Mercer Capital’s Insurance Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to insurance brokers, underwriters, and other industry professionals. Each issue includes a segment focus, market overview, mergers and acquisitions review, and more. Mercer Capital’s Insurance Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to insurance brokers, underwriters, and other industry professionals. Each issue includes a segment focus, market overview, mergers and acquisitions review, and more.

1. FinTech Industry Overview
Public Market Indicators 1
FinTech Indices vs. S&P 500 1
Median Total Return 1
Valuation Multiples 2
Industry Articles of Note 2
Segment Focus: Payments
M&A Activity Overview 3
Venture Capital Overview 4
Venture Capital Case Study:
Gyft, Inc. 6
Publicly Traded FinTech Companies
Technology 9
Solutions 10
Payments 12
About Mercer Capital 14
First Quarter 2015
www.mercercapital.com
VALUE FOCUS
Insurance Industry
Overview 1
Segment Indices 2
MA Activity Recap 2
SNL Indices 3
About Mercer Capital 5

2. © 2015 Mercer Capital // www.mercercapital.com // Data provided by SNL Financial 1
Value
FocusInsurance Industry
First Quarter 2015
Stocks Show Mixed Performance. While insurance broker stocks ended the first quarter of 2015 with
only a slight gain of 0.49% on the SNL Broker Index, the SNL Underwriter Index posted a 3.57% return.
The SP 500 gained 0.95% over the same period.The largest sub-sectors of the industry actually posted
modest declines, including Multi-line (-1.43%), Life Health (-2.95%), and PC (-0.13%). However,
the industry’s smaller components rallied. Quarterly gains from the Reinsurance segment were 3.64%,
driven by MA announcements and further consolidation speculation, while title insurers climbed 7.03%
on elevated refinance activity. Managed care insurance gained the most of all, returning 20.64% due in
part to stronger earnings and more favorable than expected Medicare rate guidance for 2016.
Tapering Rate Increases Could Indicate a Changing Cycle. MarketScout, an aggregator of
insurance information, reported no change in PC insurance prices in the months of January and
March, and an increase of only 1% in February. In the context of climbing rates over the first quarters
of 2013 and 2014 (4.7% and 2.7%, respectively), the stabilization of prices could indicate an inflection
point in the insurance cycle from a hard market to a soft market. Data compiled by the Council of
Insurance Agents Brokers over the first quarter showed a 2.3% decline in aggregate commercial
rates led by a 3.7% drop in large accounts.
Valuation Multiples Remain Steady. As shown in the attached charts of historical and current
pricing by segment, the majority of price/book multiples for the SNL Indices remained relatively
unchanged during the first quarter, especially among the largest sub-sectors of the market. The
managed care index, however, experienced a solid increase in price/book value, ending the quarter
at 2.97x after beginning at 2.47x, and more than doubling its five year low. Among insurance brokers,
median EV/EBITDA ended the quarter at 12.3x, up slightly from 12.2x at year-end.
MA Deal Notes. Among underwriters, only 12 transactions were announced during the first
quarter, down from 18 during the same period last year. In the largest transaction of the quarter,
XL Group announced plans to acquire Catlin Group in a deal worth $3.8 billion (approximately
1.12x book value and 7.4x earnings at announcement). The deal, completed on 5/1/15, makes
the combined company the largest Lloyd’s of London underwriter and the 8th largest reinsurer in
the world. In another major reinsurance deal, Endurance Specialty Holdings announced plans
to acquire global PC insurer Montpelier Re for $1.4 billion in a deal expected to be completed in
July. Deal multiples at announcement were 1.24x book and 6.8x earnings. Insurance brokers saw
an increase in MA activity in the first quarter with 105 deal announcements, the most since Q4 of
2012. The largest deal of the quarter was KKR’s Alliant Specialty acquisition of QBE’s U.S. agency
businesses. Total consideration of $300 million includes $217 million in cash and up to $83 million in
earn-out based on performance over the next five years. According to QBE, the acquisition multiple
on the deal was approximately 12.0x EBITDA.

