INSURTECH SECTOR REPORT - GCA Altium · INSURTECH SECTOR REPORT Q4 2017. Strong sector and product...

INSURTECH SECTOR REPORTQ4 2017

Strong sector and product expertise across InsurTechGCA OVERVIEW

Rob FreimanDirectorFinTech

Phone: (212) 999 - 7075Mobile: (973) 229 - 0436 [email protected]

Kegan GreeneVice President

FinTechPhone: (415) 318 - 3686Mobile: (917) 579 - 4838 [email protected]

Steve FletcherManaging DirectorHead of Software

Phone: (415) 318 - 3661Mobile: (415) 518 - [email protected]

Chris GoughManaging Director

M&A/Real Estate TechPhone: (415) 318 - 3658Mobile: (415) 385 - [email protected]

Sean MinnihanManaging Director

Head of FinTechPhone: (212) 999 - 7077Mobile: (917) 364 - 6230

[email protected]

David KruegerVice President

FinTechPhone: (212) 537 - 4534Mobile: (616) 822 - [email protected]

Strategic Investment

We Advised ControlExpert We Advised AWL

Acquired by

Acquired by

We Advised INS Web We Advised INS Web

Acquisition of

We Advised Finanzen.de

Acquired by

Sold

To

We Advised RGI Shareholders

Tender Offer for

Asahi Fire & MarineInsurance Co.

We Advised Asahi (close pending)

Preferred Stock Investmentfrom

Financial Advisor

Sele

ct In

surT

ech

Tran

sact

ions

3

$82 $164 $347 $268

$813

$2,701 $1,682 $2,101

2010 2011 2012 2013 2014 2015 2016 2017

Topic Observations

2017 InsurTech Wrap-Up

EXECUTIVE SUMMARYIntroduction

Financing Volume ($MM)

& Deal Count

Executive Summary

Source: CB Insights.

~$2.1Bn ‘17 Financing Volume

~200 ’17 Transactions

~$5.6Bn ‘17 M&A Volume

~80 ‘17 Transactions

• 2017 was an active year for InsurTech, with >$2Bn in financing volume and >$5.5Bn in M&A volume

• Record high number of financings – nearly 200 – driven by significant European activity

- European deal count grew ~167% to 72 transactions, while North America and Asia remained relatively flat

- That said, since 2015 Europe has contributed <10% of global financing volume

• There has been a 20% increase in financing participation by corporate venture capital (CVC) since 2014, reflecting increased interest in the space

• InsurTech key themes

• Market update and analysis

• Sector and transaction data

We take a deep dive into the numbers to understand what is

driving deal dynamics in the InsurTech sector.

In this report we cover:

67%9%

23%

13 28 4457

82

123174

195

Financing Volume by Geography Since 2015

North AmericaAsiaEurope 12%

32%

Percent of Financings with CVC Participation

20% Growth in CVC Participation

Key Stats

2014 2017

4

Topic Observations

How will the new tax laws impact InsurTech and the broader insurance market?

EXECUTIVE SUMMARYIntroduction (cont’d)

What are some the biggest perceived

risks?

• The new law reduces the corporate tax rate from 35% to 21% and eliminates the corporate alternative minimum tax (AMT), which we expect will benefit domestic carriers, distributors and InsurTech businesses organized as C corps

- InsurTech companies or other businesses organized as “pass-through” entities (i.e., S corps, partnerships, etc.) will similarly benefit from the reduction of individual tax rates

• We expect that improved profitability from these actions will manifest itself in several ways:- In 2018 we may see an increase in carrier reserve development to take advantage of the

associated tax deductions- Longer term, we expect the higher levels of profitability will put downward pressure on

policyholder rates in a highly competitive insurance marketplace- The improvement in profitability will improve ROI on growth initiatives and provide

additional capital to reinvest in carriers’ businesses, including technology and acquisition initiatives

- We expect the rate cut will give strategics even more bargaining power in competitive auctions, making them fiercer competitors for deals vs. private equity firms

• Deferred tax assets (DTAs) result from prior year losses, and their value is commensurate with the tax rate. For startups, carriers or other businesses with material DTAs, the lowered tax rates will require a reduction in the value of the DTA, resulting in an earnings hit

• That said, we don’t expect this alone to curb strategic technology and / or InsurTech investment• Additionally, we don’t expect changes in the carried interest provision (raising tax rates for

investments held for under three years) to have much of an impact on VCs or private equity firms, as they tend to hold investments for more than three years

• Will likely require a repatriation of offshore earnings for businesses with significant international operations

- Chubb cited this as a driver of its $250M one-time earnings increase for 4Q17• The new law reduces the advantages of insurance activity in tax havens (e.g., Bermuda, the

Cayman Islands, etc.), which we expect will impact non-US carriers, foreign reinsurers with US subsidiaries, and US carriers that cede to non-US affiliates

• Longer term, we don’t expect this to curb technology investment; on the contrary, we expect that newly repatriated capital will contribute to continued investment in technology and / or InsurTech businesses

How will new tax rates impact the

various players in the insurance

ecosystem?

What does the shift to a territorial tax

system mean for the industry?

Sources: Novarica Research 2018; The Insurance Journal 2017.

1

2

3

4

• Lower tax rates should benefit domestic carriers, distributors and InsurTech businesses alike

• For businesses with significant international operations, the shift to a territorial tax system will likely require a repatriation of offshore earnings

• Improved profitability and newly repatriated capital should contribute to continued investments in technology

To the right we’ve outlined some key themes to think about now that The Tax Cuts and Jobs Act

has become law.

5

IoT / Telematics

Online DistributionPolicy Management Tools / Software

Innovative / Specialty Insurance

Claims Management Tools / Software

Employee Benefits Admin / InsuranceExchange Technology

Data / Analytics Peer-to-Peer (“P2P”)

Sales, Marketing & Engagement

Customer Origination

Mobile

Distribution / Comparison Health Insurance Carrier Affiliated / New Carriers

Auto Health

Home

EXECUTIVE SUMMARYInsurTech landscape/ ecosystem – selected, representative companies Le

gend

Distribution & CustomerEngagement

Products, Pricing & Underwriting

Data & AnalyticsPolicy Admin, Claims & Back Office

Insurance Value Chain

DISCLAIMER: This is only a representative list and may not include all relevant companies. If your company is not on the list and would like to be added for future publications, kindly shoot us a note at [email protected] and we would be happy to consider.

6

EXECUTIVE SUMMARYMost active InsurTech investors – corporate venture capital

Source: Wall Street Research, Capital IQ, Pitchbook.

