One year after its initial public offering raised $84 million, online insurance marketplace EverQuote announced it is expanding into health insurance and renters insurance, building on its existing auto, home and life insurance marketplace offerings.
The Cambridge, Mass.-based company says that drivers who purchase a new auto insurance policy through EverQuote save an average of $610 per year, and it expects to help consumers “from first-time renters to baby boomers eligible for Medicare” find the right coverage and save on health and renters insurance as well.
Seth Birnbaum, CEO and co-founder of EverQuote, called the inclusion of health and renters insurance “natural extensions of our insurance marketplace for consumers and providers.”
EverQuote’s health insurance marketplace helps consumers navigate the purchasing non-employer provided health or Medicare plans. EverQuote’s renters insurance marketplace benefits shoppers who are interested in protection for their personal property.
The company generates revenue by selling consumer referrals to insurance carriers, agents and other distributors. Its proprietary data and technology platform matches consumers with insurance providers. Providers are given pre-validated consumer referrals that match their specific requirements. EverQuote allows for targeting of consumers for carriers based on geography, demographics, behavioral characteristics and coverage needs. Agents who access the marketplace can specify their desired consumer profiles, geographic areas, hours of operation, budgets and product types across auto, home and life insurance.
Insurance carriers in its network include Allstate, Farmers, State Farm, Nationwide, Mercury, Liberty Mutual, Travelers, Hartford, American Family, Progressive and MetLife. EverQuote’s two largest customers, Progressive and GEICO, together accounted for 29% and 28% of its revenue for 2018 and 2017, respectively.
As of January 31, 2019, it had 7,000 enrolled insurance agencies.
EverQuote receives a fee when a consumer buys a policy. Some carriers subsidize the fee for agents.
The company reports that the site attracts more than 11 million consumer visits per month.
The company launched in auto insurance in 2011 with less than $10 million of equity raised. Revenue grew from $45.6 million in 2013 to $163.3 million in 2018, representing a compound annual growth rate of 29%. In 2017 and 2018, total revenue was $126.2 million and $163.3 million, respectively, representing year-over-year growth of 29%. The company had a net loss of $5.1 million in 2017 and a net loss of $13.8 million in 2018, and had $(1.5) million and $(5.5) million in adjusted EBITDA in 2017 and 2018, respectively.
In its annual filings, the company indicates that more expansion is ahead. It says it plans to expand into commercial insurance and into international markets.
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