Q2 2020 Insurance Technology Sector Summary - GCA Advisors
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Insurance Technology
Sector Summary
Q2 2020
1
EXECUTIVE SUMMARY
Q2 2020 InsurTech wrap-up
COVID-19 and the associated economic shut-down has broad implications for the Insurance and InsurTech markets
Market environment has accelerated existing trends working to digitize the Insurance industry:
» Self-directed purchases of insurance online (e.g., Lemonade)
» Increased use of digital distribution channels (e.g., SelectQuote and GoHealth)
» InsurTech upstarts’ broader migration from brokers/MGA model to becoming licensed, full-stack insurers and binding
policies (e.g., Hippo, Pie Insurance, Next Insurance, Clearcover)
M&A and growth investment deals are still getting done despite macro headwinds
» Financings in Q2 2020 (59) were down from the same period in 2019 (72), but the aggregate amount raised increased
slightly by ~5% year-over-year
» $2.5Bn in growth capital raised YTD in the InsurTech space across 140 deals through June 2020
» M&A activity in Q2 was ahead of Q1 2020 with 21 transactions announced during the quarter
GCA believes Insurance broadly remains resilient through the current environment and the industry's digital transformation has only
accelerated as a result of COVID-19
Select Q2 Active Investors Select Q2 Active Buyers
Notes:
Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 8/3/20. 2
GCA INSURANCE TECHNOLOGY OVERVIEW
Strong sector and product expertise across InsurTech
REPRESENTATIVE FOCUS AREAS
Insurance is behind the curve in enterprise-level core Companies that focus on customer engagement (e.g., customer
POLICY ADMIN, CLAIMS & technology, and InsurTech companies help modernize DISTRIBUTION & acquisition, sales and marketing, mobile solutions and other direct-
BACK OFFICE these operating systems – in particular, policy, claims, CUSTOMER ENGAGEMENT to-consumer insurance channels) or that offer solutions to improve
and billing software systems. distribution or facilitate engagement with the end consumer.
Companies that improve existing methodologies for pricing or
Companies that provide analytic capabilities to insurance
INNOVATIVE PRODUCTS, underwriting risk, or actual insurance companies that bring
DATA & ANALYTICS companies to help them operate more efficiently and/or
PRICING, UNDERWRITING technology to traditionally low-tech areas by using newer or
make better underwriting and claims decisions.
superior core systems and/or online/mobile offerings.
INSURTECH TEAM
Chris Gough John Lambros Sascha Pfeiffer Rushi Bhanderi Martin Rezaie
Managing Director Managing Director Managing Director Vice President Vice President
cgough jlambros sascha.pfeiffer rbhanderi martin.rezaie
@gcaglobal.com @gcaglobal.com @gcaaltium.com @gcaglobal.com @gcaaltium.com
415.318.3658 212.999.7083 +49 177.741.5643 212.537.5482 +49 151.4610.6960
RECENT TRANSACTIONS
3
INSURTECH DEAL DASHBOARD – FINANCING ACTIVITY
Q2 2020 saw accelerating InsurTech financing deals up 58% from Q1
Quarterly Financing Activity ($MM) Select Q2 2020 Financing Transactions ($MM)
LTM financing: Post- Segment /
Ann. Selected Amt.
$6.2Bn across 281 Deals Company Money Value
Date Investor(s) Invested
81 Valuation Chain
79
72 72
6/26 $225 NA
65
62 6/10 $230 NA
59 59
6/5 $5 $214
6/4 $60 $285
$2,033
$1,938
$1,636 $1,653 5/28 $127 $214
$1,497 $1,560
$1,365
$986
5/21 $123 $623
5/20 $90 $900
Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 5/5 $98 NA
Average Deal Size
4/20 $54 $530
$21.0 $27.7 $26.9 $20.8 $20.9 $32.8 $12.2 $26.4
Insurance Segment Insurance Value Chain
$375MM $500MM $500MM $300MM $350MM $635MM $100MM $225MM P&C Life Health Other Distribution & Customer Products, Pricing & Policy Admin, Claims Data & Analytics
Engagement Underwriting & Back Office
Notes:
Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 8/3/20. 4
The GCA Deal Database was refreshed in Q1 2020 to incorporate an improved screening methodology. Accordingly, the data may diverge from previous reports.