CurrentInsurTech

Investments

#7 7 6 6

5 5 5 5 4 3

7

Percent Change(2) Select Q4 Financing Transactions ($MM)

Subsector LTM 3 Years Date Company Selected Investors Amt. Sub-Sector

22% 55%

17% 46%

34% 27%

14% 38%

17% 14%

44% 87%

26% 41%

15% 18%

42% 52%

InsurTech Deal Volume by Stage Aggregate InsurTech Market 26% 42%

S&P 500 19% 30%

12/19/17 $120

12/19/17

11/15/17 $35

Insurance Technology Deal Dashboard(1) Industry Stock Market Performance$2.1 Bn | 195 Deals

LTM InsurTech Financing Volume(1)

Trends in InsurTech

10/12/17 $77

Quarterly InsurTech Financing Activity ($MM)(1)

10/3/17 $36

$30

$783

$398 $230 $271 $283

$985

$312

$521

Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

Benefits Administration/Payroll

Property & Casualty

Health

Insurance Technology

Life

Brokerage & Distribution

Information Services

Financial SaaS

IT & BPO Services

1

2

8

9

7

6

5

4

3

59 64

$6.5$15.4$7.4$6.3$6.1$11.7$13.3

34 3843

38

48

Average Deal Amount ($MM)

45

$11.6

38% 41% 42% 48% 50%

20% 19% 23% 19% 26%18% 16% 15% 10%12%

24% 22% 17% 20% 11%

2013 2014 2015 2016 2017

Seed/Angel Series A Series B Series C+

INSURTECH DEAL DASHBOARD

Notes:Source: CB Insights, Pitchbook. CapIq. GCA Deal Database.Market data as of 12/31/17.(1) Includes private company equity financings.(2) Represents unweighted average, except for S&P 500.

Publicly traded InsurTech companies are up 26% over the LTM period, as compared to 19% for the S&P 500. Q4 2017 financing volume is up ~67% over Q3 2017; however, the number of financings is relatively flat vs. Q3 2017 and Q4 2016

Lege

nd

P&C Life Health Distribution & CustomerEngagement


Data & AnalyticsPolicy Admin, Claims & Back Office

Insurance Segment Insurance Value Chain

8

INSURTECH SELECTED PUBLIC COMPANY LANDSCAPESelected InsurTech subsectors and key operating stats ($Bn)

Notes:Source: CapIq.Revenue growth and EBITDA margins shown are median values for comp group.Market data as of 12/31/17.

Benefits Administration/Payroll

Combined Market Cap.: $10217E/16A Rev. Growth: 20%

17E EBITDA Margin: 20%

2Insurance Technology



1 Brokerage & Distribution

Combined Market Cap.: $12117E/16A Rev. Growth: 7%17E EBITDA Margin: 22%

3

Property & Casualty

Combined Market Cap.: $42917E/16A Rev. Growth: 5% 17E EBITDA Margin: 12%

4 Life


5 Health



6



7 IT & BPO Services



8 Financial SaaS



9

9

INSURTECH STOCK PRICE PERFORMANCE

3 Year Share Price Performance

LTM Share Price Performance

Notes:Source: CapIq. Market data as of 12/31/17.

InsurTech is in the middle of the pack on an LTM basis, but near the top over the past three years

6) Health1) Insurance Technology 2) Benefits Administration/Payroll

3) Brokerage & Distribution 5) Life4) Property & Casualty 7) Information Services 8) IT & BPO Services 9) Financial SaaS

10

INSURTECH PUBLIC COMPANY VALUATIONInsurTech is trading at 2.1x LTM revenues and 2.6x NTM revenues, despite having a stronger growth profile than other subsectors…

Notes:Source: CapIq.Market data as of 12/31/17.Lines display median multiples across comp groups for given year.

Enterprise Value / LTM RevenueEnterprise Value / LTM Revenue

Median NTM Revenue Growth to EV / NTM Revenue MultipleEnterprise Value / NTM Revenue

1

2

3

45

6

78

9

2.1x 2.0x 2.2x 2.1x

2.1x 2.0x 2.1x2.5x



11

INSURTECH PUBLIC COMPANY VALUATION (CONT’D)…But on an EBITDA basis, InsurTech has performed very well on both an EV/ LTM EBITDA and EV/ NTM EBITDA basis

Notes:Source: CapIq.Market data as of 12/31/17.Lines display median multiples across comp groups for given year.

Enterprise Value / LTM EBITDAEnterprise Value / LTM EBITDA

Median NTM EBITDA Growth to EV / NTM EBITDA MultipleEnterprise Value / NTM EBITDA

1

23

4

5

6 8

7

9

10.2x 9.3x11.5x

13.5x

9.0x 9.2x10.0x

12.3x



12

Long-term growth is not necessarily correlated with public company P/E multiples or PEG ratios(1)

INSURTECH PUBLIC COMPANY VALUATION (CONT’D)

Notes: (1) PEG ratio defined as 2017E price/earnings ratio divided by estimated long-term EPS growth rate.Figures represent medians of sub-sectors.Market data as of 12/31/17.Long-term EPS growth covers last 5 years.

21.7%

15.3%

17.0%

11.0%

11.3%

13.7%

10.4%

10.3%

7.6%

2.4

2.4

2.3

2.2

1.8

1.5

1.6

2.0

1.3

2017 P/E Multiple 2017 PEG Ratio

Long-Term EPS Growth

Life5

Benefits Admin/Payroll2

Financial SaaS9

Information Services7

Insurance Technology1

Health6

IT & BPO Services8

Property & Casualty4

Brokerage & Distribution3

11.2x

18.8x

18.9x

19.9x

21.3x

24.8x

30.7x

30.9x

46.2x

0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 35.0x 40.0x 45.0x 50.0x

13

12/28/17 Khosla Ventures, Undisclosed Investors Seed VC $19.6

12/20/17 Alaya Capital Partners, MercadoLibre, NXTP Labs Seed VC $3.0

12/19/17Accel Partners India, Catamaran Ventures, InnoVen Capital, IFC, Saif Partners,

Transamerica VenturesGrowth Equity

$10.0

12/19/17Google Ventures, Menlo Ventures, Sequoia Capital, SoftBank Group, Thrive

CapitalSeries C $120.0

12/19/17 Allianz Series E $30.0

12/15/17 Undisclosed NA $26.8

12/12/17 Aquiline Capital Partners, BlackFin Capital Partners Series A $17.6

12/12/17 Undisclosed Investors Series B $3.3

12/11/17 Undisclosed Investors Series B - II $3.5

12/7/17 Helvetia Venture Fund Seed VC $1.2

12/6/17 Founders Fund, Martin Ventures, SV Angel, Thrive Capital Series A $12.8

12/6/17Cambridge Seed Funds, Parkwalk Advisors, QBE Ventures, iLexIR, Fintech

Innovation LabSeed VC $5.9

12/5/17 BECO Capital, Hamed Kanoo Co., Silicon Badia Series A - III $5.0

12/5/17G2VP, Shell Technology Ventures, Cisco Investments, ABB New Ventures,

Lightspeed Venture Partners, Spectrum 28Series C $33.0

11/21/17 Tola Capital, United Services Automobile Association Series D $16.4

SELECTED RECENT GROWTH EQUITY & VC ACTIVITY

Notes: Source: CapIq. Pitchbook.Selected deals from Q4 2017.

