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EverQuote (EVER) Boosts Insurance Offering With Latest Buyout

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EverQuote, Inc. (EVER - Free Report) has acquired PolicyFuel, LLC and its affiliated entities. This buyout is expected to widen the range of products EverQuote offers and support its property and casualty (P&C) carrier partners. The transaction was announced on Jul 20.

PolicyFuel operates in P&C insurance verticals, providing policy-sales-as-a-service (PSaaS) offerings.The addition further enhances the personalized shopping experiences offered to consumers as well as enhance EverQuote’s ability to access the $135 billion commission TAM component of the overall insurance distribution spend shifting online. In this recent deal, PSaaS offerings of PolicyFuel for P&C markets will further extend EverQuote’s existing Direct-To-Consumer Agency (DTCA) strategy in Health and Life insurance verticals.

EverQuote witnessed impressive inorganic growth. In September 2020, EverQuote closed the buyout of IN-based Crosspointe Insurance & Financial Services, LLC, which is expected to accelerate the extension of EverQuote’s digital distribution platform to a direct-to-consumer agency model within the health vertical. The transaction is also expected to increase revenue per quote request in health insurance vertical, which will further grow and diversify the company’s revenues.

A solid capital position supports EverQuote in its growth initiatives. The company boasts a debt free balance sheet with cash balance improving over the last three years.

Shares of EverQuote have lost 46.5% year to date compared with the industry’s 13.1% increase. Solid performances at automotive and other insurance verticals, increasing consumer traffic, higher quote request volume, lower advertising costs and shift to online insurance sales should help shares rebound.
 

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The company currently carries a Zacks Rank #4 (Sell).

Given insurance industry’s adequate capital level, players are pursuing strategic mergers and acquisitions. Arthur J. Gallagher & Co. (AJG - Free Report) inked an agreement to buy Willis Towers Watson plc’s Willis Re for $3.25 billion in cash to expand its global value proposition in reinsurance. Brown & Brown, Inc. (BRO - Free Report) announced that Brown & Brown of Florida, Inc. has bought Sudler Insurance Services to boost its employee benefits business.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 


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