SELECTED RECENT INSURTECH FINANCINGS
Founded Headquarters Total Funds Raised ($MM)
2012 New York $1,494
Provider of an online health insurance network designed to make insurance simple and intuitive. The company offers access to
a network of physicians and hospitals, as well as a concierge team that supports members
Raised $225MM in
VC funding on
Investors
Selected
6/26/2020
Founded Headquarters Majority Owned By
2000 Boston (Since 2016)
Developer of insurance SaaS software. The company's property and casualty insurance software is designed to work
independently or as a combined approach to handle the needs of insurers of all sizes
Raised $230MM in
Series E funding on
Investors
6/10/2020
Selected
Founded Headquarters Total Funds Raised ($MM)
2017 Washington, D.C. $187
Provider of compensation insurance platform intended to offer improved insight into the workers' compensation insurance
Raised $127MM in rates. The company's platform leverages large data sets to segment and price small business policies
Series B funding on
5/28/2020
Investors
Selected
Notes:
Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 8/3/20. 5
INSURTECH LEADERS IN PRIVATE FUNDING
Top 10 Raised To-Date
Most Recent Amt. Raised Since
Company Headquarters Founded Financing Inception ($MM) Company Description
Provider of an online health insurance network
New York, NY 2012 2020 $1,494
designed to make insurance simple and intuitive
Health insurance platform partnering with health
Minneapolis, MN 2015 2019 $1,076
systems and care partners to provide health plans
Operator of PPO using data analysis and
Jersey City, NJ 2014 2019 $838
preventive care to improve health insurance
San Francisco, CA 2013 2015 $596 Cloud-based human resources platform
Online car insurance platform calculating
Columbus, OH 2015 2019 $528
insurance premiums based upon driver behavior
Cloud-based payroll, benefits, and HR
San Francisco, CA 2011 2019 $521
management platform
Cloud-based self-insurance platform for all health
San Francisco, CA 2013 2019 $469 plans
Operator of an online insurance platform for small
Palo Alto, CA 2016 2019 $383
businesses
Provider of personalized healthcare plans
Eagan, MN 2017 2018 $369
intended to improve the quality of patient care
Provider of home insurance services designed to
Palo Alto, CA 2015 2020 $360 offer smart coverage for homeowners
Notes:
Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 7/1/20. 6
MOST ACTIVE INSURTECH INVESTORS – CORPORATE VENTURE CAPITAL
Company Headquarters Number of Investments Investments
(1)
Paris, France 19
(2)
Munich, Germany 15
Madison, WI 12
Munich, Germany 12
Springfield, MA 10
Paris, France 9
Mountain View, CA 9
New York, NY 9
Columbus, OH 9
New York, NY 6
Frankfurt, Germany 4
Shenzhen, China 5 Shuidi
Notes:
Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 7/1/20. 2) Allianz invests through Allianz X, Allianz Life Ventures, and Allianz Startups Accelerator. 7
1) AXA invests through XL Innovate, AXA Venture Partners, and Kamet Ventures.
SELECTED ACTIVE INSURTECH INVESTORS
Investor Type Investor Logos
Accelerators / Seed
Venture Capital /
Private Equity
Corporate Investors
Alternative
Investors
Notes:
Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 7/1/20. 8
INSURTECH DEAL DASHBOARD – M&A ACTIVITY
Quarterly M&A Activity ($MM) Select Q2 2020 M&A Transactions ($MM)
LTM M&A: Ann.
