Online insurance comparison platform $50
7/2/20 (IPO) New York, NY Online home and renters’ insurance provider $319
6/26/20 New York, NY Internet-first health insurance provider $225
6/10/20 Boston, MA P&C insurance software and services provider $230
6/10/20 New York, NY AI-based software for insurance companies $16
6/5/20 Austin, TX Online insurance comparison platform $44
5/28/20 Washington, DC Workers' compensation insurance for SMBs $127
Sources: PitchBook and Tracxn.
12
© Copyright Marlin & Associates Holding LLC 2020Financing Activity Continues to Pick Up after Significant Drop in March and
April…With Several IPOs and Capital Raises Getting Completed in July (2 / 3)
Funding Amount
Date Lead Investor(s) Target Target Location Target Company Description
($mm)
5/20/20 San Francisco, CA Insurance coverage and risk management tools for managing and mitigating cyber risk $90
5/7/20 Chicago, IL Internet first home insurance platform $47
5/4/20 London, UK Digital pet insurance provider $98
4/28/20 Jakarta, Indonesia Digital P&C insurance provider $14
4/23/20 Dallas, TX Digital life insurance platform $50
4/20/20 Paris, France Operates as an internet first health insurer $54
3/10/20 London, UK Software for underwriting and managing insurance products online $20
3/4/20 Santa Monica, CA Insurance and claim management software for clinics and hospitals $9
3/4/20 Cambridge, MA Car insurance comparison platform $23
3/4/20 Eldersburg, MD Customized healthcare with rewards for reaching personal health goals $16
3/4/20 London, UK AI-led visual analysis solutions $25
3/3/20 San Francisco, CA Digital life insurance products $38
Sources: PitchBook and Tracxn.
13
© Copyright Marlin & Associates Holding LLC 2020Financing Activity Continues to Pick Up after Significant Drop in March and
April…With Several IPOs and Capital Raises Getting Completed in July (3 / 3)
Funding Amount
Date Lead Investor(s) Target Target Location Target Company Description
($mm)
2/26/20 New York , NY SaaS platform for insurance sales management $51
2/20/20 Mountain View, CA Enterprises cyber insurance $34
1/30/20 New York , NY Online insurance shopping platform primarily for life and renter’s insurance $100
1/29/20 San Francisco, CA Comparison platform for personal insurance products $27
1/28/20 New York, NY Human resource management solution $50
Data analytics platform focused on claims, regulatory compliance and customer
1/23/20 San Francisco, CA $15
acquisition
1/21/20 Bangalore, India App-based insurance platform for individuals $84
1/13/20 Brooklyn, NY Platform to enhance customer experience $23
Sources: PitchBook and Tracxn.
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© Copyright Marlin & Associates Holding LLC 2020M&A Activity Has Picked Up Over the Last Few Months (1 / 2)
Date Acquirer(s) Target Target Location Comments Enterprise Value
• Vertafore provides software solutions for insurance agencies and carriers
8/13/20 Denver, CO • The acquisition represents Roper's strategy of buying up software companies in $5bn
niche markets with durable, long-term cash flow compounding ability
• Limelight Health provides quote engine solution for health insurance professionals
8/10/20 San Francisco, CA • The acquisition will enable Fineos to deliver more product options as they $75mm
accelerate digital transformations and reduce reliance on legacy core systems
• Majesco is a core software provider for the insurance industry
7/20/20 Morristown, NJ • The transaction will allow Majesco to more effectively focus on long-term $729mm
investment and growth objectives
• Benefytt Technologies provides a software suite for health insurance industry
7/13/20 Tampa, FL • PE firm Madison Dearborn Partners announced an all cash tender offer of $31 / $627mm
share on 7/13/20 and expects to close through a two-step merger process
• Virtual MGA provides an in-house underwriting platform for insurance agencies
7/7/20 Lakeway, TX • The acquisition is a complement to Insurity’s cloud-based analytics and core n/a
system solutions
• Epic-Premier provides a software suite for the insurance industry
6/22/20 Lakeland, FL • Epic-Premier complements Insurity’s suite of digital system products, bringing n/a
capabilities designed to support MGAs and market experience to its team
• Gateway provides auto insurance to the light commercial automobiles market
6/17/20 Schaumburg, IL • This acquisition will enable Buckle to provide comprehensive auto insurance to the n/a
commercial auto market
• Chill Insurance is an insurance comparison platform based in Ireland
6/17/20 Dublin, Ireland • The acquisition of Chill Insurance widens Livingbridge’s reach in the personal lines n/a
sector and expands its portfolio of complementary financial services products
• Spinnaker provides property and casualty insurance services to policyholders
6/3/20 Bedminster, NJ • The acquisition will allow Hippo Insurance to expand the geographical reach of its n/a
modern home insurance policies, which also include smart home monitoring kits
• AgileRates.com is a performance marketing company in the insurance industry
6/1/20 Aventura, FL • The acquisition will allow Excel Impact to expand its presence across all major n/a
insurance verticals.
