Altamir - 2018 Registration document

Business description and activities

Presentation of the Company

1

www.cipres.fr

1) Business description Founded in 2000, CIPRÉS Assurances is a wholesale broker specialised in supplemental insurance protection. It designs, underwrites and manages life, disability and health insurance programmes for self-employed persons as well as managers and employees of SMEs. CIPRÉS offers a range of products and services to secure their income, safeguard their assets, preserve their health and protect them against accidents. Supplementing its organic growth, CIPRÉS finalised the acquisitionofAxelliance inAugust 2018, amajor step in itsbusiness development strategy. Axelliance has recognized expertise in health & protection and property & casualty insurance, bringing in new expertise to CIPRÉS. It focuses on small and very small groups aswell as self-employedpersons, distributing its products both directly and through a network of ca. 4,500 brokers. 2) Investment rationale CIPRÉS has an attractive business model based on recurring revenue, predictability, high profitability and strong cash generation. In France the underlying market of wholesale supplemental insurance represents a segment worth about €1bn in a total supplemental insurancemarket worth €11bn. It has been growing at roughly 7% per year and has high barriers to entry. CIPRÉS is well positioned to benefit from this market growth given its pureplaypositioning, leadershipandexcellent reputation among insurers and brokers.

3) Sources of value creation CIPRÉS plans to digitalise all its processes, continue to expand its broker network, increase its brokers’ business volumes and diversify its products internally and/or through acquisitions and joint ventures. With these steps, CIPRÉS will initiate a new growth phase and a product diversification strategy to make it the leading multi- product player meeting all the insurance needs of entrepreneurs. 4) Achievements since the investment A year and a half after the investment, the company is on track with its business plan. It continues to work on the complete overhaul of its back-office software, with completion scheduled for the end of 2019. The newly combined CIPRÉS Assurances/Axelliance entity is the 2nd largest wholesale insurance broker in France, with around €500m in the portfolio and ca. 7,000 partner brokers in 2018. Its aim is to become the preferred insurer for French entrepreneurs in the near term. 5) Performance In 2018 revenue increased by 18.5% to €62.0m, and EBITDA was up by 24%. Including Axelliance on a pro forma basis, revenue reached €103.6m. 6) Exit CIPRÉS’s asset-light structure translates into a highly cash generative business model. It has significant potential for further growth via the expansion of its broker network and new product offerings, which should attract future interest fromboth financial and strategic buyers.

DATE OF INVESTMENT

PORTFOLIO AT FAIR VALUE

SECTOR

COUNTRY

RESIDUAL COST

FAIR VALUE

2017

47.2 m

66.7 m

6.7 %

€

€

F R A N C E

29

ALTAMIR 2018

Registration document