InsurTech Sector Report Q3 2017 - GCA Altium … · 1) National Association of Insurance Commissioners. 2) Accenture Technology Vision for Insurance 2017. 3) Insurance Information

INSURTECH SECTOR REPORT

Q3 2017

2

A leading independent, global investment bank

GCA 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 – but deep local roots ensure close, hands-on support for our clients

FINTECH & RELATED

Leading advisor in FinTech and related sectors with strong networks in key tech hubs, including Silicon Valley

CROSS-BORDER

Expert advisor for cross-border transactions: ~33% of our deals involve cross-border participation

GROWTHCOMPANIES

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

400+

Over 400 experienced professionals in the U.S., Europe and Asia

350+

Over 350 deals closed in last 3 years

3

Selected recent FinTech experience

GCA OVERVIEW

We Advised the Buyer

Acquired bySale of 54% stake in

We Advised GP Net

to

Financial Advisor

Series B Financing

We Advised the Seller

Acquired by

Investor Group led by Casin Group


Acquisition of


Acquired by Series A Financing

Financial Advisor


Acquired by


Acquisition of


Acquired by


Acquired byStrategic Investment

We Advised ControlExpertFinancial Advisor

Series C Financing

Sale of

Financial Advisor

to

Acquired by

We Advised the SellerWe Advised the Seller

Acquired by Acquired by

We Advised the Seller We Advised the Seller

Acquired by


Growth Investmentfrom

Financial Advisor

Convertible NoteOffering


Majority sale to


Acquired by


Acquisition of

Lead Generation Business

Acquired by


sold its investment in

to the shareholders of


Acquired by


http://www.alldata.de/

4

Case study: Sale of ControlExpert to General Atlantic

GCA OVERVIEW

GCA acted as exclusive financial advisor to the shareholders of ControlExpert

Transaction

• 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

› Supported during deal structuring and negotiations

• 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

Background

• ControlExpert is a disruptive technology service providerto the auto insurance industry and Europe’s largestInsurTech company

• The Company serves a broad blue-chip customer base ofmore than 100 enterprise accounts, including ~90% ofall German auto insurances, as well as majorleasing/fleet management companies and automotiveOEMs

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

Objectives of the Transaction

• 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

Entered into a Strategic

Partnership with

GCA Advised ControlExpert

“We thank GCA for their valuable

support during this intense

transaction. GCA’s global footprint,

unique sector expertise and skilled

execution helped to achieve an

outstanding result for all parties.”

- Gerhard Witte, MD and founder

5

EXECUTIVE SUMMARY

INSURTECH OVERVIEW

By now it’s probably not new to hear an unprecedented level of capital is pouring into insurance technology (“InsurTech”) startups looking to make their mark in a space that has traditionally been resistant to technological change. The fundamental function of insurance – the pooling and sharing of risk – dates back to the ancient world. But modern insurance as we know it began in 19th century Britain and the U.S., where large corporations emerged to insure against various forms of catastrophe, while governments proffered regulations both to encourage consumers to purchase insurance and to prevent insurers from operating unscrupulously.

So, given how long the insurance industry has been around, what’s taken it so long to become tech-enabled? And why now?

The insurance industry is large, cumbersome and resistant to change due to several factors, including:

• a state-based regulatory system of insurance, effectively requiring insurers to run separate businesses to conform;

• typically wide and varied product sets and customer segments; and

• a highly fragmented insurance distribution model.

Similar to what unfolded over the past 10-15 years with banks and other traditional financial services providers, insurers are now facing a need to update their legacy systems as well as fundamental shifts in their competitive environments and core strategies. Another familiar pattern is a sizeable “first wave” of InsurTech startups that are focused on the expense side of the business – think data and analytics, software, outsourcing, claims handling and other solutions focused primarily on cost reduction and increased efficiency. At the same time, a handful of companies are focused on the revenue side, offering innovative, tech-enabled ways to price, underwrite or otherwise take on balance sheet risk. The latter businesses are in the minority for the time being, but it will be interesting to see how these startups partner with or compete against the longstanding incumbents.

• Banks started the FinTech journey earlier, and have more mature innovation strategies

• Insurers have been slower to progress despite being in a mature industry

• InsurTech activity to date is largely driven by “expense side” businesses, although a handful of “revenue side” businesses are emerging

There is growing recognition that insurance will ultimately benefit

most from the FinTech boom

TraditionallyCONSERVATIVE

HugeBALANCESHEETS

Unsure how toHARNESS NEWTECHNOLOGY

INSURERS

Some more than 300 YEARS OLD

EntrenchedLEGACY

Lack newTECHSKILLS

Brashly DISRUPTIVE

HugeINVESTMENTFLOWS

Unsure how toUNLOCK THEINSURANCE MKT.

STARTUPS

Some less than 300DAYS OLD

Inherent AGILITY

Driven by TECHNOLOGYINNOVATION

Despite fundamental differences, insurers and startups are realizing they need each other(1)

Introduction

1) Accenture Technology Vision for Insurance 2017.

6

Policy Admin, Claims

& Back Office

1) Sources: Capital IQ and William Blair Equity Research 2017.

• Focus on customer engagement, e.g., data and analytics solutions that enable better lead generation or sales and marketing, mobile solutions and other direct-to-consumer insurance channels, or other solutions that improve distribution or facilitate contact with the end consumer. Established examples include:

• Insurance is behind the curve in enterprise-level core technology, and InsurTech companies can help modernize these operating systems, in particular policy, claims, and billing systems. Established examples include:

• This includes companies that provide analytic capabilities to insurance companies to help them operate more efficiently (i.e., the expense side, although some companies are developing data and analytics to help on the underwriting/revenue side as well). Established examples include:

• This tends to mean, actual insurance companies that are tech-enabled in some way. These insurers bring technology to traditionally low-tech areas by using newer or superior core systems. Established examples include:

Insurance Value Chain Detail(1)

INSURTECH “CHEAT SHEET”

InsurTech startups often provide a single solution in a sea of insurance categories and markets, and sometimes it’s hard to know exactly what a particular company does or how to think about it relative to others. The graphic to the left provides a simple – and admittedly broad – framework for thinking about the insurance industry across its various segments and value chain. Throughout this report, we loosely categorize companies and transactions into these categories to help the reader understand exactly where in the insurance ecosystem the company is playing. (Keep in mind that many companies operate in multiple insurance segments and/or parts of the value chain, and we’ve attempted to account for this where applicable.)

In this report we categorize companies into the following

insurance buckets

P&C Life Health

Distribution & CustomerEngagement

Products, Pricing & Underwriting

Data & AnalyticsPolicy Admin, Claims & Back Office

Insurance Segment

Insurance Value Chain

Distribution &

Customer

Engagement

Products, Pricing &

Underwriting

Data &

Analytics

EXECUTIVE SUMMARYIntroduction (cont’d)

7

Question Industry Observations

INSURTECH KEY THEMES

Below we’ve outlined some key themes to think about as we head into Q4 2017.