• Equis provides a sales & marketing platform for insurance agents
5/19/20 Asheville, NC • The transaction offers Equis increased resourcing in compliance, human n/a
resources, social media and marketing
Source: PitchBook and Tracxn.
15
© Copyright Marlin & Associates Holding LLC 2020M&A Activity Has Picked Up Over the Last Few Months (2 / 2)
Date Acquirer(s) Target Target Location Comments Enterprise Value
• Klik is an aggregator of insurance products
5/5/20 Prague, Czech Republic • Klik will have the opportunity to grow further and provide increasing value to its n/a
customers in partnership with Netrisk and under the leadership of TA Associates
• Leap is an online insurance distribution platform focused on life insurance
4/22/20 San Francisco, CA n/a
• The acquisition allows Even to immediately commence its insurance capabilities
• Captricity provides a SaaS solution that converts info from paper to digital data
3/24/20 Oakland, CA • The acquisition will complement SS&C's business process outsourcing (BPO) n/a
services and AWD business process management solution
• PolicyPal is a mobile first insurance distribution platform
3/17/20 Singapore n/a
• The transaction will help AMTD expand in the Southeast Asia
• Vlocity is an omni-channel cloud software, delivering industry-specific experiences
2/26/20 San Francisco, CA • Vlocity’s feature set will enhance and complement Salesforce’s industry capabilities $1.3bn
and product knowledge, open up new industry capabilities on Salesforce platform
• One Inc. is an insurance policy management software for carriers
2/20/20 Folsom, CA n/a
• Great Hill’s investment allows One Inc. to accelerate its digital payments strategy
• Allay is a cloud-based HRMS software for SMBs
2/19/20 San Francisco, CA • The acquisition of Allay will make quoting and modeling health plans easier and n/a
more cost-effective for benefit consultants
• RMS is a catastrophic risk modelling solutions provider
2/6/20 Sonoma, CA • George Hills provides an attentive level of service the big firms can’t provide after n/a
the acquisition
• Agency Matrix is a cloud-based agency management software
2/4/20 Duluth, GA • After the transaction, clients of ITC will benefit from the extensive features n/a
available in the Agency Matrix agency management system
• InsPro Technologies is an insurance policy administration software for insurers
1/30/20 Philadelphia, PA • The acquisition will strengthen and expand Majesco’s domain depth in voluntary, $12mm
group, voluntary benefits, and worksite markets
• SpatialKey is an insurance platform for underwriting and risk analysis
1/8/20 Golden, CO • The acquisition of SpatialKey will enable Insurity to extend overall market n/a
leadership as well as strengthen and expand its industry-leading data solutions
Source: PitchBook and Tracxn.
