Industry Observations March 31, Insurance Industry

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1 Industry Observations March 31, 2017 Insurance Industry

2 Select Insurance Public Company Industry Data (USD in millions, except per share data) Company Name Ticker Price at 03/31/17 % of 52 Week High Market Data LTM Operating Data Forward Estimates Equity Value Enterprise Value Debt / Total Capital Total Assets LTM Revenue LTM CY 2017 Revenue Estimate CY 2017 Estimate Property and Casualty First American Financial Corporation FAF $ % $4, $4, % $8, $5, $ $5, $ Stewart Information Services Corporation STC $ % $1, $1, % $1, $2, $ $1, $ The Travelers Companies, Inc. TRV $ % $33, $40, % $100, $27, $5, $25, $4, Life and Health CNO Financial Group, Inc. CNO $ % $3, $7, % $31, $3, $ $4, N/A MetLife, Inc. MET $ % $57, $100, % $898, $63, $1, $68, N/A Phatra Leasing Public Company Limited PL $ % $86.16 $ % $ $ $61.53 N/A N/A Torchmark Corporation TMK $ % $9, $10, % $21, $3, $ $4, $ Unum Group UNM $ % $10, $13, % $61, $11, $1, $11, N/A Insurance Brokers Arthur J Gallagher & Co. AJG $ % $10, $12, % $11, $5, $ $6, $1, Brown & Brown Inc. BRO $ % $5, $6, % $5, $1, $ $1, $ Crawford & Company CRD.B $ % $ $ % $ $1, $ $1, $ ehealth, Inc. EHTH $ % $ $ % $ $ $0.32 $ $16.02 Health Insurance Innovations, Inc. HIIQ $ % $ $ % $ $ $23.02 $ $34.89 Notes: LTM (latest twelve months); Enterprise Value (market capitalization less total cash and short-term investments plus short-term borrowings and total long-term debt); (earnings before interest, taxes, depreciation and amortization) Source: Capital IQ The material contained in this publication is meant to provide general information regarding valuation topics. This publication does not constitute investment advice with respect to the securities of any company discussed herein, is not intended to provide information upon which to base an investment decision, and should not be construed as such. Professional advice should be obtained before taking any action based on the information contained herein. Publicly available information utilized in this publication has been obtained from sources deemed to be reliable. Houlihan does not guarantee the accuracy or completeness of the information provided within this publication. The material presented reflects information known to the authors at the time this publication was written and this information is subject to change. Houlihan Capital 2