Transaction Segment /
$11.7 Bn across 91 Deals Date Buyer Target
Value Value Chain
6/11 NA
6/10 NA
35
33
6/3 NA
29 29
6/1 NA
23
21
$1,069 19
$953 5/12 NA
13
5/5 NA
$413 $449
5/4 $213
$151
$9,037 $2,072 $9,732
4/17 NA
Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020
Largest Deal Size
4/1 NA
$6,700 $370 $1,400 Conf. $3,500 $720 $276 $213
Insurance Segment Insurance Value Chain
P&C Life Health Other Distribution & Customer Products, Pricing & Policy Admin, Claims Data & Analytics
Engagement Underwriting & Back Office
Notes:
Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 8/3/20. 9
SELECTED RECENT M&A TRANSACTIONS
Founded Headquarters Founded Headquarters
acquired
1986 Georgia 2001 Texas
Provides a healthcare insurance claim clearinghouse for Provider of third-party claims management and analysis
for $213MM payors. Additionally provides administrative and consulting services to the U.S. retail pharmacy industry. The company's
services to assist healthcare providers improve 2019 services include claims processing and editing, and real-time
5/4/2020 reimbursement coding, billing, and collections insurance verification
Founded Headquarters Founded Headquarters
acquired
2013 Ohio 2018 Florida
Boutique provider of customer acquisition solutions. It Provider of marketing services to connect insurance
specializes in the insurance vertical, with deep roots in the companies with qualified, high-intent insurance seekers. The
senior demographic, including Medicare and final expense company's platform offers insurance comparison and provides
6/1/2020 real-time, accurate quotes
acquired Founded Headquarters Founded Headquarters
2015 California 1997 New Jersey
Provider of home insurance designed using modern Provider of property and casualty insurance services intended
technology to provide a simpler process, smarter coverage to provide high-quality security to policyholders in
and a completely new approach, enabling homeowners and underserved insurance markets.
6/3/2020 renters to get better, cheaper and modern home insurance.
Founded Headquarters Founded Headquarters
acquired
2003 Hong Kong 2016 Singapore
Provider of asset management and corporate insurance Developer of a mobile application designed to manage
brokerage services in Hong Kong. The company serves insurance policies conveniently. The company's mobile
corporate clients, institutional investors, insurance companies, application offers an analysis of existing insurance policies to
6/11/2020 and high-net-worth individual clients identify any protection gap in the portfolio
Notes:
Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 8/3/20. 10CASE STUDY: LEMONADE (NYSE: LMND) CONDUCTS AN IPO ON THE NYSE
IPO Summary Situation Overview
Listing Date: 7/2/2020 − Lemonade filed for its IPO on the NYSE on June 8, 2020 and shares
Ticker: NYSE: LMND began trading on July 2, 2020
− The company has been widely followed in the Insurtech sector as one
Shares: 11MM
of the most promising upstarts
Offer Price: $29 » Founded in 2015, Lemonade provides P&C insurance directly
Gross Proceeds: $319MM conducts an IPO on the to consumers, harnessing mobile solutions and AI to provide
users with a fast, affordable, and hassle-free insurance
Implied Equity Value (IPO): $1.6Bn
(Below last raise)
experience
» Run by CEO and co-founder Daniel Schreiber and
Prospectus File Date: 6/8/2020 headquartered in New York, NY
Filing Range: $26 - $28 » Lemonade has revenues of $83MM in the 12 months ending