We hope you enjoy this report. To learn more about these and other trends that are shaping the dealmaking landscape in InsurTech, please contact us.

• InsurTech overview and 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:

EXECUTIVE SUMMARYIntroduction (cont’d)

Where do we see the

key trends?

• Allure of B-to-C

• Feeling late to the game post insurance agency buyouts (USI, Hub, Ascension, Acrisure, Integro, Confie Seguros, etc.)

• Many industry “dinosaurs” in desperate need of basic technology advancements

• Remain very constructive around business models that disrupt the value chain and / or drastically improve efficiency across the industry

• Remain constructive around Insurance Tech / Incumbent partnerships or co-investments

• Small-business commercial / BOP and excess & surplus lines are segments that naturally lend themselves to large opportunities…but also have lots of decision-makers with deeply entrenched behaviors

• The life / annuity models appear under-invested by venture capital, perhaps because “silver bullet” solutions not yet apparent and industry investments are large and consolidated

• Insanely high growth expectations – creates severe operational pressure (unicorn aspirations, Zenefits, etc.)

• Lack of proven business model – great concept, but uncertainty around how players will behave

• Dependency on B-to-C models – LTV / CAC ratios often upside down

• Dependency on old line players within the value chain changing their behavior within the ecosystem’s status quo

Why is venture

funding not

following the likely

value chain

disruption process?

Where are the risks

the greatest?

Sean MinnihanManaging Director, Head of FinTech

Phone: (212) [email protected]

Peter BangManaging Director, Head of FinServices


Rob FreimanDirector


Kegan GreeneVice President


David KruegerVice President


GCA InsurTech Team

John LambrosManaging Director


Chris GoughManaging Director


Tobias SchultheissManaging Director, Europe FinTech

Phone: +49 69 20434 [email protected]

8

Life $809Bn

Health$776Bn

P&C$614Bn

Sources:1) National Association of Insurance Commissioners.2) Accenture Technology Vision for Insurance 2017. 3) Insurance Information Institute “World Insurance Marketplace” 2016.4) TechNavio “Insurance IT Spending” 2016. 5) Novarica Research Council CIO Survey Q3 2017.

Insurance Technology Projected Spending by Type(4)

Key Insurance Market Data Points

Top IT Priorities for 2018(5)

2016 Total U.S. Direct Written Premiums(1)

Insurance technology spending will surpass $50Bn by 2019

P/C (n=70) L/A (n=23)

17%

52%

39%

65%

13%

65%

9%

1%

42%

29%

73%

37%

47%

Costs

Talent

IT Ops

Security

Core

Data

Digital

Life & annuity insurers are focused on digital, optimized workflow, and operating efficiency, while P&C insurers are focused on analytics and speed

to market

94%OF INSURERS SAY ADOPTING A PLATFORM-BASED MODEL AND ENGAGING WITH DIGITAL PARTNERS ARE CRITICAL TO THEIR SUCCESS(2)

$22Bn2018P INSURANCE IT SERVICES SPEND(4)

$11Bn2018P INSURANCE SOFTWARE SPEND(4)

90%OF INSURERS RUNNING ON OBSOLETE SOFTWARE(3)

The insurance industry is ripe for technology innovation

$2.2Tn

Insurance is an enormous U.S. market

$20 $21 $21 $22 $22 $23

$14 $15 $15 $16 $17 $18

$10 $10 $11 $11 $12 $12 $44 $45

$47 $49

$51 $53

$0

$10

$20

$30

$40

$50

$60

2015A 2016A 2017E 2018P 2019P 2020P

An

nu

al S

pe

nd

(in

$B

n)

Software Hardware IT Services

EXECUTIVE SUMMARYInsurTech “state of the union”

9

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 companies

Lege

nd

Distribution & CustomerEngagement




10

Most Active Insurance Technology Investors

Accelerators / Seed

Venture Capital / Private Equity

Corporate Investors

Alternative Investors

Ventures

EXECUTIVE SUMMARYSelected active investors in InsurTech

Notes:Source: CB Insights, Pitchbook.

11

EXECUTIVE SUMMARYSelected recent strategic investments by insurers

Notes:Source: CB Insights, Pitchbook.

InvestmentsCompany(s)

12

INSURTECH DEAL DASHBOARD

Notes:Source: CB Insights, Pitchbook. CapIq. GCA Deal Database.Market data as of 10/27/17.(1) Includes private company equity financings.(2) Represents unweighted average, except for S&P 500.

Publicly traded InsurTech companies are up 30% over the LTM period, as compared to 19% for the S&P 500. Q3 2017 financing

volume is down 25% and amounts raised are down 68% vs. Q2 2017; however, financing volume is up 26% and amounts raised are

up 36% vs. Q3 2016

(1)

Lege

nd

P&C Life Health Distribution & CustomerEngagement



Insurance Segment Insurance Value Chain

Percent Change(2) Select Q3 Financing Transactions ($MM)

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

Quarterly InsurTech Financing Activity ($MM)(1) 27% 96%

22% 109%

48% 45%

19% 45%

32% 19%

48% 100%

20% 51%

18% 40%

38% 96%

InsurTech Deal Volume by Stage Aggregate InsurTech Market 30% 67%

S&P 500 19% 11%

Insurance Technology Deal Dashboard Industry Stock Market Performance$1.55 Bn | 178 Deals

LTM InsurTech Financing Volume(1)

Trends in InsurTech

9/19/17 $40

8/23/17 $19

8/22/17 $24

8/8/17 $12

7/11/17 $50

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

$783

$398

$230 $271 $283

$985

$312

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

5964

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

34 3843

38

48

38% 41% 42% 48% 50%

20% 19% 23% 19%28%18% 16% 15% 10%

13%

2013 2014 2015 2016 2017 (YTD)

Seed/Angel Series A Series B Series C Series D Series E+ Other

Average Deal Amount ($MM)

13

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 10/27/17.

Benefits Administration/Payroll

Combined Market Cap.: $101.017E/16A Rev. Growth: 19.8%

17E EBITDA Margin: 25.7%

2Insurance Technology



1 Brokerage & Distribution

Combined Market Cap.: $126.717E/16A Rev. Growth: 5.4%17E EBITDA Margin: 23.6%

3

Property & Casualty

Combined Market Cap.: $424.617E/16A Rev. Growth: (3.8%)


4 Life

Combined Market Cap.: $440.617E/16A Rev. Growth: (1.6%)


5 Health



6

Information Services

Combined Market Cap.: $320.217E/16A Rev. Growth: 7.2% 17E EBITDA Margin: 30.8%

7 IT & BPO Services

Combined Market Cap.: $572.217E/16A Rev. Growth: 8.2% 17E EBITDA Margin: 17.5%

8 Financial SaaS



9

14

INSURTECH STOCK PRICE PERFORMANCE

3 Year Share Price Performance

LTM Share Price Performance

Notes:Source: CapIq. Market data as of 10/27/17.

