Case Study: Sourcing & Integrating a Portfolio Investments

An inter-company working group of a financial holdings company sought to leverage LDR’s advisory services to identify an investment opportunity and integrate the company’s solution into its core insurance operating portfolio.

Capturing Value through New Technology

Opportunity

An increasingly prominent technology—unmanned aerial systems (UAS), commonly referred to as drones—came of interest to a holdings company working group for its potential applications. Of note, drones presented a growth opportunity for improving the speed and accuracy of underwriting and claims settlement for large, global insurance companies. The need for understanding the uses in this space was fueled by outside competitors innovating at a faster rate. In an industry ripe for disruption, failing to stay ahead would be consequential on premium retention.

Solution

LDR conducted an analysis of the UAS competitive landscape to produce both a short-term solution to reduce insurer expenses through UAS services and a long-term solution to solidify operating companies’ innovative offerings to enhance the customer experience. LDR’s execution involved: (1) aligning subject matter experts from the core insurance portfolio to understand industry pain points, (2) identifying the highest value investment opportunity available, and (3) integrating the invested company’s services to mitigate disruption through investment.

LDR led the investment of a UAS company and integrated it within the holding company’s portfolio.

Result

In just four months, LDR conducted investment diligence into 65 companies. LDR saw one UAV start-up as a perfect fit and the client affirmed LDR’s recommendation. Within months, the drone provider was engaged in pilots with various insurance operating companies. To this end, access to the holding company’s network of insurers helped grow the company’s international presence, mutually providing value to all involved stakeholders.

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