3 Select Insurance Public Company Valuation Metrics (USD in millions, except per share data) Company Name Ticker Return On Assets Return On Equity LTM Operating Statistics Return On Revenue Capital Growth Growth Margin TEV/ LTM Revenue Trading Multiples TEV/ TEV/ CY 2017 LTM Revenue TEV/ CY 2017 Property and Casualty First American Financial Corporation FAF 3.8% 11.9% 9.1% 7.7% 11.6% 11.1% 0.7x 0.7x 6.5x 6.0x Stewart Information Services Corporation STC 4.7% 10.6% 8.4% -1.2% 22.8% 6.4% 0.5x 0.5x 7.8x 6.3x The Travelers Companies, Inc. TRV 2.7% 12.9% 9.0% 2.6% -13.7% 18.6% 1.5x 1.6x 7.9x 9.6x Mean 3.7% 11.8% 8.8% 3.0% 6.9% 12.0% 0.9x 0.9x 7.4x 7.3x Median 3.8% 11.9% 9.0% 2.6% 11.6% 11.1% 0.7x 0.7x 7.8x 6.3x Life and Health CNO Financial Group, Inc. CNO 1.1% 8.3% 4.0% 4.5% 4.1% 20.6% 1.8x 1.8x 8.9x N/A MetLife, Inc. MET 0.1% 1.2% 0.6% -9.3% -82.8% 2.5% 1.6x 1.5x 64.3x N/A Phatra Leasing Public Company Limited PL 1.8% 8.2% 1.9% 12.8% -6.2% 53.4% 3.2x N/A 6.0x N/A Torchmark Corporation TMK 2.6% 12.5% 9.5% 4.5% 1.7% 22.0% 2.6x 2.5x 11.8x 11.5x Unum Group UNM 1.5% 10.6% 8.1% 2.9% 8.4% 14.6% 1.2x 1.2x 8.2x N/A Mean 1.4% 8.1% 4.8% 3.1% -15.0% 22.6% 2.1x 1.7x 19.8x 11.5x Median 1.5% 8.3% 4.0% 4.5% 1.7% 20.6% 1.8x 1.6x 8.9x 11.5x Insurance Brokers Arthur J Gallagher & Co. AJG 2.9% 12.1% 5.1% 4.4% 6.5% 15.7% 2.3x 2.1x 14.3x 11.6x Brown & Brown Inc. BRO 5.7% 11.4% 8.7% 6.4% 4.7% 32.6% 3.6x 3.4x 11.1x 10.8x Crawford & Company CRD.B 6.7% 26.6% 14.1% -5.2% 20.6% 9.5% 0.6x 0.5x 5.9x 4.9x ehealth, Inc. EHTH -3.2% -6.3% -4.6% -1.4% N/A -0.2% 0.7x 0.8x N/A N/A Health Insurance Innovations, Inc. HIIQ 11.7% 17.7% 16.6% 76.2% 371.7% 12.5% 0.9x 0.7x 6.9x 4.5x Mean 4.8% 12.3% 8.0% 16.1% 100.9% 14.0% 1.6x 1.5x 9.6x 8.0x Median 5.7% 12.1% 8.7% 4.4% 13.6% 12.5% 0.9x 0.8x 9.0x 7.8x Notes: LTM (latest twelve months); NTM (next twelve months); (earnings before interest, taxes, depreciation and amortization); TEV (total enterprise value) Source: Capital IQ Houlihan Capital 3

4 Insurance Public Company LTM Equity Performance 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% % % % Property and Casualty Insurance Brokers S&P 500 Index Life and Health Dow Jones Industrial Average Note: The indices are derived from the equity performance of the previously listed companies. Source: Capital IQ Houlihan Capital 4