InsurTech is in the middle of the pack on an LTM basis, but in the upper third 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

15

INSURTECH PUBLIC COMPANY VALUATIONInsurTech is second only to Financial SaaS on both an EV/ LTM revenue and EV/ NTM revenue basis

Notes:Source: CapIq.Market data as of 9/30/17.Lines display median multiples across comp groups for given year.

Enterprise Value / LTM RevenueEnterprise Value / LTM Revenue

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

1

2

3

45

6

78

9

2.6x 2.5x2.8x

3.2x

2.4x 2.4x 2.6x3.2x



16

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

Notes:Source: CapIq.Market data as of 9/30/17.Lines display median multiples across comp groups for given year.

Enterprise Value / LTM EBITDAEnterprise Value / LTM EBITDA

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

1

2

3

4

5

6

87

9

12.6x 12.2x13.3x

15.1x

11.3x 10.9x11.6x

13.2x



17

Long-term growth is not necessarily correlated with public company P/E multiples or PEG ratios(1) : InsurTech has the highest 2017E

PEG ratio but is middle of the pack in terms of long-term growth

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 10/27/17.Long-term EPS growth covers last 5 years.

21.7%

17.8%

12.5%

11.5%

9.4%

13.2%

9.1%

11.9%

7.3%

2.5

2.3

2.8

2.2

2.0

1.6

2.2

1.4

1.5

2017E P/E Multiple 2017E PEG Ratio

Long-Term EPS Growth

Life5

Benefits Admin/Payroll2

Financial SaaS9

Information Services7

Insurance Technology1

Health6

IT & BPO Services8

Property & Casualty4

Brokerage & Distribution3

18

9/21/17Foundation Capital, Index Ventures, Starr Companies, Two Sigma Ventures,

Union Square VenturesSeries B $18.5

9/19/17 Accel Partners Series B $40.0

9/14/17 Undisclosed Investors Series A $11.7

9/13/17 The Hartford Series A $3.5

9/7/17 MK Capital, Seyen Capital Series A $2.5

9/4/17 Matteo Carbone, Pietro Menghi Angel - II $0.8

8/30/17Banyan Capital, BlueRun Ventures, IDG Capital, Meituan-Dianping, Sinovation

Ventures, Tencent Holdings, Tongcheng CapitalSeries A $24.0

8/30/17 Aquiline Capital Partners Series A - II $1.3

8/30/17 Lireas Holdings Series A $0.4

8/23/17 Draper Fisher Jurvetson, Social Capital, True Ventures Series B $19.0

8/23/17Denise Peng, Marathon Venture Partners, Matrix Partners China, NNFE,

Zhongguancun Development GroupSeries B $14.0

SELECTED RECENT GROWTH EQUITY & VC ACTIVITY

Notes: Source: CapIq. Pitchbook.Selected deals from LTM as of 9/30/17.

Date

Announced Target Investors Type Amount ($MM)

19

8/22/17 F-Prime Capital, New Enterprise Associates, Portag3 Ventures, Venrock Series B $23.5

8/14/17Fosun RZ Capital, Infinity Venture Partners, Linear Venture, Xincheng

InvestmentSeries A NA

8/8/17 BoxGroup, Red Swan Ventures, Ribbit Capital, SV Angel, Valar Ventures Series A $11.5

7/21/17AXA Strategic Ventures, Launchpad Digital Health, MassMutual Ventures, Plug

and Play Ventures, Portag3 Ventures, Wanxiang Healthcare InvestmentsSeries B $7.0

7/19/17 Aberdare Ventures, FirstMark Capital, GE Ventures, Split Rock Partners Series C $14.1

7/17/17 Foundry Group, Techstars Ventures Series A $13.0

7/13/17Great Oaks Venture Capital, Liquid 2 Ventures, Maveron, Shasta Ventures,

Sherpa Capital, Social Capital, SV Angel, Tencent Holdings, VY CapitalSeries A $8.0

7/11/17ACE & Company, Alibaba Group, Goldman Sachs, H&Q Asia Pacific, International

Finance Corporation, Nova Founders Capital, Route 66 Ventures, SBI GroupSeries B $50.0

6/13/17 Tola Capital Series D $12.0

6/3/17Accel Partners India, Catamaran Ventures, SAIF Partners, Transamerica

VenturesSeries C $15.0

6/1/17

Bessemer Venture Partners, Cross Creek Advisors, Flare Capital Partners,

Greenspring Associates, Greycroft Partners, New Enterprise Associates,

Redpoint Ventures

Series B $160.0

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

Date



20

5/24/17AXA Strategic Ventures, Fika Ventures, Karlin Ventures, MassMutual Ventures,

Norwest Venture Partners, Revolution, Susa Ventures, Transamerica VenturesSeries C $30.0

5/10/17GV, Palm Drive Capital, Sequoia Capital, First Round Capital, Greenoaks Capital

Management, Western Technology InvestmentSeries D $130.0

5/2/17American Family Ventures, AXA Strategic Ventures, Centana Growth Partners,

MassMutual VenturesSeries B $15.5

4/10/17Markel Ventures, Munich Re/HSB Ventures, Nationwide Ventures, Ribbit

Capital, TLV Partners, Zeev VenturesSeries A $29.0

4/6/17Anthemis Group, Guidewire Group, Munich Re/HSB Ventures, Oak HC/FT

Partners, Sompo Japan Insurance and Suncorp GroupSeries D $45.0

2/22/17Savano Capital Partners, Stratim Capital, Oceanic Partners, T Capital Partners,

Second Alpha Partners, Green D Ventures, Link VenturesSeries B II $13.0

2/10/17 ff Venture Capital Series A $6.3

12/10/16General Catalyst Partners, GV, Thrive Capital, Tusk Ventures, Aleph, Sequoia

Capital, XL Innovate Series B $34.0

11/17/16Union Square Ventures, Index Ventures, Highland Capital Partners, Two Sigma

Ventures, Founder CollectiveSeries A $7.8

10/21/16Oceania Capital Partners, Savano Capital Partners, Stratim Capital, T Capital

PartnersSeries B $23.0

Median $14.1

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

Date



21

CASE STUDY: COVERWALLET RAISES NEW ROUND

CoverWallet raises $18.5 million of Series B funding, led by Foundation Capital

Use of Funds

• The startup said it plans to use the funding to continue building core technology, expand partnerships, and scale operations “to meet growing demand and to solidify its position as a market leader” in the small business insurance space

› Charles Moldow, Foundation Capital: “Today, there exists a unique opportunity to reinvent [the insurance industry] by focusing on the CoverWallet principles of simplification and transparency, leveraging analytics and ultimately reducing friction.”