Date

Announced Target Investors Type Amount ($MM)

14

11/20/17 Balderton Capital, LocalGlobe, Undisclosed Angel Investors Series A $8.0

11/16/17 Lightspeed Venture Partners, LocalGlobe, Shlomo Kramer Seed VC $6.0

11/15/17 Hudson Structured Capital Management Series E $15.0

11/15/17 Andreessen Horowitz, CRV, First Round Capital, Foundation Capital Series C $34.6

11/13/17 Oak HC/FT Seed VC $11.5

11/7/17Anthemis Group, ManchesterStory Group, Mr. Cooper, National General

Holdings, Nationwide Mutual Insurance CompanySeries A $7.0

11/4/17 China Broadband Capital Partners, China Capital Group, Shunwei Capital Series B $30.0

10/26/17 Flyover Capital, QBE Ventures Seed VC $3.0

10/25/17 Peterson Ventures, Talis Capital Seed VC $3.2

10/24/17 Accel Partners, Elaia Partners, General Catalyst, Iris Capital Series B $28.0

10/24/17 Barcamper Ventures, Mansutti, Miro Ventures Seed $1.2

10/24/17 Anthemis Group, Baloise Group, Menlo Ventures, Plug and Play Ventures Seed VC $1.0

10/20/17Cyril Vermeulen, Francis Nappez, Frederic Mazzella, Keyrus Innovation Factory,

Kima VenturesSeed $1.2

10/20/17 Venrock Series A $62.0

10/19/17Insight Venture Partners, SaaStr Fund, Point Nine Capital, Dawn Capital,

Salesforce VenturesSeries B $34.0

SELECTED RECENT GROWTH EQUITY & VC ACTIVITY (CONT’D)

Date



15

10/17/17 Experian Series D $30.0

10/16/17 Amicus Capital Partners Series A $9.2

10/12/17ABG Capital, IDG Ventures India, Info Edge, Intel Capital, Inventus Capital

Partners, MakeSense Technologies, PremjiInvest, Ribbit CapitalSeries E $77.0

10/12/17Nokia Growth Partners, Moody's, AXA Strategic Ventures, Intel Capital, Sequoia

Capital, Google Ventures, Two Sigma VenturesSeries C $28.0

10/11/17 Everest Re Group, Houston International Insurance VC $6.5

10/9/17 K Fund, Sabadell Venture Capital, Seaya Ventures Series A $4.1

10/5/17Benzinga Global Fintech Awards, Foundation Capital, Founder Collective, Highland Capital Partners, Index Ventures, Starr Companies, Two Sigma

Series B $18.5

10/5/17Horizons Ventures, Munich Re/HSB Ventures, Plug and Play Accelerator, Plug

and Play Ventures, Sompo Holdings, Tusk VenturesSeries A $11.6

10/4/17 Davis Capital Partners, Michael Crowe Series A $4.0

10/4/17 Elefund, Moxley Holdings, Sirius International Insurance Group Seed VC $4.3

10/3/17Rakuten Capital, Draper Espirit, Talis Capital, Emery Capital, Rubicon Venture

CapitalSeries A $36.0

10/3/17 Direct Line Insurance Group Series A $2.1

10/3/17 Hambro Perks Seed VC $0.3

10/3/17 Gocompare.com, Taqnia, UAE Exchange Centre Series B $10.0

10/2/17 A-CAP NA $12.0

Median $10.0

SELECTED RECENT GROWTH EQUITY & VC ACTIVITY (CONT’D)

Date



16

SELECTED M&A ACTIVITY

Notes: Source: CapIq. Pitchbook.

Date Enterprise EV / Revenue EV / EBITDA

Announced Acquirer Target Value ($MM) LTM LTM

1/29/2018 $414 NA NA

1/16/2018 $51 NA NA

1/9/2018 NA NA NA

12/11/2017 $2,178 2.0x NA

12/7/2017 NA NA NA

12/6/2017 NA NA NA

11/30/2017 $280 NA NA

10/18/2017 $2,488 NA NA

10/6/2017 $275 NA NA

10/2/2017 $63 NA NA

9/28/2017 $1,741 1.5x NA

9/21/2017 $3,031 NA NA

9/6/2017 $60 NA NA

8/24/2017 $151 NA NA

8/21/2017 Sequel $324 9.8x 21.3x

8/4/2017 $490 7.5x 49.3x

17

SELECTED M&A ACTIVITY (CONT’D)

Notes: Source: CapIq. Pitchbook.

Date Enterprise EV / Revenue EV / EBITDA

Announced Acquirer Target Value ($MM) LTM LTM

7/27/2017 $107 NA NA

7/27/2017 $919 NA NA

6/8/2017 NA NA NA

5/24/2017 $95 2.4x NA

5/15/2017 NA NA NA

5/8/2017 $560 NA NA

4/27/2017 $115 NA NA

4/6/2017 $50 NA NA

4/4/2017 $225 4.7x NA

3/31/2017 $102 1.3x NA

2/16/2017 $160 3.9x NA

2/9/2017 $50 NA NA

1/9/2017 $150 2.5x NA

Median 2.5x 35.9x

18

SELECTED PUBLIC COMPANY DETAIL

Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >100 considered NM.

Bnft

s Adm

in./

Payr

oll

Insu

ranc

e Te

ch.

Brok

erag

e &

Dis

trib

.

($MM, except per share data)Stock EPS Operating Metrics Trading MetricsPrice Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS

Company 12/31/17 Value Value Growth PEG 17E/16A NTM 17E/16A NTM 17E 17E 18E 17E 18E 17E 18E

Insurance TechnologyVerisk Analytics, Inc. $96.00 $15,810 $18,546 11% 2.7 7% 9% 4% 14% 49% 8.7x 8.1x 17.8x 16.5x 30.2x 27.2xGuidewire Software, Inc. $74.26 $5,704 $5,143 16% 5.4 26% 19% 30% 11% 21% 9.1x 7.6x 43.4x 39.0x 84.0x 77.8xEbix, Inc. $79.25 $2,493 $2,734 15% 1.7 19% 22% 10% 22% 34% 7.7x 6.4x 22.4x 18.0x 25.4x 22.1xHealthEquity, Inc. $46.66 $2,831 $2,606 34% 2.1 27% 23% 31% 45% 36% 11.5x 9.3x 31.6x 24.7x 70.4x 54.3xCorVel Corporation $52.90 $997 $959 NA NA 3% NA 4% NA 13% 1.8x NM 13.4x NM 31.5x NMBenefitfocus, Inc. $27.00 $844 $910 20% NA 10% 8% NA 46% 7% 3.5x 3.3x 50.0x 34.2x NM NMCrawford & Company $9.62 $536 $713 NA NA 2% 3% 1% 12% 11% 0.6x 0.6x 5.6x 5.0x 12.4x 11.3xSapiens International Corporation N.V. $11.52 $567 $565 5% NA 26% 10% (14%) 60% 10% 2.1x 1.9x 20.1x 12.6x NM 29.5xeHealth, Inc. $17.37 $323 $272 NA NA (9%) 29% NM NA (9%) 1.6x 1.2x NM 35.7x NM NMMajesco $5.37 $196 $204 NA NA (0%) 19% (12%) 126% 4% 1.7x 1.4x 38.0x 16.8x NM 53.7xSymbility Solutions Inc. $0.33 $80 $75 NA NA 19% 14% NM 14% 6% 1.8x 1.6x 29.1x 25.4x NM NM

