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Hello Friends! It was a short week and for those that worked it was probably packed but we are officially in June, the hurricane season has begun and the insurance industry hasn’t slowed down though we are all tuned to storm activity hoping everyone on the Gulf Coast of Florida is safe with the pending storm. This week we are following another Acrisure raise, the emergence of Foxen and more signs of an insurtech slowdown: |
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Acrisure Valued at $23B Acrisure started out the week announcing a fresh capital raise of $725 million making their current valuation $23B. In just over 1 year they have increased their valuation from $14B when the last raised capital in March 2021. It is starting to make sense to compare them to the big brokers in terms of their market caps: AJG $34B, AON $58B, MMC $79B. It would appear they can continue on this growth trajectory with a tech forward approach and succession option for owners. Rising premiums for commercial lines including cyber also contribute to their growing revenue and profitabilty. They have plenty of capital to continue to remain acquisitive. |
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Foxen Emerges As Fintech Player Foxen, a financial technology solution provider for the real estate industry, closed a $44M funding round this week. They are joining the growing list of financial services providers that offer financial wellness and include an insurance component. Their core offerings help property owners ensure the compliance of tenants with renters insurance requirements and renters an opportunity to buy insurance to comply. They will most certainly explore launching more products that would fit into this ecosystem with a large addressable market, the renting population of the US. |
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More Signs of Insurtech Slowing We have been seeing the slowdown of insurtech so far in 2022 and this week there were two more signs from notable companies that had been part of the landscape the past two years. Fresh off of a recent $125M capital raise in March, PolicyGenius is reported to have laid off 25% of their workforce, 170 employees. A pretty big correction in terms of staffing level and certainly a cost-cutting measure. If you have been attending insurtech events over the past few years you have probably heard of commercial lines provider Chisel AI, whose founder was ever-present at ITC and other events the past few years. They announced they are shutting down due to macro conditions. The beginning of their announcement says it all … ‘Start-ups are hard.” We expect to continue to see these stories as the cooling market and other conditions will start to separate the winners and losers. |
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