Insurance Technology Sector Summary Q3 2020
1 EXECUTIVE SUMMARY Q3 2020 InsurTech wrap-up 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
Notes: Source: GCA Deal Database, CB Insights, PitchBook, S&P Capital IQ as of 10/30/20. 2 GCA INSURANCE TECHNOLOGY OVERVIEW Strong sector and product expertise across InsurTech REPRESENTATIVE FOCUS AREAS
Insurance is behind the curve in enterprise-level core Companies that focus on customer engagement (e.g., customer POLICY ADMIN, CLAIMS & technology, and InsurTech companies help modernize DISTRIBUTION & acquisition, sales and marketing, mobile solutions and other direct- BACK OFFICE these operating systems – in particular, policy, claims, CUSTOMER ENGAGEMENT to-consumer insurance channels) or that offer solutions to improve and billing software systems. distribution or facilitate engagement with the end consumer.
Companies that improve existing methodologies for pricing or Companies that provide analytic capabilities to insurance INNOVATIVE PRODUCTS, underwriting risk, or actual insurance companies that bring DATA & ANALYTICS companies to help them operate more efficiently and/or PRICING, UNDERWRITING technology to traditionally low-tech areas by using newer or make better underwriting and claims decisions. superior core systems and/or online/mobile offerings. INSURTECH TEAM
Chris Gough John Lambros Sascha Pfeiffer Rushi Bhanderi Martin Rezaie Managing Director Managing Director Managing Director Vice President Vice President cgough jlambros sascha.pfeiffer rbhanderi martin.rezaie @gcaglobal.com @gcaglobal.com @gcaaltium.com @gcaglobal.com @gcaaltium.com 415.318.3658 212.999.7083 +49 177.741.5643 212.537.5482 +49 151.4610.6960
RECENT TRANSACTIONS
3 INSURTECH DEAL DASHBOARD – FINANCING ACTIVITY Q3 2020 saw an acceleration of InsurTech financing volume: up 65% from Q2
Quarterly Financing Activity ($MM) Select Q3 2020 Financing Transactions ($MM)
LTM financing: Post- Segment / Ann. Selected Amt. Company Money Value $7.2Bn across 282 Deals Date Investor(s) Invested 81 Valuation Chain 79 80 9/23 $250 $2,250 72 72
62 9/22 $500 N/A 59 59
9/17 $500 N/A
9/2 $54 N/A $2,577
$1,938 $2,033 8/20 $230 N/A $1,636 $1,653 $1,497 $1,560 8/13 $35 N/A $986
8/3 $31 N/A
Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 7/21 $150 $1,500 Average Deal Size
$27.7 $26.9 $20.8 $20.9 $32.8 $12.2 $26.4 $32.2 7/6 $130 N/A
Featured Deal Insurance Segment Insurance Value Chain
$500MM $500MM $300MM $350MM $635MM $100MM $225MM $500MM P&C Life Health Other Distribution & Customer Products, Pricing & Policy Admin, Claims Data & Analytics Engagement Underwriting & Back Office
Notes: Source: GCA Deal Database, CB Insights, PitchBook, S&P Capital IQ as of 10/1/20. 4 SELECTED RECENT INSURTECH FINANCINGS
Founded Headquarters Total Funds Raised ($MM) 2016 Palo Alto $636 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 Raised $250MM in insurance online at competitive rates. Series D funding on
9/23/2020
Selected Investors
Founded Headquarters Total Funds Raised ($MM) 2015 Minneapolis $1,576 Operator of a health insurance service platform that partners with health systems and care partners to provide health plans Raised $500MM in and connected healthcare experience to support relationships between consumers and care providers, enabling users to access affordable health insurance plans. Series E funding on
9/22/2020
Selected Investors
Founded Headquarters Total Funds Raised ($MM) 2015 Palo Alto $360 Provider of home insurance services designed to offer smart coverage for homeowners. The company offers plans which are Raised $150MM in designed using modern technology to provide a simpler process, smarter coverage and a completely new approach, enabling Series E funding on homeowners and renters to get better, cheaper and modern home insurance.