5 Recent M&A Activity in Insurance Industry April 1, 2016 to March 31, 2017 (USD in millions) Close Date Target Acquirer Target Company Primary Industry Implied Enterprise Value 12/31/2016 United Guaranty Corporation and AIG United Guaranty Arch Capital Group Ltd. Property and Casualty Insurance $3, /4/2017 SquareTrade, Inc. Allstate Non-Insurance Holdings, Inc. Property and Casualty Insurance $1, /1/2016 The Swett & Crawford Group, Inc. CRC Insurance Services, Inc. Property and Casualty Insurance $ /1/2016 CIFG Holding Inc. Assured Guaranty Corp. Property and Casualty Insurance $ /1/2016 PacificSource Health Plans, Inc. Legacy Health Insurance Brokers $ /1/2016 Century-National Insurance Company And Western National General Holdings Corp. Property and Casualty Insurance $ /18/2016 Republic Companies, Inc. AmTrust Financial Services, Inc. Property and Casualty Insurance $ /29/2016 Northern Homelands Company Hartford Fire Insurance Company, Inc. Property and Casualty Insurance $ /1/2016 Direct General Corporation National General Holdings Corp. Property and Casualty Insurance $ /17/2016 Travelex Insurance Services, Inc Cover-More Group Limited Property and Casualty Insurance $ /1/2016 Linear Title & Closing Ltd. Solidifi Inc. Property and Casualty Insurance $ /31/2016 ONB Insurance Group, Inc. Prime Risk Partners Inc. Insurance Brokers $ /1/2017 AmeriHealth Casualty Services AmTrust Financial Services, Inc. Property and Casualty Insurance $ /3/2016 Constitution Life Insurance Company and Pyramid Life Nassau Reinsurance Group Life and Health Insurance $ /29/2016 Interboro Insurance Company, Inc. United Insurance Holdings Corp. Insurance Brokers $ /20/2016 The Phoenix Companies Inc. Nassau Reinsurance Group Insurance Brokers $ /25/2016 Heartland Crop Insurance, Inc. CGB Diversified Services, Inc. Property and Casualty Insurance $ /1/2016 KDC Associates, LLC Risk Placement Services, Inc. Insurance Brokers $ /18/2016 McNeary, Inc. Arthur J. Gallagher & Co. Insurance Brokers $ /21/2016 Mosaic Insurance Company MetroMile, Inc. Property and Casualty Insurance $ /30/2016 XL Life Insurance and Annuity Company Mutual of Omaha Insurance Company Life and Health Insurance $ /7/2016 United Casualty & Surety Insurance Company General Indemnity Group, LLC Property and Casualty Insurance $ /16/2016 Hogan Insurance Services, Inc. Arthur J. Gallagher & Co. Insurance Brokers $ /13/2016 The Buchholz Planning Corporation Arthur J. Gallagher & Co. Insurance Brokers $ /6/2016 Ashmore & Associates Insurance Agency, LLC Arthur J. Gallagher & Co. Insurance Brokers $9.80 6/8/2016 KRW Insurance Agency, Inc. Arthur J. Gallagher & Co. Insurance Brokers $8.26 9/30/2016 United National Specialty Insurance Company State National Insurance Company, Inc. Property and Casualty Insurance $7.35 7/11/2016 First Guaranty Insurance Company Security National Life Insurance Company Life and Health Insurance $6.75 5/11/2016 WeInsure, Inc. N/A Insurance Brokers $3.90 4/1/2016 Capitol Benefits Group Inc. Arthur J. Gallagher & Co. Insurance Brokers $3.80 4/12/2016 Insurance Plans Agency, Inc. Arthur J. Gallagher & Co. Insurance Brokers $3.73 9/23/2016 United States Sports Insurance Company Randall & Quilter Investment Holdings Ltd Reinsurance $2.10 4/20/2016 The Warnock Agency Inc. General Indemnity Group, LLC Insurance Brokers $1.27 8/1/2016 Signature Insurance Services, LLC Quaint Oak Insurance Agency, LLC Insurance Brokers $1.00 3/31/2017 POMCO, Inc. UnitedHealth Group Incorporated Insurance Brokers N/A 3/29/2017 Fleet Risk Management, Inc. AssuredPartners, Inc. Property and Casualty Insurance N/A 3/27/2017 Terrell Insurance Services, Inc. RSC Insurance Brokerage, Inc. Insurance Brokers N/A 3/24/2017 PetPartners, Inc. Independence Holding Company Insurance Brokers N/A 3/23/2017 Farallone Pacific Insurance Services, LLC Arthur J. Gallagher & Co. Insurance Brokers N/A 3/21/2017 American Truck Insurance Exchange, LLC The Hilb Group, LLC Insurance Brokers N/A 3/20/2017 Nicoud Insurance Services Arthur J. Gallagher & Co. Insurance Brokers N/A 3/20/2017 M.F. Irvine Companies, LLC AssuredPartners, Inc. Insurance Brokers N/A 3/18/2017 Patrick Consulting Services, LLC Peoples Insurance Agency, LLC Insurance Brokers N/A 3/13/2017 GoodWorks Insurance, Great Barrington Office Wheeler & Taylor, Inc. Insurance Brokers N/A 3/10/2017 Prepared Holdings, LLC N/A Property and Casualty Insurance N/A 3/9/2017 The Capacity Group, Inc. Edgewood Partners Insurance Center, Inc. Insurance Brokers N/A 3/7/2017 Chaparral Insurance Agency, Inc. Jeff Arnold Companies Inc. Insurance Brokers N/A 3/7/2017 Affinity Title Services, LLC Elmdale Partners, LLC Property and Casualty Insurance N/A 3/6/2017 Cassco Insurance, Inc. HUB International Limited Multi-line Insurance N/A 3/3/2017 Tri-Star Insurance Professionals, Inc. HUB International Limited Insurance Brokers N/A 3/2/2017 Leavitt Insurance Services of Southern California HUB International Limited Insurance Brokers N/A 3/2/2017 Blakestad, Inc. Marsh & McLennan Agency LLC Insurance Brokers N/A 3/1/2017 Walker Insurance & Financial Services, Inc. Acentria, Inc. Insurance Brokers N/A 3/1/2017 Fairway Financial Insurance Group, Inc. The Plexus Groupe LLC Insurance Brokers N/A Source: Capital IQ Houlihan Capital 5