Background

• CoverWallet provides an online enterprise insurancemanagement platform intended to speed up theinsurance-buying process with data analytics

› The company's online enterprise insurance management platform helps clients to manage commercial insurance policies including, among others, general liability, commercial property, workers compensation, directors and officers, professional liability, errors and omissions and cyber liability coverages

• The company raised $18.5 million of Series B venture funding in a deal led by Foundation Capital on October 5, 2017, putting the pre-money valuation at $62 million

Raises Series B Round

Led By:

$18.5 MM

Estimated Pre-Money Valuation

$62 MM

Estimated Post-Money Valuation

$81 MMMedian: $12.4

Notes:Source: CB Insights, InsurTech insights.

Selected Q3 InsurTech Financings ($MM)

P&C

Data & Analytics

Policy Admin, Claims & Back Office

Insurance Segment


22

10/6/2017 $275 NA NA

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

9/21/2017 $3,031 NA NA

8/21/2017 Sequel $324 9.7x 21.1x

8/4/2017 $490 8.2x 50.7x

6/8/2017 NA NA NA

5/15/2017 NA NA NA

4/4/2017 $225 4.7x NA

3/31/2017 $102 1.3x NA

2/16/2017 $160 3.9x NA

5/27/2016 $187 2.4x 18.3x

3/29/2016 EagleEye Analytics $42 NA NA

2/29/2016 $460 2.1x NA

8/28/2015 $677 2.0x 16.6x

6/30/2015 $7,854 2.2x 11.0x

10/9/2014 NA NA NA

9/17/2014 NA NA NA

7/16/2014 $1,325 NA 12.0x

Median 2.3x 17.5x

SELECTED M&A ACTIVITY

Notes: Source: CapIq. Pitchbook.

Date Enterprise EV / Revenue EV / EBITDA

Announced Acquirer Target Value ($MM) LTM LTM

23

CASE STUDY: ACQUISITION OF CYENCE BY GUIDEWIRE

Guidewire acquires Cyence for $275MM

Value Proposition

• For Guidewire, value is primarily driven by how Cyence differs in its approach to selling into insurers—both from a personnel and budget standpoint

› Today, Guidewire has over 300 P&C insurance customers, but bringing on new customers typically entails a long sales cycle, which involves the entire organization + IT support. Meanwhile, Cyence, according to CEO Arvind Parthasarathi, uses the chief risk or chief underwriting officers as its primary sponsors within insurers for its solutions

Background(1)

• Cyence is a provider of an analytics platform designed toquantify the financial impact of cyber risk

› The company's analytics platform combines data collection at scale, machine learning and economic/ risk modeling to create an insurance risk modeling platform, enabling insurers to prospect, select, manage and assess portfolio risk accumulations and bring new insurance products to market

• The company reached a definitive agreement to beacquired by Guidewire Software (NYSE: GWRE) forapproximately $275 million in cash and stock on October6, 2017

Price & Market

• Guidewire paid an estimated 25x - 30x Cyence’s 2018 forward-looking subscription revenue

• Large cyber policy writers are moving from packaged to standalone policies. In 2016, total direct written premium for cyber was $1.3Bn according to A.M. Best.

• While cyber coverage is projected to increase to $20Bn by 2020, perspectives are mixed on whether the growth will materialize

Acquired by

$275 MM

Rank Company2016 DPW

($MM)DPW Growth

Market Share

1 228.3 5.9% 17.0%

2 160.8 41.7% 12.0%

3 133.6 10.3% 10.0%

4 92.2 41.8% 6.9%

5 83.9 21.7% 6.3%

US P&C Industry – Cybersecurity Direct Premiums Written, Top 5 by 2016 DPW(2)

Notes:Sources:(1) CB Insights, InsurTech insights.(2) A.M. Best Data and Research.

Transaction Value

$275MMEstimated EV/ Forward

Revenue

25x – 30x

P&C

Data & Analytics

Policy Admin, Claims & Back Office

Insurance Segment


24

SELECTED PUBLIC COMPANY DETAIL

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

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Insurance TechnologyVerisk Analytics, Inc. $84.94 $13,977 $16,236 9.3% 2.9 5.0% 6.9% 8.7% 7.8% 48.7% 7.8x 7.3x 15.9x 14.8x 27.1x 24.8x Guidewire Software, Inc. $77.70 $5,828 $5,255 15.8% 5.8 22.2% 21.4% NA 36.1% 19.8% 9.6x 7.9x 48.2x 35.4x 91.7x 71.6x HealthEquity, Inc. $49.78 $3,011 $2,801 28.3% 2.6 27.3% 24.2% 52.2% 27.5% 36.5% 12.3x 10.0x 33.8x 26.5x 73.5x 58.1x Ebix, Inc. $67.55 $2,125 $2,410 15.0% 1.5 16.9% 18.9% 10.0% 16.5% 34.6% 6.9x 6.1x 20.0x 17.1x 22.1x 19.7x CorVel Corporation $60.10 $1,127 $1,092 NM NA NA NA 5.6% NA NA NA NA NA NA NA NABenefitfocus, Inc. $27.55 $859 $912 21.7% NM 9.9% 8.7% NA 69.3% 6.3% 3.6x 3.1x 56.6x 33.4x NM NMCrawford & Company $11.91 $665 $864 10.0% 1.6 1.8% 3.4% 20.4% 14.4% 11.3% 0.8x 0.7x 6.8x 5.9x 15.5x 13.7x Sapiens International Corporation N.V. $13.88 $683 $676 10.0% 3.9 25.3% 20.8% NA 61.2% 10.6% 2.5x 2.2x 23.4x 14.5x 39.1x 22.0x eHealth, Inc. $23.57 $437 $386 5.0% NM (8.9%) 1.4% NA NA NA 2.3x 2.0x NM 98.0x NM NMMajesco $5.87 $214 $222 NM NM (7.7%) 5.9% 38.8% NA 4.4% 1.9x 1.6x 43.7x 22.2x NM 41.9x Symbility Solutions Inc. $0.36 $86 $80 NM NM 23.8% 18.4% NA 23.4% 4.9% 2.5x 2.3x 52.0x 42.2x NM NA

