gca insurtech sector report q3 2020

1

Insurance TechnologySector Summary

Q3 2020

2

EXECUTIVE SUMMARY

Q3 2020 InsurTech wrap-up

Notes:Source: GCA Deal Database, CB Insights, PitchBook, S&P Capital IQ as of 10/30/20.

Despite the challenging macro environment, InsurTech continues to be an active category, with ~$2.6Bn in financing volume and ~$10.5Bn in M&A volume during Q3 2020

» Financings in Q3 2020 (80) were in-line with the same period in 2019 (79), but the aggregate amount raised increased by ~56% year-over-year

» M&A activity remains tempered with 22 transactions during Q3 2020 as compared to 29 transactions during the same period in 2019

Large financing rounds took place in Q3 but most were completed in September

» Notable rounds in the quarter included Bright Health’s $500MM raise led by Blackstone/Tiger Global, Ki Insurance’s $500MM raise led by Blackstone/Fairfax, and Next Insurance’s $250MM raise led by CapitalG

Q3 M&A and growth investment deals are still getting done despite macro headwinds, and they heavily lean towards US transactions

» Notable M&A deals included Roper’s $5.3Bn acquisition of InsurTech giant Vertafore and Clearlake Capital’s $900MM acquisition of insurance agency SaaS provider Zywave

» $5.1Bn in growth capital raised YTD in the InsurTech space across 220 deals through September 2020

In the public markets Insurance Software companies are trading at 6.9x EV/ ’20E Revenue and at 20.7x EV/ ’20E EBITDA, leading public company valuations

» Lemonade, GoHealth, and Duck Creek all conducted IPOs in the quarter with MediaAlpha and Root shortly thereafter» Additionally, Clover Health is expected to enter the public markets in the near future through a SPAC

Select Q3 Active Investors Select Q3 Active Buyers

3

GCA INSURANCE TECHNOLOGY OVERVIEW

Companies that focus on customer engagement (e.g., customer acquisition, sales and marketing, mobile solutions and other direct-to-consumer insurance channels) or that offer solutions to improve distribution or facilitate engagement with the end consumer.

RECENT TRANSACTIONS

INSURTECH TEAM

REPRESENTATIVE FOCUS AREAS

Companies that improve existing methodologies for pricing or underwriting risk, or actual insurance companies that bring technology to traditionally low-tech areas by using newer or superior core systems and/or online/mobile offerings.

Insurance is behind the curve in enterprise-level core technology, and InsurTech companies help modernize these operating systems – in particular, policy, claims, and billing software systems.

Companies that provide analytic capabilities to insurance companies to help them operate more efficiently and/or make better underwriting and claims decisions.

DATA & ANALYTICS

Chris GoughManaging [email protected]

John LambrosManaging [email protected]

Strong sector and product expertise across InsurTech

Rushi BhanderiVice [email protected]

POLICY ADMIN, CLAIMS & BACK OFFICE

DISTRIBUTION & CUSTOMER ENGAGEMENT

INNOVATIVE PRODUCTS, PRICING, UNDERWRITING

Sascha PfeifferManaging [email protected]+49 177.741.5643

Martin RezaieVice [email protected]+49 151.4610.6960

4

Ann. Date

CompanySelected

Investor(s)Amt.

Invested

Post-Money

Valuation

Segment / Value Chain

9/23 $250 $2,250

9/22 $500 N/A

9/17 $500 N/A

9/2 $54 N/A

8/20 $230 N/A

8/13 $35 N/A

8/3 $31 N/A

7/21 $150 $1,500

7/6 $130 N/A

LTM financing:

$7.2Bn across 282 Deals

INSURTECH DEAL DASHBOARD – FINANCING ACTIVITY

Quarterly Financing Activity ($MM)

$27.7 $26.9 $20.8 $20.9 $32.8

Average Deal Size

Select Q3 2020 Financing Transactions ($MM)

P&C Life Health Distribution & CustomerEngagement

Products, Pricing & Underwriting

Data & AnalyticsPolicy Admin, Claims & Back Office

Insurance Segment Insurance Value Chain

Q3 2020 saw an acceleration of InsurTech financing volume: up 65% from Q2


$635MM$350MM$300MM$500MM$500MM $500MM

$12.2

$100MM $225MM

$26.4

Other

Featured Deal

$32.2

$1,636

$1,938

$1,497 $1,653

$2,033

$986

$1,560

$2,577

59

72 72

79

62

81

59

80

Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020

5

Provider of home insurance services designed to offer smart coverage for homeowners. The company offers plans which are designed using modern technology to provide a simpler process, smarter coverage and a completely new approach, enabling homeowners and renters to get better, cheaper and modern home insurance.