9/22/2020
Selected Investors
Notes: Source: GCA Deal Database, CB Insights, PitchBook, S&P Capital IQ as of 10/1/20. 5 INSURTECH LEADERS IN PRIVATE FUNDING Top 10 Raised To-Date Most Recent Amt. Raised Since Company Headquarters Founded Financing Inception ($MM) Company Description Health insurance platform partnering with health Minneapolis, MN 2015 2020 $1,576 systems and care partners to provide health plans
Provider of an online health insurance network New York, NY 2012 2020 $1,494 designed to make insurance simple and intuitive
Operator of PPO using data analysis and Peterborough, UK 1991 2018 $949 preventive care to improve health insurance
Operator of an online insurance platform for small Palo Alto, CA 2016 2020 $636 businesses
San Francisco, CA 2013 2015 $596 Cloud-based human resources platform
Cloud-based payroll, benefits and HR San Francisco, CA 2011 2019 $521 management platform
Cloud-based self-insurance platform for all health San Francisco, CA 2013 2019 $469 plans
Developer of an aggregator platform intended to Gurugram, India $443 2008 2020 offer insurance products
Provider of personalized healthcare plans Eagan, MN 2017 2018 $369 intended to improve the quality of patient care
Provider of home insurance services designed to Palo Alto, CA 2015 2020 $360 offer smart coverage for homeowners
Notes: Source: GCA Deal Database, CB Insights, PitchBook, S&P Capital IQ as of 10/1/20. 6 MOST ACTIVE INSURTECH INVESTORS – CORPORATE VENTURE CAPITAL
Company Headquarters Number of Investments Investments
(1) Paris, France 19
(2) Munich, Germany 15 Munich, Germany 14 Madison, WI 13 New York, NY 11 Springfield, MA 10 Paris, France 9 Mountain View, CA 9 Columbus, OH 9 New York, NY 6 Frankfurt, Germany 5
Shenzhen, China 5 Shuidi
Notes: Source: GCA Deal Database, CB Insights, PitchBook, S&P Capital IQ as of 10/1/20. 2) Allianz invests through Allianz X, Allianz Life Ventures, and Allianz Startups Accelerator. 7 1) AXA invests through XL Innovate, AXA Venture Partners, and Kamet Ventures. SELECTED ACTIVE INSURTECH INVESTORS
Investor Type Investor Logos
Accelerators / Seed
Venture Capital / Private Equity
Corporate Investors
Alternative Investors
Notes: Source: GCA Deal Database, CB Insights, PitchBook, S&P Capital IQ as of 10/1/20. 8 INSURTECH DEAL DASHBOARD – M&A ACTIVITY
Quarterly M&A Activity ($MM) Select Q3 2020 M&A Transactions ($MM)
Ann. LTM M&A: Transaction Segment / Date Buyer Target $12.4 Bn across 85 Deals Value Value Chain
$2,072 $9,732 $10,505 9/22 NA
9/17 $900 35 33 9/9 $14 29
8/26 $30 23 22 21 8/13 $5,300 19
8/8 $729 13 $1,069 $953 7/20 $421
$413 $449 7/16 NA $2,072 $151 $9,732 $10,505
Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 7/7 NA
Largest Deal Size
$370 $1,400 Conf. $3,500 $720 $276 $213 $5,300 7/1 NA
Insurance Segment Insurance Value Chain
P&C Life Health Other Distribution & Customer Products, Pricing & Policy Admin, Claims Data & Analytics Engagement Underwriting & Back Office
Notes: Source: GCA Deal Database, CB Insights, PitchBook, S&P Capital IQ as of 10/1/20. 9 SELECTED RECENT M&A TRANSACTIONS
Founded Headquarters Founded Headquarters acquired 2006 California 1995 Wisconsin Leading private investment firm that targets the technology, Provider of enterprise automation SaaS for the employee for $900MM industrials and consumer sectors. The firm seeks to partner benefits and property and casualty insurance distribution with world-class management teams by providing patient, industry. The platform offers agency management, claims data 9/17/2020 long-term capital to dynamic businesses that can benefit from and benefit plan analysis, compliance, risk management and Clearlake's operational improvement approach. client communication among other services.