Median 12.5% 2.8 13.4% 13.5% 15.2% 25.4% 11.3% 3.0x 2.7x 33.8x 24.4x 33.1x 24.8x

Benefits Administration/PayrollAutomatic Data Processing, Inc. $118.25 $52,553 $51,772 10.7% 3.0 5.2% 5.5% (5.0%) 10.3% 20.5% 4.1x 3.9x 19.9x 18.1x 31.9x 29.5x Paychex, Inc. $65.40 $23,500 $23,189 8.1% 3.5 5.6% 6.9% 7.6% 6.7% 43.6% 7.2x 6.7x 16.4x 15.4x 28.4x 26.5x The Ultimate Software Group, Inc. $197.75 $5,898 $5,797 24.0% 2.3 19.8% 18.6% NA 25.3% 22.6% 6.2x 5.2x 27.4x 21.8x 55.9x 45.6x Paycom Software, Inc. $82.01 $4,886 $4,852 28.2% 2.5 31.0% 27.2% 82.4% 26.4% 28.8% 11.2x 9.0x 39.1x 30.9x 71.4x 57.4x HealthEquity, Inc. $49.78 $3,011 $2,801 28.3% 2.6 27.3% 24.2% 52.2% 27.5% 36.5% 12.3x 10.0x 33.8x 26.5x 73.5x 58.1x Paylocity Holding Corporation $52.35 $2,739 $2,636 26.5% 2.7 25.8% 23.3% NA 24.9% 19.4% 7.9x 6.5x 40.9x 32.7x 71.9x 58.9x TriNet Group, Inc. $34.89 $2,421 $2,628 20.0% 1.2 7.8% 9.9% NA 5.5% 29.2% 3.5x 3.4x 12.0x 11.4x 23.5x 21.7x WageWorks, Inc. $64.40 $2,557 $2,027 15.0% 2.5 32.2% 15.8% NA 14.8% 30.0% 4.2x 3.8x 14.0x 12.2x 36.9x 33.2x Insperity, Inc. $96.30 $2,008 $1,868 16.0% 1.3 12.0% 11.5% 41.4% 14.3% 5.1% 0.6x 0.5x 11.0x 9.6x 21.2x 18.6x Benefitfocus, Inc. $27.55 $859 $912 21.7% NM 9.9% 8.7% NA 69.3% 6.3% 3.6x 3.1x 56.6x 33.4x NM NMCastlight Health, Inc. $3.95 $520 $439 37.3% NM 28.6% 25.1% NA NA NA 3.4x 2.6x NM NM NM NM

Median 21.7% 2.5 19.8% 15.8% 41.4% 19.8% 25.7% 4.2x 3.9x 23.7x 20.0x 36.9x 33.2x

Brokerage & DistributionMarsh & McLennan Companies, Inc. $81.00 $41,515 $45,925 11.2% 1.9 5.4% 5.1% 9.4% 7.7% 24.4% 3.3x 3.2x 13.5x 12.6x 21.3x 19.5x Aon plc $146.18 $37,197 $40,847 11.7% 1.9 (14.4%) (14.1%) 3.1% 12.5% 24.8% 4.1x 3.9x 16.6x 14.7x 22.4x 18.2x Willis Towers Watson Public Limited Company $161.62 $21,704 $25,215 8.7% 2.2 4.1% 4.5% 28.4% 11.0% 23.6% 3.1x 3.0x 13.2x 11.9x 19.2x 16.5x Arthur J. Gallagher & Co. $62.54 $11,267 $13,788 9.3% 2.3 9.4% 8.8% 15.6% 13.6% 16.6% 2.3x 2.1x 13.7x 12.1x 21.0x 18.8x Brown & Brown, Inc. $49.68 $6,931 $7,336 6.9% 3.9 5.0% 4.8% 1.3% 3.7% 31.4% 4.0x 3.8x 12.6x 12.2x 26.6x 24.7x Jardine Lloyd Thompson Group plc $16.98 $3,587 $4,184 25.1% 0.9 14.2% 6.6% NA NA 0.0% 2.4x 2.2x NA NA 22.0x 17.4x Moneysupermarket.com Group PLC $4.19 $2,244 $2,221 9.4% 2.0 13.0% 8.5% 24.9% 7.8% 38.3% 5.0x 4.7x 13.1x 12.2x 19.2x 17.5x Bankrate, Inc. $13.95 $1,240 $1,349 10.0% 2.0 16.1% 12.2% 35.7% 10.4% 25.3% 2.7x 2.4x 10.6x 9.6x 19.8x 16.9x eHealth, Inc. $23.57 $437 $386 5.0% NM (8.9%) 1.4% NA NA (9.2%) 2.3x 2.0x NM 98.0x NM NMQuinStreet, Inc. $7.18 $328 $279 NM NM 4.3% 10.0% NA 25.0% 6.5% 0.9x 0.8x 13.6x 10.9x NM NMiSelect Limited $1.19 $260 $198 NM NM 13.6% 12.6% 24.0% 16.2% 15.9% 1.3x 1.2x 8.2x 7.1x 19.7x 16.2x

Median 9.4% 2.0 5.4% 6.6% 19.8% 11.0% 23.6% 2.7x 2.4x 13.2x 12.1x 21.0x 17.5x

$MM, Except Per Share Data

Stock EPSPrice Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS

10/27/17 Value Value Growth PEG 17E/16A NTM 17E/16A NTM 17E 17E 18P 17E 18P 17E 18P

25

SELECTED PUBLIC COMPANY DETAIL (CONT’D)


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Property & CasualtyAllianz SE $231.10 $102,775 $118,596 4.7% 2.7 22.6% 12.7% 14.8% 4.8% 10.0% 0.9x 0.8x NA NA 12.4x 11.7x Chubb Limited $152.75 $71,092 $81,657 6.6% 3.2 (13.4%) (13.5%) (10.0%) NA 18.0% 3.0x 2.9x NA NA 20.7x 14.2x American International Group, Inc. $64.55 $58,315 $76,108 11.0% 1.8 (3.7%) (3.0%) 15.1% NA 23.3% 1.5x 1.5x NA NA 19.3x 12.2x The Allstate Corporation $93.73 $33,870 $37,560 11.4% 1.4 (12.0%) (13.0%) NA NA 12.7% 1.2x 1.1x NA NA 15.9x 13.3x The Travelers Companies, Inc. $131.06 $35,871 $36,554 6.0% 2.9 (7.1%) (7.9%) (17.4%) NA 14.4% 1.4x 1.4x NA NA 17.5x 13.8x The Progressive Corporation $48.90 $28,440 $27,939 17.0% 1.2 14.3% 12.6% 7.5% NA 9.4% 1.0x 0.9x NA NA 21.0x 17.4x The Hartford Financial Services Group, Inc. $55.20 $19,691 $21,256 11.1% 1.4 2.3% 9.5% NA 27.4% 0.0% 1.1x 1.1x NM NM 15.0x 11.8x CNA Financial Corporation $50.79 $13,764 $14,894 4.6% 4.2 NA NA NA NA 16.0% NA NA NA NA 19.4x 15.7x Markel Corporation $1,094.08 $15,199 $13,750 NM NM 6.0% 8.6% NA NA 8.1% 2.3x 2.2x NA NA NM 37.8x Cincinnati Financial Corporation $71.03 $11,654 $11,823 NM NM 5.3% 2.8% NA NA 15.2% 2.1x 2.0x NA NA 26.2x 23.1x W. R. Berkley Corporation $69.56 $8,470 $9,574 9.0% 3.2 (17.8%) (17.9%) (4.0%) NA 13.7% 1.5x 1.5x NA NA 28.6x 21.7x American Financial Group, Inc. $105.07 $9,249 $9,003 6.3% 2.8 (36.0%) (33.6%) 16.0% NA 16.7% 2.2x 2.1x NA NA 17.6x 15.6x RSA Insurance Group plc $8.26 $8,322 $8,346 9.3% 1.5 6.0% (0.9%) 9.8% NA 10.0% 0.9x 0.9x NA NA 13.9x 12.2x Assurant, Inc. $100.05 $5,384 $5,473 NM NM (15.1%) (4.7%) NA NA 8.3% 0.9x 0.8x NA NA 28.8x 14.1x AmTrust Financial Services, Inc. $12.74 $2,495 $3,212 10.2% 1.0 (4.0%) (8.7%) 8.3% NA NA 0.6x 0.6x NA NA 10.4x 7.2x

