gca insurtech sector report q1 2019...ev/ ’20e revenue and at . 17.2x. ev/ ’20e ebitda, leading...

1

Insurance TechnologySector Summary

Q1 2020

2

COVID-19 STATEMENT

We at GCA are closely monitoring the effects of the Covid-19 pandemic. First and foremost, we are committed to ensuring our employees and families remain safe and healthy and we hope you, your employees and loved ones remain safe and healthy as well. We are also incredibly grateful for everyone in the medical community, as well as the numerous essential service providers keeping us safe and keeping our communities running in these difficult times.

While this is an unprecedented time, deals are continuing to take place. Each business—whether public or private, established or new, domestic or international—has a unique set of needs. With this in mind, we want to offer our expertise, insights and perspective to help you navigate this environment.

Please contact a member of our team to discuss the what we are seeing in the market and how you could best position your business at this time and in the future.

NOTE ABOUT THE CURRENT CLIMATE

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Key US Developments Select Implications for Insurance & InsurTech

MARKET UPDATE: COVID-19

» Most of the US under some form of stay-at-home order

» ~95% of the population / 45 of 50 states starting in mid-March

» As new cases reach a peak, governments carefully planning ways to re-open the economy

» Unemployment claims reach record high

» Cumulative 22m filed in the last 4 weeks (represents ~13% of the US labor force)

» Healthcare capacity under heavy stress

» Exponential increase in number of cases, hospitalizations and deaths

» Lack of resources (hospital beds, PPE, medical equipment, medical staff)

» Strong bipartisan fiscal action

» $2+Tn CARES act passed on 3/27 to provide relief to unemployed and small businesses

» Senate passed an additional ~$500Bn bill on 4/21 replenishing the small business loans program

» Unprecedented Federal Reserve response

» Fed reduced the fed funds rate to 0-0.25% on 3/15

» Introduced “unlimited” bond buying program

Insurance remains a must-have

» Consumers continue to view insurance as a requirement and had maintained coverage through 08/09 recession

» Expected to exhibit similar behavior in 2020

Certain sectors of Insurance more affected than others

» Life Insurance more exposed than P&C and Health and Medicare

» P&C insurers stand to increase profitability with less miles driven leading to lower claims

Online distribution models expected to benefit

» Consumers under stay-at-home orders unlikely to interact with independent brokers

» Increased comparison shopping by consumers to save costs

» Higher P&C profitability to lead to larger customer acquisition budgets

Insurance Software largely seen as resilient

» Mission critical software and recurring revenue nature expected to withstand market headwinds

» Winning new business remains an uncertainty

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EXECUTIVE SUMMARYQ1 2020 InsurTech wrap-up

Select Q1 Active Investors Select Q1 Active Buyers

Notes:Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 4/23/20.

Despite the challenging macro environment, InsurTech continues to be an active category, with ~$1Bn in financing volume and ~$400MM in M&A volume during Q1 2020

» Financings in Q1 2020 (81) were up from the same period in 2019 (72), but the aggregate amount raised declined by ~50% year-over-year

» M&A activity was tempered with 20 transactions during Q1 2020 as compared to 35 transactions during the same period in 2019

Large financing rounds took place in Q1 but most were completed in either January or February» Notable rounds in the quarter included PolicyGenius’ $100MM raise led by KKR/AXA and Justworks’ $50MM raise led by Union

Square Ventures/FirstMark, and EIS Group’s strategic financing (GCA advised)

Corporate VCs’ investments in the InsurTech space continued in Q1 as American Family Ventures invested in Clearcover and AXA invested in PolicyGenius

Q1 M&A activity kicked off slower than previous years and was heavily weighted towards European transactions» Notable deals included Lovell Minnick’s $276MM acquisition of UK-based Charles Taylor and Allianz’s acquisition of Germany-based

ControlExpert (GCA Advised)

In the public markets Data & analytics companies are trading at 5.7x EV/ ’20E Revenue and at 17.2x EV/ ’20E EBITDA, leading public company valuations

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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

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WE ARE PLEASED TO ANNOUNCE OURROLE AS EXCLUSIVE FINANCIAL ADVISOR TO:

GCA TRANSACTION ANNOUNCEMENT

NORTH AMERICA

– Expertise and relationships throughout high-growth private and public technology companies and private equity investors focused on this sector of the economy

– M&A, private capital and private funds advisory services

ASIA

– Strong relationships with leading global Japanese conglomerates and trade buyers

– Full-scope M&A advisory services

EUROPE

– Extensive experience and relationships advising leading PE firms, innovative technology companies and corporates throughout Europe and the Nordics

– M&A and debt advisory services

on its sale of

to

Strategic Financing

Q1 2020 Transactions

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INNOVATION ACROSS THEINSURANCE VALUE CHAIN

` ` `

` `

`

`Peer-to-Peer (P2P)

Ìnnovative & Specialty Insurance

Benefits Administration & Payroll Policy Management Tools & Software Claims Management Tools & Software

Insurance Data & Analytics IoT & Telematics: AutoÌoT & Telematics: Home

IoT & Telematics: Health

`Health Insurance

`Carrier Affiliated

Customer Origination

Mobile

Ònline Distribution & Comparison `Sales, Marketing & Engagement

INSURANCE VALUE CHAIN:Policy Admin,Claims &Back Office

InnovativeProducts, Pricing & Underwriting

Distribution & Customer Engagement

Data &Analytics

Notes:DISCLAIMER: This is 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.

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$460

$1,365

$1,636

$1,938

$1,497 $1,653

$2,033

$986

65 65

59

72 72

79

62

81

0

10

20

30

40

50

60

70

80

90

$0

$500

$1,000

$1,500

$2,000

$2,500

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

$7.1

INSURTECH DEAL DASHBOARD – FINANCING ACTIVITY

Quarterly Financing Activity ($MM)

LTM financing: $6.2Bn across 294 Deals

$21.0 $27.7 $26.9 $20.8 $20.9 $32.8

Average Deal Size

Ann. Date Company Selected

Investor(s)Amt.

Invested

Post-Money

Valuation

Segment / Value Chain

3/31 Undisc. Undisc. Undisc.

3/09 $40 $145

2/26 $51 NA

2/21 $38 $238

2/20 $34 $124

1/30 $100 $545

1/28 $50 $590

1/10 $84 $800

1/03 $50 $138

Select Q1 2020 Financing Transactions ($MM)

P&C Life Health Distribution & CustomerEngagement

Products, Pricing & Underwriting

Data & AnalyticsPolicy Admin, Claims & Back Office

Insurance Segment Insurance Value Chain

Q1 2020 saw accelerating InsurTech financing deals up ~13% YoY

Notes:Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 3/31/20.The GCA Deal Database was refreshed in Q1 2020 to incorporate an improved screening methodology. Accordingly, this data may diverge from previous reports.

$635MM$350MM$300MM$500MM$500MM$375MM$30MM

$12.2

$100MM

GCA Advised Transaction

99

CASE STUDY: GCA ADVISES EIS GROUP ON ITS STRATEGIC FINANCING

$1Bn+

<$1Bn

Selected clients by size

Net

Pre

miu

ms W

ritte

n

Best-of-Breed Cloud-Based Digital Insurance Platform

Transaction Overview

Strategic Financing

− On March 31, 2020, our client EIS Group, a provider of cloud-based software for the insurance industry, announced it has completed a growth equity financing from a lead strategic investor

− GCA acted as exclusive financial advisor to EIS, bringing in a strategic investor to accelerate the business, while also improving the capitalization table and balance sheet position

− Navigated through COVID-19 uncertainty to close during March 2020 lock-down

− Represents GCA’s second transaction for EIS Group

GCA Advised EIS Group

Top-Tier, Blue Chip Client Base with 100%(1) Client Retention

The EIS Suite supports the full lifecycle of an insurance policy, from client acquisition to claims

Secure, end-to-end cloud-based digital insurance platform

Supports all core insurance services and is LOB agnostic

Among first to support the use of emerging technologies, such as cloud services, chatbots and artificial intelligence

Company Overview

Headquarters: San Francisco, CA

Founded: 2008

CEO: Alec Miloslavsky

Description:

− Cloud-enabled and mobile-ready software for the P&C and LAH markets

− Full-stack insurance – multi-channel, multi-line integrated platform forfull insurance lifecycle

− Fast track implementations and bite sized upgrades

− Global presence – Operations in N. America, Latin America, Europe andAsia Pacific

− Recognized as a “visionary” in Gartner’s Magic Quadrant

Notes:1) Excludes folded business.