16
© Copyright Marlin & Associates Holding LLC 2020Comparable Companies Within InsurTech Ecosystem Are Trading Mostly in Line
with Broader Tech Indices
60.0%
Policy, Claims and
Payment Automation
55.1%
50.0%
40.0%
30.0%
Nasdaq 24.4%
20.0% Data & Analytics /
IoT 19.4%
Distribution /
10.0%
Marketing Solutions
5.6%
S&P 500 4.3%
0.0%
(10.0%)
(20.0%)
(30.0%)
(40.0%)
Policy, Claims and Payment Automation Data & Analytics / IoT Distribution / Marketing Solutions Nasdaq S&P 500
Source: PitchBook, as of market close on August 21st, 2020; each company's stock performance is equally weighted in the corresponding index, except for S&P 500 and NASDAQ.
Policy, Claims and Payment Automation: NYSE:GWRE; NYSE:OCFT; NASDAQ:SPNS; NASDAQ:EBIX; ASX:FCL; NASDAQ:DCT
Data & Analytics / IoT: LSE:REL; LSE:EXPN; NYSE:INFO; NASDAQ:VRSK; NYSE:EFX; NYSE:TRU; NYSE:FICO; NYSE:CLGX; XTRA:DFV; AIM:QTX 17
Distribution / Marketing Solutions: NASDAQ:EHTH; LSE:MONY; NASDAQ:EVER; LSE:GOCO; NASDAQ:HUIZ; NYSE:LMND; NYSE:SLQT; ZhongAn; NASDAQ:EVER
© Copyright Marlin & Associates Holding LLC 2020Public Market Valuations Remain Robust for InsurTech Comparable Companies
(USD millions) Market Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin
Company Country Cap Value CY2020E CY2021E CY2020E CY2021E CY2020E CY2021E CY2020E CY2021E
Policy, Claims and Payment Automation
Guidewire USA $9,149 8,551 11.7x 10.3x n.m. n.m. 4% 14% 11% 18%
OneConnect China 7,966 7,930 16.2x 10.5x n.m. n.m. 45% 54% n.m. n.m.
Duck Creek USA 5,358 5,365 26.7x n.a. n.m. n.a. n.a. n.a. 5% n.a.
Sapiens Israel 1,707 1,751 4.6x 4.2x 25.8x 23.0x 17% 10% 18% 18%
Fineos Ireland 1,126 1,101 9.2x 7.7x n.m. 40.4x n.a. 20% n.m. 19%
Ebix USA 766 1,436 2.9x 2.3x 8.9x 6.9x (14%) 23% 32% 34%
Median 10.5x 7.7x 17.3x 23.0x 10.3% 19.7% 14.4% 18.7%
Data & Analytics / IoT
Relx UK $44,126 $53,543 5.4x 5.0x 15.5x 13.7x (1%) 7% 35% 37%
Experian Ireland 33,485 37,628 7.3x 7.0x 21.1x 20.0x n.a. 5% 35% 35%
IHS Markit UK 32,388 37,970 8.9x 8.2x 20.7x 18.8x (3%) 8% 43% 44%
Verisk USA 30,147 33,265 12.0x 11.4x 24.7x 23.1x 6% 6% 49% 49%
Equifax USA 19,352 22,420 5.9x 5.7x 17.1x 16.4x 9% 3% 34% 35%
TransUnion USA 15,776 19,088 7.1x 6.7x 18.7x 16.8x 1% 7% 38% 40%
FICO USA 12,226 13,102 10.6x 10.0x 31.2x 29.2x 3% 6% 34% 34%
Pegasystems USA 9,639 9,690 9.1x 7.7x n.m. n.m. 17% 18% 2% 7%
CoreLogic USA 5,299 6,825 3.6x 3.6x 11.5x 11.6x 6% 2% 32% 31%
Deutsche Familienversicherung Germany 397 447 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Quartix UK 220 209 6.2x 6.4x 22.8x 26.5x 3% (3%) 27% 24%
Median 7.2x 6.8x 20.7x 18.8x 3.4% 6.1% 34.5% 34.7%
Distribution / Marketing Solutions
ZhongAn Online P&C Insurance China $8,154 $8,601 3.4x 2.5x n.m. n.m. 15% 35% 2% 4%
GoHealth USA 5,008 5,926 6.8x 5.0x 21.3x 15.1x n.a. 37% 32% 33%
Lemonade USA 3,406 3,628 18.4x 10.5x n.m. n.m. n.m. 75% n.m. n.m.
