FairConnect

Invested:
November 2018

Exited:
Unrealised

Sector:
Business services

Stage:
Mid (core strategy)

Headquarters:
Switzerland

Region:
Southern Europe

Business:
Connected insurance service provider

Business at time of investment

FairConnect is a leading provider of connected insurance services based on best-in-class Internet of Things (“IoT”) technologies, including data analytics, machine learning and the deployment of IoT devices. The company is headquartered and based in Switzerland, with significant operations in Teramo, Italy. FairConnect established itself as a sizeable telematics market player, serving more than 200,000 subscribers from some of the largest connected insurance providers operations in Europe.

Investment rationale

Palamon has a long-standing investment thesis within the data and analytics space, seeking businesses that generate productivity and efficiency gains through the capture, interpretation and management of data. The connected insurance sector is undergoing rapid growth as insurance companies employ data feeds to drive operational efficiency, increase revenues and enhance customer experience. Palamon believes that FairConnect is well-positioned to rapidly scale in this market through organic growth and M&A, capitalising on strong existing contracts and leveraging its unique expertise in telematics. 

Value creation

• Built out management team: Appointed new Finance Director and made key hires in technology and operations

• Diversified customer base: Established relationships with 7 of the top 10 Italian insurance groups to provide connected motor insurance services. Initiated European expansion through clients wins with top insurers in France and Germany

• Diversified product range: Developed a connected home insurance service offering in Italy and rolled out to other European markets

• M&A:

  • Acquired Italian Telematics Company AC Group, the connected insurance provider to Banca Intesa Sanpaolo Group, in a highly accretive acquisition.

  • Acquired French Connected Services Provider, DriveQuant, enhancing FairConnect’s technology stack with a superior smartphone-as-a-sensor technology and scoring algorithms as well as providing access to leading insurers across the French region.

  • Acquired G-Evolution from Groupama Italy in December 2021 to establish FairConnect as the pan-European leader in connected insurance services. G-Evolution’s provided advanced analytics capabilities and contributed c. 300,000 connected policies, almost doubling the size of FairConnect’s portfolio.