Median 15% 2.4 10% 16% 4% 22% 11% 2.1x 2.6x 25.7x 21.4x 30.9x 29.5x

Benefits Administration/PayrollAutomatic Data Processing, Inc. $117.19 $51,973 $51,627 11% 2.9 6% 7% (3%) 5% 20% 4.1x 3.8x 19.8x 17.8x 31.0x 28.7xPaychex, Inc. $68.08 $24,453 $24,248 8% 3.6 6% 7% 8% 7% 44% 7.5x 7.0x 17.2x 16.0x 29.6x 25.7xThe Ultimate Software Group, Inc. $218.23 $6,520 $6,391 23% 2.6 20% 18% 16% 16% 23% 6.8x 5.7x 29.8x 23.3x 60.4x 48.1xPaycom Software, Inc. $80.33 $4,680 $4,648 28% 2.3 31% 26% 41% 18% 31% 10.8x 8.6x 35.0x 27.9x 63.8x 52.1xTriNet Group, Inc. $44.34 $3,081 $3,249 NA NA 7% 10% (15%) 18% 6% 1.0x 0.9x 17.1x 14.6x 46.2x 36.0xHealthEquity, Inc. $46.66 $2,831 $2,606 34% 2.1 27% 23% 31% 45% 36% 11.5x 9.3x 31.6x 24.7x 70.4x 54.3xPaylocity Holding Corporation $47.16 $2,477 $2,379 28% 2.5 30% 23% 98% 32% 19% 7.9x 6.4x 42.3x 32.0x 70.4x 55.5xInsperity, Inc. $57.35 $2,391 $2,207 17% 1.5 12% 11% 24% 44% 5% 0.7x 0.6x 12.6x 11.0x 24.3x 21.7xWageWorks, Inc. $62.00 $2,457 $1,810 15% 2.3 32% 11% 35% 76% 30% 3.8x 3.4x 12.4x 10.8x 34.8x 31.6xBenefitfocus, Inc. $27.00 $844 $910 20% NA 10% 8% NA 46% 7% 3.5x 3.3x 50.0x 34.2x NM NMCastlight Health, Inc. $3.75 $502 $420 25% NA 28% 24% NA NA (19%) 3.2x 2.6x NM NM NM NM

Median 22% 2.4 20% 11% 24% 25% 20% 4.1x 3.8x 24.8x 20.6x 46.2x 36.0x

Brokerage & DistributionMarsh & McLennan Companies, Inc. $81.39 $41,538 $45,948 11% 1.9 5% 5% 8% 12% 24% 3.3x 3.2x 13.5x 12.5x 21.4x 19.5xAon plc $134.00 $33,503 $37,179 11% 1.8 (15%) (14%) (7%) 23% 25% 3.7x 3.5x 15.1x 13.2x 20.6x 16.7xWill is Towers Watson Public Limited Company $150.69 $19,897 $23,563 10% 1.7 3% 4% 8% 30% 23% 2.9x 2.8x 12.4x 11.2x 17.9x 15.3xArthur J. Gallagher & Co. $63.28 $11,441 $13,893 13% 1.7 8% 5% 9% 23% 17% 2.3x 2.1x 13.7x 12.1x 21.2x 18.9xBrown & Brown, Inc. $51.46 $7,174 $7,551 11% 2.4 5% 2% 1% 3% 32% 4.1x 3.9x 12.9x 12.5x 27.8x 25.3xJardine Lloyd Thompson Group plc $18.80 $3,970 $4,543 27% 0.9 18% 10% NA 46% 21% 2.5x 2.3x 11.6x 10.3x 23.8x 19.7xMoneysupermarket.com Group PLC $4.81 $2,581 $2,558 10% 2.1 16% 12% 17% 25% 38% 5.6x 5.3x 14.7x 13.6x 21.5x 19.5xQuinStreet, Inc. $8.38 $383 $333 26% NA 8% 11% 180% NM 6% 1.0x 0.9x 16.2x 12.1x NM 61.3xeHealth, Inc. $17.37 $323 $272 NA NA (9%) 6% NA NA (10%) 1.6x 1.4x NM 34.0x NM NMiSelect Limited $1.12 $240 $179 NA NA 19% 14% 26% 35% 15% 1.2x 1.1x 7.6x 6.6x 18.9x 15.7x

Median 11% 1.8 7% 6% 8% 24% 22% 2.7x 2.5x 13.5x 12.3x 21.3x 19.5x

19

SELECTED PUBLIC COMPANY DETAIL (CONT’D)