SelectQuote USA 3,201 3,478 5.5x 3.9x 21.7x 15.5x 57% 40% 25% 25%
Moneysupermarket UK 2,118 2,109 4.5x 4.1x 14.6x 12.1x (6%) 10% 31% 34%
eHealth USA 1,766 1,616 2.5x 1.9x 11.0x 8.1x 30% 28% 22% 24%
EverQuote USA 1,018 964 2.9x 2.4x 57.1x 37.9x 34% 22% 5% 6%
Huize China 468 407 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
GoCompare UK 624 716 3.3x 2.9x 16.2x 14.0x 12% 12% 20% 21%
Median 4.0x 3.4x 18.8x 14.6x 22.9% 31.7% 22.4% 23.6%
Source: Company Public Filings and PitchBook, as of market close on August 21st, 2020
*Duck Creek’s 2020E valuation multiples are based on TTM Revenue and EBITDA.
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© Copyright Marlin & Associates Holding LLC 2020Leading Advisor to FinTech, Digital Tech, Data and Analytics
Companies and Investors Worldwide
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© Copyright Marlin & Associates Holding LLC 2020Leading Advisor to FinTech, Digital Tech, Data and Analytics Companies and
Investors Worldwide
▪ Domain expert – advised on 200+ relevant transactions over 18 years. Marlin & Associates (“M&A”) is the domain expert in providing independent and
unbiased strategic counsel and advisory services to middle-market FinTech, Digital Tech, Data and Analytics companies
▪ Local yet global – successfully advised buyers and sellers from 27 countries to date
▪ Well recognized – “Middle-Market IB of the Year,” “TMT Advisory Firm of the Year,” and “Cross-Border Boutique IB of the Year,” and more than 20
“Deals-of-the-Year”
Full Range of Transaction Services Industry Recognition and Awards Sector Coverage
▪ TMT Advisory Firm of the Year
InsurTech
Sell-side &
▪ Middle-Market IB of the Year
Buy-side M&A Digital Tech
Data & Analytics
▪ Cross-Border Boutique IB of the Year
Digital Lending
▪ Advisory Firm of the Year
Debt Capital
Opinions
Fairness
Equity &
Raise
Capital Markets Tech
Payments
▪ FinTech Deal of the Year
▪ Corporate M&A Deal of the Year RegTech
Joint Ventures Wealth Tech
& Partnerships
▪ Middle-Market IB of the Year Bank Tech
▪ Middle Market Tech Deal of the Year
Business Intelligence
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© Copyright Marlin & Associates Holding LLC 2020We Have an “Unfair” Competitive Advantage
▪ Unrelenting focus on the financial technology sector with deep expertise in InsurTech, digital tech and data and analytics
FOCUS ▪ Deep understanding of industry structure and drivers of value
▪ Extensive contacts at multiple levels among industry participants and financial investor firms
▪ Diverse team based across New York, Washington DC, and Toronto
TEAM
▪ Execution experience from some of the most highly regarded firms in the industry
▪ Real world and relevant operating experience
EXPERTISE ▪ 18+ years of transaction success
▪ Our partners have worked at leading firms in FinTech
▪ The industry we serve is not defined geographically, nor are we
GLOBAL ▪ Half of our transactions are cross-border
▪ 1/3rd of our clients are international
▪ We are long-term thinkers and believe in partnering with our clients through their entire evolution
PARTNERS ▪ We are domain experts and offer independent and unbiased strategic counsel and advisory services to our clients
▪ We stay with you until the end
▪ 200+ closed transactions
TRACK
▪ Numerous awards and accolades
RECORD
▪ Recognized as an industry leader and expert by our peers and clients
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© Copyright Marlin & Associates Holding LLC 2020We Deliver Exceptional Results
Advisory Firm of the Year (US) TMT Advisory Firm of the Year (US)
Gamechanger of the Year (US), Ken Marlin Deal of the Year (Parthenon / BillingTree)
Middle-Market Investment Bank of the Year (US) Boutique Investment Banking Firm of the Year
Capital Raising Advisory Firm of the Year Small Tech Fund Raising of the Year for CRM
Professional Services (B2B) Deal of the Year
Boutique Investment Banking Firm of the Year
(2017)
Gamechanger of the Year (US), Ken Marlin Boutique Investment Banking Firm of the Year