July 2020 March 31, 2020 and is unprofitable
− Path to IPO
» Prior to its IPO, the company had raised $480MM, with a
Valuation History post-money value of $2.1Bn on April, 11, 2019
($MM) » On June 25th, the company provided an initial filing range of
Valuation Raised to
Date Size Key Investors $23 - $26 per share, increased range to $26 - $28 on July 1,
(Post) Date
and eventually priced at $29 before trading commenced on
3/11/19 300 2,100 480 July 2, 2020
» Implies an equity value of $1,592MM and an enterprise value
of $1,071MM
3/12/18 120 570 180
» Co-founders will retain 57% ownership post-IPO with
Softbank (22%) and Sequoia (8%) being other major
12/02/16 33 208 60 shareholders
− IPO
» Shares closed up 139% at $69.41 at market close on July 2
8/23/16 14 91 27
(1st trading day)
» Shares traded up to a high of $96.51 in the days following
12/08/15 13 32.5 13 IPO but have since retreated back to the $68-70 level seen at
IPO (~$3.8Bn Market cap)
Notes:
Source: Public filings, Pitchbook, CapitalIQ, Company website. 11CASE STUDY: LEMONADE (NYSE: LMND) CONDUCTS AN IPO ON THE NYSE
Lemonade Model Differentiation Lemonade Customers Become More Valuable over Time
− ~70% of new Lemonade customers are under 35, and ~90% are not
Traditional P&C Insurance Lemonade switching from another carrier
- Time consuming policy - Digital and mobile native − Customers “graduate” from renters insurance to more expensive and
acquisition and claim filing platform simplifies the profitable insurance types
processes policy selection and claims − 10% of condo insurance customers in March 2020 graduated from renters
processes insurance, increased from 1.5% in March 2017
- Profits stem from claim
payouts, leading to conflicts Vs. - Flat management fee, with Current Lemonade Offering Umbrella
of interest leftover premiums donated Future Offering Life
- Typically acquire customers to charity Auto
via a “Switch and Save” - Attract young and first-time Homeowners
model, driving down insurance customers, facing Condo
premiums and profits less competition Renters
Key Stats and U.S. Geographic Coverage (Q1 2020) Key Financials ($MM)
Number of Customers: 729,525 Revenue EBITDA
Customer Retention Rate (1): 75% $67
Avg. Annualized Premium per Customer: $183
Annualized Gross Written Premiums: $152MM
$23
Gross Loss Ratio: 72%
Lemonade Coverage (2) ($52)
($106)
2018 2019
Notes:
Source: Public filings, Pitchbook, CapitalIQ, Company website. 2) Lemonade coverage is additionally available in Germany and the Netherlands. 12
1) Retention Rate represents the percentage of customers that remain after 12 months.CASE STUDY: GOHEALTH (NASDAQ: GOCO) CONDUCTS AN IPO ON THE NASDAQ
IPO Summary Situation Overview
Listing Date: 7/15/2020 − GoHealth filed for its IPO on the NASDAQ on June 19, 2020
Ticker: NASDAQ: GOCO − While founded in 2001, the company has achieved significant scale
and traction recently
Shares: 43.5MM
» GoHealth operates a health insurance portal offering a
Offer Price: $21
variety of health insurance plans and allows customers to
Gross Proceeds: $913MM compare numerous insurance options
Implied Equity Value: $6.6 Bn » Run by CEO and co-founder Clint Jones and headquartered in
Prospectus File Date: 6/19/2020 Chicago, IL
Filing Range: $18 - $20
» GoHealth has revenues of $611MM in the 12 months ending
March 31, 2020, with an EBITDA of $82.9MM
Valuation History Key Financials ($MM)
($MM) Revenue EBITDA
$540
Valuation Raised to
Date Size Key Investors