Founded Headquarters Founded Headquarters acquired 1981 Florida 1969 Colorado Diversified technology company that operates out of four Developer of cloud-based insurance software and services. for $5.3Bn segments: application software; network software and The software effectively manages the business with complete systems; measurement and analytical solutions; and process integrated applications and identifies opportunities for growth 8/13/2020 technologies. Roper operates businesses that design and and makes data-driven decisions, enabling clients to manage develop software and engineered products and solutions for a and grow their business and reduce compliance risks across variety of niche end markets. the entire producer lifecycle.
Founded Headquarters Founded Headquarters acquired 2008 Illinois 1982 New Jersey Leading private equity firm focused on the software and Developer of software solutions for property and casualty, life for $729MM technology-enabled services sectors. The firm partners with a and annuity, and Pensions Group Employee Benefits providers company's management team to implement operating best allowing them to manage policy management, claims 8/8/2020 practices, invest in growth initiatives and make accretive management, distribution management and billing functions. acquisitions intended to accelerate revenue and earnings.
Notes: Source: GCA Deal Database, CB Insights, PitchBook, S&P Capital IQ as of 10/1/20. 10 CASE STUDY: LEMONADE (NYSE: LMND) CONDUCTS AN IPO ON THE NYSE
IPO Summary Situation Overview Listing Date: 7/2/2020 − Lemonade filed for its IPO on the NYSE on June 8, 2020 and shares Ticker: NYSE: LMND began trading on July 2, 2020 − The company has been widely followed in the Insurtech sector as one Shares: 11MM of the most promising upstarts Offer Price: $29 » Founded in 2015, Lemonade provides P&C insurance directly Gross Proceeds: $319MM conducts an IPO on the to consumers, harnessing mobile solutions and AI to provide users with a fast, affordable, and hassle-free insurance Implied Equity Value (IPO): $1.6Bn experience (Below last raise) » Run by CEO and co-founder Daniel Schreiber and Prospectus File Date: 6/8/2020 headquartered in New York, NY Filing Range: $26 - $28 » Lemonade has revenues of $83MM in the 12 months ending July 2020 March 31, 2020 and is unprofitable − Path to IPO » Prior to its IPO, the company had raised $480MM, with a Valuation History post-money value of $2.1Bn on April, 11, 2019 ($MM) » On June 25th, the company provided an initial filing range of Valuation Raised to Date Size Key Investors $23 - $26 per share, increased range to $26 - $28 on July 1, (Post) Date and eventually priced at $29 before trading commenced on 3/11/19 300 2,100 480 July 2, 2020 » Implies an equity value of $1,592MM and an enterprise value of $1,071MM 3/12/18 120 570 180 » Co-founders will retain 57% ownership post-IPO with Softbank (22%) and Sequoia (8%) being other major 12/02/16 33 208 60 shareholders − IPO » Shares closed up 139% at $69.41 at market close on July 2 8/23/16 14 91 27 (1st trading day) » Shares traded up to a high of $96.51 in the days following 12/08/15 13 32.5 13 IPO but have since traded down to ~$50 (~$2.8Bn Market cap)
Notes: Source: Public filings, Pitchbook, CapitalIQ, Company website. 11 CASE STUDY: LEMONADE (NYSE: LMND) CONDUCTS AN IPO ON THE NYSE