Median 9.1% 2.2 (3.8%) (3.9%) 8.3% 16.1% 13.2% 1.3x 1.3x NM NM 18.5x 14.1x

LifeAXA SA $29.83 $72,180 $107,474 4.7% 2.2 (9.3%) (17.5%) (7.6%) (3.8%) 7.9% 0.9x 0.9x 11.2x 11.7x 10.4x 9.7x MetLife, Inc. $54.29 $57,605 $88,184 9.0% 1.4 (1.6%) (2.4%) NA NA NA 1.4x 1.4x NA NA 12.4x 11.5x Zurich Insurance Group AG $303.28 $45,546 $45,000 3.2% 4.5 (26.3%) (25.3%) 0.6% (1.8%) 12.6% 0.9x 0.9x 7.2x 7.3x 14.5x 12.4x Legal & General Group Plc $3.52 $20,902 $42,556 7.3% 1.5 (54.4%) (35.8%) NA NA NA 3.9x 4.1x NA NA 11.2x 11.1x Aflac Incorporated $83.94 $33,062 $38,310 5.0% 2.5 (5.6%) (2.8%) NA 10.9% 19.1% 1.8x 1.8x 9.3x 8.4x 12.5x 12.3x Prudential Financial, Inc. $112.02 $47,833 $33,396 NM NM (15.9%) (13.7%) NA NA NA 0.7x 0.6x NA NA 11.0x 10.0x Manulife Financial Corporation $20.17 $39,892 $32,336 11.0% 1.1 16.1% 48.0% NA NA NA 0.7x 0.7x NA NA 11.7x 10.7x Ameriprise Financial, Inc. $160.62 $23,820 $26,686 NM NM 0.7% 1.6% 25.5% 5.7% 29.4% 2.3x 2.2x 7.7x 7.3x 13.5x 12.6x Lincoln National Corporation $77.33 $16,977 $19,097 NM NM 8.7% 5.6% NA NA NA 1.3x 1.3x NA NA 10.3x 10.0x Principal Financial Group, Inc. $68.10 $19,678 $18,414 10.0% 1.3 11.3% 3.8% NA NA NA 1.3x 1.3x NA NA 13.1x 12.2x AEGON N.V. $5.89 $12,148 ($550) 15.7% 0.5 (49.7%) (56.0%) NA NA NA NM NM NA NA 7.7x 7.6x Aviva plc $6.72 $26,936 ($13,064) 5.3% 1.8 19.8% 31.0% 23.4% 4.7% 5.9% NM NM NM NM 9.5x 9.1x Sun Life Financial Inc. $39.21 $24,061 ($30,580) NM NM 17.3% 29.6% NA NA NA NM NM NA NA 12.5x 11.7x

Median 7.3% 1.5 (1.6%) (2.4%) 12.0% 4.7% 12.6% 1.3x 1.3x 8.5x 7.9x 11.7x 11.1x

HealthUnitedHealth Group Incorporated $212.60 $205,554 $217,192 13.4% 1.6 8.3% 8.9% 17.8% 20.3% 8.5% 1.1x 1.0x 12.7x 10.6x 21.3x 19.6x Aetna Inc. $173.12 $57,424 $60,436 10.6% 1.7 (3.3%) (0.3%) (1.6%) 5.5% 10.0% 1.0x 0.9x 9.9x 9.4x 18.2x 17.1x Cigna Corporation $201.94 $50,844 $51,917 13.1% 1.5 3.3% 3.6% 17.6% 11.5% 11.0% 1.3x 1.2x 11.5x 10.3x 20.2x 17.8x Anthem, Inc. $211.34 $54,264 $45,137 10.9% 1.6 4.3% 2.3% (6.2%) 21.7% 6.1% 0.5x 0.5x 8.3x 6.8x 17.7x 16.4x Humana Inc. $258.97 $37,426 $26,269 13.3% 1.7 (0.9%) 2.6% 86.2% 5.3% 7.1% 0.5x 0.5x 6.9x 6.5x 22.6x 21.1x Centene Corporation $94.41 $16,292 $16,223 13.2% 1.4 26.7% 15.5% (10.4%) 32.6% 3.7% 0.3x 0.3x 9.2x 6.9x 19.0x 17.1x WellCare Health Plans, Inc. $186.00 $8,279 $4,916 14.7% 1.8 18.9% 19.1% 1.4% 40.5% 3.9% 0.3x 0.3x 7.5x 5.4x 26.5x 23.2x AEGON N.V. $5.89 $12,148 ($550) 15.7% 0.5 (49.7%) (56.0%) NA NA 0.0% NM NM NA NA 7.7x 7.6x