(Post) Date
3/20/20 117 NA NA
$226
9/13/19 Undisc. ~1,500 NA
$55
6/07/12 50 NA 50 $30
2018 2019
Partners IPO Commentary
“ This is day one as a public company. Our mission is to improve
access to healthcare, and we've got a long way to go. ”
Brandon Cruz, Co-Founder &
Chief Strategy Officer, GoHealth
Notes:
Source: Public filings, Pitchbook, CapitalIQ, Company website. 13INSURTECH PUBLIC COMPANY VALUATION
Share prices have largely recovered from March 2020 lows
LTM Share Price Performance
100.0%
80.0%
60.0%
40.0% 20%
20%
20.0%
14%
0.0%
8%
6%
(20.0%) (15%)
(40.0%)
(60.0%)
Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20
Benefits Admin & Payroll Brokerage Data & Analytics Insurance Software IT & BPO Services Online Distribution
Public InsurTech Ecosystem
Benefits Admin. / Payroll Brokerage Data & Analytics Insurance Software IT & BPO Services Online Distribution
(14.7%) 20.4% 19.9% 7.9% 5.6% 14.1%
LTM Share Price
Performance
Notes:
Source: S&P Capital IQ as of 8/3/20. 14INSURTECH PUBLIC COMPANY VALUATION
Selected InsurTech subsectors and multiples
Enterprise Value / 2020E Revenue Enterprise Value / 2020E EBITDA
8.0x 32.0x 29.8x
6.8x
7.0x 28.0x
6.0x 5.5x 24.0x
19.7x
5.0x 4.3x 20.0x 17.6x
4.0x 16.6x
4.0x 16.0x 14.5x
3.3x 12.3x
3.0x 12.0x
2.2x
2.0x 8.0x
1.0x 4.0x
0.0x 0.0x
Data & Brokerage Benefits Insurance Online IT & B PO Insurance Data & Benefits Brokerage Online IT & B PO
Analytics Admin./Payrol l Software Distribution Servi ces Software Analytics Admin./Payrol l Distribution Servi ces
Public InsurTech Ecosystem
Benefits Admin. / Payroll Brokerage Data & Analytics Insurance Software IT & BPO Services Online Distribution
4.3x / 17.6x 5.5x / 16.6x 6.8x / 19.7x 4.0x / 29.8x 2.2x / 12.3x 3.3x / 14.5x
2020E Rev. / 2020E
EBITDA Multiples
Notes:
Source: S&P Capital IQ as of 8/3/20. 15SELECTED PUBLIC COMPANY DETAIL
($MM, except per share data)
Trading Metrics Operating Metrics
Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin
Company 8/3/2020 Cap Value (EV) CY19A CY20E CY19A CY20E 19A/18A 20E/19A CY19A CY20E
Benefits Administration / Payroll
Automatic Data Processing $135.83 $58,391 $58,845 4.1x 4.2x 16.2x 17.6x 5% (2%) 25% 24%
Paychex $72.91 $26,160 $26,164 6.5x 6.7x 15.9x 16.9x 17% (4%) 41% 40%
Paylocity Holding Corporation $133.82 $7,184 $7,087 13.7x 12.2x 48.5x 48.6x 24% 12% 28% 25%
TriNet Group $65.63 $4,417 $4,376 4.7x 4.5x 12.0x 11.0x 4% 5% 39% 41%
HealthEquity $51.30 $3,934 $5,072 9.6x 6.9x 26.1x 22.7x 85% 38% 37% 30%
Insperity $70.54 $2,735 $2,673 0.6x 0.6x 10.7x 12.0x 12% (3%) 6% 5%
Benefitfocus $12.19 $391 $569 1.9x 2.2x 36.7x 20.3x 14% (12%) 5% 11%
Castlight Health $1.12 $169 $142 1.0x 1.1x NM NM (8%) (7%) (8%) (8%)
Summary Statistics
Mean 5.3x 4.8x 23.7x 21.3x 19% 3% 22% 21%
Median 4.4x 4.3x 16.2x 17.6x 13% (3%) 27% 24%
Brokerage
Marsh & McLennan Companies $117.34 $59,434 $73,158 10.0x 9.9x 17.8x 16.9x 7% 1% 56% 58%
Aon Plc $200.18 $46,371 $54,409 5.0x 5.0x 17.1x 16.3x 7% (0%) 29% 30%
Arthur J. Gallagher & Co. $105.59 $20,217 $24,947 3.5x 3.7x 19.2x 15.6x 7% (5%) 18% 24%
Brown & Brown $45.27 $12,803 $14,008 5.9x 5.5x 19.6x 18.3x 18% 6% 30% 30%
Goosehead Insurance $105.19 $1,816 $1,828 21.8x 16.7x NM NM 39% 30% 27% 26%
Summary Statistics
Mean 9.2x 8.2x 18.4x 16.8x 16% 6% 32% 34%
Median 5.9x 5.5x 18.5x 16.6x 7% 1% 29% 30%
Notes:
Source: S&P Capital IQ as of 8/3/20. 16
Figures based on S&P Capital IQ Consensus Estimates as appropriate. Multiples 50 considered NMSELECTED PUBLIC COMPANY DETAIL (CONT.)
