Revo Insurance S.p.a. · MIL:REVO
Revo Insurance — Merger or Acquisition (July 2021)
30 slides from Revo Insurance's merger presentation, July 2021
Slide 1: Investor Presentation, July 2021
Investor Presentation, July 2021
Slide 2: Disclaimer
Disclaimer These materials have been drafted by REVO (the “Company”) (the “Materials”) and will only be delivered to investors of the Company (the “Recipients”). Recipients and their respective representatives agree that the sole purpose of these Materials is to assist the Recipient in deciding on t
Slide 3: Agenda
Agenda 1 Team and Vision……………………………………………………………………..…….……….……………………………..……. 4 2 Why Elba Assicurazioni?.……..………………………………………………....…….…………………………………………… 11 3 The future of REVO post Business Combination…..……….……………..………………….…………….….………….. 17 3
Slide 4: Team and Vision
Team and Vision Section 1 R=VO
Slide 5: Senior leadership with proven track record and expertise
Senior leadership with proven track record and expertise Claudio Alberto Jacopo Simone Stefano Costamagna Minali Tanaglia Lazzaro Semolini Chairman CEO CFO CUO General Counsel Trusted and long dated Extensive and recognised Solid experience in Long dated experience in Strong legal and relationships
Slide 6: Highly experienced and incentivised key managers
Highly experienced and incentivised key managers Diego Massimiliano Salvatore Giovanni Guario De Gregorio Stefanelli Poccobelli Team IT Team IT Team IT CDO Strong technical and managerial Over 20 years of experience in Over 30 years of experience in Extensive experience in financial experience in an
Slide 7: An opportunity to create a new insurance paradigm
An opportunity to create a new insurance paradigm Leadership in Focus on SME specialty lines Growing Digitalization of underwriting demand Inadequate Process covers simplification New New insurance technologies products 7
Slide 8: A unique player for specialty and parametric risk
A unique player for specialty and parametric risk Specialty lines Parametric risk Tailor-made coverage From claim to event Business mainly broker-driven External oracle certification Market partially covered Real time settlement High level of technical complexity Natively digital and blockchain base
Slide 9: An attractive market with favorable trends
An attractive market with favorable trends €1.1bn +7.1% ~12% Market size Market conditions CAGR1 ROE1 Parametric The Italian Rates Strong growth ROE in A new industrial market size for hardening in risk niches specialty lines is proposal in commercial environment requiring generally higher insuran
Slide 10: Key levers for value creation
Key levers for value creation Ecosystem Technology Provide key data / info (also set up as "oracles") Cloud based digital platform with extensive private / public data access Create and nurture commercial relationships Automation of pre-underwriting risk analysis via A.I., sophistication of
Slide 11: Why Elba Assicurazioni?
Why Elba Assicurazioni? Section 2 11
Slide 12: At a glance
At a glance Elba has seen a constant top-line growth since its foundation in 2008 Distribution channels GWP by business lines ITA - GAAP 2019 2020 (2020) GWP €71.2m €68.3m Elba, in 2020, distributed its Net Earned Premiums €33.5m €37.5m products through two channels1: General Fire Technical results
Slide 13: Strong transaction rationale
Strong transaction rationale Elba is the ideal target as a springboard for the future development of REVO 1 Elba operates in one of the business lines (surety) that will be developed by REVO 2 Profitable and healthy 3 IT architecture compatible with the development of other specialty lines and with
Slide 14: Key contractual agreements
Key contractual agreements • If conditions to closing are satisfied by 30/09/2021, price paid as agreed of €160m Price and • If conditions to closing are satisfied after 30/09/2021, price to be determined as the sum of €150m plus Consideration net result from 31/12/2020 and the date of closing €20m
Slide 15: Envisaged timeline of the transaction
Envisaged timeline of the transaction Information Application Shareholders’ Authorization CLOSING Commitment document for the meeting from IVASS to (purchase of to commence available to authorization (subject to purchase the the Target’s all required investors submitted to obtaining Target’s shares)
Slide 16: Price and valuation references
Price and valuation references Transaction multiples significantly below market average for listed specialty insurers Market multiples1,2 P/E 2021E • A total acquisition price of €160m (if conditions ~19x to closing are satisfied by 30/09/2021) • Implied transaction multiples: ~11x Price and ~8x o P