Prop

erty

& C

asua

ltyLi

feHe

alth

Property & CasualtyAllianz SE $230.76 $102,912 $113,081 6% 2.2 13% 17% NA 3% 10% 0.8x 0.8x 7.9x 7.7x 12.1x 11.2xChubb Limited $146.13 $67,837 $79,810 6% 3.2 5% (13%) (18%) 36% 18% 2.9x 2.8x 16.1x 11.9x 20.2x 13.5xAmerican International Group, Inc. $59.58 $53,560 $72,391 11% 2.0 (5%) (1%) NM 44% 17% 1.4x 1.5x 8.7x 6.1x 22.2x 11.8xThe Allstate Corporation $104.71 $37,573 $41,033 14% 1.2 3% (14%) 56% (11%) 15% 1.3x 1.2x 8.3x 9.4x 16.7x 14.1xThe Travelers Companies, Inc. $135.64 $37,124 $38,456 10% 1.9 5% (8%) NM 17% 15% 1.5x 1.4x 9.8x 8.4x 19.5x 14.1xThe Progressive Corporation $56.32 $32,756 $33,193 13% 1.7 15% 10% 37% 8% 9% 1.2x 1.1x 13.1x 12.2x 23.5x 19.1xThe Hartford Financial Services Group, Inc. $56.28 $20,076 $21,641 12% 1.5 1% 4% NA 21% 11% 1.2x 1.1x 10.6x 8.8x 17.5x 13.4xCNA Financial Corporation $53.05 $14,386 $15,503 8% 2.0 1% NM 14% 0% 23% 2.4x 2.3x 10.3x 10.3x 16.7x 15.0xMarkel Corporation $1,139.13 $15,825 $14,224 NA NA 6% 10% NM NM 8% 2.4x 2.2x 31.3x 17.8x NM 35.3xCincinnati Financial Corporation $74.97 $12,300 $12,469 2% 11.3 5% 3% (16%) 22% 12% 2.2x 2.1x 18.7x 15.3x 27.9x 24.0xW. R. Berkley Corporation $71.65 $8,727 $9,952 6% 5.2 1% (17%) (11%) 0% 16% 1.6x 1.5x 10.0x 10.0x 29.8x 21.2xAmerican Financial Group, Inc. $108.54 $9,564 $9,044 12% 1.5 3% NM (0%) 8% 23% 2.0x 2.0x 8.8x 8.1x 18.0x 16.1xRSA Insurance Group plc $8.55 $8,612 $8,464 11% 1.4 15% 1% (3%) 11% 10% 0.9x 0.9x 9.5x 8.5x 14.8x 12.5xAssurant, Inc. $100.84 $5,426 $5,393 NA NA (16%) (2%) NM NM 7% 0.9x 0.8x 12.2x 7.5x 27.3x 14.5xAmTrust Financial Services, Inc. $10.07 $1,974 $2,543 NA NA 5% (3%) 0% NM 0% 0.5x 0.4x NM NM 10.4x 7.2x

Median 10% 2.0 5% (1%) (0%) 10% 12% 1.4x 1.4x 10.1x 9.1x 18.8x 14.1x

LifeAXA SA $29.70 $70,842 $85,437 5% 2.1 17% (16%) 12% (2%) 8% 0.7x 0.7x 8.6x 8.9x 9.9x 9.4xMetLife, Inc. $50.56 $53,204 $78,577 14% 0.8 (8%) 0% (14%) 4% 11% 1.2x 1.2x 11.2x 10.8x 11.2x 10.8xZurich Insurance Group AG $304.34 $45,706 $43,137 7% 2.1 2% (23%) (2%) 6% 12% 0.8x 0.8x 6.9x 6.4x 14.9x 12.2xLegal & General Group Plc $3.69 $21,931 $43,130 7% 1.6 4% (29%) 24% (4%) 25% 3.8x 3.5x 15.3x 15.9x 10.9x 11.2xAflac Incorporated $87.78 $34,511 $35,297 NA NA (5%) (3%) NA NA 19% 1.6x 1.6x 8.6x 7.7x 13.0x 12.8xPrudential Financial, Inc. $114.98 $48,836 $34,321 13% 0.8 (1%) (11%) 2% 7% 14% 0.7x 0.7x 4.8x 4.5x 11.0x 9.9xManulife Financial Corporation $20.91 $41,373 $34,036 12% 1.0 17% 54% NM (7%) 13% 0.7x 0.7x 5.7x 6.2x 11.8x 10.5xAmeriprise Financial, Inc. $169.47 $25,070 $27,749 NA NA 3% 1% NA (4%) 26% 2.3x 2.2x 9.0x 8.4x 14.2x 13.2xLincoln National Corporation $76.87 $16,821 $18,960 8% 1.2 4% 6% NA NA 14% 1.3x 1.3x 9.1x NM 10.0x 9.7xPrincipal Financial Group, Inc. $70.56 $20,375 $18,782 10% 1.4 11% (5%) NA NA 19% 1.4x 1.4x 7.0x NM 13.5x 12.5xAEGON N.V. $6.38 $13,154 $1,195 6% 1.2 11% (52%) NA NA 14% 0.0x 0.0x 0.3x NM 7.8x 8.0xAviva plc $6.85 $27,464 ($14,249) 6% 1.5 (12%) 31% 22% 9% 6% NM NM NM NM 9.4x 9.1xSun Life Financial Inc. $41.37 $25,317 ($29,673) NA NA 3% 18% NA NA 14% NM NM NM NM 12.6x 11.9x

Median 8% 1.3 3% (3%) 7% 1% 14% 1.2x 1.2x 8.6x 8.1x 11.2x 10.8x

HealthUnitedHealth Group Incorporated $220.46 $213,641 $229,843 15% 1.5 9% 9% 13% 13% 9% 1.1x 1.0x 13.2x 11.3x 22.1x 20.4xAetna Inc. $180.39 $58,838 $60,355 11% 1.8 (4%) (3%) 9% 3% 10% 1.0x 1.0x 9.7x 9.1x 18.4x 18.0xCigna Corporation $203.09 $50,072 $51,589 15% 1.3 4% 4% 16% 7% 11% 1.3x 1.2x 11.1x 10.0x 19.6x 17.8xAnthem, Inc. $225.01 $57,774 $48,647 11% 1.8 5% 2% 17% 17% 6% 0.5x 0.5x 8.5x 7.2x 18.8x 17.4xHumana Inc. $248.07 $34,625 $21,239 13% 1.7 (3%) 5% 15% 47% 7% 0.4x 0.4x 5.6x 5.2x 21.3x 20.5xCentene Corporation $100.88 $17,409 $17,307 17% 1.2 18% 27% 8% 6% 4% 0.4x 0.3x 9.9x 6.4x 20.2x 17.7xWellCare Health Plans, Inc. $201.11 $8,954 $4,752 16% 1.5 19% 14% (2%) 20% 4% 0.3x 0.3x 6.9x 4.9x 24.3x 23.2xAEGON N.V. $6.38 $13,154 $1,195 6% 1.2 11% NM NA NM 14% 0.0x 0.0x 0.3x NM 7.8x 8.0x

Median 14% 1.5 7% 5% 13% 13% 8% 0.5x 0.5x 9.1x 7.2x 19.9x 17.9x


Company 12/31/17 Value Value Growth PEG 17E/16A NTM 17E/16A NTM 17E 17E 18E 17E 18E 17E 18E