($MM, except per share data)
Trading Metrics Operating Metrics
Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin
Company 8/3/2020 Cap Value (EV) CY19A CY20E CY19A CY20E 19A/18A 20E/19A CY19A CY20E
Data & Analytics
RELX PLC $21.33 $41,211 $41,211 3.9x 4.2x 10.9x 12.1x 10% (6%) 36% 34%
Experian plc $35.39 $32,117 $36,368 7.3x 7.2x 21.5x 20.7x 3% 1% 34% 35%
Verisk Analytics $187.55 $30,432 $33,558 12.9x 12.1x 27.6x 25.7x 9% 7% 47% 47%
Equifax Inc. $161.94 $19,669 $22,737 6.5x 6.0x 19.3x 17.4x 3% 9% 34% 34%
TransUnion $88.07 $16,741 $20,159 7.6x 7.6x 19.2x 19.7x 13% 0% 40% 39%
Fair Isaac Corporation $437.66 $12,692 $13,598 11.5x 10.9x 35.7x 32.3x 12% 5% 32% 34%
CoreLogic $67.68 $5,377 $6,956 4.0x 3.7x 14.0x 11.8x (2%) 6% 28% 32%
LiveRamp Holdings $47.26 $3,100 $2,404 8.4x 6.4x NM NM 30% 33% NM NM
Summary Statistics
Mean 7.8x 7.3x 21.2x 20.0x 10% 7% 36% 36%
Median 7.4x 6.8x 19.3x 19.7x 9% 6% 34% 34%
Insurance Software
Guidewire Software $117.97 $9,813 $9,205 13.3x 12.6x NM NM (6%) 6% 18% 13%
Sapiens International Corporation N.V. $32.00 $1,607 $1,651 5.1x 4.4x 30.0x 25.2x 12% 15% 17% 18%
Ebix $22.93 $700 $1,408 2.4x 2.7x 7.8x NA 18% (12%) 31% 0%
Majesco $13.04 $565 $517 3.6x 3.5x 44.6x 34.5x 17% 1% 8% 10%
Summary Statistics
Mean 6.1x 5.8x 27.4x 29.8x 10% 3% 18% 10%
Median 4.3x 4.0x 30.0x 29.8x 15% 4% 17% 12%
Notes:
Source: S&P Capital IQ as of 8/3/20. 17
Figures based on S&P Capital IQ Consensus Estimates as appropriate. Multiples 50 considered NMSELECTED PUBLIC COMPANY DETAIL (CONT.)
($MM, except per share data)
Trading Metrics Operating Metrics
Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin
Company 8/3/2020 Cap Value (EV) CY19A CY20E CY19A CY20E 19A/18A 20E/19A CY19A CY20E
IT & BPO Services
Accenture plc $226.27 $143,952 $141,488 3.2x 3.2x 19.3x 17.4x 8% 2% 17% 18%
Tata Consultancy Services Limited $29.99 $112,517 $108,474 5.0x 5.2x 18.8x 19.7x 8% (5%) 26% 27%
Infosys Limited $12.66 $53,698 $51,364 4.1x 4.0x 16.7x 16.0x 10% 2% 24% 25%
Cognizant Technology Solutions Corporation $67.67 $36,693 $35,578 2.1x 2.2x 10.9x 12.2x 4% (1%) 20% 18%
Wipro Limited $3.75 $21,410 $17,712 2.1x 2.2x 10.0x 10.5x 3% (5%) 21% 21%
CGI Inc. $70.74 $18,254 $20,659 2.2x 2.3x 11.9x 11.6x 11% (4%) 18% 19%
Mphasis Limited $14.70 $2,743 $2,634 2.2x 2.1x 12.3x 11.4x 11% 6% 18% 18%
Mindtree Limited $15.01 $2,470 $2,311 2.2x 2.2x 16.6x 12.4x 11% (1%) 13% 18%
ExlService Holdings $64.93 $2,228 $2,309 2.3x 2.5x 14.2x 16.8x 12% (6%) 17% 15%
Virtusa Corporation $39.16 $1,184 $1,393 1.1x 1.1x 11.8x 12.3x 9% (4%) 9% 9%
Crawford & Company $6.55 $347 $610 0.6x 0.6x 5.6x 6.3x (2%) (8%) 10% 10%
Summary Statistics
Mean 2.5x 2.5x 13.5x 13.3x 8% (2%) 18% 18%
Median 2.2x 2.2x 12.3x 12.3x 9% (4%) 18% 18%
Online Distribution
SelectQuote $24.71 $3,979 $4,229 NA NA NA NA NA NA NA NA
Lemonade $60.34 $3,312 $3,008 NA 33.8x NA NM NA NA NA NM
SelectQuote $19.17 $3,102 $3,509 8.3x 5.5x NA 22.0x NA 49% 0% 25%
Moneysupermarket.com Group PLC $3.93 $2,110 $2,143 4.2x 4.6x 11.6x 14.7x 13% (10%) 36% 32%
eHealth $70.28 $1,800 $1,651 3.7x 2.5x 18.8x 11.3x 79% 45% 20% 22%
EverQuote $54.49 $1,473 $1,422 5.8x 4.4x NM NM 49% 34% 3% 5%
QuinStreet $12.16 $632 $549 1.1x 1.1x 16.2x 14.4x 7% 2% 7% 8%
GoCo Group plc $1.44 $609 $702 3.4x 3.3x 16.7x 15.3x 7% 3% 20% 21%
Summary Statistics
Mean 3.6x 3.2x 15.8x 13.9x 31% 15% 17% 18%
Median 3.7x 3.3x 16.4x 14.5x 13% 3% 20% 21%
Notes:
Source: S&P Capital IQ as of 8/3/20. 18