Raised $150MM in Series E funding on 9/22/2020

Founded

2015Headquarters

Palo AltoTotal Funds Raised ($MM)

$360

SELECTED RECENT INSURTECH FINANCINGS

Developer of an online business insurance platform designed to transform the insurance experience for small businesses. The company's platform offers general and professional liability insurance enabling small businesses to regularly buy tailored insurance online at competitive rates.

Raised $250MM in Series D funding on 9/23/2020

Founded

2016Headquarters Total Funds Raised ($MM)

$636

Sele

cted

Inve

sto

rs

Palo Alto

Operator of a health insurance service platform that partners with health systems and care partners to provide health plans and connected healthcare experience to support relationships between consumers and care providers, enabling users to access affordable health insurance plans.

Raised $500MM in Series E funding on 9/22/2020

Founded

2015Headquarters

MinneapolisTotal Funds Raised ($MM)


Sele

cted

Inve

sto

rsSe

lect

edIn

vest

ors

$1,576

6

Company Headquarters Founded

Amt. Raised Since Inception ($MM) Company Description

San Francisco, CA $4692013Cloud-based self-insurance platform for all health plans

Minneapolis, MN $1,5762015Health insurance platform partnering with health systems and care partners to provide health plans

$3692017Provider of personalized healthcare plans intended to improve the quality of patient care

Peterborough, UK $9491991Operator of PPO using data analysis and preventive care to improve health insurance

INSURTECH LEADERS IN PRIVATE FUNDING

Gurugram, India $4432008Developer of an aggregator platform intended to offer insurance products

San Francisco, CA $5212011Cloud-based payroll, benefits and HR management platform


San Francisco, CA $5962013 Cloud-based human resources platform

New York, NY $1,4942012Provider of an online health insurance network designed to make insurance simple and intuitive

Top 10 Raised To-Date

Palo Alto, CA $6362016Operator of an online insurance platform for small businesses

Eagan, MN

Most Recent Financing

2019

2020

2018

2018

2020

2019

2015

2020

2020

$3602015Provider of home insurance services designed to offer smart coverage for homeownersPalo Alto, CA 2020

7

MOST ACTIVE INSURTECH INVESTORS – CORPORATE VENTURE CAPITAL

Company Headquarters Number of Investments Investments

(1)Paris, France 19

Munich, Germany 15

Madison, WI 13

Springfield, MA 10

Paris, France 9

Mountain View, CA 9

Columbus, OH 9

(2)

Frankfurt, Germany 5

New York, NY 6

Shenzhen, China 5Shuidi

11New York, NY

Munich, Germany 14

Notes:Source: GCA Deal Database, CB Insights, PitchBook, S&P Capital IQ as of 10/1/20.1) AXA invests through XL Innovate, AXA Venture Partners, and Kamet Ventures.

2) Allianz invests through Allianz X, Allianz Life Ventures, and Allianz Startups Accelerator.

8

SELECTED ACTIVE INSURTECH INVESTORS

Investor Type Investor Logos

Accelerators / Seed

Venture Capital /Private Equity

Corporate Investors

Alternative Investors


9

$953

$2,072 $151 $9,732

$1,069

$413 $449

$10,505

33

35

13

29

23

19

2122

Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020

Ann. Date Buyer Target

Transaction Value

Segment / Value Chain

9/22 NA

9/17 $900

9/9 $14

8/26 $30

8/13 $5,300

8/8 $729

7/20 $421

7/16 NA

7/7 NA

7/1 NA

INSURTECH DEAL DASHBOARD – M&A ACTIVITY

Quarterly M&A Activity ($MM) Select Q3 2020 M&A Transactions ($MM)

Distribution & CustomerEngagement

Products, Pricing & Underwriting

Data & AnalyticsPolicy Admin, Claims & Back Office

Insurance Segment Insurance Value Chain

Largest Deal Size

LTM M&A: $12.4 Bn across 85 Deals

$3,500 $720Conf.$1,400$370 $276 $213 $5,300

P&C Life Health Other


$10,505$9,732$2,072

10

SELECTED RECENT M&A TRANSACTIONS


Diversified technology company that operates out of four segments: application software; network software and systems; measurement and analytical solutions; and process technologies. Roper operates businesses that design and develop software and engineered products and solutions for a variety of niche end markets.