Middle-Market Investment Bank of the Year Cross-Border Deal of the Year (2016)
“Bringing on the Marlin & Associates team “The team at Marlin & Associates helped us get “We have been delighted with the service
remains one of our great decisions. The the best value for our company. They know the provided to us by Ken Marlin and his team. They
dedication of the team was on full display as we players and values of this industry at a level few have been diligent and thorough, and also a
approached this latest chapter for ClearStructure. can match. They guided us and brought multiple pleasure to work with. The Marlin team’s deep
The guidance, creativity and true value-add that highly qualified buyers into the process - knowledge of our industry makes them the
they brought to the table helped ClearStructure including FNZ, with whom we look forward to number one go-to firm when you want to sell your
achieve goals we didn’t think were possible.“ joining. We thank the Marlin & Associates team business. They have seen and managed more or
and look forward to working with them again in less every possible situation and know the play
the future.” book on how to deal with them. The process was
meticulously planned and executed.”
-Scott Turley, CEO of ClearStructure -Rob DeDominicis, CEO of GBST -Justin Wheatley, CEO of StatPro
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© Copyright Marlin & Associates Holding LLC 2020Clients Choose Us for Their Most Important Strategic Decisions (1/2)
Pleasanton, CA
Barcelona, Spain Stamford, CT New York, NY Denver, CO a division of Greenwich Associates was Danbury, CT
acquired by
has been acquired by has received a majority equity has been acquired by
has agreed to be acquired by has been acquired by
investment from
Livonia, MI
A portfolio company of
Lake Success, NY
Bologna, Italy Mumbai, India Chicago, IL New York, NY Marlin & Associates acted as
Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as exclusive strategic and financial
exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial advisor to ClearStructure Financial
advisor to Strands, Inc. advisor to Greenwich Associates, LLC advisor to Hanweck Associates, LLC advisor to NinjaTrader Group, LLC advisor to Greenwich Associates, LLC Technology, LLC.
Reston, VA
Brisbane, Australia London, UK Chicago, IL has been acquired by
Alpharetta, GA
Orlando, FL has agreed to be acquired by has agreed to be acquired by has been acquired by
has received a majority equity
has received growth capital from investment from
Pittsburgh, PA Mclean, VA
A portfolio company of New York, NY
A portfolio company of
A portfolio company of
Los Angeles, CA
Vancouver, BC Edinburgh, UK
Marlin & Associates acted as exclusive Marlin & Associates acted as
Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as exclusive
strategic and financial advisor to exclusive strategic and financial
financial advisor to strategic and financial advisor to exclusive strategic and financial strategic and financial advisor to
Kore.ai advisor to InRule Technology, Inc. advisor to Points2Shop, LLC
GBST Holdings Limited StatPro Group plc Zoomdata, Inc.
London, UK London, UK
Wilton, CT has sold Preqin Solutions to
has sold a minority equity interest in New York, NY
its subsidiary New York, NY
has received a majority equity Shelton, CT
has received a $61mm
investment from has been acquired by
has acquired investment from
Boston, MA
A portfolio company of London, UK
to
New York, NY
Marlin & Associates acted as Kansas City, MO Troy, MI Boston, MA
Singapore
exclusive strategic and financial Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as
Marlin & Associates acted as Marlin & Associates acted as
advisor to Private Client exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial
exclusive strategic and financial exclusive strategic and financial
Resources, LLC. advisor to TABS Analytics advisor to Preqin, Ltd. advisor to SALIDO, Inc. advisor to SERMO, Inc.
advisor to TradingScreen Inc.