Figures based on S&P Capital IQ Consensus Estimates as appropriate. Multiples 50 considered NMGCA: A LEADING INDEPENDENT GLOBAL INVESTMENT BANK
Global investment bank providing strategic M&A and capital markets advisory services to growth companies and market leaders
STOCKHOLM
MANCHESTER LEEDS
PARIS FRANKFURT
BIRMINGHAM MUNICH
KYOTO NAGOYA
ZURICH TOKYO
LONDON SHANGHAI
NEW YORK LAUSANNE
MILAN
NEW DELHI OSAKA
TEL AVIV FUKUOKA
SAN FRANCISCO
TAIPEI
MUMBAI
SINGAPORE HO CHI MINH CITY
Global platform:
Sector expertise: Exceptional cross-
25 offices in key Experienced team:
Expansive coverage border capabilities:
markets across Over 500 employees
and deep ~50% of all
America, Asia and across the globe
specialization transactions
Europe
Broad spectrum
Diversified
Strong reputation of clients:
business model:
and track record: Leading
Geographically
High number of conglomerates, top
balanced, synergistic
repeat clients and private equity firms
and complementary
referrals and emerging high-
focus areas
growth companies
Notes:
GCA operates as GCA in America and Asia, and as GCA Altium in Europe. 19GCA OVERVIEW
Selected FinTech experience
Insurance Technology Insurance Technology Real Estate Tech Insurance Technology Real Estate Tech Insurance Technology Insurance Technology
Real Estate Tech Real Estate Tech Banking & Lending Tech Property Tech Insurance Technology Payments Insurance Technology
We Advised Asahi
Insurance Technology Insurance Technology Investment Technology Liquidity Venues Payments Insurance Technology Insurance Technology
Growth Investment
Financial SaaS Insurance Technology Payments Real Estate Tech Banking & Lending Tech Payments Insurance Technology
Notes: Insurance Technology Transaction
The above transactions represent a compilation of deals that GCA entities, 20
including GCA Advisors, LLC, GCA Corporation and GCA Altium, have advised on.GCA is a global investment bank that provides strategic M&A, capital markets and private funds advisory services to growth companies and market leaders. The firm offers worldwide coverage with over 500 professionals in 25 offices across America, Asia and Europe. Built by the people that run the business, GCA is a firm of experts who focus on deals that require commitment, original perspective, skill and exceptional networks. www.gcaglobal.com This report was prepared by GCA Advisors, LLC, a registered broker-dealer and member of FINRA and SIPC. Sources of data include Capital IQ and other news organizations. Information obtained from third- party sources is considered reliable, but we do not guarantee that the information herein is accurate and complete. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past performance does not guarantee future results. Recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other decision. DISCLAIMER: This report includes logos or other words or devices that may be registered trademarks of their respective owners. Such use is solely for purposes of convenience in referring to the trademark owners and their products/services. This report and its contents are not endorsed by, sponsored by or affiliated with any trademark owners. GCA Advisors, LLC and its affiliates are not affiliated with any 21 trademark owner but may provide financial services to one or more trademark owners or their affiliates.
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