Lemonade Model Differentiation Lemonade Customers Become More Valuable over Time − ~70% of new Lemonade customers are under 35, and ~90% are not Traditional P&C Insurance Lemonade switching from another carrier - Time consuming policy - Digital and mobile native − Customers “graduate” from renters insurance to more expensive and acquisition and claim filing platform simplifies the profitable insurance types processes policy selection and claims − 10% of condo insurance customers in March 2020 graduated from renters insurance, increased from 1.5% in March 2017 - Profits stem from claim processes payouts, leading to conflicts Vs. - Flat management fee, with Current Lemonade Offering Umbrella of interest leftover premiums donated Future Offering Life - Typically acquire customers to charity Auto via a “Switch and Save” - Attract young and first-time Homeowners model, driving down insurance customers, facing Condo premiums and profits less competition Renters
Key Stats and U.S. Geographic Coverage (Q1 2020) Key Financials ($MM)
Number of Customers: 729,525 Revenue EBITDA Customer Retention Rate (1): 75% $67 Avg. Annualized Premium per Customer: $183 Annualized Gross Written Premiums: $152MM Gross Loss Ratio: 72% $23
Lemonade Coverage (2) ($52)
($106) 2018 2019
Notes: Source: Public filings, Pitchbook, CapitalIQ, Company website. 2) Lemonade coverage is additionally available in Germany and the Netherlands. 12 1) Retention Rate represents the percentage of customers that remain after 12 months. CASE STUDY: GOHEALTH (NASDAQ: GOCO) CONDUCTS AN IPO ON THE NASDAQ
IPO Summary Situation Overview Listing Date: 7/15/2020 − GoHealth filed for its IPO on the NASDAQ on June 19, 2020 Ticker: NASDAQ: GOCO − While founded in 2001, the company has achieved significant scale and traction recently Shares: 43.5MM » GoHealth operates a health insurance portal offering a Offer Price: $21 variety of health insurance plans and allows customers to Gross Proceeds: $913MM compare numerous insurance options Implied Equity Value: $6.6 Bn » Run by CEO and co-founder Clint Jones and headquartered in Prospectus File Date: 6/19/2020 Chicago, IL Filing Range: $18 - $20 » GoHealth has revenues of $611MM in the 12 months ending March 31, 2020, with an EBITDA of $82.9MM Valuation History Key Financials ($MM) ($MM) Revenue EBITDA $540 Valuation Raised to Date Size Key Investors (Post) Date
3/20/20 117 NA NA
$226 9/13/19 Undisc. ~1,500 NA
$55 6/07/12 50 NA 50 $30
2018 2019 Partners IPO Commentary
“ This is day one as a public company. Our mission is to improve access to healthcare, and we've got a long way to go. ” Brandon Cruz, Co-Founder & Chief Strategy Officer, GoHealth
Notes: Source: Public filings, Pitchbook, CapitalIQ, Company website. 13 CASE STUDY: DUCK CREEK (NASDAQ:DCT) CONDUCTS AN IPO ON THE NASDAQ
IPO Summary Situation Overview Listing Date: 8/14/2020 − Duck Creek Technologies filed for its IPO on the NASDAQ on July 23, 2020 and began trading on Aug 14, 2020 Ticker: NASDAQ: DCT » Offer price was raised to $27 per share from initial listing range of $19 Shares Offered: 17.3MM to $21 Offer Price: $27 » Shares traded up 48% on debut ending the day at $40, and have Gross Proceeds: $466MM conducts an IPO on the remained around this level since » Current valuation represents 23.9x EV/2020E Revenue(1) Implied Equity Value: $3.5Bn − Founded in 2000, Duck Creek was acquired by Accenture in 2011 and Prospectus File Date: 7/23/2020 subsequently acquired by Apax in 2016 Filing Range: $23 - $25 − The company is based in Boston and provides a leading SaaS platform for the P&C industry, helping its carrier partners digitize operations Financing History Key Financials ($MM) ($MM) Revenue EBITDA Date Amt. Raised Key Investors $206 $171 6/10/20 230
11/13/19 120
8/1/16 Undisc. LBO by: $7 $8
Selected Partners 2019A 2020E 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
