December 2019

Insurtech Quarterly Earnings – Q3 2019

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.

1. 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.
2. 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.
3. 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.