6 S&P Capital IQ - Sector Last 3 Month Equity Performance 15.0% Change in Market Cap by S&P Capital IQ Sector 10.0% 5.0% 0.0% -5.0% -10.0% 12/31/2016 1/31/2017 2/28/2017 3/31/2017 Energy Materials Industrials Consumer Discretionary Healthcare Financials Information Technology Telecommunication Services Utilities Consumer Staples Note: The indices are derived from the equity performance of the S&P Capital IQ Sectors. Source: Capital IQ Houlihan Capital 6

7 M&A Deal Flow Statistics by S&P Capital IQ Sector 16,000 M&A Deal Count - Number of Transactions 14,000 12,000 10,000 8,000 7,080 6,957 8,845 7,176 7,735 7,544 8,953 7,561 8,024 8,265 8,970 7,120 6,788 6,011 6,954 6,702 6,000 4,000 2,000 4,204 4,641 5,372 4,647 4,989 5,391 5,700 5,147 5,062 5,134 5,244 4,543 4,297 4,033 4,197 4,316 0 $1,000 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q M&A Deals - USA & Canada M&A Deals - Rest of the World M&A Deal Count - Total Transaction Value ($ Billions) $900 $800 $700 $600 $500 $400 $354.4 $343.6 $409.1 $321.9 $372.8 $381.4 $462.7 $430.2 $512.6 $406.6 $440.3 $419.0 $268.0 $295.1 $445.7 $364.7 $300 $200 $100 $252.2 $246.4 $338.2 $400.7 $251.0 $289.7 $450.7 $402.3 $385.2 $499.4 $408.0 $403.0 $375.6 $293.7 $363.7 $363.7 $0 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Transaction Value - USA & Canada Transaction Value - Rest of World Houlihan Capital 7

8 M&A Deal Flow Statistics by S&P Capital IQ Sector Percentage Dollars Invested by Sector 1Q17 Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Real Estate Telecommunications Services Utilities Not Listed Houlihan Capital 8

9 About Houlihan Capital Houlihan Capital is a leading, solutions-driven valuation, financial advisory and boutique investment banking firm. We pride ourselves on being thought leaders in an ever-changing landscape. Houlihan Capital is SOC-compliant, a FINRA and SIPC member and committed to the highest levels of professional ethics and standards. Valuation & Financial Advisory We provide an array of services that include enterprise valuations, portfolio valuation, valuation of carried interest, transaction opinions, tax and financial reporting compliance, purchase price allocations, and a wide variety of consulting services through our Financial Advisory Group. Investment Banking Through our Investment Banking Group, we offer sell side/buy side advisory, private placement and capital raises. Through our Special Situations desk, we provide services that fit outside the archetypal verticals, including liquidity solutions, transactional advisory, and secondary market advisory and trading. Litigation Support Our team provides support for a wide variety of situations including commercial and shareholder disputes, derivatives and structured finance litigation, and fraudulent conveyance. For additional information about our Industry expertise and services, visit: Andrew Smith asmith@houlihancapital.com Paul Clark pclark@houlihancapital.com Michael Norton mnorton@houlihancapital.com

Industry Observations December 31, Food and Beverage Industry

Industry Observations December 31, 2018 Food and Beverage Industry Select Food and Beverage Public Company Industry Data The material contained in this publication is meant to provide general information