Palamon-backed FairConnect agrees acquisition of G-Evolution to create a pan-European leader in connected insurance services

Palamon Capital Partners (“Palamon” or the “Firm”) is pleased to announce that its portfolio company, connected insurance service provider FairConnect (the “Company”), has signed an agreement to acquire G-Evolution from Groupama Assicurazioni Italia.  As part of the transaction, FairConnect will establish a long-term strategic partnership agreement with Groupama, the leading insurance carrier in France, for the provision of advanced connected insurance solutions.  The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to complete in the second half of 2021.

Headquartered in Switzerland and with major operations in Italy, France and Germany, FairConnect is a leading specialised provider of connected insurance services to some of the largest insurance carriers in Europe, including Generali, Cattolica, Axa, Intesa Assicura, Covea, MAIF and now Groupama.

Since Palamon acquired FairConnect in 2018, the Company has more than doubled its user base in Connected Motor to become the second largest player in the European market.  Now servicing seven out of the top 10 insurance carriers, the Company has consolidated its strategic position in Italy, expanded its client portfolio to France and Germany and successfully entered the synergistic Connected Property segment.

G-Evolution is the telematics service provider of Groupama Assicurazioni and specialises in analysing automotive data using advanced AI algorithms to provide efficient claims management and settlement, fraud detection and real-time driver accident support.  The strategic partnership with Groupama and the integration of G-Evolution’s advanced analytics capabilities consolidate FairConnect’s market position in Europe, contributing c. 300,000 connected policies to an overall portfolio in excess of 800,000 subscribers, and €7.0 million to a combined platform EBITDA of more than €15.0 million.

Connected insurance is a fast-growing market globally, in which Italy leads the motor segment with c. 20% of policies now being connected.  Connected motor insurance policies offer their clients lower premiums by risk-scoring their driving behaviour and reducing fraud and can also provide sophisticated customer service features.  The market is generally segmented between lower tech, high volume players, and high-tech lower volume players.  FairConnect is strategically positioned as the only player with both scale and market leading technology, which it has developed in-house and through selected investments in regional and technology champions, such as the recent purchases of DriveQuant in France and Midori in Italy.

FairConnect’s Chairman and CEO, Carmine Carella said: “G-Evolution is a best-in-class technology platform specialized in claims handling and settlement.  The cutting-edge technologies of G-Evolution, combined with our deep industry experience, creates a unique pan-European Connected Insurance platform that will enable FairConnect to support Groupama in expanding, simplifying and digitalizing the product offering by leveraging our connected plug and play solutions that can increase customer loyalty and the company's technical profitability”.

Julian Carreras, Partner at Palamon, commented: “Palamon invested in FairConnect as the leading player in the high-growth connected insurance sector, with the advanced technology and scale required to lead the continued development and consolidation of the industry.  The acquisition of G-Evolution strengthens its pan-European footprint, increases its ability to deliver innovative services to insurance carriers and secures a valuable long-term partnership with another top insurer in Europe, putting the Company on track to achieving more than 1 million connected policies.”