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GCA acted as exclusive financial advisor to RGI, a portfolio company of Corsair Capital, on the acquisition of Novum

CASE STUDY: POLICYGENIUS RAISES $100MM IN DEBT & SERIES D ROUND

Headquarters: New York, NY

Founded: 2012

Employees: ~200

CEO: Jennifer Fitzgerald

Description: Provider of an online insurance marketplace platform that helpsconsumers review, research, and compare quotes for various typesof insurance products

Current Investors

Policygenius HighlightsProduct Overview

Extensive Market Reach

Over 1MM shoppers per month across all 50 states

Provides services to over 12 different insurance verticals

Over $45Bn in placed coverage

Selected Deal Commentary

We're exceptionally proud of how Policygenius removes the complex and often misleading aspects of the insurance purchasing business entirely … with the support of our investors, we look forward to expanding our reach and product portfolio to broader financial wellness”

Jennifer Fitzgerald, CEO, Policygenius

Engaging content to inform consumers about insurance

Notes:Source: Press releases, company websites.

Series D

$100MM Raised

Allows consumers to compare insurance quotes

Consumers apply and purchase through Policygenius

1

2

3

Learn

Compare

Apply

Policygenius OverviewTransaction Overview

− On January 30, 2020, Policygenius announced that it raised $100MM through a combination of debt and Series D funding led by KKR and AXA Venture Partners with participation from a number of existing investors

− This financing will put the Company at a post-money valuation of ~$545MM, and bring its total funding amount to ~$151MM

− Policygenius plans to use its new funding for hiring as well as to broaden its consumer financial protection products

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Company Headquarters Founded Amt. Raised ($MM)(1) Company Description

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

Minneapolis, MN $1,0802015 Health insurance platform partnering with health systems and care partners to provide health plans

University Park, IL $1,7501983 Developer of cloud-based insurance software

Jersey City, NJ $9252014 Operator of PPO using data analysis and preventive care to improve health insurance

New York, NY $4802015P&C insurance platform designed to offer coverage quickly and affordably

INSURTECH LEADERS IN PRIVATE FUNDING

Columbus, OH $6282015Online car insurance platform calculating insurance premiums based upon driver behavior

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

Notes:Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 3/31/20.1) Includes debt and equity financing.

San Francisco, CA $5982013 Cloud-based human resources platform

San Diego, CA $7001946 Developer of collision and medical claims software

New York, NY $1,2802012 Provider of an online health insurance network designed to make insurance simple and intuitive

Top 10 Raised To-Date

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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 3/31/20.

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MOST ACTIVE INSURTECH INVESTORS – CORPORATE VENTURE CAPITAL

Company Headquarters Number of Investments Investments(1)

Paris, France 19Munich, Germany 15Munich, Germany 12

Madison, WI 11Springfield, MA 10

Paris, France 9Mountain View, CA 9

Columbus, OH 8

(2)

San Francisco, CA 4

New York, NY 6Shenzhen, China 5

Shuidi

6New York, NY

Notes:Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 3/31/20.1) AXA invests through XL Innovate, AXA Venture Partners, and Kamet Ventures.2) Allianz invests through Allianz X, Allianz Life Ventures, and Allianz Startups Accelerator.

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$730

$9,037

$953 $2,072

$151

$9,732

$1,069 $413

3029

3335

13

29

23

20

0

5

10

15

20

25

30

35

40

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

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

$276

Ann. Date Buyer Target Transaction

ValueSegment /

Value Chain

3/09 Undisc.

