Target Information

Mila, a neo-insurer founded in March 2021 by Gérard Deray and Jean Boucher, has raised €12 million from Elevation Capital Partners and its historical shareholders to accelerate its development in France and Europe. The company aims to become a leading provider of insurance products tailored for real estate professionals and individual landlords.

This funding round will bolster Mila’s existing offerings, particularly the rent default insurance (GLI), which addresses a substantial market comprising 7 million private rental properties, including 2.5 million managed by 14,000 property administrators across France. Since obtaining its insurance company license from the ACPR in late 2021, Mila commenced commercial operations in early 2022 and has shown strong growth trajectories and profitability since 2023.

Industry Overview in France

The French insurance sector has seen significant transformations in recent years, with a growing emphasis on tailored products that cater to specific customer needs. In particular, the property insurance segment has not only expanded due to the rising number of rental properties but has also demanded innovative solutions that enhance customer experience through digital tools.

With the estimated penetration rate for rent default insurance at around 25%, there remains a considerable opportunity for growth and development. The current economic climate has fueled a shift towards such insurance products, as landlords seek to mitigate potential financial risks associated with rental properties.

Moreover, the market has become increasingly competitive, drawing both new entrants and established players. This competitive landscape necessitates a customer-centric approach, where insurers must focus on personalization and seamless digital service delivery to retain clients.

As the insurance industry in France evolves, firms like Mila that can carve out niche offerings while maintaining high service standards are well-positioned to capitalize on the growing demand for specialized insurance solutions.

Rationale Behind the Deal

This round of funding represents a pivotal opportunity for Mila to accelerate its growth trajectory and enhance its market footprint. By leveraging this capital infusion, Mila aims to expand its product offerings further in France and on an international scale. Additionally, strengthening its capital base (with a Solvency Capital Requirement of 336% for 2024) will better position the company to manage volume growth effectively.

The financial backing from Elevation Capital Partners not only validates Mila’s business model but also illustrates the investor's confidence in Mila’s capacity for sustained profitability and market penetration.

Investor Information

Elevation Capital Partners, a notable private equity fund, has expressed strong interest in Mila’s innovative approach and solid foundation in the insurance market. Alexis Kisielevoska and Benjamin Cohen from Elevation highlighted their admiration for the rapid growth and differentiation demonstrated by Mila, indicating a robust alignment of vision between the investor and the company.

With Elevation joining the board alongside Breega, Philippe Mangematin, Blaise Bourgois, and Yann Elbaz, the partnership aims to fortify Mila’s strategic direction while contributing valuable expertise in scaling operations effectively in a burgeoning market.

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The investment into Mila by Elevation Capital Partners appears to be a strategic move that could yield substantial returns, given the current trends in the insurance market. Mila’s focus on rent default insurance places it in a lucrative sector, with a significant market gap yet to be addressed adequately by larger incumbents.

Furthermore, the company’s emphasis on personalization and customer experience positions it advantageously against its competitors. The capacity to tailor products for niche segments less served by traditional insurers could provide Mila with a competitive edge and reinforce its market position.

The financial performance of Mila, evidenced by its profitability since 2023, underscores the viability of its business model. A positive net income of €819,000 in 2024 showcases the company's ability to manage costs effectively while scaling operations, indicating a sustainable business framework.

In conclusion, the combination of a strong product offering, market demand, and a capable management team presents Mila as a compelling investment opportunity. Provided that the company continues on its current growth trajectory and successfully leverages the capital obtained, it is likely poised for long-term success in the evolving landscape of the insurance industry.

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