Insurance Services Active Acquirer Report

AUGUST 2019 ACTIVE ACQUIRER REPORT | INSURANCE SERVICES

Objective Capital Partners is pleased to present its Insurance Services Active Acquirer Report for Q3 2019.

Whether preparing for sale or strategizing for future exit options, knowing the active acquirers and investors within your industry niche is an important factor to achieving your transaction goals. Decades of experience and tenacious advocacy for our clients has allowed us to create and maintain relationships with active acquirers and investors in our industries of focus.

We have included recent acquirer trends, strategic insights including key investment drivers, transaction information, and a list of active buyers, to help you stay ahead in this dynamic and constantly evolving industry. Within the following summary report, we highlight a larger strategic acquirer, a mid-sized strategic acquirer, and one private equity firm that have been active in the space. We hope you will find this report to be informative and that it serves as a valuable resource to you in staying abreast of the market. If there is additional content you would find useful for future updates, please donʼt hesitate to call or email us with your suggestions. We look forward to staying in touch with you.

Regards,

Trever Acers* Managing Director 3 636 Nobel Drive, Suite 160 San Diego, CA 92122 [email protected] (858) 663-8662

Additional Business Services Contacts Channing Hamlet* Michael Kim* Managing Director Managing Director [email protected] [email protected] (310) 570-2721 (858) 264-6580

*Registered Representative of BA Securities, LLC.

Business Services Industry Sectors Building | Human Capital | Insurance | IT | Transportation & Logistics

O b j e c t i v e C a p i t a l P a r t n e r s w w w . o b j e c t i v e c p . c o m S a n D i e g o | O r a n g e C o u n t y | S e c u r i t i e s a n d I n v e s t m e n t B a n k i n g S e r v i c e s a r e o f f e r e d t h r o u g h B A S e c u r i t i e s , L L C M e m b e r F I N R A , S I P C . O b j e c t i v e C a p i t a l P a r t n e r s a n d L o s A n g e l e s | B o s t o n | N e w Y o r k B A S e c u r i t i e s , L L C a r e s e p a r a t e a n d u n a f f i l i a t e d e n t i t i e s . ACTIVE ACQUIRERS | INSURANCE SERVICES

Arthur J. Gallagher & Co (NYSE: AJG) Arthur Gallagher & Co together with its subsidiaries including Gallagher Basset provides insurance, risk management, TPA services, and consulting services to businesses, communities, and people across the world.

Strategic Focus Similar to other active acquirers in the TPA sector, Gakkagher is focused on acquiring attractive TPA businesses with a strong presence in a specific geography and longstanding customer relationships. AJG believes that with its resources, margins can be improved and clients can be better served as these smaller TPA service providers become part of a larger entity.

Recent Acquisitions: Fullerton Health Corporate Services, Gillis, HMG-PCMS, RPA Insurance

Charles Taylor (LON: CTR) Though the claims administration industry is bifurcated between the largest players and a number of small shops, one mid-size company which has been an active acquirer is Charles Taylor. The Company is a leading provider of professional services to clients in the global insurance marketplace including Management, Adjusting, and Insurance Support Services. Strategic Focus Charles Taylor pursues companies that offer three advantages: expanded geographic presence, bolstered support to specific end markets, and expanding offerings within its core professional service competencies. The Company has shown flexibility in this strategy as it frequently acquires smaller companies which it then looks to support and grow organically within its larger ecosystem.

Recent Acquisitions: Aasgard Summit Management, Criterion Group, FGR Group, Metro Risk Management Genstar Capital Genstar Capital is a 35-person private equity find with $17 billion in assets under management and is currently investing out of its ninth fund. Genstar focuses on middle market companies headquartered in North America in the Software, Financial Services, Healthcare, and Industrial Technology sectors. Strategic Focus Genstar Capital has collaborated with Aquiline Capital Partners to pursue a rollup strategy through their platform company Ascensus. Within Ascensus, a TPA division has been created to acquire and merge 19 Third Party Administrators to date specifically focused in 401k administration where many of its most recent acquisitions have been focused. Recent Acquisitions: Orion Risk Management, Pension Strategies, PenSys R e p o r t d a t a s o u r c e d f r o m P i t c h b o o k

O b j e c t i v e C a p i t a l P a r t n e r s w w w . o b j e c t i v e c p . c o m S a n D i e g o | O r a n g e C o u n t y | S e c u r i t i e s a n d I n v e s t m e n t B a n k i n g S e r v i c e s a r e o f f e r e d t h r o u g h B A S e c u r i t i e s , L L C M e m b e r F I N R A , S I P C . O b j e c t i v e C a p i t a l P a r t n e r s a n d L o s A n g e l e s | B o s t o n | N e w Y o r k B A S e c u r i t i e s , L L C a r e s e p a r a t e a n d u n a f f i l i a t e d e n t i t i e s . BUYERS LIST | INSURANCE SERVICES

While we have chosen to highlight three relevant acquirers above, there are numerous active buyers in the space that you should be aware of.

Strategic Acquirers Private Equity Investors

Arthur J. Gallagher & Company Aquiline Capital Partners Charles Taylor Genstar Capital Aflac Stone Point Capital Dunbar, Bender & Zapf The Carlyle Group (NAS: CG) Employers Mutual Casualty Company Summit Partners First Nonprofit Group Apax Partners LifeShield National Insurance HPS Investment Partners Marsh & McLennan Agency Madison Dearborn Partners Priority Health Managed Benefits Kelso Private Equity Safelite Group BV Investment Partners UnitedHealth Group CenterOak Partners Beecher Carlson Cortec Group Safety National Casualty Corporation HarbourVest Partners United Services Automobile Association Atlas Merchant Capital Allianz Global Corporate & Specialty China Minsheng Investment Allied World Group Assurant Incline Equity Partners Brown & Brown Insurance Kohlberg & Company Capstone Performance Systems Manulife Capital Comerica Bank NaviMed Capital Comstock Mining Trinity Hunt Partners CopperPoint Mutual Insurance Ardian Coverys Lee Equity Partners HCC Insurance Holdings M33 Growth Marsh Tenex Capital Management Trilogy Search Partners Vulcan Capital 1251 Capital Group

R e p o r t d a t a s o u r c e d f r o m P i t c h b o o k

O b j e c t i v e C a p i t a l P a r t n e r s w w w . o b j e c t i v e c p . c o m S a n D i e g o | O r a n g e C o u n t y | S e c u r i t i e s a n d I n v e s t m e n t B a n k i n g S e r v i c e s a r e o f f e r e d t h r o u g h B A S e c u r i t i e s , L L C M e m b e r F I N R A , S I P C . O b j e c t i v e C a p i t a l P a r t n e r s a n d L o s A n g e l e s | B o s t o n | N e w Y o r k B A S e c u r i t i e s , L L C a r e s e p a r a t e a n d u n a f f i l i a t e d e n t i t i e s . AUGUST 2019