Insurtech Quarterly Earnings – Q32019
Insurtech M&A activity in 2019 declined from record levels in 2018 according to PitchBook in terms of both deal value (~$15b YTD through November vs. ~$19b in 2018) and count (64 deals YTD vs. 114 in 2018). However, a handful of large Insurtech deals in the latter half of the year could provide an early indication of an improving M&A environment in the New Year.
- In August, Roper Technologies announced and completed the acquisition of iPipeline, a cloud-based SaaS solutions provider to the life insurance and annuity industries, for $1.625b. iPipeline’s applications provide workflow automation and seamless integration across a broad network of approximately 150 carriers, 1,350 distributors, and over 500,000 agents.
- In September, Prudential announced the acquisition of Assurance IQ, a direct-to-consumer platform providing individualized health and financial wellness solutions, for $2.35b plus another $1.15b in earn out potential. Assurance IQ matches buyers with products such as life and health insurance and auto insurance, enabling them to make purchases online or through an agent.
- In November, Aon announced the acquisition of CoverWallet, an online digital insurance platform aimed at small and mid-size businesses (SMBs) that provides product comparisons, tailored coverage, fast quotes, and a speedy application/approval process. The platform also provides online certificates, advice, claims help, etc.