Founded

1981Headquarters

FloridaDeveloper of cloud-based insurance software and services. The software effectively manages the business with complete integrated applications and identifies opportunities for growth and makes data-driven decisions, enabling clients to manage and grow their business and reduce compliance risks across the entire producer lifecycle.

Founded

1969Headquarters

Colorado

Leading private investment firm that targets the technology, industrials and consumer sectors. The firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake's operational improvement approach.

Founded

2006Headquarters

CaliforniaProvider of enterprise automation SaaS for the employee benefits and property and casualty insurance distribution industry. The platform offers agency management, claims data and benefit plan analysis, compliance, risk management and client communication among other services.

Founded

1995Headquarters

Wisconsin

9/17/2020

acquired

for $900MM

acquired

acquired

Leading private equity firm focused on the software and technology-enabled services sectors. The firm partners with a company's management team to implement operating best practices, invest in growth initiatives and make accretive acquisitions intended to accelerate revenue and earnings.

Founded

2008Headquarters

IllinoisDeveloper of software solutions for property and casualty, life and annuity, and Pensions Group Employee Benefits providers allowing them to manage policy management, claims management, distribution management and billing functions.

Founded

1982Headquarters

New Jersey

8/13/2020

for $5.3Bn

8/8/2020

for $729MM

11

CASE STUDY: LEMONADE (NYSE: LMND) CONDUCTS AN IPO ON THE NYSE

conducts an IPO on the

July 2020

Valuation History($MM)

Date SizeValuation

(Post)Raised to

DateKey Investors

3/11/19 300 2,100 480

3/12/18 120 570 180

12/02/16 33 208 60

8/23/16 14 91 27

12/08/15 13 32.5 13

Listing Date: 7/2/2020

Ticker: NYSE: LMND

Shares: 11MM

Offer Price: $29

Gross Proceeds: $319MM

Implied Equity Value (IPO): $1.6Bn(Below last raise)

Prospectus File Date: 6/8/2020

Filing Range: $26 - $28

− Lemonade filed for its IPO on the NYSE on June 8, 2020 and shares began trading on July 2, 2020

− The company has been widely followed in the Insurtech sector as one of the most promising upstarts

» Founded in 2015, Lemonade provides P&C insurance directly to consumers, harnessing mobile solutions and AI to provide users with a fast, affordable, and hassle-free insurance experience

» Run by CEO and co-founder Daniel Schreiber and headquartered in New York, NY

» Lemonade has revenues of $83MM in the 12 months ending March 31, 2020 and is unprofitable

− Path to IPO

» Prior to its IPO, the company had raised $480MM, with a post-money value of $2.1Bn on April, 11, 2019

» On June 25th, the company provided an initial filing range of $23 - $26 per share, increased range to $26 - $28 on July 1, and eventually priced at $29 before trading commenced on July 2, 2020

» Implies an equity value of $1,592MM and an enterprise value of $1,071MM

» Co-founders will retain 57% ownership post-IPO with Softbank (22%) and Sequoia (8%) being other major shareholders

− IPO

» Shares closed up 139% at $69.41 at market close on July 2 (1st trading day)

» Shares traded up to a high of $96.51 in the days following IPO but have since traded down to ~$50 (~$2.8Bn Market cap)

IPO Summary Situation Overview

Notes:Source: Public filings, Pitchbook, CapitalIQ, Company website.

1212Notes:Source: Public filings, Pitchbook, CapitalIQ, Company website.1) Retention Rate represents the percentage of customers that remain after 12 months.

2) Lemonade coverage is additionally available in Germany and the Netherlands.