Notes: Source: Public filings, PitchBook, Capital IQ, Company website. 14 (1) As of 10/30/2020. CASE STUDY: MEDIAALPHA (NYSE:MAX) CONDUCTS AN IPO ON THE NYSE
IPO Summary Situation Overview Listing Date: 10/28/20 − MediaAlpha filed for its IPO on the NYSE on October 5, 2020, and began trading on October 28 Ticker: NYSE: MAX » Sold 6M primary, yielding $119MM, and 3M secondary shares at an Shares Offered: 9.3MM initial price of $19 per share Offer Price: $19 » Shares traded up 64% on debut ending the day at $31, and have further risen to $34 since Gross Proceeds: $177MM − Founded in 2011 by current CEO Steven Yi, the company sold a majority Implied Equity Value: $1.1Bn stake to White Mountains in 2014 Prospectus File Date: 10/5/20 − MediaAlpha is based in Los Angeles and provides a digital advertising platform that connects brands with consumers Filing Range: $18 - $20 » While insurance represents the company’s first and largest vertical, it has also expanded into the education and personal finance categories Financing and Valuation History Key Financials ($MM) ($MM) Revenue EBITDA Valuation Date Amt. Raised Key Investors (Post) $480 $408 9/23/20 210 NA $297
2/26/19 100 NA
2/26/19 85 350 $31 $31 $49
Selected Partners 2018A 2019A 2020 LTM 6/30 IPO Commentary “ We built a technology platform that gives insurance carriers and distributors the transparency they need to target their best customers and maximize the value of every consumer interaction.” Steve Yi, Co-Founder & CEO, MediaAlpha
Notes: Source: Public filings, PitchBook, Capital IQ, Company website. 15 INSURTECH PUBLIC COMPANY VALUATION Market values have largely recovered from March 2020 lows LTM Market Capitalization Performance 60.0%
40.0%
23% 20.0% 12% 10% 6% 0.0% 4% (4%) (20.0%)
(40.0%) Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Benefits Admin & Payroll Brokerage Data & Analytics Insurance Software IT & BPO Services Online Distribution Public InsurTech Ecosystem
Benefits Admin. / Payroll Brokerage Data & Analytics Insurance Software IT & BPO Services Online Distribution
(3.5%) 12.2% 10.1% 6.0% 22.6% 3.8%
LTM Market Cap Performance
Notes: Source: S&P Capital IQ as of 10/30/20. 16 INSURTECH PUBLIC COMPANY VALUATION Selected InsurTech subsectors and multiples Enterprise Value / 2020E Revenue Enterprise Value / 2020E EBITDA
8.0x 24.0x 7.0x 6.9x 20.7x 7.0x 20.0x 17.7x 6.0x 5.2x 16.0x 15.2x 15.0x 4.6x 13.8x 5.0x 13.1x 4.0x 12.0x
3.0x 2.6x 2.6x 8.0x 2.0x 4.0x 1.0x
0.0x 0.0x Data & Insurance Brokerage Benefits Online IT & BPO Insurance Data & Benefits Brokerage IT & BPO Online Analytics Software Admin./Payroll Distribution Services Software Analytics Admin./Payroll Services Distribution Public InsurTech Ecosystem
Benefits Admin. / Payroll Brokerage Data & Analytics Insurance Software IT & BPO Services Online Distribution
4.6x / 15.2x 5.2x / 15.0x 7.0x / 17.7x 6.9x / 20.7x 2.6x / 13.8x 2.6x / 13.1x
2020E Rev. / 2020E EBITDA Multiples
Notes: Source: S&P Capital IQ as of 10/30/20. 17 SELECTED PUBLIC COMPANY DETAIL ($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 $2,170 25.8x 19.2x NM NM 40% 34% 27% 25%
Summary Statistics Mean 9.7x 8.3x 17.3x 15.4x 16% 8% 32% 34% Median 5.7x 5.2x 17.2x 15.0x 7% 3% 29% 30%
Notes: Source: S&P Capital IQ as of 10/30/20. 18 Figures based on S&P Capital IQ Consensus Estimates as appropriate. Multiples <0 and >50 considered NM SELECTED PUBLIC COMPANY DETAIL (CONT.) ($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 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 $1,228 2.1x 2.5x 6.8x NA 17% (14%) 31% 0%
Summary Statistics Mean 11.7x 10.1x 17.1x 20.7x 8% 8% 16% 9% Median 7.6x 6.9x 17.1x 20.7x 12% 12% 17% 8%