20



Info

rmat

ion

Serv

ices


Company 12/31/17 Value Value Growth PEG 17E/16A NTM 17E/16A NTM 17E 17E 18E 17E 18E 17E 18EInformation ServicesRELX PLC $23.50 $47,005 $53,545 9% 2.4 18% 8% 19% 24% 35% 5.3x 5.1x 15.3x 14.6x 21.6x 20.1xS&P Global Inc. $169.40 $43,197 $44,453 14% 1.8 5% 6% 14% 10% 48% 7.5x 7.0x 15.5x 14.5x 25.5x 23.4xThomson Reuters Corporation $43.69 $31,012 $37,392 9% 1.9 2% 3% 8% 41% 30% 3.3x 3.2x 11.0x 10.5x 17.7x 16.7xMoody's Corporation $147.61 $28,208 $32,859 10% 2.6 14% 11% 19% 9% 48% 8.0x 7.3x 16.8x 15.2x 24.9x 22.7xExperian plc $22.11 $20,074 $23,539 9% 2.8 (5%) 7% (1%) 7% 36% 5.5x 4.9x 15.4x 14.5x 24.7x 21.1xIHS Markit Ltd. $45.15 $17,872 $21,932 13% 1.7 30% 4% 40% 32% 39% 6.1x 5.8x 15.8x 14.5x 22.0x 20.5xNielsen Holdings plc $36.40 $12,965 $20,750 8% 1.7 4% 4% 5% 22% 31% 3.2x 3.1x 10.2x 10.1x 13.6x 14.1xVerisk Analytics, Inc. $96.00 $15,810 $18,546 11% 2.7 7% 9% 4% 14% 49% 8.7x 8.1x 17.8x 16.5x 30.2x 27.2xWolters Kluwer N.V. $52.21 $14,682 $17,272 8% 2.4 18% 6% 22% 10% 27% 3.2x 3.2x 11.9x 11.6x 19.3x 18.1xEquifax Inc. $117.92 $14,160 $16,551 11% 1.8 6% 2% 8% 3% 36% 4.9x 4.8x 13.6x 13.5x 19.9x 19.9xGartner, Inc. $123.15 $11,164 $13,884 17% 2.1 37% 30% 53% 119% 21% 4.1x 3.5x 19.9x 16.6x 35.7x 30.6xMSCI Inc. $126.54 $11,397 $12,676 18% 1.8 10% 12% 16% 16% 52% 10.0x 9.0x 19.2x 16.9x 33.1x 28.0xTransUnion $54.96 $10,024 $12,144 12% 2.5 12% 10% 17% 23% 39% 6.3x 5.8x 16.3x 14.6x 29.5x 25.9xInforma plc $9.76 $8,037 $10,072 6% 2.6 41% 14% 45% 23% 34% 4.3x 4.2x 12.8x 12.1x 15.6x 14.7xNews Corporation $16.21 $9,449 $7,958 17% 2.1 1% 1% 0% 17% 11% 1.0x 1.0x 8.5x 8.3x 36.7x 30.5xFactSet Research Systems Inc. $192.76 $7,539 $7,860 11% 2.3 11% 9% 14% 10% 37% 6.2x 5.7x 16.7x 16.7x 25.6x 22.7xThe Dun & Bradstreet Corporation $118.41 $4,376 $5,627 7% 2.5 3% 3% 2% 21% 29% 3.2x 3.1x 11.2x 10.7x 16.5x 16.0xCoreLogic, Inc. $46.21 $3,806 $5,455 11% 1.8 (5%) (0%) (5%) 22% 26% 3.0x 2.9x 11.5x 11.2x 19.8x 18.5xFair Isaac Corporation $153.20 $4,595 $5,164 16% 1.9 5% 5% 10% 19% 24% 5.4x 5.1x 22.6x 19.4x 30.9x 27.0xMorningstar, Inc. $96.97 $4,124 $4,005 NA NA 7% 4% (7%) 12% 27% 4.7x 4.5x 17.2x 15.3x 41.3x 34.1xAcxiom Corporation $27.56 $2,185 $2,246 13% NA 6% 12% 15% 18% 20% 2.4x 2.1x 11.8x 10.1x NM 53.0xEuromoney Institutional Investor PLC $17.64 $1,892 $2,113 8% 2.2 15% 13% 18% 17% 27% 3.6x 3.6x 13.6x 13.0x 16.9x 16.1xcomScore, Inc. $28.50 $1,632 $1,518 NA NA 11% 11% 35% 32% 14% 3.2x 2.9x 23.4x 17.7x 14.5x 11.5xNational Research Corporation $56.06 $1,373 $1,339 NA NA 8% 8% 10% 6% 33% 11.3x 10.5x 34.5x 31.3x 63.7x 59.0xForrester Research, Inc. $44.20 $794 $661 14% 2.7 2% 4% (3%) 12% 12% 2.0x 1.9x 17.3x 15.0x 36.5x 30.1x

