- DIA Barcelona -April 21th 2016

AXA STRATEGIC VENTURES@AXAVentures @Minh_Q_Tran

www.minhtran.fr

 We shape the future of insurance and asset management by

investing in technologies that transform our industry

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SUMMARY.

1. AXA Strategic Ventures2. InsurTech trends3. Investment thesis

12 PEOPLE

San Francisco

NYCParis

LondonHong Kong

A Venture Capital fund, dedicated to emerging strategic innovations relevant to

€230M

Seed &

Venture

WHAT IS AXA STRATEGIC VENTURES ?

4 OFFICES

A strategic initiative launched in February 2015 by AXA• Set up as a separate regulated entity with a

professional team dedicated to making

investments in start-ups.

✓ insurance,

✓ asset management,

✓ financial technology

✓ healthcare service industries

• ASV provides seed (early stage of the start-

up) to venture funding (acceleration phase of

the start-up) to start-ups built by experts

founders on leading edge technology that

can be scaled worldwide.

SEEDvalidate, build

—

✓ Pre-revenue✓ Clear direction and target

milestones✓ Initial development of product/

service✓ Committed founding team✓ Generate investor interest

EARLYLaunch

—

✓ Some revenue and user growth✓ Clear product-market fit✓ Attract additional resources – personnel/

investor

VENTUREScale

—

✓ Measurable market penetration and user growth

✓ Large and growing market✓ Ability and desire to scale quickly✓ Attract significant resources –

business deals; investors

GROWTHmaturity to exit

—

✓ Established✓ Terminal growth – steady-state expected

growth moving forward✓ Resources easily acquired✓ Founder exit or continue BAU

SEEDangels/crowdfunds/seed vc

SERIES Acrowdfunds/vc

SERIES B, Cvc

SERIES C1, …Vc, private equity

INDUSTRY FUNDING ROUNDS

COMPANY STAGE OF DEVELOPMENT

SEED>$100K

VENTURE<$10M

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SUMMARY.

1. AXA Strategic Ventures2. InsurTech trends3. Investment thesis

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How we define

InsurTech

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InsurTech = technologies that might impact/disrupt insurance businesses

Source : https://www.cbinsights.com/blog/insurance-tech-startup-funding-2015/

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InsurTech is following FinTech but

growing quickly

10Source : http://seedingtech.com/2016/02/01/the-insurance-tech-moment-is-coming/

InsurTech investments are growing fast (3.5x in 2015)…

InsurTech investments are lagging 2 years behind FinTech but growth might be faster

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…Especially as incumbents are already investing in this space

Source : https://www.cbinsights.com/blog/insurance-startup-investing

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Significant amounts have already been invested

in InsurTech companies

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Source : https://www.cbinsights.com/blog/insurance-tech-startup-funding-2015/

$2.7B invested in InsurTech in 2015…

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Source : https://www.cbinsights.com/blog/insurance-tech-early-stage-2015

… but mostly in the US, so far

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And Insurance has a strong potential

for disruption

Life Insurance $2.3TNon-life Insurance $1.4T

Huge market world wide

Mobile for distributionBig data for underwritingMachine learning for personalization

Technology can help on several aspects of Insurance

Solvency II - Agents (MGA) - Broker - Reinsurer

Regulation as a barrier to enter the market

Digitization is well behind other industries

16Source : https://medium.com/@robmoff/disrupting-insurance-4cf61fb8c551#.ofh3bhzbb

Here are the 4 main reasons why Insurance is open to disruption

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SUMMARY.

1. AXA Strategic Ventures2. InsurTech trends3. Investment thesis

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The InsurTech ecosystem is structuring itself around strong pillars

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All the insurance value chain is being challenged by startups…

Source : http://techcrunch.com/2016/02/02/opportunities-in-the-risk-business-abound-as-insurance-is-ready-for-disruption/

Out of 1.000 leads received in 2015, 10% were fully InsurTech startups, and it accelerates in 2016.

Product & Pricing 30%

Distribution >50%

Claim <20%

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…And all the verticals are targeted by InsurTech startups

Source : http://techcrunch.com/2016/02/02/opportunities-in-the-risk-business-abound-as-insurance-is-ready-for-disruption/

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We are looking for startups that will

Insurance

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Disruptive technologies:Framework for investing

*Adapted from “The Innovator’s Dilemma” de Clayton M. Christensen

Mar

ket A

dopt

ion

Demand

Time

Startup

User trends

Tech solutions

Business model

Disruptive technology

DISRUPT MARKET PRACTICE IN TRAVEL INSURANCE Airfares increase as we get closer to departure date due to strong yield management techniques.

Portfolio

We predict airfares

Creation of millions of qualified leads worldwide

Disrupt market practice by shifting user experience

Protection will be proposed before purchasing

DISRUPT MARKET PRACTICE IN TRAVEL INSURANCE

Portfolio

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Thesis 1 = Full-stack digital leads

Source : www.cnet.com/news/your-next-insurance-agent-will-be-a-robot/

Generate leads

+ 1 to be announced

Contact managementValue chain

ASV portfolio

Startups identified

KYC Subscription

Qualify leads

+ ChatBots are spreading as a new means to interact with customers

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@Minh_Q_TranMinh Q. Tran

@FGraillotFlorian Graillot

Let’s keep in touch on Twitter