2/20 NA

2/19 NA

2/12 NA

1/30 $12

1/21 $276

1/08 $61

1/07 NA

1/07 $35

1/02 NA

INSURTECH DEAL DASHBOARD – M&A ACTIVITY

Quarterly M&A Activity ($MM) Select Q1 2020 M&A Transactions ($MM)

P&C Life Health Distribution & CustomerEngagement

Products, Pricing & Underwriting

Data & AnalyticsPolicy Admin, Claims & Back Office

Insurance Segment Insurance Value Chain

Largest Deal Size

Notes:Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 3/31/20.The GCA Deal Database was refreshed in Q1 2020 to incorporate an improved screening methodology. Accordingly, this data may diverge from previous reports.

LTM M&A: $11.4 Bn across 85 Deals

$3,500 $720Conf.$1,400$370$6,700$314

GCA Advised Transaction

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CASE STUDY: GCA ADVISES GA ON ITS SALE OF CONTROLEXPERT TO ALLIANZ

Control€xpert Key Product OfferingsTransaction Rationale

ControlExpert’s tech expertise combined with Allianz’s 130 years experience in claims management expected to drive significant innovation in the sector

ControlExpert to benefit from Allianz’s expertise, resources (especially in R&D), and international focus in achieving further growth in Germany and globally

Allianz plans to deploy AI in areas such as image recognition and fraud prevention to provide additional offerings to its customers

Leveraging ControlExpert’s capabilities will enable Allianz to increase speed of settling its automotive claims

Speed Check: Claim amount prediction in real time The application makes use of statistics from millions of

verified transactions – this way, the current vehicle damage can be classified according to comparable damage elements

Easy Claim: Easyclaim is the smart way of handling vehicle claims by

using any mobile device with internet access Within only a few hours the customer receives feedback

about the estimated repair costs for the vehicle and gets to select the repair workshop of their choice

1

2

3

4

Transaction Overview

Notes:Source: Press releases, company websites.

sold

GCA advised General Atlantic

to

− On March 9, 2020, General Atlantic, a premier global growth equity firm, announced its sale of ControlExpert to Allianz via Allianz X

− Headquartered in Langenfeld, Germany, ControlExpert is a multi-national market leader in Artificial Intelligence-supported automotive claims handling

− ControlExpert will maintain its business model and operational autonomy and retain its name, brand and product offering, and will continue to offer its services to existing clients

ControlExpert Company OverviewHeadquarters: Langenfeld, Germany

Employees: ~600

CEO: Nicolas Witte

Corporate History:

» 2002 - Founded

» 2017 - Majority investment by General Atlantic (GCA advised ControlExpert)

» 2020 – Acquired by Allianz X (GCA advised ControlExpert and General Atlantic)

Description:

» ControlExpert offers an end-to-end digital platform for companies to digitalizeand automate their motor claims management

» The Company partners with more than 130 insurances, car dealerships, repairshops, leasing and OEM partners at 17 locations across the world

» It has emerged as a clear leader in AI-based automotive claims processing inGermany and continues to show strong growth in international markets

16

(60.0%)(40.0%)(20.0%)

0.0%20.0%40.0%60.0%80.0%

100.0%120.0%140.0%160.0%

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

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

INSURTECH PUBLIC COMPANY VALUATION

LTM Share Price Performance

Public InsurTech Ecosystem

LTM Share Price Performance

(1)%11%

(5)%

13%

61%

(3)%

Online Distribution companies start off strong with Everquote & eHealth leading the pack

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

(5)% 13% 11% (1)% 61%(3)%

Notes:Source: S&P Capital IQ as of 4/23/20.

(3/31)

17

17.2x15.4x

14.6x13.2x

11.2x9.6x

0.0x

4.0x

8.0x

12.0x

16.0x

20.0x

Data &Analytics

BenefitsAdmin./Payroll

Brokerage InsuranceSoftware

OnlineDistribution

IT & BPOServices

5.7x

4.6x

3.7x

3.1x2.6x

1.6x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

Data &Analytics

Brokerage BenefitsAdmin./Payroll

OnlineDistribution

InsuranceSoftware

IT & BPOServices

INSURTECH PUBLIC COMPANY VALUATION

Enterprise Value / 2020E Revenue

Public InsurTech Ecosystem

Enterprise Value / 2020E EBITDA

2020E Rev. / 2020E EBITDA Multiples

3.7x / 15.4x 4.6x / 14.6x 5.7x / 17.2x 1.6x / 9.6x 3.1x / 11.2x 2.6x / 13.2x

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 4/23/20.

