Rapidly expanding automobile insurer, Cuvva, recruits financial experts for potential acquisition considerations
In the ever-evolving world of insurance technology, London-based Cuvva is making waves with its innovative approach to short-term motor insurance [1]. Founded over a decade ago, the company has garnered significant attention, with approximately one in three 21-29 year old drivers in Britain having downloaded its app [2].
Cuvva's impressive growth is further evidenced by its customer base, which has grown to approximately 1.4 million [3]. Roughly 7% of total UK monthly motor policies are now sold through the Cuvva app, demonstrating its increasing market share [4].
The company's financial performance is equally impressive. In 2021, Cuvva tripled its adjusted profit to £12.8m on turnover of £27.4m [5]. This growth has not gone unnoticed, with the company raising more than £20m from investors including LocalGlobe [6].
To navigate potential strategic opportunities, Cuvva has enlisted the services of Perella Weinberg Partners, a renowned financial advisory and investment banking firm [1]. This engagement signals a potential sale process targeting sophisticated strategic and financial buyers within the insurance and InsurTech sectors.
Potential suitors could include larger insurers seeking innovative short-term motor insurance capabilities, private equity investors interested in InsurTech growth, or global insurance groups aiming to expand digital offerings. The recent surge in consolidation and acquisition in the InsurTech space, such as Zurich Insurance’s acquisition of BOXX Insurance and Munich Re Ergo’s $2.6 billion purchase of NEXT Insurance, underscores this strategic interest [3].
Cuvva's flexibility, innovation in hourly car insurance products, and compliance orientation position it attractively in this competitive environment [2]. The prospective valuation of Cuvva in a sale was unclear on Friday, but the engagement of Perella Weinberg Partners and the company's solid profitability suggest it is preparing for a robust sale process [1][4].
Based in London and employing around 100 people, Cuvva has sold over 13 million policies since its launch in 2015 [6]. The company is chaired by Bruce Carnegie-Brown, who recently stepped down as chairman of Lloyd's of London [7]. As the sale process begins in the coming months, the future of Cuvva remains an exciting prospect in the insurance industry.
[1] The Telegraph [2] Cuvva [3] Insurance Business Magazine [4] City A.M. [5] Cuvva [6] TechCrunch [7] Reuters
- Despite the ongoing war for market dominance in the InsurTech sector, Cuvva's innovative short-term motor insurance business model and solid financial performance have caught the attention of potential strategic buyers, including larger insurers, private equity investors, and global insurance groups, looking to expand their digital offerings.
- As technology continues to reshape the insurance landscape, the sale process for London-based Cuvva, with its impressive growth and profitability, could mark a significant financing event in the InsurTech industry, potentially valuing the company richly in this competitive environment.
