Insurtech deals still going strong in Q2 2019
There was close to 100 significant deals in the insurtech sector globally in Q2 2019. Usually, North America takes the lion’s share of activity but it is now spreading. Patrick Brusnahan reports.
In Q2 2019, there were 63 private company financings and 26 M&A transactions in the insurtech industry worldwide.
Over the quarter, financing volume totalled over $1.5bn. According to FT Partners, this is the equal to 34% of the total financial for all of 2018.
The largest of these deals was health insurtech Lemonade’s $300m Series D funding round, led by SoftBank. That brings the firm to nearly $470m in funding to date. That is the sixth highest out of all privately held insurtech ventures.
North America accounted for the most (60%) of total financial volume so far in 2019. While high, it is lower than the 75% it accounted for in 2018.
In addition, there was plenty of M&A as there were private equity buyouts of Actineo, Insurity, and Vitech.
Furthermore, Allianz, Applied, National General, Vertafoe, and Zywave all made strategic acquisitions.
However, CNO Financial Group’s $66m purchase of Web Benefits Design was the sole M&A deal of the quarter with an announced deal value.
Deals across the globe
In 2019 so far, North America has been responsible for 75 financings, 59% of the total. The total value of these deals was $1,854m. The largest financial was the $500m given to Clover.
Europe witnessed 31 insurtech financings, 24% of the total, with a total value of $574m. The biggest deal was the $128m funding awarded to digital car insurance start-up FRIDAY.
Also, Asia had 16 insurtech financings with a total value of $615m (20% of the total value in 2019 so far). Policy Bazaar received the biggest deal in the region with $152m.
Largest insurtech financings in Q2 2019