Median 13.2% 1.6 3.8% 3.1% 1.4% 20.3% 6.6% 0.5x 0.5x 9.2x 6.9x 19.6x 17.4x




26



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Information ServicesRELX PLC $22.70 $45,451 $52,036 8.1% 2.7 14.9% 4.3% 33.2% 10.0% 34.8% 5.3x 5.1x 15.3x 13.9x 21.4x 20.0x S&P Global Inc. $162.16 $41,675 $44,146 13.2% 1.9 5.3% 5.8% 16.2% 6.9% 48.2% 7.4x 7.0x 15.4x 14.4x 24.4x 22.5x Thomson Reuters Corporation $46.86 $33,474 $40,494 9.9% 1.9 2.0% 4.0% 44.2% 4.3% 30.2% 3.6x 3.4x 11.8x 11.3x 19.2x 17.9x Moody's Corporation $146.40 $27,962 $29,695 9.6% 2.7 12.1% 8.7% 17.0% 10.3% 47.5% 7.3x 6.8x 15.5x 14.0x 25.8x 23.4x Experian plc $20.96 $19,127 $22,349 9.3% 2.4 NA 6.2% NA 5.3% 34.9% 5.1x 4.7x 14.6x 13.9x 22.4x 20.0x Nielsen Holdings plc $38.57 $13,737 $21,723 7.2% 2.0 4.1% 4.6% 24.7% 4.1% 30.8% 3.3x 3.2x 10.8x 10.3x 14.7x 13.8x IHS Markit Ltd. $43.32 $17,148 $21,064 12.7% 1.7 30.2% 5.5% NA 9.0% 38.8% 5.9x 5.6x 15.2x 14.0x 21.1x 19.2x Wolters Kluwer N.V. $48.33 $13,656 $16,251 8.5% 2.2 13.5% 2.9% 17.0% 4.2% 26.9% 3.2x 3.1x 11.7x 11.2x 18.5x 17.3x Verisk Analytics, Inc. $84.94 $13,977 $16,236 9.3% 2.9 5.0% 6.9% 8.7% 7.8% 48.7% 7.8x 7.3x 15.9x 14.8x 27.1x 24.8x Equifax Inc. $109.39 $13,168 $15,656 11.3% 1.6 7.2% 4.8% 11.0% 1.5% 37.0% 4.6x 4.5x 12.6x 12.4x 18.4x 17.8x Gartner, Inc. $125.15 $11,338 $14,177 16.8% 2.2 36.1% 36.8% 75.0% 21.5% 21.1% 4.3x 3.5x 20.2x 16.6x 36.7x 30.4x MSCI Inc. $120.00 $10,807 $12,133 14.0% 2.3 10.2% 10.5% 15.7% 11.5% 52.0% 9.6x 8.8x 18.4x 16.5x 31.5x 27.0x TransUnion $53.75 $9,777 $12,009 12.0% 2.4 11.2% 7.7% 31.5% 11.2% 39.2% 6.3x 5.9x 16.1x 14.5x 28.9x 25.7x Informa plc $9.00 $7,410 $9,446 6.0% 2.4 37.2% 10.3% 47.2% 5.8% 33.7% 4.1x 4.0x 12.3x 11.6x 14.7x 13.8x FactSet Research Systems Inc. $189.10 $7,418 $7,766 11.3% 2.2 10.6% 10.7% 8.1% 8.6% 34.4% 6.1x 5.7x 17.9x 16.4x 25.1x 22.5x News Corporation $13.69 $7,978 $6,625 20.9% 1.5 (0.5%) 0.5% 36.0% 4.1% 11.2% 0.8x 0.8x 7.3x 7.0x 31.5x 27.7x The Dun & Bradstreet Corporation $118.25 $4,370 $5,688 7.3% 2.3 3.7% 4.1% 10.4% 5.5% 28.1% 3.2x 3.1x 11.5x 10.9x 16.8x 16.0x CoreLogic, Inc. $47.06 $3,877 $5,525 11.8% 1.7 (5.3%) 0.8% 12.9% 4.7% 25.6% 3.0x 2.9x 11.7x 11.1x 20.2x 18.9x Fair Isaac Corporation $147.03 $4,504 $4,985 16.0% 1.8 4.8% 6.7% 17.2% 22.1% 25.7% 5.3x 4.9x 20.6x 16.8x 29.0x 24.3x Morningstar, Inc. $87.04 $3,702 $3,583 NM NA NA NA NA NA NA NA NA NA NA NA NAThe Advisory Board Company $53.90 $2,197 $2,655 17.0% 1.7 0.4% 2.7% 58.4% 8.3% 24.4% 3.3x 3.1x 13.5x 12.5x 28.3x 26.1x Acxiom Corporation $25.08 $1,983 $2,050 17.7% 2.0 2.2% 7.8% 84.5% 22.3% 18.7% 2.3x 2.1x 12.2x 10.0x 35.5x 25.4x Euromoney Institutional Investor PLC $15.28 $1,639 $1,754 NM NM 13.1% 11.7% 5.9% 7.7% 26.7% 3.1x 2.9x 11.6x 10.7x 15.3x 14.2x comScore, Inc. $29.68 $1,700 $1,586 NM NM NA 40.9% NA 19.5% 26.6% 2.6x 2.3x 9.7x 8.1x 15.3x 12.0x National Research Corporation $53.40 $1,306 $1,276 NM NA 8.3% 8.0% 12.6% 10.8% 33.7% 10.8x 10.0x 32.0x 28.9x NA NAForrester Research, Inc. $45.20 $802 $676 13.5% 2.8 1.8% 4.5% (5.5%) 20.8% 11.5% 2.0x 1.9x 17.7x 14.6x 37.5x 30.0x