Notes: Source: S&P Capital IQ as of 10/30/20. 19 Figures based on S&P Capital IQ Consensus Estimates as appropriate. Multiples <0 and >50 considered NM SELECTED PUBLIC COMPANY DETAIL (CONT.) ($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 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%
Notes: Source: S&P Capital IQ as of 10/30/20. 20 Figures based on S&P Capital IQ Consensus Estimates as appropriate. Multiples <0 and >50 considered NM GCA: A LEADING INDEPENDENT GLOBAL INVESTMENT BANK Global investment bank providing strategic M&A and capital markets advisory services to growth companies and market leaders STOCKHOLM
MANCHESTER LEEDS PARIS FRANKFURT BIRMINGHAM MUNICH KYOTO NAGOYA ZURICH TOKYO LONDON SHANGHAI NEW YORK LAUSANNE MILAN NEW DELHI OSAKA TEL AVIV SAN FRANCISCO FUKUOKA TAIPEI MUMBAI SINGAPORE HO CHI MINH CITY
Global platform: Sector expertise: Exceptional cross- 25 offices in key Experienced team: Expansive coverage border capabilities: markets across Over 500 employees and deep ~50% of all America, Asia and across the globe specialization transactions Europe Broad spectrum Diversified Strong reputation of clients: business model: and track record: Leading Geographically High number of conglomerates, top balanced, synergistic repeat clients and private equity firms and complementary referrals and emerging high- focus areas growth companies
Notes: GCA operates as GCA in America and Asia, and as GCA Altium in Europe. 21 GCA OVERVIEW Selected FinTech experience
Insurance Technology Insurance Technology Real Estate Tech Insurance Technology Real Estate Tech Insurance Technology Insurance Technology
Real Estate Tech Real Estate Tech Banking & Lending Tech Real Estate Tech Insurance Technology Payments Insurance Technology
We Advised Asahi Insurance Technology Insurance Technology Investment Technology Liquidity Venues Payments Insurance Technology Insurance Technology
Growth Investment
Financial SaaS Insurance Technology Payments Real Estate Tech Banking & Lending Tech Payments Insurance Technology
Notes: Insurance Technology Transaction The above transactions represent a compilation of deals that GCA entities, 22 including GCA Advisors, LLC, GCA Advisors Corporation and GCA Altium, have advised on. GCA is a global investment bank that provides strategic M&A, capital markets and private funds advisory services to growth companies and market leaders. The firm offers worldwide coverage with over 500 professionals in 25 offices across America, Asia and Europe. Built by the people that run the business, GCA is a firm of experts who focus on deals that require commitment, original perspective, skill and exceptional networks. www.gcaglobal.com
This report was prepared by GCA Advisors, LLC, a registered broker-dealer and member of FINRA and SIPC. Sources of data include Capital IQ and other news organizations. Information obtained from third- party sources is considered reliable, but we do not guarantee that the information herein is accurate and complete. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past performance does not guarantee future results. Recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other decision.
DISCLAIMER: This report includes logos or other words or devices that may be registered trademarks of their respective owners. Such use is solely for purposes of convenience in referring to the trademark owners and their products/services. This report and its contents are not endorsed by, sponsored by or affiliated with any trademark owners. GCA Advisors, LLC and its affiliates are not affiliated with any 23 trademark owner but may provide financial services to one or more trademark owners or their affiliates.