3. © 2015 Mercer Capital // www.mercercapital.com // Data provided by SNL Financial 2
SNL Insurance Broker and Underwriter IndicesSNL Insurance Underwriter Segment Indices
Mercer Capital’s Value Focus: Insurance Industry First Quarter 2015
60.0!
80.0!
100.0!
120.0!
140.0!
September30,2013=100!
SP 500: 19.73% ! SNL Insurance Multiline: 20.73% !
SNL Insurance LH: 15.92% ! SNL Insurance PC: 12.43% !
SNL Reinsurance: 12.63% ! SNL Managed Care: 27.30% !
SNL Title Insurer: 17.03% ! SNL Mortgage Finl Guaranty: 9.11% !
90.0!
95.0!
100.0!
105.0!
110.0!
115.0!
120.0!
125.0!
March31,2014=100!
SNL U.S. Insurance Broker: 12.06% !
SNL U.S. Insurance Underwriter: 19.60% !
SP 500: 12.73% !
MA Activity Recap: Insurance UnderwritersMA Activity Recap: Insurance Brokers
Q1! Q2! Q3! Q4! YTD at 3/31!
2012! 20 ! 26 ! 27 ! 20 ! 20 !
2013! 24 ! 17 ! 25 ! 14 ! 24 !
2014! 18 ! 15 ! 11 ! 23 ! 18 !
2015! 12 ! 0 ! 0 ! 0 ! 12 !
0 !
20 !
40 !
NumberofTransactions!
Q1! Q2! Q3! Q4! YTD at 3/31!
2012! 64 ! 75 ! 61 ! 146 ! 64 !
2013! 41 ! 42 ! 56 ! 76 ! 41 !
2014! 79 ! 67 ! 82 ! 84 ! 79 !
2015! 105 ! 0 ! 0 ! 0 ! 105 !
0 !
20 !
40 !
60 !
80 !
100 !
120 !
140 !
160 !
NumberofTransactions!
60.0!
80.0!
100.0!
120.0!
140.0!
160.0!
March31,2014=100!
SP 500: 12.73% ! SNL Insurance Multiline: 18.84% !
SNL Insurance LH: 2.00% ! SNL Insurance PC: 15.04% !
SNL Reinsurance: 14.27% ! SNL Managed Care: 51.99% !
SNL Title Insurer: 34.50% ! SNL Mortgage Finl Guaranty: -2.30% !

4. © 2015 Mercer Capital // www.mercercapital.com // Data provided by SNL Financial 3
Mercer Capital’s Value Focus: Insurance Industry First Quarter 2015
SNL Life Health IndexSNL Multi-Line Index
SNL Property Casualty Index SNL Reinsurance Index
3/31/1512/31/1412/31/1312/31/1212/30/1112/31/1012/31/09
Price / LTM EPS 13.9513.2116.5514.748.3611.7113.53
Price / Book 1.031.071.270.810.811.131.21
Price / Tang. Book 1.071.131.290.710.771.001.31
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
0.00
2.50
5.00
7.50
10.00
12.50
15.00
17.50
20.00
22.50
25.00
Price/Book
Price/Earnings
3/31/1512/31/1412/31/1312/31/1212/30/1112/31/1012/31/09
Price / LTM EPS 18.0319.8321.617.685.1810.939.88
Price / Book 1.871.881.140.660.560.540.72
Price / Tang. Book 2.362.372.161.100.740.590.74
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
0.00
2.50
5.00
7.50
10.00
12.50
15.00
17.50
20.00
22.50
25.00
Price/Book
Price/Earnings
3/31/1512/31/1412/31/1312/31/1212/30/1112/31/1012/31/09
Price / LTM EPS 15.2514.0714.8112.9417.7812.8918.26
Price / Book 1.331.351.381.121.121.131.09
Price / Tang. Book 1.611.751.651.381.421.411.30
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
0.00
2.50
5.00
7.50
10.00
12.50
15.00
17.50
20.00
22.50
25.00
Price/Book
Price/Earnings
3/31/1512/31/1412/31/1312/31/1212/30/1112/31/1012/31/09
Price / LTM EPS 16.8511.6611.556.9822.939.4324.08
Price / Book 0.991.001.060.830.820.841.11
Price / Tang. Book 1.031.031.090.850.850.871.44
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
0.00
2.50
5.00
7.50
10.00
12.50
15.00
17.50
20.00
22.50
25.00
Price/Book
Price/Earnings