CASE STUDY: LEMONADE (NYSE: LMND) CONDUCTS AN IPO ON THE NYSE

Lemonade Customers Become More Valuable over Time

Key Financials ($MM)Key Stats and U.S. Geographic Coverage (Q1 2020)

Lemonade Model Differentiation

- Time consuming policy

acquisition and claim filing

processes

- Profits stem from claim

payouts, leading to conflicts

of interest

- Typically acquire customers

via a “Switch and Save”

model, driving down

premiums and profits

Traditional P&C Insurance

- Digital and mobile native

platform simplifies the

policy selection and claims

processes

- Flat management fee, with

leftover premiums donated

to charity

- Attract young and first-time

insurance customers, facing

less competition

Lemonade

Vs. UmbrellaLife

AutoHomeowners

CondoRenters

− ~70% of new Lemonade customers are under 35, and ~90% are not switching from another carrier

− Customers “graduate” from renters insurance to more expensive and profitable insurance types

− 10% of condo insurance customers in March 2020 graduated from renters insurance, increased from 1.5% in March 2017

Current Lemonade Offering

Future Offering

Number of Customers: 729,525

Customer Retention Rate (1): 75%

Avg. Annualized Premium per Customer: $183

Annualized Gross Written Premiums: $152MM

Gross Loss Ratio: 72%

Lemonade Coverage (2)

$23

$67

($52)

($106)

2018 2019

Revenue EBITDA

13

CASE STUDY: GOHEALTH (NASDAQ: GOCO) CONDUCTS AN IPO ON THE NASDAQ

Valuation History

($MM)

Date SizeValuation

(Post)Raised to

DateKey Investors

3/20/20 117 NA NA

9/13/19 Undisc. ~1,500 NA

6/07/12 50 NA 50


Ticker: NASDAQ: GOCO

Shares: 43.5MM

Offer Price: $21


Implied Equity Value: $6.6 Bn



− GoHealth filed for its IPO on the NASDAQ on June 19, 2020

− While founded in 2001, the company has achieved significant scale and traction recently

» GoHealth operates a health insurance portal offering a variety of health insurance plans and allows customers to compare numerous insurance options

» Run by CEO and co-founder Clint Jones and headquartered in Chicago, IL

» GoHealth has revenues of $611MM in the 12 months ending March 31, 2020, with an EBITDA of $82.9MM


Notes:Source: Public filings, Pitchbook, CapitalIQ, Company website.

Key Financials ($MM)

$226

$540

$30 $55

2018 2019

Revenue EBITDA

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

14

Financing History

($MM)

Date Amt. Raised Key Investors

6/10/20 230

11/13/19 120

8/1/16 Undisc.


Ticker: NASDAQ: DCT

Shares Offered: 17.3MM

Offer Price: $27


Implied Equity Value: $3.5Bn



− Duck Creek Technologies filed for its IPO on the NASDAQ on July 23, 2020 and began trading on Aug 14, 2020

» Offer price was raised to $27 per share from initial listing range of $19 to $21

» Shares traded up 48% on debut ending the day at $40, and have remained around this level since

» Current valuation represents 23.9x EV/2020E Revenue(1)

− Founded in 2000, Duck Creek was acquired by Accenture in 2011 and subsequently acquired by Apax in 2016

− The company is based in Boston and provides a leading SaaS platform for the P&C industry, helping its carrier partners digitize operations


Notes:Source: Public filings, PitchBook, Capital IQ, Company website.(1) As of 10/30/2020.


$171

$206

$7 $8

2019A 2020E

Revenue EBITDA

Selected Partners

IPO Commentary

Duck Creek has seen an uptick in demand during the pandemic, as insurance carriers adjust operations to working remotely.”“

Michael Jackowski, CEO, Duck

Creek

LBO by:

CASE STUDY: DUCK CREEK (NASDAQ:DCT) CONDUCTS AN IPO ON THE NASDA Q

conducts an IPO on the

15

CASE STUDY: MEDIAALPHA (NYSE:MAX) CONDUCTS AN IPO ON THE NYSE

Financing and Valuation History

($MM)

Date Amt. RaisedValuation

(Post)Key Investors

9/23/20 210 NA

2/26/19 100 NA

2/26/19 85 350


Ticker: NYSE: MAX

Shares Offered: 9.3MM

Offer Price: $19


Implied Equity Value: $1.1Bn



− MediaAlpha filed for its IPO on the NYSE on October 5, 2020, and began trading on October 28

» Sold 6M primary, yielding $119MM, and 3M secondary shares at an initial price of $19 per share

» Shares traded up 64% on debut ending the day at $31, and have further risen to $34 since

− Founded in 2011 by current CEO Steven Yi, the company sold a majority stake to White Mountains in 2014

− MediaAlpha is based in Los Angeles and provides a digital advertising platform that connects brands with consumers

» While insurance represents the company’s first and largest vertical, it has also expanded into the education and personal finance categories


Notes:Source: Public filings, PitchBook, Capital IQ, Company website.


