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.