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© Copyright Marlin & Associates Holding LLC 2020Clients Choose Us for Their Most Important Strategic Decisions (2/2)
Charlotte, NC Boston, MA New York, NY Toronto, Canada
has received an equity investment has sold Financial Engineering has received an equity investment
New York, NY New York, NY Associates, Inc. to
from received a from
has received a $30 million has acquired series B investment led by
equity investment from
Dallas, TX
A portfolio company of
Boston, MA
Jacksonville, FL Boston, MA & San
San Francisco, CA New York, NY Francisco, CA
Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as
exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial strategic and financial advisor to exclusive strategic and financial exclusive strategic and financial
advisor to Zenmonics advisor to Rapid Ratings advisor to Aquiline Holdings LLC Empow advisor to MSCI Inc. advisor to Tier1CRM
Affiliate of
Darien, CT Hamilton, Bermuda
London, United Kingdom
has received an equity investment A portfolio company of
Chicago, IL from Toronto, Canada
received an investment from
Addison, TX has sold the Atrium wireless and
has been acquired by
extranet infrastructure businesses to
Received a $250mm credit
Atlanta, GA facility from affiliate of
has been acquired by
New York, NY
Boston, MA White Plains, NY Geneva, Switzerland
Marlin & Associates acted as Atlanta, GA
exclusive strategic and financial Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as
Marlin & Associates acted as
advisor to OptionsCity Software exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial
exclusive strategic and financial
advisor to Investment Metrics advisor to Think Finance advisor to TMX Group advisor to OpenGamma
advisor to QuoVadis and ABRY
New York, NY
Salt Lake City, UT San Mateo, CA Brentwood, TN has been acquired by New York City, NY
Port Talbot, United Kingdom
received an investment from has been acquired by received a strategic has been acquired by has been acquired by
investment from
a portfolio company of
a portfolio company of
London, United Kingdom
Chicago, IL Tokyo, Japan New York, NY Lake Success, NY
Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as
exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial strategic and financial advisor to exclusive strategic and financial exclusive strategic and financial
advisor to Vizolution advisor to iTransact Group, LLC advisor to Xignite. Agilum Healthcare Intelligence. advisor to Advise Technologies, LLC advisor to M&O Systems, Inc.
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© Copyright Marlin & Associates Holding LLC 2020Our Team Brings Relevant Transaction and Operating Experience
Michael Maxworthy Anup Agarwal Ken Marlin
Managing Director Managing Director Founder & Managing Member
Tom Selby Aalap Merchant
Managing Director Managing Director
Chris Fieschko Billy Adams
New York City | Washington, DC |
Peter Manuselis Toronto, Canada Jordan Wittbrot
Al Sisca Sam Wilcox
Woolley Capital Partners
Neil Chadda Luke Hsieh
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© Copyright Marlin & Associates Holding LLC 2020Marlin & Associates
For more than 18 years, Marlin & Associates has been the domain expert - providing
independent and unbiased professional investment banking and strategic counsel to middle-
market enterprise and vertical application software, services, data and analytics – including
firms across the FinTech ecosystem (InsurTech, Bank Tech, Payments, Wealth Tech, Capital
Markets Tech, Digital Lending, RegTech), Digital Tech, Legal Tech, GRC, Business
Intelligence, and Market Intelligence.
Headquartered in New York City, with offices in Washington, D.C. and Toronto, the Marlin &
Associates team of professionals has advised on more than 200 transactions in 27
countries. More than 20 transactions on which Marlin & Associates has advised have been
recognized as “Deal-of-the-Year”. The firm has won numerous awards including the “Middle-
Market Investment Bank of the Year,” “Middle-Market Financing Agent of the Year – Equity,”
and “TMT Advisory Bank of the Year.”
Marlin & Associates Securities LLC, a wholly-owned subsidiary of Marlin & Associates
Holding LLC, is a broker-dealer registered with the Securities and Exchange Commission
and is a FINRA/SIPC member firm (www.finra.org). Investment banking and/or securities
are offered through Marlin & Associates Securities LLC.
New York City | Washington, D.C. | Toronto
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