Median 11% 2.2 7% 7% 14% 17% 31% 4.7x 4.5x 15.5x 14.5x 24.8x 22.7x

21



IT &

BPO

Ser

vice

s


Company 12/31/17 Value Value Growth PEG 17E/16A NTM 17E/16A NTM 17E 17E 18E 17E 18E 17E 18EIT & BPO ServicesInternational Business Machines Corporation $153.42 $142,035 $176,279 (0%) (222.6) (2%) (0%) 1% 22% 24% 2.2x 2.2x 9.2x 8.9x 11.1x 11.0xAccenture plc $153.09 $94,406 $90,749 10% 2.5 7% 9% 4% 15% 16% 2.6x 2.3x 15.5x 13.5x 25.5x 22.7xTata Consultancy Services Limited $42.32 $81,016 $75,299 10% 2.1 10% 7% 7% 6% 27% 4.0x 3.7x 15.0x 14.0x 20.5x 18.8xCognizant Technology Solutions Corporation $71.02 $41,877 $37,987 14% 1.4 10% 10% 15% 18% 21% 2.6x 2.3x 12.5x 10.8x 19.1x 16.3xDXC Technology Company $94.90 $27,072 $32,926 11% 1.4 168% 20% 220% 26% 20% 1.6x 1.4x 8.4x 6.7x 14.3x 11.3xInfosys Limited $16.33 $35,479 $31,864 8% 2.0 9% 7% 6% 4% 27% 2.9x 2.8x 10.9x 10.5x 16.4x 15.7xCapgemini SE $118.74 $19,347 $21,808 8% 2.2 16% 8% 12% 17% 13% 1.4x 1.4x 10.6x 10.0x 16.7x 15.6xWipro Limited $4.91 $23,776 $21,312 9% 1.9 7% 3% 11% 9% 21% 2.5x 2.4x 11.6x 11.6x 17.2x 16.8xNTT Data Corporation $11.89 $16,673 $20,016 8% 3.7 29% 6% 15% 10% 14% 1.1x 1.1x 7.6x 7.2x 31.3x 26.7xHCL Technologies Limited $13.95 $19,423 $18,672 12% 1.1 19% 9% 15% 7% 22% 2.4x 2.2x 10.6x 9.9x 14.0x 13.7xCGI Group Inc. $54.46 $15,445 $16,863 16% 1.1 10% 4% 8% 14% 18% 1.9x 1.9x 10.7x 10.1x 18.3x 16.7xAtos SE $145.71 $15,258 $14,868 10% 1.4 24% 11% 31% 11% 13% 1.0x 0.9x 7.4x 7.1x 14.7x 13.5xNomura Research Institute, Ltd. $46.52 $11,094 $10,467 9% 3.1 13% 7% 9% 7% 20% 2.6x 2.5x 12.7x 11.9x 27.5x 25.7xGenpact Limited $31.74 $6,127 $6,904 10% 1.9 6% 6% 7% 8% 17% 2.5x 2.4x 15.2x 13.8x 19.8x 17.9xTech Mahindra Limited $7.90 $7,716 $6,561 15% 1.0 13% 5% (2%) 1% 14% 1.4x 1.3x 10.2x 8.9x 14.8x 13.8xCapita plc $5.42 $3,607 $6,476 15% 0.6 (5%) (9%) (6%) (14%) 13% 1.1x 1.1x 8.7x 8.5x 8.5x 8.2xEPAM Systems, Inc. $107.43 $5,674 $5,185 20% 1.6 25% 23% 24% 55% 18% 3.6x 2.9x 20.1x 16.2x 31.4x 25.7xConduent Incorporated $16.16 $3,400 $4,994 NA NA (6%) (3%) 5% 9% 11% 0.8x 0.9x 7.5x 6.9x 20.0x 15.0xPresidio, Inc. $19.17 $1,758 $2,656 9% 1.7 NA 6% NA 9% 8% 0.9x 0.9x 11.1x 10.6x 15.1x 14.1xSyntel, Inc. $22.99 $1,905 $2,184 9% 1.4 (7%) (5%) (18%) (10%) 25% 2.4x 2.4x 9.6x 9.4x 12.2x 12.7xWNS (Holdings) Limited $40.13 $2,021 $1,916 14% 3.1 23% 5% 16% 70% 18% 2.8x 2.5x 15.1x 11.6x 43.2x 27.2xMphasiS Limited $11.43 $2,207 $1,871 8% 2.4 9% 7% (5%) 6% 15% 1.9x 1.7x 12.4x 10.9x 18.7x 15.9xExlService Holdings, Inc. $60.35 $2,048 $1,845 14% 1.7 11% 9% 10% 38% 17% 2.4x 2.2x 14.1x 12.5x 23.0x 21.1xLuxoft Holding, Inc. $55.70 $1,870 $1,815 NA NA 18% 18% 3% 78% 15% 2.1x 1.7x 13.4x 10.5x 19.9x 16.3xGlobant S.A. $46.46 $1,631 $1,596 NA NA 26% 22% 0% 48% 16% 3.9x 3.3x 24.5x 19.2x 35.7x 29.8xHexaware Technologies Limited $5.34 $1,584 $1,516 13% 1.6 19% 12% 24% 15% 17% 2.5x 2.2x 14.4x 13.1x 20.2x 19.0xMindtree Limited $9.56 $1,567 $1,470 14% 1.6 8% 8% (9%) 9% 12% 1.8x 1.6x 14.2x 11.9x 22.6x 20.1xVirtusa Corporation $44.08 $1,294 $1,161 21% 1.4 19% 16% 81% 49% 7% 1.2x 1.1x 17.1x 12.1x 29.8x 22.3xPersistent Systems Limited $11.26 $901 $785 14% 1.3 15% 10% 15% 15% 16% 1.7x 1.5x 10.5x 8.9x 17.5x 14.9xPerficient, Inc. $19.07 $666 $728 NA NA (0%) 11% 9% 54% 14% 1.5x 1.4x 10.4x 9.2x 15.8x 13.7x

Median 10% 1.6 11% 8% 9% 13% 17% 2.1x 2.0x 11.3x 10.5x 18.9x 16.3x

22



Fina

ncia

l Saa

S


Company 12/31/17 Value Value Growth PEG 17E/16A NTM 17E/16A NTM 17E 17E 18E 17E 18E 17E 18EFinancial SaaSIntuit Inc. $157.78 $40,336 $40,434 15% 2.3 12% 10% 9% 32% 37% 7.4x 6.8x 20.1x 18.5x 34.7x 31.3xWorkday, Inc. $101.74 $21,365 $19,628 34% 3.1 35% 25% 91% 24% 16% 9.2x 7.4x 58.7x 47.4x 104.9x 95.1xThe Sage Group plc $10.79 $11,653 $12,643 10% 2.7 19% 11% 16% 19% 30% 5.5x 4.9x 18.2x 16.8x 26.6x 23.2xSS&C Technologies Holdings, Inc. $40.48 $8,333 $10,447 17% 1.3 10% 7% 13% 23% 41% 6.2x 5.9x 15.1x 13.6x 21.0x 18.5xPaycom Software, Inc. $80.33 $4,680 $4,648 28% 2.3 31% 26% 41% 18% 31% 10.8x 8.6x 35.0x 27.9x 63.8x 52.1xXero Limited $22.36 $3,071 $3,013 NA NA 33% 48% NA NA (11%) 11.9x 8.0x NM 55.2x NM NMEnvestnet, Inc. $49.85 $2,209 $2,418 15% 2.6 18% 16% 21% 27% 18% 3.6x 3.1x 20.1x 15.7x 38.3x 30.5xPaylocity Holding Corporation $47.16 $2,477 $2,379 28% 2.5 30% 23% 98% 32% 19% 7.9x 6.4x 42.3x 32.0x 70.4x 55.5xAlfa Financial Software Holdings PLC $7.23 $2,169 $2,143 NA NA 18% 17% 15% 18% 47% 17.9x 15.3x 37.9x 32.1x 0.6x 0.4xFinancial Engines, Inc. $30.30 $1,919 $1,721 15% 1.5 13% 7% 18% 6% 33% 3.6x 3.4x 10.9x 10.2x 22.1x 21.0xCoupa Software Incorporated $31.22 $1,719 $1,499 NA NA 36% 23% NA NA (7%) 8.3x 6.7x NM NM NM NMQ2 Holdings, Inc. $36.85 $1,536 $1,447 26% NA 29% 23% NA NA 5% 7.5x 6.0x NM 72.1x NM NMBlucora, Inc. $22.10 $1,019 $1,288 17% 0.9 10% 6% 6% 26% 20% 2.6x 2.4x 12.9x 11.0x 15.9x 13.2xBenefitfocus, Inc. $27.00 $844 $910 20% NA 10% 8% NA 46% 7% 3.5x 3.3x 50.0x 34.2x NM NM

Median 17% 2.3 19% 17% 17% 24% 19% 7.4x 6.2x 20.1x 27.9x 30.7x 26.9x

23

A leading independent, global investment bankGCA OVERVIEW

San Francisco I New York I Manchester I London I Milan I Zurich I Frankfurt I Munich I Tel Aviv I Mumbai I New Delhi I Singapore I Shanghai I Osaka I Tokyo

GLOBAL

Global reach with 15 offices in 10 key markets, with deep local roots to ensure hands-on support for our clients

TECH FOCUS

Leading technology advisor with strong networks in key tech hubs globally

GROWTHCOMPANIES

Expert advisor for cross-border transactions – ~33% of our deals involve cross-border outcomes