Slide 17: The future of REVO post Business Combination
The future of REVO post Business Combination Section 3 17
Slide 18: Strategic levers for further value creation
Strategic levers for further value creation The acquisition of Elba will allow REVO to action the following levers for value creation: • Possibility to further expand the current distribution network (104 agents and 13 brokers as of 31.12.2020) Premiums • Commercial agreements with brokers and agent
Slide 19: Transforming REVO into the Italian SME specialty leader
Transforming REVO into the Italian SME specialty leader Targets 20251 (ITA GAAP) Diversify the service of SMEs by entering into A additional selected specialty lines >€40m >€250m B Develop parametric risk covers GWP Technical result Onboarding of top quality professionals C in underwriting, data man
Slide 20: Specialty lines – Overview
A Specialty lines – Overview Most of specialty risks are originated in Agri & SME local markets, but brokered abroad Property Weather & Casualty High-expertise and know-how provided by underwriters and MGA Marine Construction & Aviation Specialty insurance rates are generally dependent upon reinsura
Slide 21: Specialty lines – Vision & Strategy
A Specialty lines – Vision & Strategy Be the Specialty Insurer of the Italian SMEs thanks to Technical skills of our “First class” Innovative “Solution first” underwriters Information distribution approach and data Technology model scientists Clients needs SMEs needs Team Claims Niche business Manag
Slide 22: Parametric risk - Overview
B Parametric risk - Overview Pay-outs based upon a trigger event Mobility & Weather Transport & cat Trigger events can be nature-based or business related Faster pay-outs based on objective Business Personal parameters & Interruption Events Risks modelled using data and public sources ("oracles") Ag
Slide 23: Parametric risk – Key pillars
B Parametric risk – Key pillars The adoption of the smart contract allow a strong simplification / standardization of the insurance contract, with clear and few clauses The simplification of some key insurance processes (in particular claims management and settlement) Blockchain-based technology to
Slide 24: Parametric risk – Distribution Strategy
B Parametric risk – Distribution Strategy B2C Direct sales through app and website Strong disintermediation Fast and simple customer experience B2A2C Partnerships with no-insurance players Commercial agreements with affinities Ad-hoc product structuring B2B Direct sale to businesses Commercial agree
Slide 25: Strategic partnership with Mangrovia Blockchain Solutions
B Strategic partnership with Mangrovia Blockchain Solutions • Mangrovia is a holding company and software house specialised in the development, implementation and distribution of high-value technological services (in particular, blockchain-based technologies) Who is • Some of the companies participa
Slide 26: Team of highly specialized professionals
C Team of highly specialized professionals ~ 50 HC ~ 10 HC ~ 5 HC Underwriting Analytics & Market & Claims Reinsurance Management Senior Underwriters Data Scientist team Salesforce in charge of and Claim Specialist for pricing, portfolio distribution strategy with solid track record analysis and and
Slide 27: Revo focuses on a visionary yet pragmatic evolution…
D Revo focuses on a visionary yet pragmatic evolution… Specialty lines Artificial Intelligence and Big Data & Artificial Deep Learning for business digitalisation of product Intelligence for risk model optimization distribution assessment Parametric risk Full digitalisation and Blockchain as a basis
Slide 28: …with solid technological pillars…
D …with solid technological pillars… Multichannel to support REVO development with intermediaries and ecosystems CYBER SECURITY Middleware to digitalise and innovate products and processes free from the constraints of legacy systems Underwriting CYBER SECURITY CYBER SECURITY Fast data for easy and r
Slide 29: …and a modern open architecture
D …and a modern open architecture Cloud Cyber Security Multi Middleware Fast Legacy Channel Data System I Retail N D A M PRICING Customers Change Data Capture T I I API G BPM ENGINE L DB E Portal G I Data Lake R T Small Contracts A A Rule engine portfolio Broker T L System I Microservices WEB O P Or
Slide 30: Final remarks
Final remarks • Elba is the ideal target to launch and develop Project REVO • Elba is the accelerator that will allow REVO to minimize the time required Ideal to enter the market effectively starting-point • In less than two months from the IPO, REVO is ready to start its operations, develop its str