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SELECTED PUBLIC COMPANY DETAIL

Notes:Source: S&P Capital IQ as of 4/23/20.Figures based on S&P Capital IQ Consensus Estimates as appropriate. Multiples <0 and >100 considered NM

($MM, except per share data)Trading Metrics Operating Metrics

Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA MarginCompany 4/23/2020 Cap Value (EV) CY19A CY20E CY19A CY20E 19A/18A 20E/19A CY19A CY20E

Benefits Administration / Payroll

Automatic Data Processing $138.70 $59,884 $60,846 4.2x 4.0x 16.8x 15.4x 5% 5% 25% 26%

Paychex $66.82 $23,969 $24,106 6.0x 6.0x 14.7x 15.0x 17% (1%) 41% 40%

Paylocity Holding Corporation $87.44 $4,688 $4,626 9.0x 7.7x 31.7x 27.4x 24% 16% 28% 28%

HealthEquity $48.79 $3,468 $4,577 8.6x 5.9x 23.6x 18.1x 85% 47% 37% 32%

TriNet Group $45.85 $3,152 $3,327 3.6x 3.4x 9.1x 9.0x 4% 4% 39% 38%

Insperity $40.74 $1,578 $1,520 0.4x 0.3x 6.1x 6.2x 12% 4% 6% 5%

Benefitfocus $10.48 $344 $496 1.7x 1.6x 32.0x 22.4x 14% 5% 5% 7%

Castlight Health $0.68 $101 $63 0.4x 0.5x NM NM (8%) (7%) (8%) (12%)

Summary StatisticsMean 4.2x 3.7x 19.1x 16.2x 19% 9% 22% 21%

Median 3.9x 3.7x 16.8x 15.4x 13% 4% 27% 27%

Brokerage

Marsh & McLennan Companies $94.08 $47,425 $60,644 8.3x 7.9x 14.7x 13.8x 7% 5% 56% 57%

Aon Plc $181.59 $42,274 $50,099 4.6x 4.4x 15.8x 14.6x 7% 5% 29% 30%

Arthur J. Gallagher & Co. $77.59 $14,712 $19,249 2.7x 2.7x 14.8x 12.5x 7% 0% 18% 22%

Brown & Brown $35.70 $10,122 $11,334 4.8x 4.6x 15.9x 16.3x 18% 3% 30% 29%

Goosehead Insurance $44.94 $713 $723 8.6x 7.1x 31.6x 24.9x 39% 22% 27% 29%


Median 4.8x 4.6x 15.8x 14.6x 7% 5% 29% 29%

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SELECTED PUBLIC COMPANY DETAIL (CONT.)




Data & Analytics

RELX PLC $22.49 $43,286 $51,636 4.9x 5.3x 13.6x 14.9x 10% (7%) 36% 35%

Experian plc $28.85 $25,974 $30,193 6.0x 5.7x 17.8x 16.6x 3% 5% 34% 34%

Verisk Analytics $151.20 $24,563 $27,774 10.7x 9.9x 22.8x 21.2x 9% 8% 47% 47%

Equifax Inc. $132.49 $16,082 $19,264 5.5x 5.6x 16.4x 17.8x 3% (2%) 34% 31%

TransUnion $71.74 $13,615 $17,182 6.5x 6.6x 16.3x 17.2x 13% (2%) 40% 39%

Fair Isaac Corporation $303.88 $8,858 $9,770 8.2x 8.1x 25.7x 25.2x 12% 2% 32% 32%

