PNC Bank buys placement agent Sixpoint Partners; Pamlico Capital seeks buyer for Service Express; Prudential Financial to buy Assurance IQ
One discussion I’ve been having with private equity executives lately is whether insurtech has arrived for buyout shops. Insurance companies using technology to sell products isn’t a new trend, I’m told. But insurtechs like Lemonade or Clover Health that are looking to displace incumbent firms is a big deal.
This morning, we have a rather large insurtech transaction. Prudential Financial is buying Assurance IQ Incfor $2.35 billion. Assurance, of Bellevue, Washington, uses data science and machine learning to sell life, health, Medigap and auto policies online to customers, according to the Wall Street Journal. FT Partnersadvised Assurance IQ on the sale.
Assurance is the latest in the trend of insurers pairing up with insurtech firms to reach new audiences, the WSJ said. This time it’s middle class investors whose business is too small for agents to seek, the story said.
Some insurtech have drawn big prices lately. GI Partners is buying Insurity from Genstar, TA and GA. The deal was valued at $1 billion to $1.5 billion. Thoma Bravo is selling iPipeline to Roper Technologies for $1.625 billion. (I’m told this is roughly 20x Ebitda.) NexPhase Capital has also put Insurance Technologies LLC on the block, I reported last month.
Many insurtechs are still too early for PE, I’m told. Assurance, which doesn’t appear to have any outside investors, found a strategic to buy it. Will the Assurance deal cause private equity to scoop up little companies they wouldn’t normally be interested in? Or is this just the continuation of a trend that sees insurers buying up smaller companies? Has PE always been there for insurtech? Email your thoughts to me at firstname.lastname@example.org
In other news, Apollo Global Management has completed the switch to a corporation from a publicly traded partnership.
Providence has two deals. The PE firm said yesterday that it invested in TimeClock Plus, a workforce management software provider.