5. © 2015 Mercer Capital // www.mercercapital.com // Data provided by SNL Financial 4
Mercer Capital’s Value Focus: Insurance Industry First Quarter 2015
SNL Title Insurance IndexSNL Managed Care Index
SNL Mortgage Financial Guaranty Index SNL Insurance Broker Index
3/31/1512/31/1412/31/1312/31/1212/30/1112/31/1012/31/09
Price / LTM EPS 21.3118.1613.929.8910.728.6611.05
Price / Book 2.972.472.021.511.641.341.42
Price / Tang. Book 4.594.324.563.363.334.223.43
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
0.00
2.50
5.00
7.50
10.00
12.50
15.00
17.50
20.00
22.50
25.00
Price/Book
Price/Earnings
3/31/1512/31/1412/31/1312/31/1212/30/1112/31/1012/31/09
Price / LTM EPS 12.4731.8414.499.3812.9613.0828.22
Price / Book 2.011.891.531.220.890.851.00
Price / Tang. Book 2.402.263.232.631.661.622.01
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
6.00
0.00
2.50
5.00
7.50
10.00
12.50
15.00
17.50
20.00
22.50
25.00
27.50
30.00
Price/Book
Price/Earnings
3/31/1512/31/1412/31/1312/31/1212/30/1112/31/1012/31/09
Price / LTM EPS 8.8712.106.240.553.563.340.44
Price / Book 1.571.751.940.660.670.850.89
Price / Tang. Book 1.051.241.980.660.670.860.89
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
0.00
2.50
5.00
7.50
10.00
12.50
15.00
17.50
20.00
22.50
25.00
Price/Book
Price/Earnings
12.312.212.212.2
9.6
9.3
10.4
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
3/31/1512/31/1412/31/1312/31/1212/30/1112/31/1012/31/09
EnterpriseValue/LTMEBITDA

6. Mercer
Capital
Insurance Industry Services
Contact Us
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Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 901.685.2120. Mercer Capital’s Industry Focus is published quarterly and does not constitute legal or financial consulting advice. It is offered as an
information service to our clients and friends. Those interested in specific guidance for legal or accounting matters should seek competent professional advice. Inquiries to discuss specific valuation matters are welcomed. To add your name to our mailing list
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Mercer Capital provides the insurance industry with corporate valuation,
financial reporting, transaction advisory, and related services.
Industry Segments
Mercer Capital serves the following industry segments:
• Agencies
• Independent insurance brokers and agents
• Bank-owned agencies
• Retail, wholesale, and MGAs
• Ancillary
• Third-party administrators
• Claims adjusters and other service providers
Mercer Capital Experience
• Nationwide client base
• Agency clients range from single office agencies to top-10 public brokers
• Underwriter clients range from monoline privates to publicly traded multi-line carriers
Contact a Mercer Capital professional to discuss your needs in confidence.
Lucas M. Parris, CFA, ASA
901.322.9784
parrisl@mercercapital.com
Travis W. Harms, CFA, CPA/ABV
901.322.9760
harmst@mercercapital.com
Mercer Capital
5100 Poplar Avenue, Suite 2600
Memphis, Tennessee 38137
901.685.2120 (P)
www.mercercapital.com
• Underwriters
• PC, life health, and managed care
• Reinsurance
• Captives and risk retention groups