Alignment Healthcare plans to generate $516m in IPO
Alignment Healthcare has launched its IPO and has announced plans to raise $516m from the move, as part of an expansion plan strategy.
The US-based startup which provides Medicare Advantage plans, will sell 27.2m common stock shares, with 5.5m shares that will be offered to existing company stockholders.
According to reports by the Securities and Exchange Commission filing last week, share prices are expected to sell between $17 and $19.
Furthermore, the insurtech says it predicts it will have 187.3m outstanding shares following the IPO, positioning Alignment Healthcare at a valuation of $3 .6bn.
Currently, Alignment has a health plan customer base of more than 81,000 and provides Medicare Advantage plans in 22 markets across the US. The company is one of a growing number of disruptive insurtechs that are transforming the healthcare sector through the latest technology solutions.
For example, Alignment uses predictive analytics to ascertain the level of cover eldely customers may need and also has a 24-hour hotline for members who require additional support in their healthcare.
Medicare a growing market
Alignment Healthcare has enjoyed a strong growth trajectory over the past few months, with revenues up from $756m to 959m in just 12 months. However, the company experienced some losses in 2019 and 2020.
According to a report by the Kaiser Family Foundation, the Medicare Advantage sector is skyrocketing, with 39% of all Medicare beneficiaries taking out such plans. Data shows the growth rate has hit 9% consecutively for 2019 and 2020.
The startup will trade on NASDAQ as ALHC and the working capital raised will be used for investments and debt repayments. Plans show the company aims to explore new markets as well as expanding its position in the maturing markets of San Joaquin and Stanislaus.
Akur8’s US$30mn Series B to fuel US and APAC expansion
Still a relatively new company in the sector, Akur8’s progress since it was founded in 2018 has been characterised by cutting-edge tech, strategic growth, and a highly personable approach that clearly demonstrates the youthful innovation of insurtech itself.
The company strives to embody four key values:
- Challenging a status quo that doesn’t benefit customers
- “Disrupt the known, organise the unknown”
- Provide artificial intelligence (AI) tech with a distinctly human edge
- Create solutions that will endure the test of time
At the heart of Akur8’s business is its Transparent AI solution. Capable of empowering actuaries and pricing teams through better, faster decision making, the insurtech touts it as “the only solution that automates rate modeling while keeping full transparency and control.”
Transforming insurance pricing
In just two years, Akur8 has acquired over 30 customers in 10 countries - including high-profile insurers like Munich Re, Tokio Marine Kiln, AXA, and Generali - and established additional offices in London and New York. Now, the company is keen to develop its business in the US’ verdant insurance market and build its presence in APAC.
“The BlackFin team is thrilled to see Akur8 continue to spread its wings and deploy its next generation pricing platform across insurance carriers worldwide,” said Julien Creuzé, Partner. “We have built a great relationship with the Akur8 management team and it’s a pleasure to welcome new investors and continue this journey with them.”
Guillaume Beraud-Sudreau, Co-Founder and Chief Actuary at Akur8, added, “We are humbled by the trust that our clients and investors have placed in Akur8. Building the future of insurance pricing powered by Transparent AI has been our goal since the first day of R&D. Now this vision has become reality and we can’t wait to accelerate our growth to become the global reference in insurance pricing.”
Cover image source: Akur8