$297

$408

$480

$31 $31 $49

2018A 2019A 2020 LTM 6/30

Revenue EBITDA

IPO Commentary

We built a technology platform that gives insurance carriers and

distributors the transparency they need to target their best

customers and maximize the value of every consumer interaction.”

“

Steve Yi, Co-Founder & CEO, MediaAlpha

Selected Partners

16

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20

Benefits Admin & Payroll Brokerage Data & Analytics Insurance Software IT & BPO Services Online Distribution

INSURTECH PUBLIC COMPANY VALUATION

LTM Market Capitalization Performance

Public InsurTech Ecosystem

LTM Market Cap

Performance

23%

10%

(4%)

12%

Market values have largely recovered from March 2020 lows

Benefits Admin. / Payroll Brokerage Data & Analytics IT & BPO ServicesInsurance Software Online Distribution

(3.5%) 12.2% 10.1% 22.6% 3.8%6.0%

Notes:Source: S&P Capital IQ as of 10/30/20.

6%4%

17

INSURTECH PUBLIC COMPANY VALUATION

Enterprise Value / 2020E Revenue

Public InsurTech Ecosystem

Enterprise Value / 2020E EBITDA

2020E Rev. / 2020E

EBITDA Multiples

4.6x / 15.2x 5.2x / 15.0x 7.0x / 17.7x 2.6x / 13.8x 2.6x / 13.1x 6.9x / 20.7x

Selected InsurTech subsectors and multiples

Benefits Admin. / Payroll Brokerage Data & Analytics IT & BPO ServicesInsurance Software Online Distribution

Notes:Source: S&P Capital IQ as of 10/30/20.

7.0x 6.9x

5.2x

4.6x

2.6x 2.6x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

Data &

Analytics

Insurance

Software

Brokerage Benefits

Admin./Payrol l

Online

Distribution

IT & B PO

Services

20.7x

17.7x

15.2x 15.0x13.8x

13.1x

0.0x

4.0x

8.0x

12.0x

16.0x

20.0x

24.0x

Insurance

Software

Data &

Analytics

Benefits

Admin./Payrol l

Brokerage IT & B PO

Services

Online

Distribution

18

SELECTED PUBLIC COMPANY DETAIL

Notes:Source: S&P Capital IQ as of 10/30/20.Figures based on S&P Capital IQ Consensus Estimates as appropriate. Multiples <0 and >50 considered NM

($MM, except per share data)

Trading Metrics Operating Metrics CIQ

Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin Revenue

Company 10/30/2020 Cap Value (EV) CY19A CY20E CY19A CY20E 19A/18A 20E/19A CY19A CY20E

Benefits Administration / Payroll

Automatic Data Processing $157.96 $67,812 $68,523 4.7x 4.7x 18.9x 18.8x 5% (0%) 25% 25%

Paychex $82.25 $29,569 $29,601 7.3x 7.5x 18.0x 18.4x 17% (2%) 41% 41%

Paylocity Holding Corporation $185.52 $10,063 $9,959 19.2x 17.2x NM NM 24% 12% 28% 25%

TriNet Group $68.92 $4,592 $4,630 5.0x 4.5x 12.7x 10.2x 4% 11% 39% 44%

HealthEquity $51.49 $3,958 $4,789 9.0x 6.6x 24.7x 20.5x 85% 37% 37% 32%

Insperity $76.58 $2,971 $2,910 0.7x 0.7x 11.6x 11.7x 13% (3%) 6% 6%

Benefitfocus $10.27 $331 $431 1.5x 1.6x 27.8x 11.9x 14% (10%) 5% 14%

Castlight Health $0.88 $133 $106 0.7x 0.8x NM NM (8%) (7%) (8%) (8%)