CoreLogic $35.61 $2,814 $4,525 2.6x 2.6x 9.1x 8.8x (2%) (2%) 28% 30%

LiveRamp Holdings $33.07 $2,228 $1,482 5.2x 3.9x NM NM 30% 33% NM NM


Median 5.8x 5.7x 16.4x 17.2x 9% 0% 34% 34%

Insurance Software

Guidewire Software $88.34 $7,322 $6,693 9.7x 9.1x NM NM (6%) 6% 17% 13%

Sapiens International Corporation N.V. $22.88 $1,149 $1,205 3.7x 3.2x 21.9x 18.9x 12% 15% 17% 17%

Ebix $17.28 $527 $1,262 2.1x 1.9x 7.0x 6.6x 18% 10% 31% 29%

Majesco $5.54 $240 $198 1.4x 1.4x 17.1x 13.2x 17% 1% 8% 10%


Median 2.9x 2.6x 17.1x 13.2x 15% 8% 17% 15%

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SELECTED PUBLIC COMPANY DETAIL (CONT.)




IT & BPO Services

Accenture plc $172.31 $109,766 $108,183 2.5x 2.4x 14.8x 13.6x 8% 2% 17% 18%

Tata Consultancy Services Limited $23.14 $86,841 $83,058 3.8x 4.0x 14.4x 15.2x 8% (6%) 26% 27%

Infosys Limited $8.39 $35,599 $33,152 2.6x 2.7x 10.8x 11.4x 10% (3%) 24% 24%

Cognizant Technology Solutions Corporation $52.26 $28,672 $26,959 1.6x 1.6x 8.2x 8.7x 4% (2%) 20% 19%

CGI Inc. $59.30 $15,307 $17,482 1.8x 2.0x 10.1x 10.1x 11% (8%) 18% 20%

Wipro Limited $2.36 $13,438 $10,302 1.2x 1.3x 5.8x 6.7x 3% (6%) 21% 19%

ExlService Holdings $53.28 $1,831 $1,844 1.9x 1.8x 11.3x 9.9x 12% 3% 17% 18%

Mphasis Limited $8.85 $1,652 $1,566 1.3x 1.3x 7.3x 7.1x 11% (1%) 18% 19%

Mindtree Limited $9.57 $1,574 $1,506 1.4x 1.5x 10.8x 9.6x 11% (2%) 13% 15%

Virtusa Corporation $30.25 $903 $1,117 0.9x 0.9x 9.5x 8.1x 9% 0% 9% 10%

Crawford & Company $6.08 $322 $571 0.5x 0.6x 5.2x 5.4x (2%) (2%) 10% 10%

Summary StatisticsMean 1.8x 1.8x 9.8x 9.6x 8% (2%) 18% 18%

Median 1.6x 1.6x 10.1x 9.6x 9% (2%) 18% 19%

Online Distribution

eHealth $118.88 $3,003 $3,018 6.7x 5.0x 34.3x 23.2x 79% 35% 20% 21%

Moneysupermarket.com Group PLC $3.82 $2,049 $2,062 4.0x 4.2x 11.1x 12.2x 13% (4%) 36% 34%

EverQuote $38.05 $1,019 $973 4.0x 3.1x NM NM 49% 31% 3% 4%

QuinStreet $8.61 $445 $384 0.8x 0.7x 11.3x 7.8x 7% 7% 7% 10%

GoCo Group plc $0.90 $379 $480 2.3x 2.4x 11.4x 10.3x 7% (2%) 20% 23%


Median 4.0x 3.1x 11.4x 11.2x 13% 7% 20% 21%

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

Over a third of all transactions

Global platform:25 offices in key markets across

America, Asia and Europe

Broad spectrum of clients:

Leadingconglomerates, 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 TechnologyWe Advised Asahi

Insurance TechnologyInsurance Technology

Selected FinTech experienceGCA OVERVIEW

Insurance Technology Transaction

Insurance TechnologyReal Estate TechReal Estate Tech

Insurance Technology

PaymentsInsurance TechnologyProperty 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 Corporation and GCA Altium, have advised on.

Insurance TechnologyInsurance Technology

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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.

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gca insurtech sector report q1 2019...ev/ ’20e revenue and at . 17.2x. ev/ ’20e ebitda, leading...

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