CROSS-BORDER

Strong expertise in advising growth companies and leading corporations in capital raising and M&A

400+

Over 400 M&A bankers and growth company experts in the U.S., Europe, and Asia

350+

Over 350 deals closed over the last 3 years

24

Selected FinTech experienceGCA OVERVIEW

We Advised TSYS

Acquisition of

We Advised Vindicia

Acquired by

We Advised Edo

Acquired byStrategic Investment

We Advised ControlExpert

Financial Advisor

Growth Investment

Sale of

Financial Advisor

to

Payments

Banking & Lending Tech Payments

Insurance Technology Payments Payments

We Advised Hitachi

Acquired by

We Advised GP Net

Financial Advisor

Growth Investment

We Advised CHX

Acquired by

Investor Group led by Casin Group

We Advised Blucora

Acquisition of

We Advised AWL

Acquired by Preferred Stock Investmentfrom

Financial Advisor

Payments

Investment Technology Insurance Technology Insurance Technology

Payments

Payments

Liquidity Venues

Acquired by

We Advised INS WebWe Advised TrustedID

Acquired by

We Advised Simple

Acquired by

We Advised Capsilon

Growth Investmentfrom

We Advised Skyslope

Majority sale to

Information Services Insurance Technology

Real Estate Tech

Banking & Lending Tech

Real Estate Tech

We Advised Commissions Inc

Acquired by

We Advised INS Web

Acquisition of

We Advised Finanzen.de

Acquired by


Real Estate Tech


Real Estate Tech

Payments

We Advised Market Leader

Acquired by

We Advised Radius

Financing from

Payments

Acquisition of

We Advised TSYS

The above transactions represent a compilation of past and current deals that GCAentities, including GCA Advisors, LLC, GCA Corporation and GCA Altium, have advised on.

Acquired byGrowth InvestmentFor Blockchain Technology

Financial Advisor


Acquired by

We Advised WorkMarket

Financial SaaS

Sold

To

We Advised RGI Shareholders


Tender Offer for

Asahi Fire & MarineInsurance Co.

We Advised Asahi (close pending)


25

CASE STUDY: RAKUTEN MAKES TENDER OFFER FOR ASAHI FIRE & MARINE INSURANCE

GCA acted as exclusive financial advisor to Asahi

GCA Value-Add

• GCA was retained as Asahi’s sell-side advisor in the execution of the transaction

› Positioned Asahi as the right opportunity with which Rakuten could deepen its ecosystem

› Managed a tight transaction timeline while maintaining confidentiality throughout the process

› Supported Asahi throughout deal structuring and negotiations

Background

• Founded in 1951, Asahi is a nonlife insurance company operating in Japan. Asahi Fire also operates a nonlife insurance agency business through its wholly owned subsidiary, Mirai no Hoken Co

• Founded in Tokyo in 1997 as an online marketplace, Rakuten has expanded its unique ecosystem to offer services in e-commerce, fintech, digital content, and communications to more than 1 billion members around the world

Transaction Rationale

• Asahi can build on its solid customer base by incorporating the members of Rakuten and its affiliated stores as new contractors

• Asahi can efficiently and effectively sell insurance products through multiple channels by leveraging Rakuten’s internet sales capabilities

• The acquisition offers tie-ups with companies of the Rakuten Group and enables innovations in Asahi’s traditional insurance products with its internet-based technology

• Since Asahi has many injury insurance practitioners familiar with the target audience, both companies realize synergy through exchange between its human resources and insurance-related businesses, providing a unique and attractive nonlife insurance product lineup

Insurance Segment


P&C


Distribution & CustomerEngagement

Asahi Fire & Marine Insurance Co.

Tender Offer for

~$412 MM

GCA Advised Asahi (close pending)

26

CASE STUDY: SALE OF RGI TO CORSAIR CAPITAL

GCA acted as exclusive financial advisor to the shareholders of RGI

GCA Value-Add

• GCA was selected as exclusive sell-side financial advisor due to our extensive experience in advising growing and profitable software companies, our expertise within the insurance space, and our broad network of contacts among global tech-focused private equity firms

Background

• RGI is the European market leader in the insurance software vertical, with 200+ installations serving 100+ clients

• RGI offers a state-of-the-art policy administration software suite with multi-country capabilities, suitable for all-tier insurers across verticals

Transaction Details

• Shareholders decided to sell RGI after having successfully completed the acquisition of France-based Kapia Solutions (September 2016), which provided RGI an integrated platform to cover life insurance clients

• RGI shareholders retained GCA to lead a structured sale process

• GCA ran a highly competitive process, approaching a targeted group of tech-focused global financial investors and a limited number of strategic buyers

• GCA supported RGI throughout all transaction phases, setting up all marketing documentation, coordinating business plan and VDD reports preparation, managing an in-depth due diligence process, helping with legal / financing documents, and handling SPA and management incentive plan negotiations

• Corsair Capital emerged as the fastest and most committed bidder

Sold

P&C

Data & Analytics

Policy Admin, Claims & Back Office

Insurance Segment


To

GCA Advised RGI Shareholders

Life Health

27

CASE STUDY: SALE OF CONTROLEXPERT TO GENERAL ATLANTIC

GCA acted as exclusive financial advisor to the shareholders of ControlExpert

GCA Value-Add

• GCA was retained as sell-side advisor to provide support in the preparation and execution of the transaction to the Company and its shareholders:

› Channeled strong inbound interest from numerous strategic buyers and financial sponsors

› Managed a tight transaction timeline while maintaining confidentiality throughout the process

› Coordinated due diligence work streams

Background

• ControlExpert is a disruptive technology service provider to the auto insurance industry and Europe’s largest InsurTech company

• The Company serves a broad blue-chip customer base of more than 100 enterprise accounts, including ~90% of all German auto insurances, as well as major leasing/fleet management companies and automotive OEMs

• ControlExpert’s cutting-edge technology allows more efficient organization of a traditionally very lengthy, costly and prone-to-fraud claims handling process

Transaction Details

• ControlExpert sought a strategic partner with an international footprint and relevant industry experience to accelerate its future growth in existing and new markets

• The shareholders were aiming to realize a valuation which reflects ControlExpert‘s strong growth, significant market potential and competitive positioning

• General Atlantic emerged as the preferred potential partner and was able to move swiftly during the due diligence phase

• The transaction was signed in May 2017 and closed June 2017

Strategic Investment

GCA Advised ControlExpert

Insurance Segment


P&C

Data & Analytics

Policy Admin, Claims & Back Office

INSURTECH SECTOR REPORT - GCA Altium · INSURTECH SECTOR REPORT Q4 2017. Strong sector and product...

Documents

Transcript of INSURTECH SECTOR REPORT - GCA Altium · INSURTECH SECTOR REPORT Q4 2017. Strong sector and product...