Median 11.5% 2.2 7.2% 6.2% 17.0% 8.3% 30.8% 4.3x 4.0x 14.6x 13.9x 23.4x 21.3x




27



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IT & BPO ServicesInternational Business Machines Corporation $153.68 $143,221 $177,462 4.9% 2.3 (1.6%) 0.7% 2.5% 4.4% 24.2% 2.3x 2.3x 9.3x 8.9x 11.1x 11.0x Accenture plc $143.28 $88,077 $84,733 9.9% 2.4 6.6% 9.0% 7.6% 9.3% 17.1% 2.4x 2.2x 13.9x 12.7x 23.9x 21.4x Tata Consultancy Services Limited $39.74 $76,068 $71,079 12.8% 1.5 8.2% 8.1% 4.5% 6.6% 26.5% 3.8x 3.5x 14.4x 13.5x 19.6x 18.0x Cognizant Technology Solutions Corporation $75.39 $44,527 $41,140 14.6% 1.4 9.8% 9.5% 10.7% 16.3% 20.0% 2.8x 2.5x 13.9x 12.0x 20.4x 17.3x DXC Technology Company $91.91 $26,166 $31,442 10.5% 1.4 60.3% NA NA 34.1% 17.5% 1.6x 1.3x 9.0x 6.7x 15.1x 11.6x Infosys Limited $14.55 $33,266 $27,834 9.4% 1.6 6.2% 7.2% 2.7% 4.8% 26.7% 2.6x 2.4x 9.7x 9.3x 14.9x 14.3x Capgemini SE $119.41 $19,447 $21,919 7.9% 2.2 11.7% 3.7% 18.9% 6.8% 13.4% 1.5x 1.4x 11.0x 10.3x 17.4x 16.2x NTT Data Corporation $11.55 $16,201 $19,633 8.8% 3.3 27.9% 9.0% 14.4% 7.2% 14.1% 1.1x 1.1x 7.7x 7.2x 29.1x 28.0x Wipro Limited $4.56 $22,081 $18,460 9.9% 1.7 4.6% 3.3% 12.6% (0.7%) 21.5% 2.2x 2.1x 10.2x 10.3x 16.3x 15.9x HCL Technologies Limited $13.15 $18,760 $17,453 13.5% 1.0 14.7% 11.0% 14.9% 6.9% 22.2% 2.2x 2.1x 10.1x 9.5x 13.5x 13.2x Atos SE $154.74 $16,203 $16,425 12.2% 1.3 19.4% 6.3% 15.8% 7.5% 12.6% 1.1x 1.1x 8.8x 8.2x 16.0x 14.7x CGI Group Inc. $53.44 $15,113 $16,255 13.7% 1.3 7.9% 4.4% 14.2% 5.9% 18.0% 1.9x 1.8x 10.5x 9.9x 18.4x 16.8x Nomura Research Institute, Ltd. $42.52 $10,153 $9,630 NM NM 10.8% 5.2% 10.4% 6.3% 20.5% 2.4x 2.3x 11.9x 11.2x 25.7x 24.3x Capita plc $6.89 $4,583 $7,546 17.4% 0.6 (6.8%) (10.1%) (0.7%) 2.4% 13.3% 1.3x 1.3x 10.1x 9.8x 10.9x 10.2x Genpact Limited $30.42 $5,868 $6,703 11.9% 1.6 4.8% 6.0% 6.5% 8.8% 16.6% 2.5x 2.3x 15.0x 13.8x 19.5x 17.4x Tech Mahindra Limited $7.33 $7,152 $6,057 12.4% 1.2 10.3% 4.7% (5.2%) 14.4% 13.1% 1.3x 1.2x 10.0x 8.7x 15.2x 14.0x Conduent Incorporated $15.41 $3,238 $5,059 NM NM (5.2%) (2.5%) 50.5% 10.7% 11.0% 0.8x 0.8x 7.6x 6.8x 20.5x 15.8x EPAM Systems, Inc. $90.95 $4,777 $4,358 20.2% 1.4 23.2% 21.9% 51.3% 23.7% 18.0% 3.0x 2.5x 17.0x 13.7x 27.4x 22.2x Presidio, Inc. $14.69 $1,341 $2,309 9.0% 1.3 2.1% 4.9% 18.6% 8.6% 8.1% 0.8x 0.8x 10.0x 9.2x 12.0x 11.1x Syntel, Inc. $22.82 $1,909 $2,188 10.0% 1.2 (7.2%) (4.9%) (15.7%) 2.0% 25.3% 2.4x 2.5x 9.7x 9.5x 12.2x 12.6x ExlService Holdings, Inc. $62.44 $2,119 $1,916 14.0% 1.7 10.6% 9.5% 31.6% 13.7% 17.2% 2.5x 2.3x 14.7x 12.9x 23.7x 21.7x WNS (Holdings) Limited $37.99 $1,913 $1,833 14.6% 2.8 17.4% 11.8% 34.8% 10.2% 17.8% 2.7x 2.4x 15.0x 13.6x 40.8x 25.9x MphasiS Limited $10.82 $2,090 $1,761 10.7% 1.7 7.7% 9.6% 4.0% 12.7% 15.4% 1.8x 1.7x 11.8x 10.5x 18.2x 15.4x Luxoft Holding, Inc. $45.05 $1,508 $1,411 18.5% 0.9 17.9% 18.1% 41.1% 32.6% 15.3% 1.6x 1.3x 10.4x 7.9x 16.4x 12.9x Globant S.A. $37.80 $1,320 $1,293 NM NM 24.2% 23.7% 3.8% 28.5% 15.8% 3.2x 2.7x 20.4x 15.9x 30.2x 24.5x Hexaware Technologies Limited $4.36 $1,294 $1,231 12.8% 1.4 16.1% 8.6% 19.7% 11.8% 16.6% 2.0x 1.8x 12.3x 11.0x 18.0x 16.4x Virtusa Corporation $38.35 $1,122 $1,100 17.5% 1.5 15.7% 10.0% 24.0% 46.0% 6.8% 1.2x 1.1x 17.3x 11.8x 26.0x 20.1x Mindtree Limited $7.31 $1,198 $1,064 11.6% 1.6 6.1% 9.3% (7.7%) 20.2% 12.3% 1.3x 1.2x 10.5x 8.8x 18.7x 15.6x Perficient, Inc. $19.46 $683 $746 17.0% 0.9 5.5% 14.9% 42.7% 16.2% 14.4% 1.5x 1.4x 10.4x 9.0x 15.7x 13.5x Persistent Systems Limited $10.07 $806 $693 13.9% 1.1 12.1% 13.1% 23.7% 18.8% 15.8% 1.5x 1.3x 9.4x 7.9x 15.9x 13.6x

Median 11.9% 1.4 8.2% 5.6% 11.7% 7.2% 17.5% 2.2x 2.1x 10.1x 9.8x 17.4x 15.9x

Financial SaaSIntuit Inc. $153.46 $39,128 $38,839 14.7% 2.3 10.5% 9.9% 41.4% 10.9% 37.2% 7.2x 6.6x 19.5x 17.6x 34.4x 30.3x Workday, Inc. $108.51 $22,570 $21,021 34.0% NM 34.0% 26.6% NA 40.6% 15.2% 10.0x 8.0x 65.8x 46.8x NM 98.4x The Sage Group plc $9.68 $10,455 $10,878 10.9% 2.3 9.9% 9.2% 11.9% 12.6% 29.1% 4.9x 4.4x 16.7x 14.9x 24.6x 21.8x SS&C Technologies Holdings, Inc. $40.61 $8,343 $10,456 15.0% 1.4 13.1% 6.6% 34.4% 10.8% 41.2% 6.2x 5.9x 15.1x 13.7x 21.1x 18.6x Paycom Software, Inc. $82.01 $4,886 $4,852 28.2% 2.5 31.0% 27.2% 82.4% 26.4% 28.8% 11.2x 9.0x 39.1x 30.9x 71.4x 57.4x Xero Limited $23.16 $3,180 $3,100 NM NM 39.7% 38.9% NA NA 1.6% 11.7x 8.6x NM 69.5x NM NMPaylocity Holding Corporation $52.35 $2,739 $2,636 26.5% 2.7 25.8% 23.3% NA 24.9% 19.4% 7.9x 6.5x 40.9x 32.7x 71.9x 58.9x Envestnet, Inc. $53.40 $2,351 $2,583 16.2% 2.6 16.6% 15.4% NA 25.6% 18.9% 3.8x 3.3x 20.3x 16.1x 41.6x 33.1x Financial Engines, Inc. $36.55 $2,308 $2,138 17.0% 1.6 14.4% 13.4% NA 16.4% 32.8% 4.4x 3.9x 13.5x 11.6x 26.6x 23.4x Alfa Financial Software Holdings PLC $6.36 $1,908 $1,882 NM NM 23.2% 2.4% NA NA 0.0% 16.9x 14.8x NA NA 45.3x 38.8x Coupa Software Incorporated $34.46 $1,847 $1,639 NM NM 33.4% 24.8% NA NA (9.9%) 9.2x 7.4x NM NM NM NMBlucora, Inc. $23.83 $1,099 $1,383 18.5% 0.9 10.5% 6.4% 27.7% 18.5% 19.8% 2.7x 2.6x 13.8x 11.7x 17.2x 13.4x Benefitfocus, Inc. $27.55 $859 $912 21.7% NM 9.9% 8.7% NA 69.3% 6.3% 3.6x 3.1x 56.6x 33.4x NM NM

Median 17.8% 2.3 16.6% 13.4% 34.4% 21.7% 19.4% 7.2x 6.5x 19.9x 17.6x 34.4x 31.7x




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InsurTech Sector Report Q3 2017 - GCA Altium … · 1) National Association of Insurance Commissioners. 2) Accenture Technology Vision for Insurance 2017. 3) Insurance Information