Summary Statistics

Mean 6.0x 5.5x 18.9x 15.3x 19% 5% 22% 22%

Median 4.9x 4.6x 18.5x 15.2x 13% (1%) 27% 25%

Brokerage

Marsh & McLennan Companies $103.46 $52,406 $65,003 8.9x 8.7x 15.8x 14.9x 7% 3% 56% 58%

Aon Plc $184.01 $42,091 $49,533 4.5x 4.5x 15.6x 15.0x 7% (1%) 29% 30%

Arthur J. Gallagher & Co. $103.71 $19,946 $24,239 3.4x 3.6x 18.6x 14.6x 7% (5%) 18% 25%

Brown & Brown $43.51 $12,359 $13,595 5.7x 5.2x 19.1x 17.2x 19% 8% 30% 30%

Goosehead Insurance $122.54 $2,144 $2,170 25.8x 19.2x NM NM 40% 34% 27% 25%

Summary Statistics

Mean 9.7x 8.3x 17.3x 15.4x 16% 8% 32% 34%

Median 5.7x 5.2x 17.2x 15.0x 7% 3% 29% 30%

19

SELECTED PUBLIC COMPANY DETAIL (CONT.)






Data & Analytics

RELX PLC $19.79 $38,099 $47,573 4.6x 5.0x 12.5x 14.8x 9% (9%) 36% 34%

Experian plc $36.50 $33,147 $37,398 7.5x 7.3x 22.1x 21.3x 3% 3% 34% 34%

Verisk Analytics $177.97 $28,900 $32,014 12.3x 11.6x 26.3x 23.8x 9% 6% 47% 49%

Equifax Inc. $136.60 $16,616 $19,496 5.6x 4.9x 16.6x 13.9x 3% 14% 34% 35%

TransUnion $79.66 $15,159 $18,447 6.9x 6.8x 17.5x 17.7x 13% 2% 40% 38%

Fair Isaac Corporation $391.45 $11,352 $12,258 10.2x 9.8x 32.2x 28.4x 13% 4% 32% 35%

CoreLogic $76.93 $6,119 $7,507 4.3x 4.6x 15.1x 12.9x (1%) (8%) 28% 36%

LiveRamp Holdings $66.09 $4,354 $3,723 13.0x 9.8x NM NM 30% 33% NM NM

Summary Statistics

Mean 8.0x 7.5x 20.3x 19.0x 10% 6% 36% 37%

Median 7.2x 7.0x 17.5x 17.7x 9% 4% 34% 35%

Insurance Software

Guidewire Software $96.11 $8,023 $7,339 10.5x 9.8x NM NM (5%) 6% 17% 11%

Duck Creek Technologies $43.37 $5,668 $5,303 29.4x 24.0x NA NM NA 23% 0% 4%

Sapiens International Corporation N.V. $27.13 $1,469 $1,515 4.7x 4.0x 27.5x 20.7x 12% 17% 17% 19%

Ebix $18.06 $558 $1,228 2.1x 2.5x 6.8x NA 17% (14%) 31% 0%

Summary Statistics

Mean 11.7x 10.1x 17.1x 20.7x 8% 8% 16% 9%

Median 7.6x 6.9x 17.1x 20.7x 12% 12% 17% 8%

20

SELECTED PUBLIC COMPANY DETAIL (CONT.)






IT & BPO Services

Accenture plc $216.91 $137,427 $132,901 3.0x 3.0x 18.1x 16.0x 8% 1% 17% 19%

Tata Consultancy Services Limited $35.74 $134,108 $128,609 5.9x 6.0x 22.3x 21.8x 8% (2%) 26% 28%

Infosys Limited $14.22 $60,333 $57,471 4.6x 4.5x 18.7x 16.7x 10% 3% 25% 27%

Cognizant Technology Solutions Corporation $71.42 $38,184 $37,092 2.2x 2.2x 11.3x 12.3x 4% (0%) 20% 18%

