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Hi All! This week we are following a Liberty acquisition, insurtech funding and other IPO news. Here are the three things we learned this week: |
[1] |
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Liberty Makes an Acquisition The consolidating of carriers continues with a super regional target State Auto acquired by Liberty Mutual this week for around $1 billion. The valuation is interesting, we thought of Tokio Marine acquiring PURE for $3 billion pre-COVID in 2020, this valuation would suggest that State Auto whose premium volume is actually $1.4B versus PURE’s $1B at that time is being valued much lower. They are not exactly peers but seems like Liberty got a bargain picking up a business for a multiple of less than 1 times premium volume. The value of the deal is in the large independent agent channel and small commercial book not so much the personal lines. |
[2] |
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A Busy Week of Insurtech Funding There were a few notable updates on insurtechs getting funding. Online insurance marketplace PolicyGenius is rumored to be planning a SPAC-IPO following others who have taken this route to go public in a less public way. Cape Analytics, a property risk valuation offering, closed a Series C round of $44M featuring investments from several insurers and Aquiline a venerable PE firm. Lastly, Lulu, who bills themselves as ‘the Stripe of Insurance’ raises $18M, raising their profile and giving them capital for growth and development. |
[3] |
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IPO News We’ve been following AIG’s plans to separate their life & retirement business and this week they were able to carve off a piece to Blackstone, they are still planning to move forward with an IPO for the rest. In other IPO news, Ryan Specialty goes forward with their planned IPO filing an S-1. It was refreshing to read how a valuable insurance company has been made and will offer public investors a chance to take part in the value being created. |
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