Wipro Limited $4.57 $26,110 $21,806 2.6x 2.7x 12.3x 12.2x 3% (3%) 21% 22%

CGI Inc. $62.13 $16,036 $18,440 2.0x 2.0x 10.6x 10.3x 10% (2%) 18% 20%

Mphasis Limited $18.52 $3,458 $3,319 2.8x 2.6x 15.4x 13.8x 12% 7% 18% 19%

Mindtree Limited $17.80 $2,933 $2,730 2.6x 2.6x 19.6x 14.2x 11% (1%) 13% 18%

ExlService Holdings $75.74 $2,561 $2,534 2.6x 2.7x 15.5x 13.6x 12% (4%) 16% 19%

Virtusa Corporation $50.30 $1,525 $1,733 1.3x 1.4x 14.7x 15.4x 9% (3%) 9% 9%

Crawford & Company $6.34 $337 $600 0.6x 0.6x 5.5x 6.1x (6%) (4%) 11% 10%

Summary Statistics

Mean 2.7x 2.7x 14.9x 13.8x 7% (1%) 18% 19%

Median 2.6x 2.6x 15.4x 13.8x 9% (2%) 18% 19%

Online Distribution

SelectQuote $24.71 $3,979 $4,262 NA 4.9x NA NA NA NA NA 31%

Lemonade $50.29 $2,845 $2,557 38.0x 29.2x NA NM NA 30% 0% NM

SelectQuote $17.22 $2,800 $2,792 6.4x 4.2x NA 15.3x NA 54% 0% 27%

Moneysupermarket.com Group PLC $3.15 $1,691 $1,725 3.4x 3.9x 9.3x 12.6x 13% (13%) 36% 31%

eHealth $67.11 $1,728 $1,579 3.1x 2.4x 17.9x 10.5x 101% 31% 17% 23%

EverQuote $33.49 $916 $862 3.5x 2.6x NM NM 52% 34% 3% 5%

QuinStreet $16.01 $843 $753 1.6x 1.5x 22.2x 19.5x 8% 4% 7% 8%

GoCo Group plc $1.25 $526 $619 3.1x 2.9x 14.7x 13.5x 4% 7% 21% 21%

Summary Statistics

Mean 2.9x 2.6x 16.0x 14.0x 36% 13% 17% 17%

Median 3.1x 2.6x 16.3x 13.1x 13% 7% 17% 21%

21

Global investment bank providing strategic M&A and capital markets advisory services to growth companies and market leaders

GCA: A LEADING INDEPENDENT GLOBAL INVESTMENT BANK

Notes:GCA operates as GCA in America and Asia, and as GCA Altium in Europe.

ZURICH

MILAN

FRANKFURT

MUNICH

TEL AVIV

LONDON

BIRMINGHAM

MUMBAI

SHANGHAI

SINGAPORE

TOKYO

NEW DELHI

NAGOYA

HO CHI MINH CITY

TAIPEI

PARISLEEDS

FUKUOKA

NEW YORK

SAN FRANCISCO

Sector expertise:

Expansive coverage

and deep specialization

Exceptional cross-border capabilities:

~50% of all transactions

Global platform:25 offices in key markets across

America, Asia and Europe

Broad spectrum of clients:

Leading

conglomerates, top

private equity firms

and emerging high-

growth companies

Experienced team: Over 500 employees

across the globe

Strong reputation and track record: High number of

repeat clients and referrals

Diversified

business model:

Geographically balanced, synergistic

and complementary focus areas

KYOTO

OSAKA

MANCHESTER

LAUSANNE

STOCKHOLM

22

Payments Real Estate Tech Banking & Lending Tech Insurance TechnologyPaymentsInsurance TechnologyFinancial SaaS

Insurance TechnologyPayments Insurance TechnologyLiquidity VenuesInvestment Technology

We Advised Asahi

Insurance TechnologyInsurance Technology

Selected FinTech experience

GCA OVERVIEW

Insurance Technology Transaction

Insurance TechnologyReal Estate TechReal Estate Tech

Insurance Technology

PaymentsInsurance TechnologyReal Estate TechBanking & Lending Tech

Growth Investment

Insurance TechnologyReal Estate TechInsurance TechnologyReal Estate Tech

Notes:The above transactions represent a compilation of deals that GCA entities,including GCA Advisors, LLC, GCA Advisors Corporation and GCA Altium, have advised on.

Insurance TechnologyInsurance Technology

23

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 trademark owner but may provide financial services to one or more trademark owners or their affiliates.

gca insurtech sector report q3 2020

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